Foreign direct investment in Romania and profits. A case of Tesla.

This research project focuses on investigating the impact of foreign direct investment on profits in Romania, specifically through a case study on Tesla. The literature review explores the views of different authors on the topic, while the research methodology section discusses the research philosophy, approach, strategy, and data collection techniques. The findings and analysis section presents the results obtained through a questionnaire. The conclusion and recommendation address the research objectives.

Research Project

Table of Contents
TITLE:.............................................................................................................................................3
ABSTRACT ....................................................................................................................................3
ACKNOWLEDGEMENT...............................................................................................................3
INTRODUCTION...........................................................................................................................3
Research objectives:....................................................................................................................4
Background Of Company ..........................................................................................................4
Rationale of the research ............................................................................................................4
Literature review .............................................................................................................................5
Methodology ...................................................................................................................................8
Introduction ................................................................................................................................8
Research philosophy...................................................................................................................8
Research Approach: ...................................................................................................................8
Research Strategy........................................................................................................................9
Research Choice: ........................................................................................................................9
Techniques and procedures of data collection: ........................................................................10
Research sampling: ..................................................................................................................10
Data analysis techniques: .........................................................................................................11
Access Negotiations .................................................................................................................11
Research Limitation: ................................................................................................................11
Ethical issue: ............................................................................................................................12
Cost:..........................................................................................................................................12
Gantt Chart................................................................................................................................13
Findings and Analysis ...................................................................................................................15
CONCLUSION .............................................................................................................................24
RECOMMENDATION ................................................................................................................25
REFELECTION ............................................................................................................................25
REFERENCES .............................................................................................................................27
Appendix........................................................................................................................................29

TITLE:
Foreign direct investment in Romania and profits. A case of Tesla.
ABSTRACT
Foreign direct investment is essential type of entry mode strategies used by an enterprise
to enter into international market successfully. It introduces as a direct ownership of facilities in
the specific nation. It basically involves the transfer of different resources such as technology,
personnel and capital. It may be created via the acquisition of a present entity or the
establishment of a unique organisation. Literature review have been done with the view point of
different authors and writers regarding the impact of FDI. Data about the topic have been done
with the support of different methods of research such as research philosophy, approach, design,
Gantt Chart, data collection and analysis techniques etc. Along with this, research findings and
analysis have been completed through questionnaire. It is a most essential method helped a
researcher to accumulate reliable as well as valid information about the topic. Conclusion and
recommendation have been completed via addressing all aims and objectives.
ACKNOWLEDGEMENT
I would like to thank my friends; they helped me to carry out this research. I must say
special thanks to my friends and relatives who were very helpful of me via this time when I was
doing the research. I am also thankful to my tutor who given me with direction and patience so
that I could have executed the research successfully.

INTRODUCTION
Foreign direct investment refers as an useful form of investment which is made by an
organisation 0into business interests located in another nation (Alfaro, 2015). Mainly it takes
place when a capitalist set up foreign business operations as well as acquires business assets,
covering setting ownership and monitoring interest in an international organisation. For this
project, Tesla is given American automotive organisation based in Palo, Atlo, California. It was
founded in year 2003 by Martin Eberhard, Marc Tarpenning, Elon Musk, J. B. Straubel, Ian
Wright. Company mainly specialise in in manufacturing electric car via its solar panel
manufacturing, solar city subsidiary. Apart from this, Tesla decide to expand their business
activities in Romania market through foreign direct investment.
Research Aim:
Main intent of this project is “To investigate the impact of foreign direct investment on
profits in Romania. A study on Tesla.
Research Questions:
 What is the impact of Foreign Direct Investment on profits for Tesla in Romania?
 What are the ways through which Tesla can overcome the drawbacks of foreign direct
investment ?
Research objectives:
 To determine the potential influence of FDI over the profitability of Tesla in Romania.
 To analyse the ways which could be beneficial for Tesla in addressing the issues related
with with FDI.
Background Of Company
For this Tesla is the chosen multinational organisation. They want to expand their
business activities in Romania. It is a market with excellent or fabulous potential, favourable
business climate and a strategic location. Its economy is among the European Union’s quickest
growing; approximately 4.8% growth in year 2016 and around 6.9% growth in 2017. This
growth is mainly based on primarily consumption which is driven by the legal authority of
Romania's. It is related with Romania's tax fiscal policy, including tax cuts, pension increase,
minimum wage maximises and public sector (Panait and Voica, 2017). Therefore, it is a best
market for Tesla to expand their business activities and accomplish competitive benefits easily.

Business activities of Tesla is mainly related with designing of goods and services, location
strategy, job design and human resources, inventory management, maintenance of financial
records etc. Thus, all these are major activities for an enterprise which will help them in its
development and success at global level (Gui-Diby and Renard, 2015).
Rationale of the research
Main rationale behind choosing this topic is to investigate the impact of foreign direct
investment on profits of Tesla in Romania It is a multinational corporation which will help in
growth of economy of Romania by providing job opportunities to citizen. Along with this,
globalisation is a large topic which will help a researcher to enhance their literature review skill,
data analyses and data interpretation skill (Boghean and State, 2015). These kinds of qualities
will help a researcher to conduct each activities of research systematically and successful
manner.
Significance of the research
There are different advantages of foreign direct investment such as it provides local
economics benefits in multiple locations, foreign income can maximise, it improves human
resources etc. All these benefits help an organisation by increasing its profit and market share
within given time duration (Estrin and Uvalic, 2016). Thus, with the help of research, a
researcher can easily identify significance of Foreign direct investment and its benefits to
TESLA.
Literature review
A literature review is a form of comprehensive summary of past topic. It includes, books,
scholarly articles, and many other useful sources relevant to the research or topic. Main purpose
of literature review is to provide a completed and accurate accounting of the actual state of
understanding for whichever investigation question is being addressed. Thus, it is an essential
and important aspects of scholarship because without it, scholar cannot judge or evaluate
whether the author is well-sophisticated or whether the activity that is being shown is original
and novel (Buettner, Overesch and Wamser, 2018). It is a more useful section for completing
research project in systematic manner. With the help of this section, an investigator can easily
critically analyse about the impact of foreign direct investment on profitability of business
activities in Romania market.

