This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Integrated Business Faculty , Skopje , North Macedonia
Integrated Business Faculty , Skopje , North Macedonia
The paper is dedicated to the political environment and its influence on the foreign direct investment decisions of multinational companies. The aim of this paper is to provide an understanding of the significance of the environmental factors in the host country, especially the political factors, on the foreign direct investment decisions of multinationals companies. It pays special attention to several main political factors that should be taken into consideration by multinational companies when deciding to invest in a certain host country, such as regional economic integration, government regulations, political risks, and corruption. The applied methodology consists of qualitative research techniques, such as analysis, comparative analyses, and syntheses. On the basis of the obtained results, the contribution of the paper is reflected in the determination of the relevant political factors that affect the investment decisions of multinational companies. These factors affect the economic activity in a certain host country as well as the activity of multinational companies operating within its borders. Therefore, multinational companies should be aware of the importance of the host country’s political environment in their foreign direct investment decision process.
political environment, multinational companies, government regulations, political risk, corruption
The statements, opinions and data contained in the journal are solely those of the individual authors and contributors and not of the publisher and the editor(s). We stay neutral with regard to jurisdictional claims in published maps and institutional affiliations.
