ABSTRACT
Industry policies in advanced economies have focused mainly on the improvement of firm performance through addressing market failures, expanding technological capabilities, and paying greater attention to the quality of investment and human resources. Globalization today is perhaps most usually connected with the rise and power of global markets, economies, and multinationals. Foreign direct investment (FDI) can play a key role in improving the capacity of the host country to respond to the opportunities offered by global economic integration, a goal increasingly recognized as one of the key aims of any development strategy and an increased growth rate. The globalization concept implies that a growing share of FDI is worldwide in scope, with transition countries in particular attracting increasing percentages of FDI. Thus, there is a regional concentration of FDI in transition economies. The globalization concept implied that a growing share of FDI is worldwide in scope, and transition countries in particular should attract an increasing percentage of FDI.
