Foreign Direct Investments: A Key Factor for Business Globalization

Marjanović, Darko and Domazet, Ivana (2021) Foreign Direct Investments: A Key Factor for Business Globalization. In: Handbook of Research on Institutional, Economic, and Social Impacts of Globalization and Liberalization. Business Science Reference, Hershey, PA, pp. 96-116. ISBN 978-17-99844-59-4

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Foreign direct investment is considered an effective way to enhance a country's comparative advantages. They are also a significant source of economic development, modernization, growth of production, exports, employment and income, and the main actors are multinational companies. Globalization of the market has increased the tendency for many companies to procure goods and services from different locations. The main goal of the paper is to present the structure and forms of FDI at the global level, as well as theories of FDI through the interconnectedness of multinational companies, their investments, and the economy of a country as an end user. The results of the research clearly indicate that it is in the interest of every country to attract as many FDI as possible, given that they are one of the success factors of the national economy in the global market. Therefore, the primary task of economic policy makers is to monitor world trends, harmonize domestic regulations and create an investment climate that will benefit foreign investors.

Item Type: Book Section
Additional Information: COBISS.ID=30531337
Research Department: Macroeconomics
Depositing User: Jelena Banovic
Date Deposited: 26 Jan 2021 12:26
Last Modified: 27 Jan 2021 13:52

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