Quaestus 7

QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL
QUAESTUS
NO. 7/ June 2015 JOZSEF GAL,

Associate professor PhD. Szeged
EDITORIAL BOARD
University, Hungary
HONORARY EDITORS METE Cüneyt OKYAR,
Associate Professor, PhD. Economics
MOMCILO LUBURICI, Department, Şırnak University,
Professor PhD, President Founder Turkey
of "Dimitrie Cantemir" Christian MILAD JANJANI GOUDARZI,
University Bucharest Department Of Geology, Faculty Of
CORINA ADRIANA DUMITRESCU, Science , Payame Noor University Of Iran
Professor PhD, Rector of "Dimitrie GABRIELA POHOAŢĂ,
Cantemir" Christian University Associate professor PhD. "Dimitrie
Bucharest Cantemir" Christian University
Bucharest
EDITORS IN CHIEF FILIP PAŢAC,
CIPRIANA SAVA, Associate professor PhD. "Dimitrie
Associate professor PhD., "Dimitrie Cantemir" Christian University
Cantemir" Christian University Bucharest, Faculty of Management in
Bucharest, Faculty of Management in Tourism and Commerce Timişoara
Tourism and Commerce Timişoara EMILIA GOGU,
LUIZA CARAIVAN, Associate professor PhD. "Dimitrie
Associate professor PhD. "Dimitrie Cantemir" Christian University
Cantemir" Christian University Bucharest
Bucharest, Faculty of Management in DINA LUŢ,
Tourism and Commerce Timişoara Associate professor PhD. "Dimitrie
Cantemir" Christian University
CONSULTATIVE BOARD Bucharest Faculty of Management in
MIRELA MAZILU, Tourism and Commerce Timişoara
Professor PhD. University of MARIUS MICULESCU,
Craiova, Faculty of Social Sciences, Associate professor PhD. "Dimitrie
Drobeta Turnu Severin, Romania Cantemir" Christian University
GHEORGHE LEPĂDATU, Bucharest Faculty of Management in
Professor PhD., "Dimitrie Cantemir" Tourism and Commerce Timişoara
Christian University Bucharest CIPRIAN PAVEL, PhD., Faculty of
ZORAN MARKOVIC, Management in Tourism and Commerce
Professor PhD. University of Belgrad, Timişoara
Technical Faculty Bor, Serbia ADRIAN MATEIA, Faculty of
GROZDANKA BOGDANOVIC, Management in Tourism and
Professor PhD. University of Belgrad, Commerce Timişoara
Technical Faculty Bor, Serbia
MARIN BURTICĂ,
Professor PhD. University of the
West, Timişoara
1
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2
Contents
MANAGERIAL STRATEGIES
AND ORGANISATIONAL CULTURE ................................. 7
CORPORATE SOCIAL RESPONSIBILITY POLICY WITHIN
THE ROMANIAN WEST REGION COMPANIES ............................... 9
Dina Maria Luţ
THE ROLE OF HUMAN CAPITAL DEVELOPMENT IN INCREASE

COMPETITIVENESS IN ROMANIAN TOURISM ENTERPRISES .... 19
Dina Maria Luţ, Florea Vlad
CURRENT DEMOGRAPHIC AND URBAN PROBLEMS IN

THE DANUBIAN DOBRUDZHA (REGION BULGARIA) ................ 29
Milen Penerliev
THE SOCIAL-ECONOMIC IMPACTS OF A NEW PLANT

OF A LARGE COMPANY AS A NEW INVESTMENT ...................... 36
Brigitta Zsoter, Sandor Harcsas, Nicoleta Trandafir
THE ECONOMY OF TATABÁNYA, A MIGRATION

INITIATOR BETWEEN 1950 AND 2014 ........................................... 43
Brigitta Zsoter, Balazs Rabai, Nicoleta Trandafir
SELECTION OF CANDIDATES IN THE PROCESS OF

RECRUITMENT AND SELECTION OF PERSONNEL
BASED ON THE SWARA AND ARAS METHODS ........................... 53
Dragisa Stanujkic, Bojan Djordjevic, Darjan Karabasevic
BUSINESS SIMULATION OF TOURISM COMPANIES

