With globalization and internationalization, Foreign Direct Investment (FDI) plays an increasing role in the world today. The focus of this book is on the effects of FDI on economy for the Eastern European country Czech Republic (CZ), which has evolved much since transition in 1989. With the boom in FDI popularity, a rise in the need for surveys in the area has come, and a lot of academic literature exists on how best to utilize this new arena for investing ventures. Taken into consideration, that the boom in FDI in CZ first came in 1998, reliable periodic data has only recently been obtainable. This book therefore, provides a more reliable analysis of FDI in CZ than earlier, with empirical data derived from CZ manufacturing from the period 2005-2006. Differences between foreign and domestically owned firms with respect to wages and productivity are analysed, together with “spillover” and “crowding out” effects. The analysis help shed some light on effects of FDI on CZ economy, and should especially be useful to domestic companies, government officials or business people.