STRATEGIC MANAGEMENT OF THE RISKS OF ATTRACTING FOREIGN DIRECT INVESTMENTS - NEW FINANCIAL CHALLENGES

Abstract: At the time of the coronavirus pandemic COVID 19, many economies, including the Serbian economy, are facing an unknown cause of many problems, which is bringing many companies into crisis. In such conditions, the strategic approach and way of thinking becomes crucial for the survival or recovery of companies and even the economy of a country. This is especially the case with small underdeveloped and developing economies, which are particularly aff ected by the pandemic. In such conditions, foreign direct investments are a decisive factor in the survival and recovery of the economy, and decisions of this type are strategic. Especially in the conditions of a pandemic, investors are sensitive when making strategic investment decisions, and economic freedoms are an important factor in that. The aim of this paper is to determine the impact of economic freedoms in Serbia on making strategic decisions on foreign direct investment, and thus the development of Serbia. The results of the research show the existence of a positive correlation between these factors on the development of Serbia. The econometric model of Pearson Correlation and Greene’s multiple correlation analysis model was used in the analysis.

 

Keywords: Strategic decision making, foreign direct investment (FDI), economic freedoms, Serbia development