Scientific paper ID 1409 : 2016/2

There are two basic reasons for investing abroad. The first is the need for extending of the market share (market-seeking). It is almost always in a leading strategy for development of a company in international scale. The second is related to the permanent goal for increasing efficiency (efficiency-seeking). These motives are the fundamental reasons for setting up business abroad. Varied factors push enterprises to move and to organise their production in other countries, both positive: costs, skills, the economic environment, expansion/establishment of markets, market access, policy incentives, etc., and negative: political stability, corruption, labour force, business environment, etc.

Researching the issue, it could be suggested that there is a positive direct relationship between the progress in transition and the level of FDI, supported by the evidence of higher FDI flows in the most advanced transition economies as well as in Bulgaria. On the whole, the foreign firms investing in Bulgaria estimate their advantages mainly in the establishment of new markets and opportunities and in the better general opportunities for making profits, and, hence a long-term perspective for their business: almost all of the firms foresee and are planning for, the future initialisation and expansion of business activity.