| Foreign Direct Investment is always called FDI for short. It is explained from two aspects:firstly, from the angle of the motherland; secondly, from the angle of the host nation. It acts as one of the basic forms of international capital’s flow. FDI is getting more and more concern as a new kind of economic relationship between countries. Political risk is an import factor which can influence FDI’s success. The investors will suffer uncounted loss if political risks cannot be avoided in time. This paper plans to explore the impact of political risks on FDI from the macroscopic angle. Take Middle East and North Africa as research samples, a nonlinear model about FDI and political risk will be set under macroscopic data to test their relationship.Specifically, this paper has five chapters. First of all, it elaborates the definition and characteristics as well as the related theory of FDI. Then elaborates the definition, manifestations and evaluation system of political risk. Therefore, the nonlinear model is taken to study the relationship between FDI and political risk. The article use SPSS to do regression analysis with all of data, after that, the influence of different variables on FDI can be seen through numerical simulation. Finally, based on the previous theory research and empirical research, it discusses the preventive strategies to avoid political risk in the process of FDI. |
