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Foreign Direct Investment: A Value Proposition Framework

Indian Journal of Industrial Relations

Volume 59 Issue 3

Published: 2024
Author(s) Name: Prashant Salwan and Yoram Wind | Author(s) Affiliation: Professor at the Indian Institute of Management Indore, India.
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Abstract

Emerging as well as frontier economies need to position themselves differently to attract Foreign Direct Investment from developed market firms. A developed market firm takes location decisions by evaluating the host country’s FDI attractiveness with its own customer value proposition creation. In order to market itself as an attractive destination for investment, the countries need to match their positioning with the firms’ value proposition requirements. A country needs to understand what it can give a foreign firm to invest in its marketplace as well as what a foreign firm will gain by investing in the country. This article examines how to develop its own unique proposition with respect to other competing destinations. The key themes include Government Policy and Administration, Infrastructure, Legal System & Implementation, Economy, Business Ecosystem & Location Advantages.

Keywords: N.A.

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