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Wordcount: 3012
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Both Ireland and Spain attract
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Foreign Direct Investment (FDI) refers to capital expenditures by companies (with their head office in another country) to either acquire assets of an existing firm in a foreign country with the intention of playing a role in managing those assets, or to establish a new firm. Put more simply, a firm in one country invests in another country in order to control and manage an actual productive capacity that will generate output.
There are a number of causes of FDI, some of which can be applied to almost all foreign investment, and others that are specific to the country in which the investment is being undertaken. The more general causes of FDI are:
„h Neo-classical theory
This refers to the comparative advantages or natural resource
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