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Investments In The Context Of The Actual Economic Crises

Listed author(s):
  • Daniela Zirra


    (Romanian American University in Bucharest)

Investments represent the material support system of any sort of economic growth, they contribute greatly to ensuring a normal development of an economy, the key factor in the development of production infrastructure and the material basis for all the socio-cultural activities undertaken, as well as a boost in the quality of life in any kind of economy, regardless of the structure and stage of development studied. Investments are easily affected by different factors or phenomena which can jeopardise the project implementation and the targeted results partially or even entirely. The article is trying to summarize what happens with the investments when the economy goes down. The greatest risk nowadays is the volatility of prices. In a period when the demand for products and services is dramatically reduced, the investors have no perspectives available regarding the evolution of markets. When economic recession is present, all investors wait for the investment decision of the other investors. So, the question is whether to invest or not? Which is the best decision? What are the others doing? We are trying to find an answer in this paper.

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Article provided by Romanian-American University in its journal Romanian Economic and Business Review.

Volume (Year): 6 (2011)
Issue (Month): 1 (March)
Pages: 145-158

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Handle: RePEc:rau:journl:v:6:y:2011:i:1:p:145-158
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