Foreign Direct Investment in a Globalizing World: A Metro Detroit Prospective

Abstract

Inward foreign direct investment (FDI) can be used as a powerful tool to strengthen struggling economies. Through a look at the capabilities and determinants of FDI in the United States, the first part of this study sets the tone for the major research question at hand. FDI has the ability to benefit the Metro Detroit economy. Through recent economic struggles, the area needs economic stimulation. This study seeks to identify the key factors that motivate multinational firms to invest in the Metro Detroit area. Both quantitative and qualitative data were gathered in the form of a survey and interviews. Results conclude that several advantages or market imperfections are the major sources for multinational firms coming to Metro Detroit. These advantages include location, talent, political, and economic aspects of the local economy that multinational firms consider valuable when making their decision to invest in Metro Detroit.