Foreign direct investment within the frame of centre-prephery in the globalization process

The purpose of this paper is to discuss foreign investments within the frame of centre?periphery theories. The relationships between center and periphery economies differentiating from each other since the early years of mercantilism, have maintained considerably with globalization and its basic dynamics-the technological developments.Today, foreign direct investment regarded as the most leading monetary resource has positive effects in the countries by catering to the need for capital such as increase in production and employment as well as increase in export ,introducing new technology and manufacturing knowledge, inflow of foreign currency, maintenance of tax income. Due to its positive effects, foreign direct investment is specifically regarded as a significant means to eventuate the goals by local governments addressing development issue .Conversely, it has negative effects such as increasing role of foreign control in economy, exceeding limits of foreign trade, emergence of dual structure and unfair competition between local and foreign corporations, exceeding foreign trade limitations, increasing foreign currency expenses, constraint of export and technological dependence.