With the process of globalization foreign direct investment have become an increasingly important factor in the economic aspects of a country. At some point an investor can invest their capital into a business entity in another state. There are various factors that influence the decision of a potential investor on entering into a new (foreign) market. There are various ways of outsourcing that will be explained in this paper: such as classic exports, licenses, "turnkey", franchise, strategic alliances, and foreign direct investment. Prior to joining a foreign market, an entrepreneur should first and foremost make a thorough market research on which he plans to join, which will help him decide whether the market is suitable for investment and which method of joining the market to choose. Each country has its own specific way in which it regulates the market and environment: legal, political, economic, cultural and technological. This paper will show the structure of total foreign direct investment in the Republic of Croatia since the beginning of data collection. The decision to invest in a particular country is likely to be influenced in a certain way (incentives, tax cuts), although two conditions are crucial that must be met to make a country attractive to invest: stability and profitability. The transition process has increased investments in countries in the environment, and the position of Croatia will be presented in relation to those countries. If the country, by its overall policy, provides an environment with stable conditions for undisturbed and profitable activity foreign direct investment come almost automatically. The Republic of Croatia is at the top of the inflow of foreign direct investment per capital, which is definitely a good figure. However, the structure of foreign direct investment shows that, despite good indicators of investment in the Republic of Croatia, the total greenfield investment is not significant. Greenfield investments have a positive impact on the export of the recipient countries and also increase employment in that way. This fact shows that an appropriate incentive strategy, a change in structure, and a share of greenfield investment in total foreign direct investment is needed.