USING THE LEVEL I EXERCISE FIRM MODEL ............................. 65
Nora Codruţa Curta, Răzvan Petruşel, Corina Anamaria Iftinca
EVALUATING COMMERCIAL PERFORMANCE

IN AN OIL PRODUCTS DISTRIBUTION FIRM ................................ 75
Vlad Florea, Dina Luț
BUSINESS INTERNATIONALISATION AND THE CHOICE

OF INTERNATIONAL STRATEGY IN CASE OF SLOVAK
COMPANIES ......................................................................................... 81
Jana Gálová, Elena Horská
3
THE GROWING IMPORTANCE OF SOCIAL MEDIA

IN BUSINESS MARKETING ............................................................... 93
Pavel Ciprian
ACCOUNTING AND FINANCE ................................................... 99

EFFECTIVENESS PROBLEMS AT URBAN PUBLIC
TRANSPORT – FROM THE PERSPECTIVE
OF THE EUROPEAN COURT OF AUDITORS ................................. 101
Sándor NAGY
ACCOUNTING AND TAX LEGISLATION ISSUES

REGARDING THE PROCUREMENT AND THE SUPPLY FOR
INTRA-COMMUNITY GOODS ......................................................... 109
Marius – Nicolae Miculescu
INTERNAL FINANCIAL ACCOUNTING

CONTROL OF PRIVATE ENTITIES ................................................. 120
Radu Dorin Lenghel
CONSIDERATIONS REGARDING PERISHABLE ITEMS ............ 132

Radu Dorin Lenghel
CONSIDERATIONS REGARDING
THE SIMULTANEOUS WRITING-OFF
OF COMPENSATIONS AND PERISHABLE ITEMS ....................... 140
Radu Dorin Lenghel
DETERMINATION OF THE OPTIMUM PRODUCTIONS

SURFACE (MONOFACTORIAL MODEL)
HAVING AN INITIAL FIXED CAPITAL ......................................... 149
Ciprian Ioan Rujescu, Adrian Nicolae Mateia, Simona Martin,
Ramona Ciolac
STATISTICAL YEARBOOK OF ROMANIA, A PUBLIC GOOD ... 157

Filip Pațac, Janeta Weisz
EXTRAORDINARY FINANCIAL RESOURCES – TRENDS .......... 164

Corina Miculescu
OPPORTUNITIES FOR PREVENTION AND FIGHTING

TAX EVASION ................................................................................... 174
Corina Miculescu
4
LEGISLATION IN TOURISM ..................................................... 183

PREPARATORY CONTRACTS REGARDING
THE PREFERENTIAL OBLIGATION ............................................... 185
Gheorghe Pinteală
THE PRE-CONTRACTUAL PHASE AND THE NEGOTIATIONS

REGARDING THE CONTRACT IN THE ROMANIAN
CIVIL CODE ........................................................................................ 190
Gheorghe Pinteală
LEGISLATIVE PROPOSALS ON SPECIALIZATION

AND IMPROVEMENT OF RURAL TOURISM ................................ 196
Romeo Cătălin Creţu, Adelaida Cristina Honțuș,
Traian Ioan Berbecaru
THE MARKET LAND LIBERALISATION

IN ROMANIA ECONOMIC, SOCIAL, LEGAL
AND POLITICAL IMPLICATIONS ................................................... 207
Dumitru Adrian Crăciunescu
SOCIAL AND EDUCATIONAL ENVIRONMENT ............ 213

GUIDELINES FOR BUSINESS CORRESPONDENCE .................... 215
Luiza Caraivan
DO WE REALLY UNDERSTAND ANGLICISMS USED

IN TOURISM AND HOSPITALITY TERMINOLOGY? .................. 221
Mihaela Lazovic, Slavoljub Vicfic
BABEL TOWER – AN INDICATION OF HUMAN

ASPIRATION TO SACREDNESS ...................................................... 231
Christina Andreea Mițariu
5
6
MANAGERIAL STRATEGIES
AND
ORGANISATIONAL CULTURE
7
8
CORPORATE SOCIAL RESPONSIBILITY POLICY

