It’s a fact that global economy is dominated by the multinacional companies, including the foreign direct investions as the most important form of the international activity. According to the IMF, FDI arise when the resident of some country becomes the owner of ten percent or more of a company in another country. In this way, a resident controls the operations of the mentioned companie. It’s one of the most basic ways in which developing countries have access to the latest technologies, or new knowledge so the goal of all developing countries is to attract higher value of investments in the country. The main motive of attracting foreign capital is most curtenly a creating more job positions, positive impact on exports, output growth which is ultimately reflected in the overall economic growth of the country. However, despite the positive impact of FDI, they can also have negative effects such as knowledge outflow or outflow of funds in the country of origin of FDI, creating poor quality jobs, etc. The effect of FDI on the economy of the country can be traced by means of an impact on foreign trade, GDP and economic growth, employment, investment and the rest of the economy. The inflow of FDI is encouraged in various ways (fiscal, financial and other measures) but precautions should be taken that social benefits are greater than the social costs.