In this paper we examine the impact of the level of the exchange rate, volatility in the exchange rate and exchange rate expectations on outward US foreign direct investment in 12 developed countries and inward foreign direct investment to the USA from those countries for the period from 1983 to...

This paper looks at the trade off between investment incentives and exit costs for the location of foreign direct investment (FDI). This issue does not appear to have been tackled in much detail in the literature. The analysis considers the effect of profit taxation (as a measure of investment...