This timely book surveys the economic theory of foreign direct investment (FDI) in relation to geopolitics. Imad A. Moosa sheds light on the emergence of geopolitics as a major determinant of FDI flow, providing an erudite analysis of the interconnections between FDI, globalisation and imperialism. Drawing on conventional, modern and Marxist geopolitical and economic theories, conjectural history and contemporary global affairs, Moosa demonstrates the reciprocal relationship between geopolitical power and FDI flows. The book highlights the impact of contemporary geopolitical events on FDI flows, including COVID-19, the US-China trade war, the Russian invasion of Ukraine and Donald Trump's second presidency. Moosa constructs a composite index of geopolitical power for a number of countries across the globe, emphasising that FDI is not only a tool for exercising this power, but also a means of enhancing it. An imperative reference for students and academics in international relations, political economy, geopolitics, regulation and governance, Understanding the Geopolitics of Foreign Direct Investment is also a beneficial read for policymakers.