Multinational Companies as Carriers of Foreign Direct Investment

Marjanović, Darko and Ahmetagić, Deniz (2013) Multinational Companies as Carriers of Foreign Direct Investment. In: Tudományos mozaik: Mindennapi tudomány:10. kötet. Tomori Pál Főiskola, Budapest, pp. 265-273. ISBN 978-963-89679-2-3

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Abstract

Multinational companies are the main drivers of the world economy and the globalization process, and therefore the most important drivers of foreign direct investment. The beginning of the XXI century is characterized by complex processes of world development in which the developed countries, multinational companies and the latest technology to dominate the economic and other fields. When we talk about foreign direct investment and their investment in a particular country, we think first of all the multinational companies that have the capital, technology and know-how to countries that do not have their own resources to finance development, but aim to attract foreign investment. The main motive of every multinational company to invest capital in a foreign country is a profit, a new market, favorable conditions for the use of resources, the benefits of the tax system, etc. To prevent delay in development, many countries offer multinationals a variety of tax benefits in the form of low tax rates, tax incentives and exemptions, and thus contribute to creating a favorable investment climate for foreign investment.

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