Foreign Investments in BRIC Countries - Empirical Evidence from Multinational Corporations

Poplat T

Abstract

Multinational corporations undertake significant investments to establish subsidiaries and production sites in foreign countries. In recent years, investments in BRIC countries were a main driver of the substantial growth of worldwide investment flows. Particularly in times of stagnating growth in North America and Europe, BRIC countries provide business opportunities and growth potentials, but they also entail significant risks as institutional voids, host governments and national champions determine the local business conditions. Thus, a systematic decision process is necessary to anticipate upcoming investment opportunities and risks.