Author(s)

Xinsheng Zhang

Corresponding Author

Xinsheng Zhang

Abstract

As a common business behavior of multinational enterprises and governments, foreign direct investment has brought huge benefits and risks. At the national level, this article shows four main reasons for the different risks of foreign direct investment in different countries through political environment, economic environment, government behavior and democracy institution. In order to make foreign direct investment better. Countries and international organizations could avoid or reduce risks as much as possible through international assistance, property rights protection, improving the regulatory system of laws and regulations and using international accounting standards.

Keywords

Foreign direct investment, Investment risk, Reasons, Strategies