Economic Themes (2008) 46 (4) 8, 85-100
Suzana Stefanović
Abstract: Foreign Direct Investment (FDI) has become one of the most important determinants of economic growth, especially in developing countries and transition countries. Therefore, the study of types, benefits, and flows of FDI in contemporary world is of great importance. The paper represents the author’s attempt to point out the vast importance of FDI for economic growth of transition countries, especially in relation to the process of privatization and transition to market economy. So, the author also tries to relate the flow of FDI to MNCs’ mode of market entry. This relation between market entry strategy and FDI flow is especially important for Serbia, which is relatively behind the countries from the region with privatization of state enterprises, as well as with transition to fully market economy.
Keywords: foreign direct investment; strategy; market entry; transition country
MARKET ENTRY STRATEGIES WITHIN FOREIGN INVESTMENT DECISION PROCESS IN TRANSITION ECONOMIES
Suzana Stefanović
Abstract: Foreign Direct Investment (FDI) has become one of the most important determinants of economic growth, especially in developing countries and transition countries. Therefore, the study of types, benefits, and flows of FDI in contemporary world is of great importance. The paper represents the author’s attempt to point out the vast importance of FDI for economic growth of transition countries, especially in relation to the process of privatization and transition to market economy. So, the author also tries to relate the flow of FDI to MNCs’ mode of market entry. This relation between market entry strategy and FDI flow is especially important for Serbia, which is relatively behind the countries from the region with privatization of state enterprises, as well as with transition to fully market economy.
Keywords: foreign direct investment; strategy; market entry; transition country
