Motives for foreign investment

Motives for foreign investment include market, economic and strategic considerations.

Market motives

 * offensive market motives

Example:

Amway, Avon and Mary Kay direct-selling in China (Direct marketing was later outlawed.)


 * defensive market motives

Economic motives

 * avoid taxation


 * reduce costs of labor


 * access natural resources


 * access capital

Strategic motives
Take advantage of. ..


 * first-mover advantage


 * technology leadership


 * brand image


 * customer loyalty


 * competitive position