THE IMPACT OF FOREIGN DIRECT INVESTMENTS ON THE IMAGE OF A CITY: THE EXAMPLE OF FIAT COMPANY AND THE CITY OF KRAGUJEVAC

Milan Kocić, Srđan Šapić, Jovana Golo

Abstract


In the contemporary circumstances of accelerated globalization, every country, region and city have to compete for their part in the total number of the world's consumers, tourists, businesses, investment and experts. Creating a brand and building a favorable image of the specific city can be of great importance in the process of the realization of its economic, political and developmental objectives, differentiation with regard to competitive cities, as well as in the process of gaining a global competitive advantage. This paper examines the impact of foreign direct investment and the image of the company on the improvement of the image of the city in which the investments are realized. The results of the empirical research, which refers to the investment of the international company Fiat in the City of Kragujevac, indicate that investments, the company's image and its business have a positive influence on the image of the city, primarily through its impact on the economic and infrastructural aspects.

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