FOREIGN DIRECT INVESTMENTS IN THE GLOBALIZING WORLD: THE MUTUAL LINK

While Foreign Direct Investment (FDI)s play an important role as a key instrument in the course of globalization that have taken place at a great pace especially in recent years, globalization acts as a stimulus for FDI movements as well. Thus, there is a mutual relationship between the globalization and FDIs. While increasing FDI movements can make countries more global, getting more global increases FDI movements in those countries. In this paper it has been pursued the goal of understanding the mutual relationship between the globalization and FDIs more clearly, and to satisfy this goal the factors that can affect the subject relationship have been studied and in the light of these factors, FDI movements in the globalizing world have been analyzed through a series of models that can reveal this mutual link. The paper emphasizes the importance of FDI movements in the globalizing world and the existence of the mutual link between them. However, it should not be forgotten that; while countries are deciding to take part in the globalization process or participating in FDI movements, they should absolutely take the potential positive and negative effects of both globalization and FDIs into consideration and should become more open to both only when the positive aspects outweigh the negative ones.