Factors analysis of domestic risk characteristics for MNCs

This research investigates the significant domestic risks characteristics taken into consideration by multinational corporations (MNCs) when making investment decisions across countries. These risk characteristics are factor analyzed to reveal their importance in the decision making process of foreign expansion and investment. A set of methodologies were applied with reliability and validity tests, as well as factor analysis in analyzing the results. Novel data from MNCs assent that key risk characteristics vital to foreign direct investment (FDI) decisions can be factored into eight risk groups namely: facilities and location, market, political, technical, legal, financial, human resource and cultural risks. Results provided important information in attracting value-added investments for emerging countries.