rewrite Kia’s decision to locate production facilities in Slovakia represents a strategic foreign direct investment (FDI) aimed at efficiently serving the European Union consumer market. According to Eun, Resnick, and Kim (2025), firms engage in FDI to access new markets, reduce production costs, and manage financial risk. By producing vehicles within the EU, Kia avoids trade barriers and tariffs that would apply to exports from Korea, enabling direct access to the single European market. Slovakia offered Kia several advantages: low labor costs, a skilled workforce, modern infrastructure, and government incentives that align with efficiency-seeking FDI motives. Its central geographic location provides logistical access to key automotive markets such as Germany and France. Furthermore, producing within the EU reduces exchange rate exposure, stabilizing cash flows and improving cost predictability—an important aspect of multinational financial management. Ultimately, Kia’s investment in Slovakia demonstrates how firms strategically use FDI to combine cost efficiency, market proximity, and risk management to strengthen their competitive position in a large integrated economy like the EU.