Reasons for Foreign Direct Investment Derived demand results when businesses move abroad and encourage their suppliers to follow them, creating chain or pattern of direct investment in a market Copyright 2001 by Harcourt, Inc. All rights reserved 15-6Copyright © 2001 by Harcourt, Inc. All rights reserved. 15-6 Reasons for Foreign Direct Investment Derived demand • results when businesses move abroad and encourage their suppliers to follow them, creating chain or pattern of direct investment in a market