GLOBALIZATION AND INVESTMENT PROCESS

Globalization is a process of increasing the economic interdependence of national economies around the world through the rapid increase in cross-border movements of goods, services, technology and capital. Given that the globalization process imposes a reduction in tariffs, taxes, and other barriers that undermine global trade, such a process leads to an increase in economic integration between countries, thereby contributing to the creation of the global or world market. Globalization is a global convergence of commodity prices. The World Bank defines it as a freedom and an opportunity for the individual and the company to voluntarily initiate exchanges with other individuals and companies in other countries. The process of economic globalization is a process of global industrialization, restructuring and re-adaptation. For this global economic boom greatly contributed the developed economies, with the help of foreign direct investment, reducing trade barriers and in many cases with cross-border migration. Globalization and continuous technological progress create enormous opportunities for social and economic development. On the other hand, this is a serious challenge, including the spread of the financial crisis, insecurity, poverty, exclusivity and inequality among nations. Internationally, governments promote the free movement of goods, services, money and work through agreements and trade agreements, investment liberalization and global or regional economic integration. The most common such agreements are: preferential tariffs, free trade associations, customs unions, common markets and economic unions that have been increasing in recent years. Hence, globalization, as well as the conditions for creating a better and more attractive business environment, is a challenge for every country, and especially for developing countries. Particularly dedicated to this phenomenon is needed, and through a good institutional approach and strategy, goals can be achieved in terms of attracting fresh capital in the country, knowhow, new technology, reducing unemployment and, hence, accelerated economic development. In this context, the following questions are raised: How are foreign direct investment moving globally? What should be done to improve the environment for attracting foreign investments? Are government policies in promoting and encouraging investment crucial in making final decisions by investors? Which instruments can be used to further improve the strategy for attracting investments? The aim of this study's research is to: summarize and explain the global processes that are causing the global changes in the economy, as well as to explain the role of the state in the global economy and the investment process.