||This thesis deals with the issue of direct investments of Czech and Slovak companies abroad. The aim is to analyse which factors have contributed to the latecomer position of Slovakia in outward foreign direct investments in comparison with the Czech Republic. It is argued that Slovak companies have been disadvantaged in comparison with Czech companies since Czech governments have created better conditions for local companies aiming to invest abroad. In addition, belated inflows of foreign direct investment also contributed through more channels to the latecomer position of Slovakia in outward foreign direct investment. It is also shown that proximity of national cultures can be an important factor in internalization considerations of companies and that closeness of national cultures does not necessarily imply closeness of corporate cultures.