Globalization has changed companies international activities over the year all over the world for well developed and developing countries (Stefanini2006). Globalization; countries worldwide dissemination of the material and spiritual values are considered as beyond national borders, among countries in the economic, political and cultural values, variable gain, resolution of ideological distinctions based on the polarization of different cultural values, beliefs and expectations and better recognition of the intensification of these relations, as well as homogeneity of the differences reached a development that would be correct. Another way, globalization of economic, political, social and cultural fields, some common values beyond the local and national boundaries are defined as the spread around the world.

Globalization has been seen important improvement around the world countries and economies, creating greater unity in international business and finance and rapidly accelerating the integration of developing countries into the global economy. Wit and Meyer(2005) suggested that in analysis of globalization has crucial importance which are Globalization of companies, businesses and economies. However, these trends have not in any sense been universally positive for all the countries. There are many reasons that globalization has negative impacts to different countries well developed countries have seen benefit of globalization while poor and developing countries and economies have been faced negative effect of globalization.

The globalization is not just expand to investment to other countries because it is effected the host countries economical social existing and future condition such as employment rate, GDP, increase technological skills and integration and cross border cooperation. Emerging and developing countries try to attract to invest foreign investment with such as new regulations, law, reduce to borders to have global competitive advantage to attract business firms because one of the most crucial issue of development is the investment for the countries. It is not always to possible to cover all needed investment by internal resources.

The process of globalization, particularly foreign capital flows to developing countries is of great importance for the development and to attract and growth foreign investment is a great change to host countries especially in the developing countries. The multinational companies have reached significant transnational trade helping by improvement of services, technologies.

Foreign direct investment (FDI) decision of the firms is one of the crucial issues in term of the host country such as the market and political situation and certainty, benefits and alternatives shapes the entre strategies.

Foreign Direct Investment

Definition of Foreign Direct Investment

FDI can be descried that activities of a business of beyond the borders of the home country and the manufacturing plant to establish of existing production facilities by increasing its capital to a subsidiary of a FDI in the different country.

In the worldwide perception, foreign direct investment (FDI) is delicate to economic situation of the countries. Allen and Edward (2008) mentioned that the inadequacy of data for surveillance remains an issue in many countries. FDI growth factors demand less of the monitoring and compliances to lure the investment leading to more exposure.