Babeș- Bolyai University
College of Political, Administrative and Communication Sciences
Master of Public Administration- Community Development and Urban Planning 1st year
Bucila Anamaria
Reflection paper
In Romanian society, occupation, and the efficient use of available labor resources is an
issue directly related to labor market issues. It represents an element that cannot be separated
from the other elements of the labor market, especially unemployment, separate because their
treatment can capture all aspects, particularities and the implications for the labor factor. In other
words, the issue of employment of labor is more difficult and controversial if we consider the
fact that the labor market is on the border between economics and social. Occupancy factor is
approached through employment policy work. In essence, employment policy is a set of public
interventions in the labor market, to stimulate the creation of new jobs, to improve the adequacy
of labor resources to economic needs, to ensure fluidity and flexibility in the labor market.
Employment policy should be based in any country on a strategy for employment of labor.
Any such strategy must be, ultimately, a component of the overall strategy for growth and
development. It should be based on rethinking the management and human capital management.
The main measure to facilitate the entry of foreign direct investments in the Romanian
economy was the Law no. 35 of 1991 on foreign investments regime in Romania. The
emergence of Law no. 58/1991 regarding the privatization was constituted into a new impetus to
attracting foreign direct investment, there is, for now, the basis of real economic partnerships -
Romanian industrial firms and between firms from other countries. Based on existing legislation
in Romania, foreign capital in a society no longer limited as a ratio, allowed even companies
with foreign capital of 100% and trading companies owned or partially foreign have the same
legal status as any other local businesses.
Attracting foreign direct investment reflects the importance of investment in financing in
developing economies, the international transfer of technology and the investment flows,
transnational corporation’s motivation, and trends in the world economy on foreign capital
investments. Regarding the role of foreign direct investment in developing economies financing,
we mainly analyze the creation of new jobs, stimulate regional development, improvement of
supply and services, accelerating technical progress, promote economic activity in general. But
sometimes transnational corporation’s activity may conflict with the provisions of economic
development programs in host countries, because they aim primarily to obtain maximum profit.
Heidelberg Cement is one of the largest German investors in Romania, working in the
construction materials industry. This came on the Romanian market since 1998, when it acquired
the cement plant Bicaz. The impact investment is beneficial for both, the company and for the
local population, because they were created jobs and environmental investments have reduced
greenhouse gas emissions into the atmosphere. This type of investment has a number of
advantages on the one part, and on the other part has disadvantages.
The benefits of the acquisition (brownfield): investments made by the company in this
factory are large (100 million), but were progressively; market risks are smaller spurred after
time; market share existing at this factory was taken over; market penetration was done quickly;
following the acquisition, investment recovery is made easier; is the plant have been undervalued
and purchase made by Heidelberg Cement to be bought below market price.
The disadvantages of acquisition: location was already given (Bicaz), and the possibility of
extending the company was / is restricted; additional expenses that were necessary with changing
technology and mentality of employees; expenses related to the search for a suitable partner
business (contact, negotiation, etc.); difficulties in estimating the weaknesses of business
partners; difficulties integrating organizational culture; Moldocim Bicaz, before the acquisition
was a state company, and after taking them by the German group they may have struck small
uncertainties regarding ownership.
Currently, any economic activity, social, political coordination process requires a judicious
and effective, leading to their goals in a most cost and with maximum results. Achieving this
goal can be achieved through a higher quality management, which meets the current
requirements. Taking an overview of the role and investment firms in an economy, we realize
why it is important to create a favorable investment climate.
Policies and behavior of governments produce a strong impact on the investment climate,
reflected on costs, resources and non-tariff trade barriers and encounters a firm in expansion.
Governments are fully responsible for the way in which, through the policies promoted supports
companies in their development.
