Foreign Direct Investment in Latin America and the Caribbean

National and international policies have a significant influence on the changes that occur in the business environment in Latin America and the Caribbean, providing incentives for investment decisions, not only for companies already operating in the region, but for new entrants as well. Currently, foreign direct investment flows are the outcome of a combination of factors, including the international environment, national policies, and corporate strategies. Thus, this research evaluates the volume of FDI inflows into the region; the factors that attract them, including incentives and regulations; and their contribution, economical and societal, to Latin American development. This research also explores some of the potential costs of FDI, and its implications on policy options