Abstract:

Foreign Direct Investments are constituted as external capital resources which are added to the internal capital, signifying a basic support in the achievement of a strategy of economic development and modernization of the national economies, especially for the developing countries. Against the actual background of the global economy and the changes pervading the economic realities, a new approach takes shape as regards Foreign Direct Investments that are perceived as linked to growth, economic development and prosperity. In the context of some limited public resources, private financing by Foreign Direct Investments places among the important actions that must be taken into account aiming at economic growth, as for example: they supplement the public financing sources; they are favoring employment growth; bring their contribution by advanced technologies and modern management practices; they are stable in the long-term. At the basis of the multinational companies decision to grant priority to Foreign Direct Investments in achieving cross-border investments to the detriment of other means (export, franchise), there are some significant premises regarding the advantages provided to the investor. “The Eclectic Paradigm of International Production” by John Dunning (The OLI Paradigm) offers one of the best known explanations of the decision-making process.  The paper follows aspects underlying the selection of the investment decision through Foreign Direct Investments, the motivation to invest in relation to the foreign investor and, respectively, the host country, as well as a classification of the determinants of the Foreign Direct Investments, followed from several perspectives.  The study ends with some conclusions referring to the aspects presented.