The effects of tax policies on direct foreing capital investments in globalization process

The primary designator of today?s world economy during the recent days is the globalization process. The commercial and financial liberalization movements that increased after the World War II, the developments occurred in scope of information and communication industry and the changes of government strategies observed towards the late 1970s have played an important role in globalization process. The international trading and direct foreign investments in the globalizing world economy stand out as the most rapidly growing economic activities. Along with the globalization of production and financial activities, the dimensions of stock movements and its relevant effectiveness in the world increased. In this process, the importance of multinational companies stimulating the foreign investments and the direct foreign investments constituting the source of global production increased significantly. The direct stock investments, which are not taken into consideration sufficiently before the globalization process, have become the focal point of all developed and developing countries today. As a significant example, since the developing countries consider the direct foreign investments as a part of their development targets, the effort of gaining much more share from the direct foreign investments occurred throughout the world. The tax policies of the countries are restructured towards this direction and those became the tools to be used to attract the direct foreign investments. Key Words: 1) Globalization 2) Direct Foreign Investments 3) Tax Policy