WITHIN THE ROMANIAN
WEST REGION COMPANIES
Dina Maria Luţ
Abstract: In today's business world, the concept of Corporate Social

Responsibility (CSR) represents a new philosophy, showing
responsibility that organizations have towards people, society and the
environment, as they are or can be affected by companies’ activities.
The CSR concept is strongly related to the concept of sustainable
development and the CSR policy is integrated in the sustainable
development strategy. Companies have the power to shape their actions
so that they do not prejudice communities and the environment. The
CSR policy enables companies to monitor voluntarily and to improve
the social and environmental impact of their actions.
This paper proposes a possible model for analysing the CSR policy
within the Romanian West Region companies. Firstly, we defined three
dimensions which are considered the most relevant for the CSR concept
and we assessed these dimensions in order to detect which one is the
predominant dimension of CSR policy in Romanian companies.
Key words: corporate social responsibility, environment, sustainable
development, Romanian companies.
1. INTRODUCTION
Today’s business world considers that the “3 Ps”, that is
Population, Planet and Profit, are relevant for preserving natural
resources and promoting sustainability. The basic philosophy of the “3
Ps” is that, although financial success continues to be the main
motivation in making decisions, economic development may be
maintained by protecting the environment at the same time. The profit
that a company makes may bring benefits for everybody as long as the
process used to obtain money does not affects the environment. [1]
When speaking about companies, sustainability refers to adopting
business strategies which satisfy company and shareholders’ needs but,
at the same time, they protect, preserve and increase human and natural
9
which will be necessary for future generations. Stopping environmental

degradation, taking care of the environment and of the natural resources,
taking into consideration our common future, are issues that should be
approached with maximum seriousness by everybody: authorities, civil
society and the business sector.
In today's business world, Corporate Social Responsibility
represents a new philosophy, showing responsibility that organizations
have towards people, society and the environment, as they are or can be
affected by companies’ activities. [3] Corporate Social Responsibility
(CSR) was defined by the European Commission as a concept whereby
companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a
voluntary basis. [4]
The CSR concept is strongly related to the concept of sustainable
development.
Sustainable development has developed as a concept through
several decades of active international scientific debate and has acquired
distinct political connotations in the context of globalization. [2], [7].
“Sustainable development is development that meets the needs of the
present without compromising the ability of future generations to meet
their own needs.” [6]
The CSR policy is integrated in the sustainable development
strategy. Companies have the power to shape their actions so that they
do not prejudice communities and the environment. The CSR policy
enables companies to monitor voluntarily and to improve the social and
environmental impact of their actions.
There are three aspects of the social dimension of corporate social
responsibility, as follows [4]:
- Internal aspects: human resource management, health and
safety at work (OSH), business ethics, adaptation to change, and
organizational learning – requires participation of workers or
their representatives;
- External local: local corporate citizenship - requires
cooperation with business partners, local authorities and local
NGOs;
- External worldwide: human rights, global environmental
concerns, safety and health in supply companies, corporate
citizenship worldwide - requires communication with
consumers, investors, globally operating NGOs, etc.
A key component of the CSR concept is responsibility towards the
environment, which can be called corporate environmental
10
responsibility that implies obtaining concrete competitive on a market

that has been strongly affected by the economic crisis. Recent studies
have shown that employees who work for socially responsible
companies tend to be very motivated at work, partly because they have
the satisfaction to know that they work for an organization that puts
community and environment on the first place. [5] If employees are
motivated, they will be more productive. Also, more investors are
interested by CSR policy of the company where they invest their
money, especially in matters that refer to the environment and human
rights. Thus, firms that consider the environment and the society will
have more access to potential capital.
2. EXPERIMENTAL
2.1. Research methodology
The practical research presented in this study aims assessing the
environmental dimension of CSR policy within the Romanian West
Region companies, and comparing it with two other dimensions of the
CSR policy: internal dimension and local external dimension.
The study was conducted on 41 companies with Romanian,
foreign or joint capital from West Region Romania, working in different
economic areas: industrial-production, trade, services. 14 of these
companies are multinational companies (34%). We used as the research
method the survey, and as the research instrument we used the
questionnaire applied to managers of the investigated companies (during
the year 2014).
Starting from the theoretical framework presented above, we
defined three dimensions which are considered the most relevant for the
CSR concept and we assessed these dimensions:
D1. Environmental dimension of the CSR policy refers to the
impact on the environment (global external dimension).
D2. Local external dimension refers to relationships with
stakeholders and local community (relationships with shareholders,
investors, creditors, competitions, suppliers, local authorities, other
institutions, the public);
D3. Internal dimension refers to the Human Resources
Management (the fairness and strictness of personnel policies,
participative management, workplace security, etc.);
Each of the three dimensions is formed of an ensemble of
essential characteristics which are considered evaluation criteria for that
dimension.
11
Environmental dimension (D1) referring to the impact of