The impact of Foreign Direct Investment on profits in Romania
Foreign Direct Investment mainly takes place when a capitalist or investor establishes
confirmed international business operations. FDI is critical for emerging and developing market
nations. Their organisations require the multinationals' expertise and funding to enlarge their
global sales. Their nations require private finance in infrastructure, water and energy to
maximise wages and jobs. It offers different benefits to both the foreign host nation such as
Romania and the investor also. In a growing globalised economy, Foreign direct investment by
transnational organisation is introduced a main factor in the development of economy of less
developed economies, covering the economics of eastern Europe and central Europe.
Foreign direct investment in Romania measure to USD around 5.1 billion in year 2017,
up by approximately 3% compared to the similar time duration of 2016, according to information
by the Romanian National Bank and UNCTAD.
Source: Doing Business, 2019
From the above given graph, it has been concluded importance of Foreign direct
investment for profitability of Tesla. As in Romania index of transaction transparency is high as
compare to other countries such as United State, Germany, Eastern Europe and Central Asia. It
will help an organisation to enhance their profitability and market share within given time
duration. Along with this, index of manager's responsibility is moderate in Romania market
which will also support an enterprise to retain employees for long time (Foreign direct
investment (FDI) in Romania, 2016). As it will be more effective and important for success and
growth of company within given time duration. Index of shareholders power is also moderate in
Romania country which will also help a stakeholder within Tesla to take legal action and gain
competitive benefits easily. At last, the investor protection is around 6.0 % which will highly
impact on profitability and market share of company.
FDI in Romania has a positive impact on profitability of an organisation. As it will help
them by providing different benefits such as market diversification, tax incentives, preferential
tariffs, lower labour costs and subsidies. There are also some advantages of FDI for Romina
economy including evolution of human capital, maximise in employment, economic stimulation
and access to administration skills, expertise as well as technology. These are considered main
advantages which will directly support a company to gain competitive benefits and increase their

profit ration also. Along with this, FDI has positive impact on profitability of business. Some
other benefits of foreign direct investment will be defined as under:
Access to market: According to the Shawn Grimsley, (2019), Foreign direct investment
can be effective and essential way for organisations to enter into Romania. With the help of FDI
company can easily access to their domestic market which will also support an enterprise to
accomplish long term goals and competitive benefits within given time duration.
Access to resources: Foreign direct investment also considers as an effective and useful
way for an organisation to enlarge their business operations or functions in successfully manner.
Therefore, with the help of FDI, business can easily acquire natural resources which will help
them by maximising its profitability ratio.
Reduce cost of production: FDI is a means for company to overcome their production
cost if the labour market is not expansive and regulations or rules are less restrictive in the
Romania.
The ways through which Tesla can overcome the drawbacks of foreign direct investment
According to Bogheanu and State, 2015, there are different drawbacks of foreign direct
investment on profitability of organisation within Romania. Some risk of FDI and ways to
overcome that risk have been determined as under:
FDI stops domestic investment from happening: It is a major drawback of foreign direct
investment which will unfavourably effect on business success and growth of company in
Romania market. Minimum ten percent investment into an international nation is amount of
money that isn't going into home companies. Along with this money comes backs into general
people with foreign direct investment. Therefore, it is biggest drawbacks or risks of FDI which
will impact on enterprise in negative manner. In order to overcome that issue, large number of
employment opportunity is a best option.
Risks from political chance: It is also considered biggest issue of FDI in Romania which
will affect on business activities and functions of company in negative manner. Political issues in
Romania can instantly change in which FDI is riskier for automotive industry. Political changes
in specific nations is highly and negatively impact on profitability of an organisation. As their
hidden cost, currency exchange rate due to changes in the government rules and regulation.

Political changes or variation can also lead to expropriation. As in which government will have
monitor over the property and assets of an organisation.
Therefore, above mentioned risk of FDI is highly and negatively influence on
profitability of Tesla. There are some ways suggested to the Tesla about how to overcome the
impact of (FDI stops domestic investment from happening and Risks from political chance) over
business success.
Provide employment opportunities to community: This refers as an useful and effective
way which will help an organisation to overcome impact related with FDI stops domestic
investment from happening. Increment in employment opportunities help in development of
country's economy and it will also assist them by increasing living standard of people within
Romania.
Proper study about government's rules and regulation: It is also considered as an
effective and essential way for organisation to overcome Risks from political chance and gain
competitive advantages within given time duration. For this, Tesla should do proper study about
rules and regulations governed by government.

Methodology
Introduction
Research methodology is useful process followed by investigator to accumulate reinvent
and appropriate data about the topic. For this section, research onion is considered one of the best
frameworks which will support a researcher to perform each activities of project in systematic
manner (Costache and Niculae, 2016). This framework has two layers, including inner and outer.
Both layers have different methods related to the primary and secondary which will help a
researcher to collect information regarding the role of foreign direct investment on profitability
of an organisation in Romania. There are different approaches and methods to secondary and
primary research, some are determined as under:
Research philosophy
It is considered as a first part of research onion framework used by researcher in
evaluating information effectively which will further outputs in arriving appropriate conclusion
for the study. There are essentially two form of research philosophy such as positivism and
interpretivisim (Dyreng and et. al., 2015). For this project, positivism philosophy will be used
because it is more suitable and help in arriving valid conclusion. On the other hand, there is
interpretivisim philosophy which is not accurate and suitable for executing each activities of
research in systematically.
Justification: Main reason about choosing positivism philosophy as it will a researcher to
gather reliable information about the topic. This philosophy also essential and useful by an
investigator by driving valid conclusion towards the research. This philosophy is mainly based
on questionnaire which support researcher by providing reliable and authenticated information
regrading the foreign direct investment and its impact on profit and in Romania.
Research Approach:
Research approach is another section of research project which give an accurate direction
over which a research should be performed in order to accomplish desired output. Research
approach basically divided into two section i.e. deductive and inductive (Bradshaw, 2017). In
this report, inductive approach will be applied because it helps a researcher in collecting data
from useful sources that support in valid conclusion and recommendation. On the other side,

