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• W594087691 abstract "Over the last decade, in addition to economic, demographic and urban fabricchanges reflecting on the behaviour of cities as local governments and centresof economic and political processes, we have been affected by the process ofglobalisation and an accelerated process of urbanization. Globalisation nowalso includes political, social, economic and geographical dimensions. Everydeveloped economic system has to pay attention to the fact that it cannot exist as asingle unit without a relationship with the global environment. Due to the processof economic globalisation, each stimulus or hindrance in business operations ofany relevant economy may cause stimuli or hindrances in some other branchof economy. The process of globalisation has brought about a connection ofcommercial, technological, social and political structures worldwide. In thewhole complex process, each participant is important because globalisationmade it possible for each (no matter how small and local) participant to takepart and trade with the economy of a country he could not even locate on amap. Globalisation, internationalization and regionalisation of the entireworld economy have made direct investment promotion very interesting forgovernments and city administrations. Direct foreign investment has becomea part of clear city development strategy with all necessary requests fulfilledand with a clear local strategy of promoting and attracting investors. In thisregard, marketing philosophy and marketing tools may be, and are, one of thefundamental backbones of efficient realisation of city development strategies. It istherefore indispensable, in addition to fulfilling the fundamental preconditions,to use all available marketing tools (at both national and local levels) in order toachieve competitive advantages. According to the definition of the International Monetary Fund (Babic, Pufnik, Stucka, 2001) foreign direct investment (FDI)occurs when a non-resident investor owns 10 percent or more equity share ofa resident's business entity. The main purpose of FDI is active participationof foreign investors in the process of company management, which makes itdifferent from other types of inflow of foreign capital. To take advantage of FDI benefits, it is not indispensable to own a companyin another country. Advantages may also be acquired through export or licenceagreements with a domestic company. Nevertheless, FDI enables considerablesavings by means of internalization of transactions, which could not be the casewith export of finished products or licence granting. Internalization occursbecause there is no market for some specific advantages, so that they can only be placed internally - within the company. In such a case, foreign direct investmentbecomes the substitute for the insufficiently developed financial market.One of the most widespread theories explaining the reasons for FDI has beendeveloped by Dunning (1988) in his OLI theory that explains the reasons andmotives of foreign investors through three sets of advantages;O - ownership advantages, as a result of ownership of specific (intangible)assets;L - location, geographical and economic advantages of a given location, andI - internalization, when benefits of launching own production exceed thebenefits of selling the licence.In this matter, location factors play the decisive role because of rich naturalresources, developed infrastructure, favourable price of workforce in relationto its quality, abundance and quality of other production and business factors(transportation expenses, market access) and different forms of administrativemeasures (customs, quotas, investment promotion measures, etc.). In anycase, whatever the reasons for FDI, they eventually always reflect the investors'aspiration to increase profits and extend the influence of the company." @default.
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• W594087691 date "2012-05-24" @default.
• W594087691 modified "2023-09-24" @default.
• W594087691 title "Research of possible role of urban marketing in attracting foreign direct investment (FDI) in cities of Bosnia and Herzegovina" @default.
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