How to understand foreign direct investment

One of the most debated topics among economists is globalization, its concept, its origin and especially its responsibility for the new challenges. Over the past decade, the world economy has become increasingly integrated with a global trend of liberalization. One of the signs of this globalization is the significant increase observed in Foreign Direct Investment (FDI) or the growth of activities of multinational companies. The economic environment is constantly evolving, whether in a good or bad way, since the policies implemented in the past can therefore represent an obstacle to the success of the activities of economic agents. Hence the need for a state to always adapt its action to the prevailing situation in the world. This action must be dynamic and not static: it is a question of carrying out economic reforms when it becomes essential. In order to understand the importance of economic reforms for a country, it is obvious to look at economic liberalization through its evolution, its theories, its principles, etc.