The Evolution Of Direct External Investments In The European Union In The Current Economic Context

Over the last decades direct external investmentshave been some of the most important features of the global economy and globalization. They involved the creation of new companies abroador the acquisition of significant shares in foreign firms.Direct foreign investmentsrecorded from one year to another, new records, positive or negative, being a natural consequenceof transnational corporations intensifying their activitiesand efforts to liberalizemarkets and trade. Undoubtedly, the main reason that makes a company invest abroad is maximazing. More specifically,the basis of a decision of a corporationto operate abroadare three factors: the need to obtain cheeper natural and human resources, the possibilityof entering certain markets, where export could offerhigher rentability margins, the third factor is conditionedby the growth in efficiency of all the operations carried aut by a world-class business. Because the European Union is a market of more than 500 million consumers, consisting of members with different levels of development, there are important differences regarding the performance used in attracting foreign investors.