Driven by cross-border mergers and acquisitions (M&As)1 and the internationalization of production in a range of industries, foreign direct investment (FDI) has risen significantly since 1980 (see Table 1.1). Among the major players are the European Union (EU) and North America, which represent roughly two-thirds of FDI stock, approximately 60 percent of world’s inward FDI stock and 70 percent of the respective outward. Although developed economies both attract and generate the majority of FDI flows, the inward FDI stock of emerging economies has been following an upward trend, at the same time as the outward FDI stock of the G8 members has been declining. The rising number of home countries, along with the mounting volumes of FDI, indicates the importance of FDI in international business.