The internationalization Strategies of French Companies in Romania

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The internationalization Strategies of French Companies in Romania

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BRANCU, Laura
BIBU, Nicolae Aurelian

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Nicolae Aurelian Bibu

Abstract

Central and Eastern European countries (CEECs) are currently attracting important flows of direct investments, after being closed to inflows of foreign capital before 1990. The governments of these countries have been multiplying measures and incentives for encouraging the presence of Multinational Companies (MNCs), during the past years. They are doing it because they consider this fact to represent an important growth vector. This current article will be focusing on Romanian situation. Statistical data indicate that Romania has attracted less foreign investments per inhabitant compared to the other countries in the region. Therefore, the article is aiming to analyze some of the strategies that are followed by companies intending to invest in foreign countries. We will analyze the strategic variables that have determined 62 French companies to invest and implant in Romania, based on the results of a specific survey we have conducted. The main conclusion is that the large majority of them were pursuing a “market seeking” strategy, and only a minority was pursuing a “search for resources” strategy.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9500.

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Date of creation: 22 May 2008
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Handle: RePEc:pra:mprapa:9500

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Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
M19 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Other
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-07-20 (All new papers)
NEP-TRA-2008-07-20 (Transition Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January. [Downloadable!] (restricted)
Chakrabarti, Avik, 2001. "The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regressions," Kyklos, Blackwell Publishing, vol. 54(1), pages 89-113.
BIBU, Nicolae Aurelian & BRANCU, Laura, 2008. "Convergences of the Romanian societal culture with European culture clusters in the process of European integration. The role of intercultural teams management in increasing European cohesion," MPRA Paper 9476, University Library of Munich, Germany. [Downloadable!]

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