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TRANSNATIONAL COMPANIES AND FOREIGN DIRECT INVESTMENTS

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Author(s): Maria MUREŞAN

Journal: Annals of the Stefan cel Mare University of Suceava : Fascicle of the Faculty of Economics and Public Administration
ISSN 2066-575X

Volume: 10;
Issue: 2(12);
Start page: 45;
Date: 2010;
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Keywords: transnational corporations | foreign direct investment | capitalization | mother-corporation | host country

ABSTRACT
Foreign direct investments (FDI), especially those of transnational companies, take shape through the transferof modern technology including machinery and fixtures, precise technical documentation and know-how flows(technical and managerial assistance) as well as creating new work places. All this make the direct foreign investmentsan advantage for both the investing countries and host countries. For the investing countries the advantages materializefirst through the use of cheap technological and human resources and by providing a market for the products in thehost countries. Meanwhile the countries receiving foreign direct investments are ensured full and effective use ofavailable inputs and the creation of favourable conditions towards the development of their productive capacity forexport and last but not least, to achieve the goal of reducing unemployment by creating new work places.
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