Open AccessThe Role of Multinational Corporations in the European Union
Author(s) -
Raluca Pârjoleanu
Publication year - 2020
Publication title -
postmodern openings
Language(s) - English
Resource type - Journals
eISSN - 2069-9387
pISSN - 2068-0236
DOI - 10.18662/po/11.4/225
Subject(s) - multinational corporation , subsidiary , business , foreign direct investment , population , world economy , international trade , market economy , european union , financial crisis , economic system , economics , political science , finance , demography , sociology , law , macroeconomics
Organizations such as multinational corporations are the most important form of business globally. The defining role on the world economy could be seen at the onset of the financial crisis of 2008, but also in the recent events related to the Covid-19 pandemic, when corporations transformed their production lines to respond to the need for protective equipment for the frontline workers in the health system, but also for the broader population. Through Foreign Direct Investment (FDI), multinational corporations make a positive impact on economies around the world. In addition to contributing to the local development of areas where they setup subsidiaries, multinational corporations are a form of integration of a local economy into the global economy. In the Romanian economy, multinational corporations play a decisive role, representing the companies with the highest turnover, but also the most desired employers for those looking for a job.