Foreign Direct Investment (FDI) is becoming a growing global trend undertaken by businesses to expand their operations in multiple countries as well as their domestic base. FDI has increased around the world over the past 20 years, with outflows from US$241,863 million in 1990 to US$2,171,384 million in 2007, just before the global financial crisis, an increase of approximately 837% (OECD, 2014). This essay will examine why some countries attract more foreign investment than others by looking at various factors including growth rates of economies, access to natural resources, political stability, risks of establishing a presence in a country and much more. even more. The Economic Forum identifies that there are “12 pillars of competitiveness” in which a country is attractive to invest. The basic requirements start with institutions, regarding the legal framework, government attitude towards markets, regulation and corruption. Next comes the country's infrastructure. This includes a quality road, rail, port, airport, electricity and telecommunications network. Health and primary education are also basic requirements for a healthy and well-educated workforce. In addition to economic stability, all of these are essential conditions for a factor-driven economy. To improve efficiency, higher education and training are necessary for the economy to move up the value chain. An efficient goods market allows you to have a sophisticated customer base and to be competitive both nationally and internationally. The country must also have an efficient labor market and financial market and be technologically ready with access to information and communications technologies. Besides a substantial market size, all of these factors are necessary for effective...... middle of paper ...... available: http://www.bloomberg.com/news/2010-10-01 / repsol-to-sell-71-billion-stake-in-brazil-unit-to-china-petrochemical.html. Last accessed April 26, 2014. Moulds, J. (2012). China's economy is expected to overtake that of the United States in the next four years, according to the OECD. Available: http://www.theguardian.com/business/2012/nov/09/china-overtake-us-four-years-oecd. Last accessed April 26, 2014.OECD. (2014). Foreign direct investment (FDI) statistics. Available: http://www.oecd.org/investment/statistics.htm. Last accessed April 26, 2014. White, J. (2014). China is attracting more investment. Available: http://online.wsj.com/news/articles/SB10001424052702304788404579521510670705136?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB1000142405270230478840 4 579521510670705136.html. Last accessed April 26, 2014. World Economic Forum (2014) The Global Competitiveness Report, Switzerland: SRO-Kundig.