Exchange rate and foreign direct investment : how close is the relationship ?

الملخص EN

The genesis of the relationship between the foreign direct investment and exchange rate is derived from the nature of FDI itself.

This kind of investment is international and occurs across borders.

Therefore the investor must take care of the fluctuations and the levels of the exchange rates between the home country and the host ones.

Different approaches are presented to explain how the exchange rate exercises an impact on the movement of foreign investment flows.

This paper comes to shed light on the theoretical background of the linkage between FDI and exchange rate.