Factors Affecting Foreign Direct Investment Decision - Kazakhstan - Case Study Example

The paper " Factors Affecting Foreign Direct Investment Decision - Kazakhstan" is a perfect example of a finance and accounting case study. According to Stonehill, Moffet, & Eitheman (2009), foreign direct investment (FDI) is an investment undertaken by an organization or individual in a foreign country. The objective of such an entity is to make reasonable profits and maintaining a high level of management. In this chapter, the past studies including the latest journals, articles, and books about FDI will be reviewed. FDI is crucial since it has many advantages such as the creation of employment for the local people and economic growth for the nation (Matthias & Carsten, 2016). Nations must be very keen to avoid any barriers that may affect foreign investors. They must ensure that their countries have the best environment for businesses. According to Li & Resnick (2003), countries that have accepted and facilitated foreign investment have grown their economies in a remarkable way. The literature review will focus on those factors that affect FDI decisions in Kazakhstan, a republic in northern Asia, decisions. It will consist of three sub-clauses on the following topics:

• Political risk is a barrier to attracting FDI in Kazakhstan?

• How corruption affects the increase in business costs? Feasibility of FDI in Kazakhstan.

• The effect of human capital on inwards FDI in Kazakhstan.

According to Matthias & Carsten (2016), theoretical studies are formulated by scholars to predict, understand and explain why things are the way they are. In many instances, academic studies challenge and extend the already existing knowledge through critical analysis. Conceptual framework structure supports the theory of research analysis. On the other hand, empirical studies are the combination and analysis of primary data that is based on direct observation of the current issues; issues that are currently happening. The kind of research types employed when carrying out empirical studies includes observation and descriptive study.