The Graduate paper "Foreign direct investment as a way of entering the foreign market" was chosen with the aim of clearly presenting the different modalities of direct entry into the foreign market, and showing what foreign direct investment is and what are the motives for the country that invests and for the country in which it is invested. The basic division of foreign direct investments is: brownfield investments, greenfield investments, mergers and acquisitions, and privatization of state-owned enterprises. Foreign investors invest in stable countries with strong economic performance, stable currency, stable fiscal and monetary policy, and a favorable business environment. Foreign investors avoid those countries where there is a high political and economic risk for capital investment. With foreign direct investments, the receiving country ensures the employment of the domestic workforce, and a positive impact on the balance due to capital inflows, a decrease in imports and an increase in exports, but also bad effects on domestic competition, the balance of payments due to the repatriation of profits to the home country, and a decrease in national sovereignty and autonomy. Foreign direct investment is best defined as a business decision by an investor to buy a certain share in a foreign company or to buy a company in its entirety with the aim of expanding the company, for which internationalization plays a key role, which represents the process of designing products and the entire operation of every aspect of the company, which will meet the needs of users in many countries or their design so that they can be easily modified, and to achieve a business goal.