Micro and Macroeconomic Approaches Regarding Foreign Direct Investments Throughout Offshore Entities

Abstract

Offshore companies represent a key-link of the current operations of the multinationals, banking institutions and, even, of the small and medium enterprises (SME) and are able to perform complicated tasks in a special business environment. These jurisdictional entities offer, mainly, fiscal benefits, comparative with other types of jurisdictional entities. The advantages are targeting the enterprises or companies which establish their social headquater, or to individuals who are resident in these territories. The final scope is represented by attracting the expanding companies, by attracting capital and stimulating the rise of the necessary activities to ensure economic and social balance, so desirable in the economic games of win-win type. Therefore, we are in the presence of fine plaition of micro approach with macroeconomic one. On the first side, the desire of transnationals to obtain profits with less efforts and investments and, on the other hand, globalization (influenced by these entities) pursuit the shrinkage of all markets and businesses all around the world, inclusive using the offshores centers (or ,,fiscal paradises”). These institutions of free market are actioning both on the developed and developing countries. The last ones are affected by the imposibility of tax collect to the national budget and in the infrastructure investments. At the same time, using offshore companies in offshore zones, the multinationals gain neloial competitive advantages over the other companies, unable to spread theirs economic power and influence. We may speak about a sound offshore industry , which has turned into global business and range of activities. We try to underline the importance of the general development process in the actual world and, first of all, the direct connection beteen investments and offshore activities, in the benefit of either parties. It is an organic liaison between investments and offshore entities, including transitional hard developing countries as Romania.