Advantages and Risks Offered by Romanian to Foreign Investors

Romania a EU member state confronts with serious economic and social problems increased by the world economic crisis. Since the foreign investments represent the engine of economic development, the paper proposes to analyze the reasons which determines the foreign investors to make placements in different areas of the world and also the factors existing in Romania. The study makes use of the data base offered by specialty international publications such as World Investment Report, UNCTAD as well as by data offered by National Bank of Romania, National Statistics Institute, Romanian Agency for Foreign Investments. The results of the study show that Romania represents interest to investors largely because of its natural resources and skilled workforce but remunerated by competitive prices, because of its fiscal advantages such as 16% taxation, and of advantages offered by the market and its strategically position. The conclusions of the paper show that the solution of weak points, of so much necessary infrastructure of improving, the educational system as well as the adjustment of corruption and bureaucracy problems may determine the drawing of a larger volume of DFI which are vital for Romania in order to overpass the economic problems it faces nowadays.