deductive approach is not used for this study, because in which learner do not take part in the
creation of valid conclusion or generalization.
Justification: Inductive approach will be used for this research project as it will help
them to accumulate reliable as well as accurate information regarding the study. There are some
advantages of inductive approach such as gamut of probabilities, fuels further exploration and so
on.
Research Strategy
Various kind of research strategy are available such as observation, case study, survey,
questionnaire etc. These are considered as a main type of strategies which will help an
investigator to collect data about the topic (Janský and Palanský, 2018). For this report, case
study will be used by researcher as it assists them by providing in-depth and detail information
about the topic.
Justification: Case studies are more useful and flexible than many other forms of
investigation and allow the investigator to explore and discover as the research develops. It
emphasizes in-depth and accurate content. An investigator is capable to create deep and apply a
different varieties of data sources to acquire a complete picture.
Research Choice:
There are fundamentally two type of research which is qualitative and quantitative. In
case of qualitative research, there is more focus towards collecting data in theoretical way where
it handles with human discernment and sentiment. On the other hand, under qualitative method,
it mainly emphasis over collecting the data in order to create information or data more
explanatory and clearer to reader and create better understanding among them with the support of
theoretical aspects (Islam, 2015).
Justification: Therefore, both type of research are effective but as per the study,
qualitative type of investigation will be selected because it help in collecting quality and accurate
data about the topic. Quantitative research is not useful according to the study, because it require
information in form of numbers and facts which is difficult for doing research in systematic
manner.
Research design: This is identified as an essential section of research methodology
which emphasis towards analysing the research design. All activity of research project is must be
depending of research design which will support in directing the tasks executed within the

research in right way (Ciocoiu and et. al., 2013). This section of research is mainly classified into
three parts such as experimental, descriptive and exploratory. These kinds of research design are
more important but as per the study, descriptive design will be used because it assists in
presenting the data in detailed and accurate manner.
Justification: Descriptive design used for this project because it is effective for a
researcher to analyse non-quantified issues and topics. In this researcher have possibility to
observe the concept in an unchanged natural environment and completely natural.
Techniques and procedures of data collection:
There are fundamentally two kinds of data sources used by researcher to gather primary
and secondary data regarding the study. For collecting primary data, questionnaire will be used
because it helps a researcher to collect reliable and valid information about the impact of foreign
direct investment (Jude and Silaghi, 2016). On the other side, for gathering secondary data,
books, journals, magazines, publication research and many other articles relevant to the topic
will be applied. Thus, all these type of data sources are essential for an investigator to perform
each activities of research in more reliable and effective manner.
There are different kind of data collection techniques such as observation, interview,
questionnaire, modelling, case study etc. All these techniques are important but according to the
topic, questionnaire will be used by researcher. As it will help an investigator to gather reliable
and accurate information about the topic. In order to present data about the topic, there are
certain type of presentation techniques such as bar chart, pie chart, tables, line chart and many
other graphs will be applied. All these techniques will support a researcher to easily present
information or data to the respondents.
Sampling techniques
It is a best part of research methodology where there is an accurate description about the
number of populations chosen to collect data regarding the specific topic. In this research, there
are mainly two types of sampling methods via which sample size is chosen which present entire
population, these are non-probabilistic and probabilistic (Kragulj and Parezanin, 2015). For this
research project, probabilistic sampling will be applied because it assists an investigator in
ignoring any sort of bias task. With the help of this method, 60 employees as a part of total
population will be selected for research. On the other side, non-probabilistic method of sampling
is not used for this project because it is not easy to make valid inference regarding the whole

population because the sample chosen is not representative. resent information and complete
research in more effective and systematic manner.
Data collection and Analysis:
In order to present valid conclusion and findings of research, it is most important to
analyse as well as interpret the data gathered. In order to do primary and secondary data
collection technique has been applied. For analysing the information collected by investigator,
thematic analysis will be applied because it assists a researcher in presenting summary of the
concept which has been described throughout the analysis (Lucke and Eichler, 2016). Thus, it is
a best techniques of data analysis which will support in giving an accurate knowledge to the
reader about the subject which is elaborated below in specific theme.
Access Negotiations
` It is also considered as a best and useful method for performing primary and secondary
research systematically. For doing primary research, researcher have access for questionnaire
instrument. On the other side, for performing secondary research, an investigator has access to
use books, journals, articles and many other scholarly papers.
Research reliability and validity: For this research methodology, questionnaire will be
more appropriate because it give valid and reliable data about the study (Kurečić, Luburić and
Šimović, 2015). It is the best technique for accumulating primary and secondary data in more
reliable and valid manner.
In order to conduct primary and secondary research, number of methods will be applied
by researcher such as cost, ethical consideration, access etc. All these are most significant and
useful methods which will be applied for performing each activities of research in systematic
manner. Therefore, these methods will be assisting an investigator to accumulate primary and
secondary information about the topic.
Ethical issue:
While conduction of research activity, it is very important for an investigator to execute
its work or task in more ethical and reliable way. For this, investigator must emphasis toward
accumulating accurate data from authenticated resources only and must ignore any type of
manipulation or influence in the collecting data to make individual research more effective and
attractive. In addition, investigator must not communicate the personal data of participants those

