The aim of this paper is to explain the advantages of Serbia for foreign direct investment. Nowadays, foreign direct investment represents actual topic, due to Serbia is in transition period last fifteen years, and the influx of foreign direct investment is increasing, especially after the mitigation of global economic crisis. Foreign investments promote basic economic goals: stability, development and sharing of knowledge. With regard to the problem of the extremely high foreign trade deficit and the poor economic performance of Serbia, as well as the lack of financial resources for export growth and economic expansion, foreign investment is the most optimal form of investments in Serbian economy. The results of this study shows that the advantages of Serbia for foreign investments are: favorable geographic location (the heart of South-Eastern Europe), high level of education of the population, most people speak good English and have excellent personal skills, free trade agreements between countries such as Russia, Belarus, Kazakhstan, the country's of North-Eastern Europe, the EFTA states and the EU member states. The conclusions drawn from this study will be greatly beneficial to potential investors who would like to invest in Serbia.
Keywords: foreign direct investments, investments in Serbia, the economic crisis