The term given to a group of developing countries who are achieving rapid rates of growth and industrialisation is ‘emerging markets’. These countries are generally classed as ‘middle income’ countries by the World Bank. Although they have per capita income levels well below that of developed countries like the UK, their high levels of economic growth often make them attractive destinations for firms making investments overseas. One such economy is Malaysia, a country of 26 million people located in southeast Asia.
This article examines Malaysia’s attraction as a location for foreign direct investment (FDI) using PESTLE analysis. The PESTLE technique considers political, economic, social, technological, legal and environmental issues and is a form of analysis often carried out by firms before making the decision to invest in another country.
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