which provide information for investigation. Along with this, research ethics in this research
project were used extensively in order to ensure that the outputs of study are considered to be
reliable and robust (Neumayer, Nunnenkamp and Roy, 2016). Confidentiality, anonymity and
informed consent are identified as a research ethics principle which will be essential for
investigator to do research activities in more effective manner.
Cost:
It is a most useful and appropriate method which will highly support an investigator to
do primary and secondary research in more reliable manner. In order to complete each activity of
research project, sufficient amount of money will be required (Dachs, Stehrer and Zahradnik,
2014). There are different options for an investigator for collecting accurate amount of capital,
including bank loan, internal funds, external funds etc. All these types of sources will highly
support an investigator to successfully complete research activity or tasks in more effective
manner. For conducting primary and secondary research, different number of methods will be
needed such as sampling, qualitative and quantitative method, data collection etc., accurate
amount of fund will be required. As a whole, for completing research, proper amount of fund is
necessary for a researcher.
Gantt Chart
This section of research project contains an in-depth description regarding different
number of activities or tasks that are going to be executed within the investigation along with the
accurate time taken by them (Pavlínek, 2015). For this, Gantt chart is considered the best model
and graphical presentation used by researcher to find out starting and ending time duration for
completion of research. In this tool, different number of activities must be covered which will
help an investigator to successfully complete research. In this chart different activities included
which are determine as under: Selection of topic- For selecting appropriate research topic of research, minimum 2 days
will be required by researcher. Development of aims and objectives- For development of aims and objectives about the
research topic, investigator will require around 4 days of time. Literature review- For gathering the information or data through scholarly papers,
researcher needs 8 days of time.

 Research Methodology- In order to accumulate appropriate information or data via
different sources and selecting the most appropriate source researcher requires 14 days. Data Collection- In order to collect relevant and appropriate data from respondents,
researcher requires 18 days of time. Data Analysis- For interpreting the outputs from the information, investigator needs
around 15 days of time. Conclusion and Recommendation- To accurately conclude the research output,
researcher needs 5 days of time.
 Submission of Final Report- For final submission report, investigator needs 2 day and
complete the investigation in a effective and efficient manner.

Data collection and analysis
The following survey was used to collect data in class that process was achieved by introducing
myself to the entire class followed by the purpose of my study. The respondents that were
willing to participate to the study were assured them that the result would only be used for
academic purposes and would be discarded at the end of January 2020. Having gained their
consent, I distributed the questionnaire to the class and 30 usable responses were collected. The
data collection was completed in around 30 minutes. The choice of data collection used was the
cheapest technique being very easy to use while in class with easy access.
The use of the questionnaire was useful in obtaining data cheap quick and the advantage of
explaining any issues to the respondents regarding the questionnaire. Questionnaire is an
effective instrument of primary data collection which support researcher in collection of reliable
information and also assist them by saving its time.

The drawbacks of this data collection method are the respondents limited subject knowledge and
that might influence the accuracy of the results. One of the main drawback of questionnaire is
some questions are more difficult to analysis.
Hello my name is Gabriel Leoveanu, I study Business in my final year at Icon College, in order
to complete my studies, I am required to conduct a research project on The impact of Foreign
Direct Investment on profits in Romania, a case of Tesla. The participation in this survey is not
mandatory, but your willingness to do so will be appreciated. There is no paid renumerations for
taking part in this study, data collected from this survey will be destroyed after the completion of
my studies. If you are unhappy with or unclear regarding any part of the study please contact my
tutor Dr. Gilbert Zvobgo from Icon College.

Please choose the wright answer:
1) What is your gender?
 male
 female
 other
2) Indicate your age:
 18-33 years
 34-41 years
 41+ years
 Prefer not to say
3) What is your employment status?
 Unemployed
 Employed
 Self-employed
 Prefer not to say
4) Foreign Direct Investment increases profits for Tesla in Romania?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
5) Foreign Direct Investment decreases profits for Tesla?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
6) Do you agree that Foreign Direct Investment has a positive effect for Tesla?
 Strongly Agree

 Agree
 Neutral
 Disagree
 Strongly Disagree
7) Do you agree that Foreign Direct Investment has a negative effect for Tesla?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
8) Do you agree that FDI increases market share for Tesla?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
9) Do you agree that Foreign Direct Investment helps Tesla to reduce cost of production?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
10) Do you agree that Foreign Direct Investment may be affected by political factors?
 Strongly Agree
 Agree
 Neutral

 Disagree
 Strongly Disagree
11) Do you agree that FDI helps Tesla gain better access to resources?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
12) Do you agree that FDI helps Tesla to gain competitive benefits in Romania?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Question 1:
Q1) What is your gender: Nr of respondents:
30
a) male 18
b) female 12
c) other 0

Question 2:
Q2) Indicate your age: Nr of respondents:
30
a) 18-33 years 27
b) 34-41 years 3
c) 41+ years 0
d) Prefer not to say 0
Question 3:
Q3) What is your employment status? Nr of respondents:
30
a) Unemployed 3
b) Employed 20
c) Self-Employed 6
d) Prefer not to say 1

Question 4:
Q4) Do you agree that Foreign Direct Investment increases profits for
Tesla in Romania?
Nr of respondents:
30
a) Strongly Agree 22
b) Agree 3
c) Neutral 2
d) Disagree 2
e) Strongly Disagree 1
Interpretation: It has been concluded that in the view of the respondents, foreign direct
investment helps Tesla to increase profits. For this 22 out of 30 respondents have strongly agreed
that foreign direct investment increase profits for the company 3 respondents agreed, 2 disagreed
and only 1 strongly disagreed the statement. From this survey it can be concluded that profits can
be increased as a result of FDI. Therefore, majority of respondents are strongly agreed as FDI is
essential strategy for increasing profit of an organisation by providing growth opportunities.
Question 5:
Q5) Do you agree that Foreign Direct Investment decreases profits for
Tesla?
Nr of respondents:
30
a) Strongly Agree 0
b) Agree 1
c) Neutral 5
d) Disagree 6
e) Strongly Disagree 18

