Abstract:

The first two stages in the internationalization process of companies, after export and license agreements, the last stage is to make direct foreign investments. Companies are trying to provide some of the advantages they cannot obtain through export and license agreements by making a decision to invest directly in the country concerned. The aim of this study is to explore what are the factors that are determining in foreign direct investment decisions and the theories related to the determination of the form of foreign direct investment. For this purpose, the theories related to the determination of direct foreign investments and these types were first explained, then the development of direct foreign investments in the world and in Turkey was studied. Finally, between 1980-2006 years in Turkey, economic and political factors were analyzed with the multi-regression model in which the direct foreign investment decisions were influenced and in what direction.

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