April 22, 2017
This article examines how foreign direct investments influence the performance and entrepreneurship of domestic firms, a crucial question for economies – especially transition economies – driven by the incursion of global, exogenous factors. This research uses a qualitative research methodology, and specifically a case study method. The country in question is Macedonia, a Southeast European economy. Further, the study is interested in the way foreign direct investments shape the overall business environment. Overall, the results point to the influence of foreign firms in assisting business activity. The impact of foreign investment is, in general, positive, and tends to influence the restructuring process of domestic economy.