Question

1. Compare and contrast global foreign direct investment inflows received by EU and Eastern European countries. Note: Eastern European countries include Ukraine; Russia; Lithuania; Slovenia, Georgia Republic, etc.
2. Discuss the different factors that can attract inflows of FDI to EU.

Answer 1

A number of factors play a role: geography, size of the country, resource endowment, costs and skills Of labor, government FDI policies, and the investment climate in general.estimated deviation of FDI stocks in each economy from its potential level over the 2009–2015 period.
In this graph, various characteristics of the countries (macroeconomic variables, distance from the market, trade costs, etc.) are taken into account. The average FDI potential level for each economy over the seven-year period is 100; years of under-performance and years of over-performance are included