Introduction
In this world, investment and trading is very essential for its progress of globalisation in the economy activities and this has creates many foreign investment in the market. Thus, it can defined foreign direct investment is a direct investment that involves another country or firms to set up a branch, joint ventures or subsidiary in another country. (Dicken 2004) Besides, it has fabricated four primary motivations for FDI that are market seeking, resource seeking, efficiency seeking and strategic asset seeking. (Eden 2001) Hence, this has encouraged foreign investment to increase and to gain mutual benefits between countries. The boom in FDI from some developing and transition economies also reflects on the increasing competition of many firms in general. Firms have realized the growing importance of accessing international markets and connecting it to knowledge networks and global productions (UNCTAD 2007). In addition, the FDI surge has also been fuelled by export revenues which have built up the financial strength needed to engage in overseas investment (UNCTAD 2007).
Country Background
Singapore
Republic of Singapore or known as Singapore is an island that has become one of the world's most prosperous countries with strong trading links with most of the countries. Singapore achieved its independence in 1965 and since then the government has played an active role to welcome foreign investments in the country (The Heritage Foundation and The Wall Street Journal 2007). Government does play a vital role in the economic and making Singapore the best place to start, grow and globalize businesses. With this, it will assist the country to develop or urban agglomeration that may lead to higher income, increase of living stan ...