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The paper refers to “a theoretical model” created by the author, named Universal Model, in which have been included most of the theories determining foreign direct investment (FDI). What derives from the literature review is that no theory dominates the decision‐making process of FDI. The opportunities a country has to offer change through time, and the different ways in which multinational enterprises (MNEs) evaluate the opportunities led the author to conclude that the concept of globalization is not valid for the theory of FDI. Special attention to the case of Bulgaria has been given. The main reason why the case of Bulgaria is of great interest is the fact that the conditions in the country at the beginning of its transition were some of the worst among the Central and Eastern European countries (CEEs). The conclusion is of extreme interest since economists, MNEs and entrepreneurs have a strong interest in countries that open their economies and target their efforts towards stabilizing and liberalizing their macro‐economic environment.

A report of the International Labour Organization on undeclared work in Greece refers to failures of formal institutions which contribute to the asymmetry between state and civic morality. The particular asymmetry is explored through the context of tax morale, which is one of the major determinants of the shadow economy. Although several papers have been published on the Greek shadow economy, tax morale in Greece has not been adequately explored. This research aims to investigate the effect of the economic downturn on the factors determining the level of tax morale through primary data from a European Union-funded research project on the Greek shadow economy. The findings provide policy orientations toward transferring activities from the shadow to the official economy, a goal which is part of Europe 2020 strategy.

Most large enterprises have “a global view” in the expansion of their activities and, thus, in the creation of their investment projects. They invest in specific countries when they conclude that the countries in question fulfill their goals. It is not enough that an economy of a country has as a target to become a market economy, to open its borders and to attract foreign direct investment (FDI) flows for the economy to become globalized, but it is necessary for this result to be shown by significant foreign participation and huge FDI and trade inflows into the host country. If this never happens, then the country will not benefit from globalization. From one point of view, multinational enterprises (MNEs) “decide” which countries benefit from economic integration and which countries successfully participate in the huge worldwide globalized economic chain. On the other hand, due to the large investment opportunities that a few countries offer to MNEs and due to the large number of host countries, at the end, MNEs invest only in specific countries. Thus, there are a lot of countries that are isolated from the whole system. Moreover, smaller MNEs in economic magnitude often extend their activities mainly to neighboring countries, in order to maximize their profits and minimize their costs. The share of FDI is not the same in all countries and the FDI inflows in less‐developing or poor countries show little growth or no growth at all. Today's FDI orientation is not as global as expected and there is a regional trend in those flows, when at the same time a few countries, especially from specific regions (such as the Balkan region) still live cut off from the world of FDI flows.

To investigate the trends of world foreign direct investment (FDI) flows during the last decades and to explore the reasons behind these trends and to examine the role of multinationals and their investment activities.

This paper is based on the statistical data of FDI flows throughout the world and on an action field research which was also based on multinationals' investment behaviour. The FDI trends and the role of multinationals are evaluated.

FDI can play a key role in improving the capacity of the host country to respond to the opportunities offered by global economic integration, a goal increasingly recognized as one of the key aims of any development strategy and an increased growth rate. World FDI inflows grew rapidly and faster than world GDP and world exports during the last two decades. There was a dramatic increase in FDI over the last decade (until 2000) which was based on globalisation and economic integration, technological improvements in communications, information processing and transportation, the changing framework of international competition and the deregulation of several key sectors. There was a dramatic decrease in FDI flows after the year 2000 due to the slowdown in the world economy. M&A deals are the most important driving factors behind overall FDI flows when at least one third (up to two third) of the total FDI flows are due to the M&A cross‐border deals.

The research should be also be expanded in continents (for example, Asia, America) in order to examine the multinationals' investment activities and behaviour in order to conclude about the FDI trends more thoroughly.

More investment interest must be given to the developing or transition countries in which (where) the flows in absolute terms are too low. Moreover, the absence of large cross‐border merger and acquisitions in these countries, can obviously be explained by the lack of the existence of significant and well‐known large companies which could have the potential to become significant world players in the sector that they belong to.

It is a valuable paper for scholars, entrepreneurs and multinationals who prefer to understand the reasons behind the FDI trends and/or for the governments/politicians who prefer to create a framework in order to attract FDI flows to their countries by examining the experience of other countries.

To critically evaluate the obstacles and problems encountered by entrepreneurs while doing business in Albania, which is an economy in a transition.

The research methodology incorporates a survey that uses interview and questionnaire techniques. The sample was determined on a stratified basis (probability‐random sampling) involving the random selection of respondents from various strata of the population.

The most important obstacles faced by entrepreneurs in Albania include unfair competition, changes in taxation procedures, lack of financial resources and problems related to public order. Bureaucracy and corruption do not appear to represent significant barriers to entrepreneurship.

Responses from the selected strata were not distributed proportionally among the targeted sample.

Legislative amendments and new legislation which focus specifically upon small business and enterprise development should be implemented by the Albanian government in order to achieve a transparent fiscal reform and create a more favorable business environment.

This research provides a critical evaluation of entrepreneurial activities and the obstacles that entrepreneurs encounter while operating in the Albanian economy in transition.