Forgein direct investment plays an important role in the development for economy of country. Each country seeks to attract forgein capital. During the elaboration of the determinants of forgein direct investment, many theorists have come to the realization that this form of investment in the economy brings loads of new opportunities. Apart from new technologies and capital, forgein direct investments also bring new knowledge to the market and that increase the level of its competitiveness. Also, if we approach historically in the period after Second World War, forgein direct investment became generally accepted and also has been expanding ever since. Foreign direct investment plays an important role in the development of a country's economy. Each country seeks to attract foreign capital. During the elaboration of the determinants of foreign direct investment, many theorists have come to the realization that this form of investment in the country's economy brings a number of new opportunities. Apart from new technologies and capital, foreign direct investments bring new knowledge to the market and thus increase the level of its competitiveness. Also, in the period after the Second World War, foreign direct investment became generally accepted and has been expanding ever since. Numerous works cite the risk or security of the market itself as one of the factors influencing the investment decision. Given the increased but also constant danger of terrorist attacks, it is clear that the question of the impact of terrorism on foreign direct investment must be raised. Namely, terrorism leaves numerous consequences on the area where terrorist activity is carried out. The consequences can be seen through a psychological and through an exclusively economic perspective. Throughout the following chapters, this final paper will place an imperative on the economic perspective of studying the impact of terrorist activity on the movement of foreign direct investment to / from the country. However, the market is composed of different business entities operating under different political regulations and each business entity is man-made, so the psychological impact that will be caused by terrorist activity must not be neglected. Also, the psychological effects will manifest on the economic ones as well. Using different methods of data processing, the theories of various theorists are compared, and after theoretical processing of key concepts of comparison of selected articles, a conclusion is made on the thesis set in the chapter "Aim and purpose of the paper".