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General characterization of the international business environment – opportunities and threats for Foreign Direct Investments

Author

Listed:
  • Mihaela Diaconu

    (Constantin Brancoveanu University, Pitesti, Romania)

  • Sebastian Ene

    (Constantin Brancoveanu University, Pitesti, Romania)

Abstract

The policies and the behavior of the governments have a powerful impact on the investment climate, reflecting itself on the costs, resources and tariff and non-tariff barriers that a developing company comes across. Governments are responsible for the way in which, through the policies they promote, they support companies in their development. A powerful company, a non-monopolistic one, which acts in an environment of competitiveness produces multiple positive effects: it improves the quality of the products that better satisfy the consumers’ requirements, it hires labor supply that they further qualify in order to face the requirements of the market, it better adapts to the economic environment, it pays the duties and taxes to the state, etc.

Suggested Citation

  • Mihaela Diaconu & Sebastian Ene, 2007. "General characterization of the international business environment – opportunities and threats for Foreign Direct Investments," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 10(23), pages 63-71, June.
    • Handle: RePEc:rej:journl:v:10:y:2007:i:23:p:63-71
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    More about this item

    Keywords

    foreign direct investments;

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General

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