Exporting Costs: A Key Factor in FDI Decisions for Australian Multinationals

Australian industry has quickly extended its reach into international markets over the last fifteen years. Foreign Direct Investment has grown particularly quickly. This paper focuses on four questions: What motivates Australian multinationals to invest abroad? Why do they find the UK to be the most attractive location? Do the investments lead to a reduction in exporting? Does foreign production follow an export mode? Survey research showed exporting costs to play an important role in all these issues.