Interpretation: According to above given chart, it has been determined that Tesla would
not decrease profits by using FDI in Romania. For this a majority of 18 respondents have
strongly disagreed, 6 respondents have disagreed, 5 respondents were neutral, only one agreed
and there was no one to strongly agree. So it can be stated that the majority of respondents don’t
think that profits will be decreased.
Question 6:
Q6) Do you agree that Foreign Direct Investment has a positive effect for
Tesla?
Nr of
respondents:
30
a) Strongly Agree 20
b) Agree 6
c) Neutral 2
d) Disagree 2
e) Strongly Disagree 0
Interpretation: 20 respondents have strongly agreed that FDI has a positive impact for
Tesla, 6 agreed while only 2 had the impression that there are no positive or negative effect for
FDI and there were 2 that disagreed. So there was a general impression that FDI is good for
Tesla.
Question 7:

Q7) Do you agree that Foreign Direct Investment has a negative effect for
Tesla?
Nr of respondents:
30
a) Strongly Agree 0
b) Agree 0
c) Neutral 4
d) Disagree 7
e) Strongly Disagree 19
Interpretation: 19 respondents have the strongly disagreed with the fact that FDI has a
negative effect for Tesla, 7 disagreed and 4 didn’t think it will have any effect. Majority of
participants are strongly disagreed as FDI has a negative effect for an organisation.
Question 8:
Q8) Do you agree that FDI increases market share for Tesla? Nr of respondents:
30
a) Strongly Agree 25
b) Agree 5
c) Neutral 0
d) Disagree 0
e) Strongly Disagree 0
Interpretation: 25 out of 30 respondents strongly agreed that FDI helps Tesla to
increase market share followed by another 5 who agreed the same statement, there were no
disagreements with this statement. So in conclusion FDI increases Tesla’s market share.

Question 9:
Q9) Do you agree that Foreign Direct Investment helps Tesla to reduce
cost of production?
Nr of respondents:
30
a) Strongly Agree 19
b) Agree 8
c) Neutral 1
d) Disagree 0
e) Strongly Disagree 2
Interpretation: 19 respondents strongly agreed, while 8 only agreed to the fact that
Foreign Direct Investment reduces Tesla production costs. 1 respondent said that it has no effect
for Tesla and 2 strongly disagreed. Most of the respondents have opinion and strongly agreed as
FDI helps an organisation in reduction of cost of production.
Question 10:
Q10) Do you agree that Foreign Direct Investment may be affected by
political factors?
Nr of respondents:
30
a) Strongly Agree 14
b) Agree 6
c) Neutral 4
d) Disagree 4
e) Strongly Disagree 2

Q10) Do you agree that Foreign Direct Investment may be affected by
political factors?
Nr of respondents:
30
Interpretation: Foreign Direct investment is influenced by political factors which may
affect it in a negative or positive way, 14 strongly agreed, 6 agreed, 4 said that it doesn’t have
any effect while 4 disagreed and 2 strongly disagreed.
Question 11:
Q11) Do you agree that FDI helps Tesla gain better access to resources? Nr of respondents:
30
a) Strongly Agree 18
b) Agree 9
c) Neutral 3
d) Disagree 0
e) Strongly Disagree 0
Interpretation: By using Foreign Direct Investment Tesla gains access to more
resources , out of the respondents 18 strongly agreed 9 agreed, and 3 respondents said it makes
no difference.

Question 12:
Q12) Do you agree that FDI helps Tesla to gain competitive benefits in
Romania?
Nr of respondents:
30
a) Strongly Agree 25
b) Agree 5
c) Neutral 0
d) Disagree 0
e) Strongly Disagree 0
Interpretation: Regarding the benefits gained by Tesla for using FDI , 25 respondents
strongly agreed that it will gain competitive benefits and 5 also agreed to this question. Most of
the population are strongly agreed above mentioned statement as company gained competative
advantages in Romania by using FDI.
CONCLUSION
From the above given information, it has been concluded, impact of foreign direct
investment on profit of multinational organisation within a specific country. It will directly
impact on an organisation while expanding business activities in Romania market. According to
the above data founded in questionnaire, the majority of respondents agree or strongly agree that
FDI will have a positive impact on Tesla and will increase profits also. Along with this, FDI has
impacted the business in a both positive and negative manner. There are different benefits and
drawbacks of foreign direct investment upon business success and growth. Along with this,
profitability of an organisation is dependent on foreign direct investment. Provides local
economic benefits in multiple locations, makes international trade easier to complete, Foreign
income can increase and Improves human resources are consider main benefits of foreign direct
investment which will help an enterprise in increment of profit. There are some disadvantages of
foreign direct investment on business such as political influence can cause the company to suffer
financial losses and even relocate from the country, another drawback of FDI is it that it can stop

