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It is interesting to note that in 1989, a few years ago, three quarters of the people surveyed in opinion polls in Los Angeles favored limits on foreign investment while nearly half of them would outlaw it altogether! That happened in the same period when several nations have started lowering their barriers to foreign investment. Mexico, for example, promoted a liberalization plan that allowed outsiders to own up to 100% of industries such as glass, cement and steel which were once severely restricted. The goal of the country, as stated by its President Carlos Salinas de Gortari, was to leverage capital inflows, in order to compensate for the country's shriveled lines of foreign credit. On the other hand, countries that have tried to "screen" foreign investment had little success. Canada had experimented on that practice and succeeded in limiting investment, but soon gave up the project and rejected that kind of attitude .
The aim of this paper is to investigate the FDI phenomenon and its evolution across time, as well as across borders. It operates via creating a new company or buying an existing one. In both cases - provided operations are held in a successful environment - shares and corporate capital are increased. Promotion of foreign direct investment forms an integral part of economic policies. The role of foreign direct investment in accelerating economic growth, is the infusion of capital, technology and modern management practices. Most activities open to foreign investment, do not experience any limit on the extent of foreign ownership. .
2. THE HISTORICAL VIEW OF FDI.
Foreign Direct Investment is not a recent strategy, but one that has grown up through centuries. The same phenomenon can be met looking back to the history. The emergence for its existence became evident during the nineteenth (19th) century. It was the time when the use of natural resources and service activities became the key factors of international business.
