Foreign Direct Investments - Determinants Involved in Decision-Making Process

In the actual stage, a new approach takes shape as regards Foreign Direct Investments that are perceived in relation 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; 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, there are some significant premises regarding the advantages provided. "The Eclectic Paradigm of International Production" by John Dunning 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 research methodology used is based on a rich documentation from the national and foreign specialty literature in order to clarify and argue the ideas, following a logical approach to the research. The study is also supported by graphic representation and bibliography. The final conclusions underline the important role of Foreign Direct Investment in supplementing public funding sources as well as the elements that motivate the investment decision-making reported to the actors involved in the process.