Firms engaged in international trade, but they produced their output only at home. In this paper, we turn attention to the phenomenon of the international company, which Romania had not enough. Traditional trade theory offers few reasons why companies should become international and conduct foreign direct investment. We seek to understand these issues here. Economics has much to say on the subject. In the beginning we provide some brief background, the we define the multinational enterprise and discuss general principles governing location, production, and sales decisions by multiplant firms. We then explore the main characteristics of the multinational enterprise

Multinational enterprise, foreign markets, market imperfection