One main driver behind global flows of foreign direct investment is increasing globalization.
Globalization of the world economy encourages firms to use FDI as a way to create low-cost production bases.
It also prompts multinationals from advanced and emerging economies alike to buy up businesses in other markets.
Another driver is international mergers and acquisitions. Mergers and acquisitions have propelled long-term growth in FDI and will likely do so for the foreseeable future.