U.S. foreign direct investment in developing countries : a case study of Malaysia, Mexico and South Africa

There is an upsurge for foreign investment in developing countries. Developing countries that seek foreign investment actually prefer foreign direct investment. The issue of foreign direct investment has become a controversial issue among developing countries. Though this type of investment provides economic growth, employment, and infrastructure development, developing countries may also suffer legal and economic manipulation by the foreign investors at the expense of their countries resources. The foreign investment policies of developing countries that seek such foreign direct investment ultimately determine the actions of foreign investors. In many developing countries, foreign investment policies and other investment regulation are catalysts to the desire for economic growth than proponents of such growth. This paper seeks to examine the concept of foreign direct investment in developing countries.