By definition, foreign direct investment is the acquisition of tangible assets such as machinery, land and factories; this type of investment often takes place between two companies, usually multinationals from different countries. Foreign direct investment is one of the benefits of globalization as it has a direct impact on aggregate demand, with a consequent effect on technology, job opportunities and the increase in intellectual property owned by countries. In this essay I will discuss some of the factors that influence a country's readiness to obtain foreign direct investment. One of the many factors that can make a country more attractive for foreign direct investment is the level of corporate tax within the country. For example, if a company wishes to expand into another country, it will need to evaluate the profitability of the investment where corporation tax is an important factor in judging profitability (HM Revenues & Customs, 2013). However, foreign direct investment does not just mean expansion into another country, while it could simply be an investment in infrastructure where the level of corporate tax does not make sense. Therefore, if the level of corporate tax is high, the decision to invest can only be criticized if companies are setting up production in other countries. This therefore suggests that some countries may attract more foreign direct investment than other countries depending on the level of corporate tax, where expanding multinationals are able to minimize corporate tax payments. However it could be argued that corporate tax levels may not play a huge factor in investors' decisions when deciding to invest in foreign countries as multinational companies have the ability to declare their profits in tax havens such as Luxembourg and Ireland, as suggested Eicke (2009). This… middle of the paper… a lot of foreign direct investment is due to the abundance of natural resources. Another reason why some countries may attract more foreign direct investment than others may be due to the quality of infrastructure residing in the economy. Not only is infrastructure a determining factor for foreign investors, but it also helps improve competitiveness among domestic businesses. Furthermore, Rehman (2011) suggests that poor infrastructure causes unnecessary transaction costs such as communication and transportation costs. Improvements in infrastructure can also benefit the economy's export capacity. For example, if a country builds another airport, a company can increase its exports to foreign countries which attract more foreign direct investment as they are able to expand their production thus leading to an increase in net profits. Furthermore, inadequate infrastructure could hinder the foreign investments that they would expect to have