The Impact of Direct Foreign Investments on the Balance of Trade and on the Budget Income and Expenditures

Romania’s economy was affected by the drastic decrease of production in all sectors, making a dramatic effort to adapt the productive capacity and workforce peculiar to requirements of a market economy. These tendencies are influenced by a multitude of factors, some of them very aggressive: increase of the import penetrating rate on the Romanian market, in an inevitable competence with the inland products; the continuous aggravation of budget deficit; the proliferation of financial lock-up and the decapitalization of economic agents, the low quality of the Romanian products which lost or have lost important export commodity markets. The role of direct foreign investments is to make a sustainable development in the economy of the host country by the contributions brought to the increase of workforce employment, of the living standard and of the GDP.