THE FOREIGN DIRECT INVESTMENT IN TRANSITION COUNTRIES: THE EXAMPLE OF REPUBLIC OF SRPSKA

Abstract

Foreign direct investments (FDI) are developmental chance of companies from transition countries and the best way to increase production, employment and living standard for the long term. This form of international movement of capital is authentic generator and accelerator of globalization, it improves international competitiveness of companies in transition countries and it is in correlation with the export aspect of some countries. In this moment, FDI is the biggest developmental chance of companies from transition countries. Precisely, it is the only form of international movement of capital which could move the production, open the door abroad, increase employment and raise the living standard in Central and Eastern Europe. In today's business conditions, it is necessary to rely upon those FDI that would contribute to the restructuring towards the production of products that are competitive at the international market.