MULTINATIONAL COMPANIES AND FOREIGN DIRECT INVESTMENT

Lucia P. Blăjuț
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Lucia P. Blăjuț: Doctoral School of Economics and Business Administration, ”Alexandru Ioan Cuza” University Iași, România

SEA - Practical Application of Science, 2014, issue 5, 143-148

Abstract: This paper highlights the significant share of multinational companies in international trade that are a factor of developing global economies. In the context of economic globalization the activity of multinational companies and their foreign direct investment have a strong impact on the host country which presents advantages and disadvantages for them. The main objective of this article is the review of the important role played by multinationals in economic development, especially in developed economies. In the economies in which they operate, they bring capital, technology transfer, improve the national reputation and influence the other companies to invest in this countries, they provide a substantial source of revenue for the government and always improve the balance of payments in the host country.

Keywords: Multinational companies; Foreign direct investment; Economic globalization (search for similar items in EconPapers)
JEL-codes: E22 E24 F23 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:cmj:seapas:y:2014:i:5:p:143-148

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