Due to the progressive development of the globalization and the actual continuously increasing competition in the domestic market, Austrian companies are forced to seek for new markets and are looking forward to maintain or expand their businesses. Concerning the very good geographic proximity including the possibility to reach Hungary easily and without border-controls, many Austrian companies set up their targets relating to the Hungarian Market. In addition to the obvious ones there are many other factors which has to be considered making the expansion to Hungary valuable and profitable. The main goal of this thesis is to find out, which potential drivers could lead to a success or failure of a foreign direct investment in Hungary. Beside of the drivers, it is important to analyze potential political, economic, or cultural risk of the host country. Through the history of the passed centuries, Austria and Hungary had a tight closeness, both in the economic and cultural relations. After the fall of the Iron Curtain the relationship between the two countries have started to warm up again. Nowadays, huge multinational corporations are operating in Hungary under different circumstances. In conclusion the aim of this thesis is also to constitute the possibility of how to minimize risks and optimize success factors and which had to be considered for a foreign direct investment.