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Abstract
According to theories on direct foreign investments and examples in
practise, and using directions from normative and historic method, in this paper are
analysed negative consequences of foreign direct investments on economies of
different countries, with emphasis on agriculture.
There are many support to foreign direct investments (FDI) from the
government, as the only salutary solution for slacken economy, in countries like
Serbia, Croatia, Macedonia, Albania, etc. Real positions of economies (in Poland,
Hungary, Mexico, Egypt, Croatia, Serbia, Costa Rica, Brazil, Bolivia, Chile, etc),
where FDI were welcomed as the only salutary solution, recommended from IMF
and WB, by title “structural adjustment”, “macroeconomic stability and
competitiveness” for economy and government of these countries, reveal the true
face of FDI.
According to Goldsmith E., Mender J., 1996, ruthless search for lowest
wage, softest provisions (often on the edge of the law) and the cheapest resources
in the aim of achieving extra profit, are often called “race to the bottom”, where
“employees and government race for job with other workers and other countries,
and competition is based on following: Who will work for less money? Who will
accept half time job? Who will abandon social insurance and provisions regarding
protection on working place? Who will allow that toxic waste is thrown in his back
yard?”