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Strategic Considerations For Foreign Direct Investments Penetrating A Foreign Market

Anca-Ioana Butunoi ()
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Anca-Ioana Butunoi: The Romanian Academy, Romania

Manager Journal, 2016, vol. 24, issue 1, 14-27

Abstract: The globalization of the world economy has created great opportunities for countries, one of them being that of attracting foreign investments. They play a key role in global business, being a fundamental part of the economic system and its development. Despite the fact that the debate over FDIs varies from opinions that claim that they substitute internal investments and they expatriate a great deal of the capital at the disadvantage of the host country to opinions that argue in favor of the benefits of FDIs for host countries, increased efforts to attract FDIs by national economies can be noticed. With this in mind, this paper analyses the strategic of preferences of foreign investors when choosing a new market and tries to establish a set of criteria that represent the main attraction characteristics when the decision to invest is made. The paper explains, at first, concepts such as strategic management, the strategies of entering a foreign market and the foreign direct investments, and then correlates these concepts in order to highlight the factors that contribute to the making of an investment decision and the ways through which foreign capital can be introduced on a new market. And last but not least, we made an analysis of the foreign capital flows in Romania, highlighting the advantages and disadvantages that the Romanian economy presents for potential investors interested in this country.

Keywords: foreign direct investment; foreign market; investment decision; strategic management; international investment (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:but:manage:v:24:y:2016:i:1:p:14-27