The relevance of theories of foreign direct investment to mergers and acquisitions in Africa

There is no single theory that explains all the activities of multinational enterprises (MNEs). In this article, I briefly discuss selected theories relevant to developing countries and from a historical perspective. This theoretical literature review explains why international production takes plac...

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Bibliographic Details
Main Author: Magdalene Kasyoka WILSON
Format: Article
Language:English
Published: General Association of Economists from Romania 2024-09-01
Series:Theoretical and Applied Economics
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Online Access: http://store.ectap.ro/articole/1769.pdf
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Summary:There is no single theory that explains all the activities of multinational enterprises (MNEs). In this article, I briefly discuss selected theories relevant to developing countries and from a historical perspective. This theoretical literature review explains why international production takes place, explains the Mergers and Acquisitions (M&A) mode of entry for FDI, and demonstrates the relevance of the selected theories to M&A in Africa. The article concludes that developments in theories of FDI since the beginning of the 21st century no longer view FDI in aggregate form. To understand trends of FDI, researchers must draw from theories that consider entry mode-choice.
ISSN:1841-8678
1844-0029