domestic growth in the selected country to happen or it can slow it down. All these have a
negative impact on business functions and its success in an international marketplace such as
Romania.
Research Limitation:
The limitations of the project are those characteristics of methodology or design that
impacted the interpretation of findings from research (Li, Murshed and Tanna, 2017). There are
different limitation faced by researcher such as; in development of aims and objectives, selection
of appropriate sample size, development and implementation of data accumulation method, poor
previous studies in the field of study etc. All these are major limitation which will highly impact
of researcher while doing each activities of research is systematic manner. There are different
ways to overcome research limitation which should be follow by researcher such as: investigator
should always acknowledge a study's limitation, keep in mind that acknowledgement of research
limitation is a chance to make proper suggestion for further study etc. All these ways will be
more essential and useful to overcome limitation and gain better outputs for further study.
RECOMMENDATION
There are some recommendations that will be provided to an enterprise about how to
overcome impact of globalisation and foreign direct investment on its business functions and
profitability. The company should do Proper study about government's rules and regulations,
Implement appropriate communication channel and Hire knowledgeable employees. All these
recommendation will support an organisation to overcome all challenges and accomplish better
growth within the given time duration. There are different recommendation that will also be
provided to an organisation about how to increase profitability in Romania.
 The company should provide quality products or services to international clients at
affordable price. It will help an enterprise by increasing its profit and market share.
 Tesla should use proper training and development program which will also help them in
achievement of long term goals and profits within given time duration.
REFELECTION
I was used different methods for gathering accurate and reliable information about the
topic such as primary and secondary research, qualitative research etc. All these supported me by
providing accurate information which will help me in conducting each activity of research in a

more effective manner. For collecting primary information, I only used questionnaire, because it
gives me reliable and valid data about the topic. On the other side, for collecting secondary
information, I used literature review, because it assisted me by providing detail information
about the impact of FDI. I am thankful that I’ve got a chance to work over the topic or research
which would help me in improving my knowledge and skills about the impact of foreign direct
investment in enhancing business activities of an organisation. In addition to this it also helped
me in raising my investigation qualities as I came to understand regarding different tools that are
applied to conduct research in a more effective and efficient manner. While performing this
research activities I had to analyse some challenges like lack of budget and time given for
investigation and few of the participants which were not showing interest to give data. But
disregarding all these difficulties I tried my best to present more ethical, dependable and
appropriate information and data within the research.
There are different methods used by the researcher to collect accurate information or data
about the study. For this research project, questionnaire was used because it will support an
investigator to gather reliable and valid data about the study. There is also an alternative method
which is interview. As it will also useful and important for a researcher to accumulate accurate
data about the topic. There are different advantages of interview such as easy correction of
speech, development of relationship, selection of suitable candidate, collection of primary
information, time saving, less costly, increasing knowledge etc. Thus, it is also essential and
useful method for an investigator to accumulate proper information about the topic. This type of
methodology is also useful for a researcher into driving valid conclusion and providing accurate
data about the field of study.

REFERENCES
Books and Journals
Alfaro, L., 2015. Foreign direct investment: effects, complementarities and promotion. Partners
or Creditors?. p.21.
Boghean, C. and State, M., 2015. The relation between foreign direct investments (FDI) and
labour productivity in the European Union countries. Procedia Economics and Finance.
32. pp.278-285.
Bradshaw, M. J., 2017. Foreign direct investment and economic transformation in Central and
Eastern Europe. In Foreign Direct Investment and Regional Development in East
Central Europe and the Former Soviet Union (pp. 41-58). Routledge.
Buettner, T., Overesch, M. and Wamser, G., 2018. Anti profit-shifting rules and foreign direct
investment. International Tax and Public Finance. 25(3). pp.553-580.
Costaiche, G. M. and Niculae, I., 2016. The evolution and impact of foreign direct investments in
Romania. Scientific Papers: Management, Economic Engineering in Agriculture &
Rural Development. 16(2).
Dyreng, S. D. and et. al., 2015. The effect of tax and nontax country characteristics on the global
equity supply chains of US multinationals. Journal of Accounting and Economics. 59(2-
3), pp.182-202.
Estrin, S. and Uvalic, M., 2016. Foreign direct investment in the Western Balkans: what role has
it played during transition?. Comparative Economic Studies. 58(3). pp.455-483.
Gui-Diby, S. L. and Renard, M. F., 2015. Foreign direct investment inflows and the
industrialization of African countries. World Development. 74. pp.43-57.
Islam, K. A., 2015. Foreign Direct Investment (FDI) in Bangladesh: Prospects and Challenges
and Its Impact on Economy. Asian Business Review. 4(1). pp.24-36.
Janský, P. and Palanský, M., 2018. Estimating the scale of profit shifting and tax revenue losses
related to foreign direct investment (No. 2018/21). WIDER Working Paper.
Jude, C. and Silaghi, M. I. P., 2016. Employment effects of foreign direct investment: New
evidence from Central and Eastern European countries. International Economics. 145.
pp.32-49.
Kragulj, D. and Parezanin, M., 2015. Foreign Direct Investment and Economic Growth in Times
of Economic Crisis: Evidence from Southeast European Countries. European Scientific
Journal, ESJ. 11(10).
Kurečić, P., Luburić, G. and Šimović, V., 2015. The Interdependence of GDP per capita and
Foreign Direct Investment in the Transitional Economies of Central and Eastern
Europe. Journal of economic and social developmen. 2(2). pp.0-0.
Li, C., Murshed, S. M. and Tanna, S., 2017. The impact of civil war on foreign direct investment
flows to developing countries. The Journal of International Trade & Economic
Development. 26(4). pp.488-507.
Lucke, N. and Eichler, S., 2016. Foreign direct investment: the role of institutional and cultural
determinants. Applied Economics. 48(11). pp.935-956.
Neumayer, E., Nunnenkamp, P. and Roy, M., 2016. Are stricter investment rules contagious?
Host country competition for foreign direct investment through international
agreements. Review of World Economics. 152(1). pp.177-213.

