Foreign Direct Investment (FDI) is becoming a growing global trend undertaken by companies in order to expand their business across multiple countries and also into their home base. Foreign direct investment has increased worldwide over the past 20 years, with outflows ranging from $241,863 million in 1990 to $2,171,384 million in 2007, just before the global financial crisis, an increase of approximately 837 million. % (OECD, 2014). This essay will examine why some countries attract more foreign investment than others by examining a variety of factors, including economies' growth rates, access to natural resources, political stability, risks of settling in a country and more. The Economic Forum identifies the '12 pillars of competitiveness' for a country to attract investments. The basic requirements start with institutions, regarding the legal framework, the government's attitude towards markets, regulation and corruption. Next is the country's infrastructure. This includes a quality road, rail, port, airport, electricity supply and telecommunications network. Health and primary education are also key requirements for a healthy and well-educated workforce. Together with economic stability, all these are fundamental requirements for a factor-based economy. To improve efficiency, higher education and training are necessary for the economy to move up the value chain. An efficient goods market allows for sophisticated customers and the ability to be competitive both domestically and internationally. The country must also have an efficient labor market and financial market and be technologically ready with access to information and communication technologies. Together with a substantial market size, all these factors are necessary for an efficient...... middle of paper...... available: http://www.bloomberg.com/news/2010-10- 01 /repsol-will-sell-a-7-1-billion-stake-in-brazil-unit-to-china-petrochemical.html. Last accessed April 26, 2014. Moulds, J. (2012). China's economy will overtake the US in the next four years, the OECD says. Available: http://www.theguardian.com/business/2012/nov/09/china-overtake-us-four-years-oecd. Last accessed 26 April 2014.OECD. (2014). Statistics on foreign direct investment (FDI). Available: http://www.oecd.org/investment/statistics.htm. Last accessed April 26, 2014.White, J. (2014). China attracts more investments. Available: http://online.wsj.com/news/articles/SB10001424052702304788404579521510670705136?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB1000142405270230478840 79521510670705136.html. Last accessed 26 April 2014.World Economic Forum (2014) The Global Competitiveness Report, Switzerland: SRO-Kundig.