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The present diploma thesis attempts to contribute to the broad issue of understanding why firms become multinational and why they invest in specific countries. Determinants affecting corporate strategies of multinational firms (MNFs) and the influence of FDI related economic policies are specifically analyzed for the case of German MNFs in India. The thesis provides a (1) profound theoretical background, (2) empirical validation of theoretical predictions using firm-level data and management survey results and (3) implications on corporate strategy and economic policy.

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Simon Gerschlauer studied economics at the University of Frankfurt and the University of Paris Dauphine IX. After completing his diploma thesis at the research centre of Deutsche Bundesbank he joined the Regional Management of Deutsche Bank AG.

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