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EUROPEAN FUNDS – A SOLUTION FOR THE ROMANIAN ECONOMIC RECOVERY

Anca Mădălina Bogdan

Journal of Applied Economic Sciences, 2012, vol. 6, issue 6(18)/ Summer 2011, 115-120

Abstract: In Romania, the economic agents are used to excessively consume raw materials and energy without ensuring, in compensation, the corresponding added value. Thus, it is no wonder that the insolvency is a frequent phenomenon. Another problem of Romania’s economy is determined by the improper costs/prices- profits report, correlated with the supply and demand of the market. If the firms do not take into account the laws of the real market, the risk and the profits, they will not be able to avoid insolvency, since the economic decisions, often disastrous, will continue to promote inefficiency. Many factories are temporarily insolvent, even if they function properly, because their partners have delayed the payments or haven’t respected the contract by delaying the deliveries of parts, raw materials and services. When the mechanism of taking/profits and payments is blocked because of the lack of cash at a certain link of the economic cycle, the activity of many commercial agents, connected by several transactions, is threatened.

Keywords: economic crisis; dynamic model; supply and demand (search for similar items in EconPapers)
JEL-codes: F21 G30 G33 M21 M48 (search for similar items in EconPapers)
Date: 2012
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