The Theoretical Bases of International Capital Flows and FDI and the Possibilities of their Application in Practice

Abstract

FDI's deep theoretical foundations were formed in the 20th century and the late 50th-early 60s. The article reviewed the main theories of foreign investment, international technology corporations theory, the theory of international production cycle of the product, the market imperfection theory, oligopoly and FDI theory, internalization theory, through geese theory, etc. Analysis revealed the main theories explaining FDI trends in transition and developing countries.