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Investment incentive is one of determinants for attraction of foreign direct investments. Due to relatively identical or uniform conditions, incentive is the instrument for governments to gain some advantage in comparison to other countries. The most proclaimed argument to use incentives is the job creation. These jobs would be not created, if the incentives were not provided for foreign investors. On the other hand, incentives themselves mean expenditures that have to be paid in effort to create such jobs. Thus, these are the cost that the society (government) is willing to pay in order to sustain job creation. [ABSTRACT FROM AUTHOR]

Transformation of V4 countries was the first step of the change of the bipolar world diversity. Transformation from the central planned economy to the market economy was a very complex process. The main part of the transformation represents the change of the public ownership towards private property. It was realized by the privatization of state-owned companies. Due to the lack of domestic savings, the involvement and participation of foreign capital seemed to be necessary. Foreign capital was represented mainly by foreign direct investment emerging in the largest privatization projects related to the state monopolies and the bank sector. The aim of the paper is to analyze the role of foreign capital in the transformation process of the Slovak Republic and to refer to crucial points in transformation period. [ABSTRACT FROM AUTHOR]