Panait, M. and Voica, C., 2017. The relation between foreign direct investments and some
economic indicators. The case of Romanian economy. Theoretical & Applied
Economics. 24(2).
Pavlínek, P., 2015. Foreign direct investment and the development of the automotive industry in
central and eastern Europe. Foreign investment in eastern and southern Europe after
2008: Still a lever of growth, pp.209-255.
Stanciu, S., 2016. The Foreign Direct Investment in the Romanian Agrifood Production. SEA–
Practical Application of Science. 4(11). pp.289-297.
Turnock, D. ed., 2017. Foreign direct investment and regional development in east central
Europe and the former Soviet Union: A collection of essays in memory of Professor
Francis' Frank'Carter. Routledge.
Online
Romania - Market Overview. 2018. [Online]. Available through:
<https://www.export.gov/article?id=Romania-Market-Overview>
AMES CHEN. 2019. Foreign Direct Investment. [Online]. Available through:
<https://www.investopedia.com/terms/f/fdi.asp>
Shawn Grimsley. 2019. What Is Foreign Direct Investment? - Definition, Advantages &
Disadvantages [Online]. Available through: <https://study.com/academy/lesson/what-
is-foreign-direct-investment-definition-advantages-disadvantages.html>
Foreign direct investment (FDI) in Romania. 2016. [Online]. Available through:
<https://study.com/academy/lesson/what-is-foreign-direct-investment-definition-
advantages-disadvantages.html>

Appendix
Unit: Unit 11 Research Project (RQF) L5
Proposed Title: “To investigate the impact of globalisation in expansion of business
activities of an organisation in Romania. A study on Tesla.
Questionaire:
The following survey was used to collect data in class that process was achieved by introducing
myself to the entire class followed by the purpose of my study. The respondents that were
willing to participate to the study were assured them that the result would only be used for
academic purposes and would be discarded at the end of January 2020. Having gained their
consent, I distributed the questionnaire to the class and 30 usable responses were collected. The
data collection was completed in around 30 minutes. The choice of data collection used was the
cheapest technique being very easy to use while in class with easy access.
The use of the questionnaire was useful in obtaining data cheap quick and the advantage of
explaining any issues to the respondents regarding the questionnaire.
The drawbacks of this data collection method are the respondents limited subject knowledge and
that might influence the accuracy of the results.
Please choose the wright answer:
1) What is your gender?
 male
 female
 other
2) Indicate your age:
 18-33 years

 34-41 years
 41+ years
 Prefer not to say
3) What is your employment status?
 Unemployed
 Employed
 Self-employed
 Prefer not to say
4) Foreign Direct Investment increases profits for Tesla in Romania?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
5) Foreign Direct Investment decreases profits for Tesla?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
6) Do you agree that Foreign Direct Investment has a positive effect for Tesla?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
7) Do you agree that Foreign Direct Investment has a negative effect for Tesla?
 Strongly Agree
 Agree

 Neutral
 Disagree
 Strongly Disagree
8) Do you agree that FDI increases market share for Tesla?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
9) Do you agree that Foreign Direct Investment helps Tesla to reduce cost of production?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
10) Do you agree that Foreign Direct Investment may be affected by political factors?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
11) Do you agree that FDI helps Tesla gain better access to resources?
 Strongly Agree
 Agree
 Neutral
 Disagree

 Strongly Disagree
12) Do you agree that FDI helps Tesla to gain competitive benefits in Romania?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Section One: Title, objective,
responsibilities
Title: “To investigate the impact of
foreign direct investment on
profits in Romania. A study on
Tesla.
Research Questions:
 What is the impact of Foreign
Direct Investment on profits for
Tesla in Romania? What are the ways through which
Tesla can overcome the
drawbacks of foreign direct
investment?
Research objectives:
 To analyse the impact of Foreign
Direct Investment on profits for
Tesla in Romania
 To identify the ways through which
Tesla can overcome the
drawbacks of foreign direct

investment
Section Two: Reasons for choosing this
research project
Main reason behind selecting this topic is
to investigate the impact of foreign direct
investment on profitability of Tesla in
Romania. It is a multinational
organisation which will help in economic
development of country by increasing
employment rate, improving
infrastructure etc. Along with this, this
topic will also support a researcher by
enhancing its data analysis, data
collection and literature review skill. All
these skills will help a researcher to do
each activities of research in systematic
and effective manner.
Section Three: Literature sources
searched
Literature review is an essential type of
scholarly paper which will help a
researcher to identify gaps in previous
studies. In this section, all research
objectives and questions are address in
more effective manner which are explain
as under:
Impact of Foreign Direct Investment
on profits for Tesla in Romania
Foreign direct investment
introduces as an effective and essential
entry mode strategy used by Tesla to
expand their business operations and
activities in Romania. There are some

benefits of FDI such as access to market,
access to resources and Reduction of
production cost. All these are considered
major advantages or benefits which will
positively influence on business growth
and success in direct manner.
The ways through which Tesla can
overcome the drawbacks of foreign
direct investment
There are different drawbacks of foreign
direct investment such as FDI stops
domestic investment from happening,
Risks from political change etc. All these
are major risks of foreign direct
investment which will negatively
influence on business growth as well as
profitability also. In order to overcome
above mentioned risks or drawbacks
some suggestion have been provided to
Tesla which are determined as under:
 Tesla should do proper study
which will help them in reduction
of risks from political changes.
Tesla should also provide different
number of employment opportunities
which will help them in reduction
domestic investment from happing.
Section Four: Activities and timescales
Activities to be carried out
during the research project :
Introduction
Aims and Objectives
Literature Review
Days
2
4
8
14

Research Methodology
Data collection
Data analysis
Conclusion and
recommendation
Submission of final project
18
15
5
2
Milestone one: ____Research
Proposal ____________
Target date (set by tutor):
____28 days ________________
Milestone two: ___Research
Project ____________________
Target date (set by tutor): __40
days ____________________
Gantt Chart: It introduces as a
type of graphical presentation
which will support an investigator
to analysis starting and ending time
duration for completion of each
activities related to the research.
Some activities with its starting and
ending data are determine as
under:

