Laura, Diaconu
March 2009
Annals of the University of Oradea, Economic Science Series;2009, Vol. 18 Issue 1, p148
Academic Journal
In order to be considered a low-cost market, the cost advantage of one or more factors of production offered by a state - generally, a developing one - must be exploited by the multinational firms. Therefore, we may speak about these markets only after 1970-1980, when some significant political, cultural and technological changes allowed the multinational companies relocate their production in these countries, through foreign direct investments. Next to China and Central and Eastern Europe, the low-cost markets of South-East Asia represent another main region on which the multinationals, determined by the location advantages, establish their production subsidiaries. The main purposes of the present paper are to identify the factors that have stimulated the foreign direct investments in the South-East Asian region and, also, to analyze the evolution of these low-cost markets.


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