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Fdi Flows In The Era Interdependencies

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  • Angela-Nicoleta COZORICI

    ()
    (Stefan cel Mare University of Suceava, Romania)

  • Simona BUTA

    ()
    (Stefan cel Mare University of Suceava, Romania)

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    Abstract

    This paper presents the dramatic changes they have gone through foreign direct investment. Thus, through them, globalization has become a normal component of the existence of each of us through the goods and services purchased through the workplace, the act of communicating or leisure time. An overview of the total volume of FDI in the period 1970-2008 shows that they have had a significant increase over the years, except during the years 2001-2004, when their progress was tortuous and will then resume rise, even above levels previously achieved. The global economic crisis has temporarily halted this trend, but the medium term it will certainly be resumed. Unusual size of economic and financial crisis in progress raises major problems on the trend and capacity of transnational companies to continue to invest and expand abroad. Declining profits, reduced access to financial resources, declining market opportunities and risking possible worsening of the current global economic downturn are obvious causes for the decline in FDI flows. This, in turn, is causing concern among host countries, especially developing States, which relies heavily on international investment to fund growth and new jobs. Overcoming the crisis will bring about a change of the global economic order, but this will not only be able to influence positively the role played by FDI in the world economic circuit.

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    Bibliographic Info

    Article provided by "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration in its journal The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration.

    Volume (Year): 10 (2010)
    Issue (Month): Special (December)
    Pages: 200-209

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    Handle: RePEc:scm:ausvfe:v:10:y:2010:i:special:p:200-209

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    Related research

    Keywords: foreign direct investment; globalization; financial markets; scientific and technical progress; economic crisis;

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