Direct Investment On Regional Markets

Foreign direct investment are that category of investments that allow participation in leadership and effective control of the companies in which it invests. It's so new firms, as well as the establishment of international operations of the company through expansion of existing operations. Typically, the company incurred in a market that is confined to a distinct geographical area, but the limits of market changes. The change can be the result of higher management decisions on market opening and development of a new technology or product. Markets with a lower level of development are likely to attract a higher level of direct investments than those in more developed countries. The specific reasons behind the decision of a company to invest abroad are operating efficiency, reduce risk, market development and Government policy in the host country. Transnational corporations are large conglomerates which consists of the parent company and its subsidiaries/branches, both in the country of residence and abroad. Transnational corporations affect strongly both the production and the world of international economic relations. This influence is determined by the motivations of expansion that they promote. The expansion of transnational corporations has as satisfying "ambitions" of global expansion, and impulsionate getting supraprofiturilor. The strength of these structures is based on maximizing profits. Keywords: Direct investment, regional market, development, government, leadership Journal: Constatin Brancusi University of Targu Jiu Annals - Economy Series