company activities on the environment is evaluated based on the
following criteria:
C11. Existence of some evaluations of the impact of company
activity on the environment by using specific audit
instruments (to evaluate in detail the degree of conformation
or to identify opportunities to reduce costs, repercussions on
the environment and resource waste);
C12. Existence within the company of a CSR policy with an
environmental component and the existence of someone
responsible to implement it;
C13. The degree of conformity with the environmental norms
evaluated using the environmental standards (if fines or other
warnings have been applied for not complying with the law);
C14. The degree of active participation of employees in
protecting the environment evaluated by the existence of
specific programs for employees’ information, training and
evaluation;
C15. Additional investments for implementing green
technology (percent from total investments);
The next step was to compare this dimension with the other two
dimensions in order to detect which is the predominant dimension of
CSR policy in Romanian companies.
Local external dimension (D2) referring to relationships with
business partners and local community is evaluated based on the
following criteria:
C21. The degree of independence of managerial decisions
towards administrative council decisions and fair treatment of
shareholders;
C22. The degree of transparency of information and
managerial decisions to creditors, investors, suppliers, local
authorities by regularly informing them about economic and
financial results of the company;
C23. Using loyal competition practices in establishing prices
and promoting products, etc.;
C24. Information transparency for general public (including
those referring to social responsibility);
C25. Paying fiscal obligations regularly (taxes to the local
budgets);
C26. Company involvement in social or philanthropic actions
with no advertising purposes.
12
Internal dimension referring to the Human Resources

Management - HRM (D3) is evaluated based on the following criteria:
C31. Encouraging initiatives and free expression,
transparency of information referring to company
performances and actions;
C32. Participative Management: delegating authority, the
degree of participation of employees in establishing working
tasks;
C33. Fairness of recruiting and selection procedures;
C34. Existence of an integration policy of new employees and
of the actors who put the policy into practice;
C35. Characteristics of the training policy of employees;
C36. Characteristics of the performance assessment policy
and employees’ career development within the investigated
firms;
C37. Workplace security – respecting legislative norms
regarding work protection and existence of internal norms
which are established voluntarily;
The level for each criterion was evaluated by offering points on a
scale from 0 to 4 (0 – very weak/inexistent, 1 – unsatisfying, 2 –
satisfying, 3 – good, 4 – excellent). For each criterion, we have
calculated an average for previous appreciation scales, so that the 0
value is a minimum level of appreciation, and the 4 value is a maximum
level of appreciation. An average value between 3 and 4 indicates a
good appreciation to a very good appreciation of those aspects.
The next step we have calculated a general score for each of the 3
evaluated dimensions as simple arithmetic average of the obtained
averages for each criterion, (criteria being considered equally
important).
2.2. Results and discussions

The general score obtained for each of the 3 evaluated dimensions
is presented in table 1.
Table 1. General Score Obtained for Evaluated Dimensions

