FOREIGN DIRECT-INVESTMENT IN COMPUTERIZED BUSINESS SIMULATIONS

By definition, foreign direct investment is an investment made under d ifferent national governments. However, current literature and researc h on foreign direct investment have not properly incorporated host-cou ntry government policies into the investment decision process. This ar ticle develops a theoretical framework to investigate the interaction between policies of the host-country governments and performance of fo reign equity investment. Based on the theoretical framework, a compute rized simulation model is developed. The model may be used as a tool f or analysis of real-world foreign direct investments and as an aid to develop negotiation strategies for foreign direct investments.