The Impact of Economic Crisis on Direct Foreign Investments

Abstract

The direct foreign investments play an extremely important role in the economic development of a country through technological and know - how transfer, the export promotion with favorable effects on commercial and payments balance by attracting and training the available work force. The world crisis manifested by the restriction of access to financing sources, through some more restrictive loan conditions, the sales reduction, of profits therefore of financing resources destined to self - finance activities, to the achievement of acquisitions and mergers at international levels, as well as the severe reduction of stock exchange causing problems to transnational in financing from the capital market- all this have negatively influenced the direct foreign investment flows.