CSR POLICY DIMENSIONS GENERAL SCORE
D1. Environmental dimension 2.90

D2. Local external dimension 2.21
D3. Internal dimension 2.55
13
The averages obtained for each criterion describing each of the

three CSR dimensions are presented in the charts.
For CSR - Environmental dimension we obtained the results
presented in figure 1.
4
3,75
3,5
2,7
3 3,15
2,86
2,5 2,05
2
1,5
1
0,5
0
Evaluation of the CSR - Conformity with Participation of Additional
environment environmental the employees in investments for
impact policy environmental protecting the green
norms environment technology
Figure 1. The Averages for Criteria Describing CSR - Environmental Dimension (D1)
As the figure 1 shows, the lowest averages are for the C11
criterion - Evaluations of the impact of company activity on the
environment (2.05) - which means that not all companies are showing
responsibility towards the environment not carefully analyzing the
effects of their actions on environment.
C12 (2.86) and C15 (2.7) criteria recorded an average value close
to 3, which shows a good appreciation about these issues. This means
that many of the investigated companies have made efforts to assume
responsibility for the environment by implementing a CSR
environmental policy and by additional investments for implementing
green technology, despite economic crises. Environmental CSR policy
aims voluntary actions, donating money to green causes, donations of
materials for green causes.
The average for C14 criterion (3.15) shows that the investigated
companies were actively involved employees in environmental
responsibility projects.
Criterion with the highest average is C13 (3.75) which shows that
investigated companies comply with environmental standards, (noting
the almost complete absence of fines or other warnings applied for not
complying with the law).
14
The general score for CSR - Environmental dimension is 2.90

(the best score of all three CSR dimensions). This self-assessment of
investigated companies, very close to level 3 (good evaluation), shows a
growing concern for environmental protection in the context of
environmental legislation was tightened.
For CSR – local external dimension we obtained the results
presented in figure 2.
Criteria which obtained the lowest scores are C24 (1.27) and C26
(1.29). These values show a weak transparency of information to the
public and a weak corporate involvement in philanthropy. We can
therefore state that companies’ reporting in the local community space
is into a very early stage. A relatively low value recorded criterion C21
(1.88), on corporate governance. Criteria C22, C23 and C25 were
registered close scores, being close to level 3, which means that social
responsibility in relations with external stakeholders and local
authorities is stronger aware than responsibility to the local community.
The overall score for CSR - local external dimension is 2.21, the
lowest score of all sizes. This scoring confirms once again a low
awareness of the companies’ responsibility to the community.
4
3,5 2,9
3 2,95 2,97
2,5 1,88
2
1,5
1 1,27 1,29
0,5
0
ve council decisions
manag./administrati
Information transp.
philanthropic actions
(economic results)
loyal competition
obligations regularly
for general public
Company involv. in
independence of
Paying fiscal
information
practices
transp. of
social or
Figure 2. The Averages for Criteria Describing CSR - Local External Dimension (D2)
For each of the seven analyzed criteria for the CSR - Internal
dimension (D3) the averages are presented in the figure 3.
As we can observe in figure 3 the lowest averages are for the C32
criterion (1.98) – Delegating authority, the degree of participation of
employees in establishing working tasks and C34 (1.86) - Existence of
15
an integration policy of new employees and actors who put the policy
into practice, which indicates an unsatisfactory appreciation of these
aspects, signalling problems related to applying participative
management and the attention for new employees.
C33 Criteria – Fairness of recruiting and selection procedures and
C37 - Workplace security, register the best score, above level 3, which
indicates a good to very good appreciation of these aspects.
4
3,5
3,2 3,29
3
2,43 2,35
2,5 2,76
2 1,98
1,5 1,86
1
0,5
0
transparency
Management
Training
Performance
Integration
and selection
assessment
Participative
Recruitment
expression,
Workplace
procedures
Delegating
policy
authority,
Initiative,
security
career…
policy
policy,
free
Figure 3. The Averages for Criteria Describing CSR - Internal Dimension (D3)
If we calculate a general score of the HRM dimension, as a simple

arithmetic average of the obtained average for the 7 criteria considered
as equally important, we obtain a value of 2.55, which indicates a
situation which is not very favourable for the CSR internal dimension.
3. CONCLUSIONS
Following the results obtained we can formulated several remarks
on CSR policy, especially on CSR – environmental dimension, in the
companies from Romanian West Region:
- within investigated companies predominant CSR dimension is
the environmental dimension (recorded the highest score, 2.90, close to
level good); this result is explained by the penetration in this region of
western culture and the need for business environmental standards
compatible with EU law; within this dimension, the best assumed
criteria are the conformity with the environmental norms evaluated
16
using the environmental standards and also the active participation of

