Expanding Markets: Foreign Direct Investment as a Lesson in Economic Geography

Firms face numerous challenges when looking to invest internationally, not the least of which includes understanding the business environment of a new market. Given the expansion and impacts of foreign direct investment (FDI), it has become increasingly important for students to understand and analyze the motivations, concerns, and strategies of companies looking to expand globally. This article illustrates the importance of introducing the topic of FDI into economic geography coursework by using the case of Canadian firms in China.