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In summary, the determinants for transportation (the availability of highway systems, air transport, ports, trans-shipment and rail systems, and the degree of the interactions between transport modes, are very important for the location choice. The lack of proper infrastructure will increase the costs and reduce the efficiency for FDI.

2.2.3.2 High Industrial Concentration (Clustering)

A lot of FDI concentrate on areas where firms already operate in related industries, this leads to high industrial concentration, also known as clusters (Majocchi and Pressuti, 2009). Besides, multinational firms invest where other firms have already developed their activities (foreign agglomeration economies). Majocchi et al. (2009) noted that not all clustering is similar, you have industrial clusters and foreign agglomeration economies, the distinction between the two clusters is quite unclear. A better distinction may be ‘vertical clustering', which is clustering related to the supply chain, and ‘horizontal clustering' related to similar activities. Wheeler et al. (1992) found agglomeration economies to be the dominant influence in investor calculation.

To conclude, the determinants for infrastructure and technological factors are: (a) level of infrastructure, (b) high industrial concentration (clustering), (c) the availability of a well-qualified workforce and (d) the availability of reliable corporative suppliers. Several modalities and their interrelationships have been explained before. Consequently, the factors can be divided in two headings; (a) vertical clustering, and (b) horizontal clustering. According to Galan and Gonzales (2007), this factor is important to the appeal of a region. The availability of quality infrastructure, particularly electricity, water, transportation and telecommunications, is an important determinant of FDI. Infrastructure facilities and clustering have a positive effect on FDI inflows (Asidu, 2002).

2.2.4 Political and Legal Factors

The paragraph gives an overview of the political and legal factors that could influence the choice of location, and contains the determinants political stability and tax.

2.2.4.1 Political Stability

According to Erramilli (1991) the political environment within the host country should be considered in investment decisions. Further on, Driscoll (1997) maintains that an uncertain political situation creates unpredictable conditions for the investor. The ranking of political risk among FDI determinants remains rather unclear. According to UNCTAD (1998), where the host country owns rich natural resources no further incentive may be required, as it is seen in politically unstable countries, such as Central-African countries, where high returns in the extractive industries seem to compensate for political instability. In general, as long as the foreign company is confident of being able to operate profitably without excessive risk to its capital and personnel, it will continue to invest. 

For example, large mining companies overcome some of the political r本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。