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Foreign direct investment analysis in the Republic of Croatia

Zoran Krupka orcid id ; Ekonomski fakultet-Zagreb

Puni tekst: hrvatski pdf 4.535 Kb

str. 65-76

preuzimanja: 368



In order to penetrate and start its business on a foreign market, a company may use the strategy of foreign direct investments (FDI). By applying this strategy, a company gets the right of possession and control over a foreign company and the ability of managing it. In most cases, the strategy of FDI is a logical continuation of earlier applied strategies, and therefore is the most complicated way of performing in international markets. Most companies do not have the ability to apply the strategy off FDI because they do not posess enough financial resources or human potential. A company that tries to operate in foreign market must have financial power and quality human recources, but it also needs to have knowledge about environments of country it tries to penetrate. Some of the most significant barriers to FDI are legal environment, regulations and rules. They need to be studied by details before any action gets started in a foreign country's market. Beside legal environment, investors need to study other environments (economic, political and cultural) of the foreign country that might cause problems for entering and operating in that foreign country market.
It is not only the company that is investing that has advantages of such acts but also the country that the capital is being invested in. Some of those advantages are enhancing employment, influencing know how, building of infrastructure and rising of entire economy. However, there are also disadvantages and risks to be faced, both by the foreign country and by the country that is investing.
This paper presents a short literature review of theories on FDI, analyzes the structure of FDI in the Republic of Croatia during the last ten years and gives the reasons that make Croatia (un)attractive as a potential destination for capital investments.

Ključne riječi

foreign investment; Republic of Croatia

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Podaci na drugim jezicima: hrvatski

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