FDI resilience during global polarization: MNE location choice and uneven impacts on low-income countries
研究了全球从一体化转向两极分化时，影响外商直接投资区位选择的因素如何变化，通过六个低收入国家案例，揭示了地域和经济依赖如何限制跨国公司的资源获取，并分析了低收入国家在政治压力下维持投资韧性的能力。
How should factors behind the location decision for foreign direct investment (FDI) change in periods of global polarization from periods of global integration? Conventional location choice factors that center on cost-benefit analyses downplay the significant location-specific and global dependence risks of investing in a host country during global polarization. We present six mini case studies focusing on low-income countries in the Indian subcontinent region. Drawing from our observations, we expand on location choice theory and hegemonic and resource dependence theories to capture how territorial and economic dependency can limit an MNE's continued access to the host trading resources. While location-specific risks stem from a host country's physical location, natural access points, and geographic proximity to major geopolitical actors, global dependence risks indicate challenges in maintaining support from host institutions amid heightened global contestations. Both types of risk reflect upon a low-income country's ability to preserve a stable trading environment of FDI resilience in the face of rising global political pressure. Greater FDI resilience can also offer potential opportunities during these times of polarization. Our study contributes to the growing literature on FDI location choice during global polarization by highlighting how global politics has been reshaping low-income countries' FDI resilience, compelling MNEs to explicitly accommodate this factor in their FDI location framework.