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Multinational Companies And Foreign Direct Investment

Author

Listed:
  • Lucia P. BLĂJUȚ

    (Doctoral School of Economics and Business Administration, ”Alexandru Ioan Cuza” University Iași, România)

Abstract

This paper highlights the significant share of multinational companies in international trade that are a factor of developing global economies. In the context of economic globalization the activity of multinational companies and their foreign direct investment have a strong impact on the host country which presents advantages and disadvantages for them. The main objective of this article is the review of the important role played by multinationals in economic development, especially in developed economies. In the economies in which they operate, they bring capital, technology transfer, improve the national reputation and influence the other companies to invest in this countries, they provide a substantial source of revenue for the government and always improve the balance of payments in the host country.

Suggested Citation

  • Lucia P. BLĂJUȚ, 2014. "Multinational Companies And Foreign Direct Investment," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 5, pages 143-148, November.
    • Handle: RePEc:cmj:seapas:y:2014:i:5:p:143-148
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    References listed on IDEAS

    as
    1. Gheorghe ZAMAN & Valentina VASILE & Mirela MATEI & Carmen CROITORU & George ENESCU, 2011. "Some challenging (macro)economic aspects of FDI in Romania," Romanian Journal of Economics, Institute of National Economy, vol. 33(2(42)), pages 21-58, December.
    2. Tomohara, Akinori & Takii, Sadayuki, 2011. "Does globalization benefit developing countries? Effects of FDI on local wages," Journal of Policy Modeling, Elsevier, vol. 33(3), pages 511-521, May.
    3. Sofka, Wolfgang & Shehu, Edlira & de Faria, Pedro, 2014. "Multinational subsidiary knowledge protection—Do mandates and clusters matter?," Research Policy, Elsevier, vol. 43(8), pages 1320-1333.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Multinational companies; Foreign direct investment; Economic globalization;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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