The Impact of Economic Crisis on Direct Foreign Investments

Abstract

The direct foreign investments play an extremely important role in theeconomic development of a country through technological and know - howtransfer, the export promotion with favorable effects on commercial andpayments balance by attracting and training the available work force. The worldcrisis manifested by the restriction of access to financing sources, through somemore restrictive loan conditions, the sales reduction, of profits therefore offinancing resources destined to self - finance activities, to the achievement ofacquisitions and mergers at international levels, as well as the severe reductionof stock exchange causing problems to transnational in financing from thecapital market- all this have negatively influenced the direct foreign investmentflows.

Keywords

• foreign investments
• transnational corporations
• financial and