Foreign direct investment plays a key role in achieving quality competitiveness. In addition, they have an impact on survival in the markets and on overall international cooperation. Foreign direct investment brings a number of benefits to certain companies in which it invests, such as educating workers, improving existing technology, the continuous growth of national economies, the realization of inflows into state budgets. These additional revenues have additional advantages, they can finance the needs of the local economy, but at the same time, increasing competitiveness has an impact on easier access to international markets. Foreign direct investment, although it brings a large number of benefits to recipient and donor countries, can cause side effects. Foreign direct investment will have greater effects on economic development the higher the level of human capital in a country needed to embrace technology. The increase in foreign direct investment is a result of the globalization of the world economy. With the opening and liberalization of the market, transition countries have become attractive to foreign investors. Foreign direct investment is undoubtedly an important factor in increasing the production, employment and exports of each country, and attracting them has become a priority for many countries. The most important thing is to implement the most significant necessary reforms that can affect the attraction of foreign direct investment in the Republic of Croatia, which relate to the establishment of clear legislation, launching new taxation models, cutting red tape and eliminating corruption.