International trade/FDI theories to explain firms behaviors

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In general we think international firms are based in the industrialized countries such as the US, Germany, and Japan. In contrast, an interesting phenomena over the last three decades has been the growth of foreign direct investment from developing countries. There are great examples of this right in our own backyard with several Mexican multinational firms based in Monterrey. Alpha is one of these firms. For this DB, review Alpha’s annual report (link given below). Use at least three of the international trade/FDI theories that are discussed in the text to explain why Alfa has been so aggressive in investing outside of its home country. Finally, if you were the CEO of Alpha how should the information covered in the current events affect your decision making?

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