F23 - Multinational Firms; International BusinessReturn

This article discusses the development of foreign direct investments for the period 2004 to 2017 in the Czech Republic. In 2004, the Czech Republic joined the EU and the government began to focus on investment incentives to attract foreign firms, attracting foreign capital. The subject matter of the study will be the development of changes in the FDI status of core capital, reinvested earnings and other capital. The aim will be to find out how the FDI, investment incentives and foreign-controlled enterprises for the period 2004-2017 in the Czech Republic developed. A detailed breakdown by country of investors and the number of employees will determine which countries and sectors are most affected by foreign direct investment. The Czech Republic is considered an attractive country for investors from the Netherlands, Austria and Germany. These countries have the largest share of capital inflows in the capital inflow over the period, particularly in financial services and manufacturing.

Foreign direct investment is discussed on various levels. Basically we speak about positive and negative effects that might be expressed directly or indirectly. In evaluating the impact of foreign direct investment on development, however, a key question is whether foreign direct investment crowd in domestic investment, or foreign direct investment crowd out domestic investment. This paper focuses on research of FDI effects in Central and Eastern Europe. The aim of this paper is to examine whether foreign direct investment in selected countries of Central and Eastern Europe crowds in or crowds out domestic investment. For this purpose we apply theoretical model of investment that includes foreign direct investment as an exogenous variable. Annual data were tested with panel regression with fixed effects for the period 1993 - 2011. Detected results indicate that in all specified areas, the effect of extrusion of domestic investments prevails.

Not only developing countries and transition economies perceive the entry of foreign investors, and the inflow of capital, know -how and other tangible and intangible assets as a catalyst for economic development. Therefore, many countries have liberalized access to foreign capital even conscious of certain negative effects on domestic enterprises trying to attract foreign investors. The host countries after some time analyse the contribution and influence of foreign entities in the domestic economy and assesses whether the resulting effects rather negative or positive, and also how foreign entities are operating in the domestic territory. This article, however, deals with a somewhat different type of analysis, it focuses on the assessment of the functioning and prosperity of foreign-owned entities in the Czech Republic compared with domestic entities in selected sectors. The analysis is focused on the development of return on equity (ROE) and gross domestic product (GDP) of industries. The data from the Financial analyzes of the corporate sector for the years 2004 - 2011 published by the Ministry of Industry and Trade was used to analyze. It was the annual data (including GDP) in five sectors: mining, manufacturing, energy, construction and services.

The article analyses inflow of foreign direct investment into the Czech Republic. It describes the development in recent years and analyses the influencing factors. Foreign direct investments are a very important financial source in the Czech economy and therefore much attention is paid to the factors which attract the inflow of foreign long-term and non-debt capital. It is important especially for investors during their decision making process of expanding the business abroad. Among others, the most important lures are openness of the country, low labour cost, the exchange rate policy and the overall risk of the country.

Internationalization is a phenomenon researched intensively over the last few decades from a variety of viewpoints. Internationalization of entrepreneurial activities is the necessity for majority of entrepreneurial subjects. This article inquire into the internationalization process of entrepreneurial activities. The objective of this paper is to present the overview of the most important internationalization theories.