EFFECTS AND INFLUENCE OF THE DIRECT INVES TMENTS

In the first part of the paper the author defines the place of direct investment within the forms of foreign market entry and finds its conn ection to the development and application of the principles of interna tional marketing. In the further part of the article she discusses the effects of the direct foreign investments both in mother and host cou ntries and pays a special attention to the relationship of a foreign i nvestor to the host country. In the third part of the paper the author - being experienced in the activities of foreign investors in the Slo vak Republic - defines both positive and negative effects of direct fo reign investments upon a transition economy. The fourth and final part of the paper deals with the question of increasing the attraction of the Slovak investment environment for foreign investors.