Section Five: Research approach and
methodologies
Research onion framework
It introduces as an effective framework which
is applied by researcher for explaining the
methodology of the research. This framework
includes different approaches and methods
and in which some useful methods are
determine as under:
Research Approach: There are mainly two
kind of research approach which is
qualitative and quantitative. Both are useful
approach and help an investigator to gather
accurate and reliable information about the
study. According to the topic, qualitative
research approach is more suitable because it
gives information about the topic in form of
quality as compare to quantitative research.
Research Philosophy: It is another important
part of research onion which is divided into
two parts namely, Interpretivisim and
positivism. In order to identify impact of
foreign direct investment in expansion of
business activities in Romania,
interpretivisim philosophy will be more
suitable because it helps in driving valid
conclusion related to the study. On the other
side, in case of positivism philosophy, it will
be not suitable for carrying out research
activities in effective and efficient manner.
Primary and secondary data collection: For
gathering data about the study, primary and
secondary researcher introduces the best
sources of data collection. For accumulating
primary data, questionnaire will be prepared
by researcher because it helps them by giving
reliable and valid data about the topic. On the

other hand, for gathering secondary
information, books, journals, articles, review
of literature etc. are useful sources.
Therefore, both sources of data collection are
essential for accumulating relevant
information related to the topic.
Comments and agreement from tutor
Comments and agreement from project
checker (if applicable)
Comments (optional)
I confirm that the project is not work
which has been or will be
submitted for another
qualification and is appropriate
Gantt Chart
Milest Projective
Act
iviti
es
W W W W W W W W W W W W W
M1 Project
formulation
and Project
Planning
2
M2 Literature
Review
8
M3 Methodolo
gy
1

M4 Data
Collection
and
Analysis
18
M5 Discussion
of the
results
15
M6 Report
writing
5
M7 Presentatio
n of the
project to
the Board
of
Directors
2
Achievement based on Gantt chart (To be completed by students)
Week Activities to achieve planned milestones Tutor’s
feedback and
date
W3 Problem formulation and Project Planning
Research Problem and background to the problem
Research Topic
Research objectives
W7 Literature Review
Key sources of information
W11 Methodology
Choice of methodology
Sampling
Brief description of how data would be collected and
analysed
W16 Data Collection and Data Analysis
Data collection

How it was collected
Advantages and disadvantages of the technique
Data Analysis
Technique used to analyse the data
Advantages and disadvantages of the technique
Interpret the results
W20 Discussion of the results
What do the results mean based on the literature
reviewed?
Recommendations to solve the research problem
W23 Report writing
Appropriate structure
W24 Presentation of the project to the Board of Directors
Research Ethics Approval Form
All students conducting research activity that involves human participants or the use of
data collected from human participants are required to gain ethical approval
before commencing their research. Please answer all relevant questions and
note that your form may be returned if incomplete.
For further support and guidance please see your respective Unit Tutor.
Before competing this form, we advise that you discuss your proposed research
fully with your Unit Tutor. Please complete this form in good time before
your research project is due to commence.

Section 1 Basic Details
Project title: To investigate the impact of globalisation in expansion of business activities of
an organisation in Romania. A study on Tesla.
Student name
Intended research start date:
24.04.2019
Intended research end date:
25.07.2019
Section 2 Project Summary
Please select all research methods that you plan to use as part of your project:
Interviews:
Questionnaires:
Observations:
Use of Personal Records:
Data Analysis:
Action Research:
Focus Group:

Other (Please specify):
Section 3: Participants
Please answer the following questions, giving full details where necessary. Will your
research involve human participants?
Who are the participants? Tick all that apply:
Ages 12-16: Young People aged 17–18 Adults
How will participants be recruited (identified and approached)?
Describe the processes you will use to inform participants about what you are doing:
How will you obtain consent from participants? Will this be written? How will it be made
clear to participants that they may withdraw consent to participate at any time?
Studies involving questionnaires: Will participants be given the option of omitting
questions they do not wish to answer?
Yes No
If No please explain why below and ensure that you cover any ethical issues arising
from this
Studies involving observation: Confirm whether participants will be asked for their
informed consent to be observed.
Yes No
Will you debrief participants at the end of their participation (i.e. give them a brief
explanation of the study)?
Yes No

Will participants be given information about the findings of your study? (This could be a
brief summary of your findings in general)
Yes No
Section 4: Data Storage and Security
Confirm that all personal data will be stored and processed in compliance with the Data
Protection Act (1998) Yes: No:
Who will have access to the data and personal information?
During the research:
Where will the data be stored?
Will mobile devices such as USB storage and laptops be used? Yes: No:
If yes, please provide further details: After the research:
Where will the data be stored?
How long will the data and records be kept for and in what format? Will data be kept for
use by other researchers?
Yes: No:
If yes, please provide further details:

Section 5: Ethical Issues
Are there any particular features of your proposed work which may raise ethical concerns? If so,
please outline how you will deal with these:
It is important that you demonstrate your awareness of potential risks that may arise as a result
of your research. Please consider/address all issues that may apply. Ethical concerns may
include, but are not limited to the following:
• Informed consent. Will be used.
• Potentially vulnerable participants. Will not be used.
• Sensitive topics. Will not be used.
• Risks to participants and/or researchers.
• Confidentiality/anonymity. Will be used.
• Disclosures/limits to confidentiality. Will be used.
• Data storage and security, both during and after the
research (including transfer, sharing, encryption, protection).
Will be used.
• Reporting.
• Dissemination and use of your findings.
Section 6: Declaration
I have read, understood and abide by the Institution’s Research and Ethics Policy:
Yes No
I have discussed the ethical issues relating to my research with my Unit Tutor:
Yes No
I confirm that to the best of my knowledge:
The above information is correct and that this is a full description of the ethics issues that may
arise in the course of my research.