Tax competition and the effects of tax regulationson direct foreign capital investment

International foreign direct investment is a concept that has emerged as a result of the fact that the people and institutions in the countries with surplus capital are in the process of making profit in another country with insufficient capital accumulation. As a result of the international capital mobility and the technological opportunities, the mobility of capital has become easier and the international tax competition concept has emerged as a result of the activities of the countries with insufficient capital accumulation to attract foreign capital to their countries. International tax competition is not one of the main factors that will affect foreign direct investments. An advanced, stable and trustworthy economic structure in the target country in which the foreign capital will move is looking for a structure where the legal system is adopted, and a system where the property rights are internationally guaranteed, and the bureaucratic obstacles in which the institutional structure develops are presented. In this study, foreing owned organizations operating in Istanbul made a field research in particular foreign direct investment inflows to Turkey and the factors affecting them will be evaluated after examining the theoretical foundations of international tax competition and international tax competition concept.