英语论文网

The relationships among the variables and the comparison of the research results with the literature review are contained in chapter 5. This chapter compares the existing literature as discussed in the theoretical framework with the findings in the case study regarding the location factors in Sweden.

The first paragraph contains a discussion on the differences and similarities of the theory and the results. In paragraph 5.2 a conclusion on the results is mentioned. The next paragraph contains the limitations of this research. Finally, the chapter ends with a section that provides the opportunities for future research.

5.1 Discussion

According to the theoretical review it was evident that all the determinants have impact on FDI. The cost factor is an important factor because it is linked with the other factors. An investment in another region has to be profitable, so a cost analysis is always included, relatively high costs have a negative impact on FDI. This holds for the costs of labour, infrastructure, natural resources, new tax regulations and even to adapting to a new culture being too costly. Government institutes noted that the appearance of valuable resources is important, but that cost factor is not an important issue in Sweden. The costs are relatively high, but in return, the quality of labour and life are high, too. Next to this factor the availability of quality infrastructure (e.g. electricity, water, transportation and telecommunications) is an important determinant of FDI. Other very important determinants are the political and legal factors. Policies can promote FDI in several ways, with the most common being partial or complete exemptions from corporate taxes and import duties. Standard policies to attract FDI include tax holidays, import duty exemptions, and different kinds of direct subsidies. FDI inflows are also affected by corporate tax rate differentiation. Subsidizing FDI helps multinational firms reduce production costs, improves incentives to create patents and trademarks, enhances the relative attractiveness of locating production facilities in the country offering incentives, and raises the economic benefits of FDI relative to exporting.

According to the respondents, market size is a strong determinant for FDI, since its focus is on gaining access to and serving local markets. However, there are scholars who argue that market size and demand are, in fact, not such strong attractors of FDI because the easy access to neighbouring regions. Market size and demand affect attraction of FDI since a large market is likely to have higher demand. This is likely to result in greater long-term profitability for the investing business. Thus, market demand has a direct effect on the investments expecting future revenue. Hence, regions with lower wage levels should attract relatively more FDI than regions with higher wage levels. However, the effect wage has on FDI varies, and, according to the respondents, depends on different variables that are used in different studies. Most of the respondents argue that wage levels can reflect quality of labour if measured in “effective wage rates” by adjusting wage level with productivity. Sweden has a repu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。