The term of emerging markets defines the developing states that are an important source of cheap raw materials and labor force for the multinational companies, which are looking for competitive advantages. Consequently, the potential of these markets have determined important changes in the multinationals’ actions that started, more and more, making foreign direct investments in developing states. But, relocating the activities outside the origin country, the firms are influenced and, meanwhile, are influencing the economical, political, social and cultural environment of the host states. Therefore, if the multinationals’ decision of investing is taken only after a careful analysis of the opportunities and risks of the emerging markets, their activity may involve both benefits and costs for the local economy.

emerging markets, multinational companies, relocation of production, competitive advantages