"Technological changes; particularly in the space-shrinking technologies of transport and communication, in unison with the overall decline in trade barriers, help to make possible the internationalisation of economic activity and also the development and geographic spread of companies (Dicken pp 120, Adapted)." These revolutions have induced the explosion in Foreign Direct Investment (FDI) in the last 20 years. FDI is the principle way that firms compete internationally in the modern global economy. It is an investment in which the investor acquires a substantial controlling interest in a foreign firm, or builds a subsidiary in a foreign country, (Maskus, K, 1995). Firms internationalise their operations for numerous different reasons, both general and specific. The most fundamental reason, however, is the drive for profit, which is the quintessence of all capitalist activity. In extending business activities beyond national frontiers, firms must explore a myriad of avenues. As uncertainty is paramount in the world of business, predictions made in explaining why certain phenome......

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