Do Direct International Flights Represent A Regional Development Opportunity? A Global Economy?

7964 Words Jun 25th, 2015 32 Pages
Do Direct International Flights Represent a Regional Development Opportunity in a Global Economy?

1. INTRODUCTION
Does having access to direct international flights impact the attraction of foreign direct investment (FDI) and the strength of a local and regional economy? This paper attempts to answer this question through a two-phased research project: 1) a literature review, and 2) a case study of a possible direct international flight from Cleveland Hopkins International Airport located in Northeast Ohio to Frankfurt, Germany. The choice of international flight was based on the existence of German companies in Northeast Ohio, particularly in the automotive industry, the region’s potential to attract German companies, and the available connections between Frankfurt and other destinations in the world.
The relationship between FDI and air connectivity should not be considered static. This relationship depends on the time period in question. The focus of this paper is the recent phase of globalization following the invention of the internet, creation of the European Union single market, and the North American Free Trade Agreement. While the globalization phenomenon is not new, the relationship between cities, multinational activities and economic growth has been largely redefined in this phase. In today’s world, the scale and performance of large cities cannot be understood without considering the scale and performance…
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