... 37 percent of the total" (Hill,2002). From my point of view, the main motives of multinational corporations to adopt FDI are involved in four aspects: cost, market, taxation and risk. ? Cost FDI can reduce operative cost in the field of labour, material, transportation and taxation. As far as we know, labour cost is an important part of the cost structure, as an investor must consider it. Therefore when multinational corporations chose FDI as a way of entry modes, some of them will choose a country that can provide cheaper labour as their host country. According to the research of the World Bank, there are 66 low- income countries whose average annual income is under $745 per person, such as Ghana, Angola and so on. Whereas there are 52 high-income countries whose averages annual income is higher than $9,206 per person, such as Germany, United States and so on. (The World Bank.com) ...

See this essay or coursework document in full right now