The purpose of this essay is to find how Location specific factors affect the FDI of MNEs.This is done through the use of Dunning's eclectic paradigm, mainly the L-factor of OLI. TheL-factor is then combined with market agglomeration and unexploited markets as aframework to find location as a motivator for companies´ FDI. We also use Dunning’s fourmotivations for FDI when trying to find how Location affected FDI.Three companies are interviewed in semi-structured interviews to ensure their views on thesubject can transpire but still keep them within the subject at hand. We found that all thecompanies we interviewed mainly looked for agglomerated markets, access to markets,customers and access to competent people within the markets when deciding which market tosettle in. We also found that unexploited markets were not something the companies weinterviewed were searching for nor valued highly in their investment decision. This has to dowith the fact that we only interviewed three companies and did not interview in a wideenough range of industries to be able to conclude our findings.