Abstract. In this paper we tried to outline the definitional framework of FDI, starting from the definition and way of achieving FDI, until the presentation of some concise notions from the specialized literature with the aim of establishing what are the determinants of FDI and what are the positive and negative effects on which they generate in the host economies. We paid attention to the game framework in which FDI manifests itself and carried out a critical analysis on the attractiveness of the legislative framework in Romania for foreign investors. The analysis goes beyond national borders and extends to Bulgaria, the Czech Republic, Poland and Hungary, as we consider that the states in the region, members of the EU and with a similar transition history, represent formidable rivals for Romania in the race to attract FDI.

Keywords: foreign direct investment, determinants, components, host countries, developments, perspectives.