employees in protecting the environment evaluated by the existence of
specific programs for employees’ information, training and evaluation;
- the CSR dimension recorded the lowest score is Local
external dimension (D2) referring to relationships with business
partners and local community, showing that companies’ reporting in the
local community space is into a very early stage; within this dimension
there are differences in terms of assuming the responsibility towards
external stakeholders (better assumed) and responsibility to the local
community (less assumed).
- internal CSR dimension related to HRM practices (D3)
recorded an average score between satisfactory and good (2.55), not
very favourable; the negative aspects are related to participative
management and delegation of authority, and also to policy of
integrating the new employees;
The West Region of our country, placed on the second place from
the point of view of development after the Bucureşti-Ilfov Region,
received a massive infusion of foreign capital. [8] Most companies with
a strong CSR policy are multinational companies, which have
"imported" the corporate culture of the company in the country of
origin.
Considering that the research was realised on a relatively small
sample of companies, we do not argue its representativeness for all
companies in Romania. However, the research can be a starting point
for further national research.
References
Brown, D., Dillard, J., Marshall, R.S. (2006). “Triple Bottom Line: A business
metaphor for a social construct”, Portland State University, School of
Business Administration.
Bugge, H. C., (2008). „1987-2007: „Our Common Future Revisited”, in
Sustainable Development in International and National Law, Groningen:
Europe Law Publishing.
European Commission (2002), Communication from the Commission
concerning CSR: A business contribution to sustainable development,
European Commission, COM (2002) 347 final, Brussels.
European Commission (2004). Corporate social responsibility and safety and
health at work, European Agency for Safety and Health at Work,
Luxembourg.
Green Revolution Association (2012). Green Business Index 2011
(www.green-report.ro).
17
WCED (World Commission on Environment and Development) (1987), Our

Common Future, Oxford: Oxford University Press, p. 46.
Wheeler, S.M., (2004). Planning for Sustainability. Creating Livable,
equitable, and Ecological Communities, New York: Routledge.
www.regiuneavest.ro
NOTE ON AUTHOR
Dina Maria Luţ is Associate Professor in Management and Human Resource
Management, at "Dimitrie Cantemir" Christian University in Timisoara. She
holds a PhD in Management since 2008. Her research interests focus on the
areas of management in the context of knowledge-based economy,
management and leadership within Romanian organizations.
dinalut@yahoo.com
18
THE ROLE OF HUMAN CAPITAL DEVELOPMENT

IN INCREASE COMPETITIVENESS
IN ROMANIAN TOURISM ENTERPRISES
Dina Maria Luţ, Florea Vlad
Abstract: Tourism is a truly global economic activity one which takes

place in destinations across the world, from leading capital cities and
smaller towns and villages in rural and coastal areas, to some of the
remotest points on the planet. It is one of the world’s largest industries,
or economic sectors, contributing trillions of dollars annually to the
global economy, creating jobs and wealth, generating exports, boosting
taxes and stimulating capital investment.
Human capital is recognized as the fundamental factor of overall
progress in the knowledge-based organizations. The experts agree that
long-term investment in human capital has strong drive-propagation
effects at the individual, organizational, national and global level.
This paper suggests a possible solution to the challenges that the
Romanian tourism enterprises must face, showing that investing in
human capital development represents the safest way to ensure
competitiveness.
Keywords: human capital, Romanian tourism enterprises, lifelong
education and training, knowledge-based economy, European Union.
1. INTRODUCTION
Tourism is a truly global economic activity one which takes place
in destinations across the world, from leading capital cities and smaller
towns and villages in rural and coastal areas, to some of the remotest
points on the planet. It is one of the world’s largest industries, or
economic sectors, contributing trillions of dollars annually to the global
economy, creating jobs and wealth, generating exports, boosting taxes
and stimulating capital investment.
The importance of tourism and hospitality employment in both
developed and developing countries is attested to by the World Travel
and Tourism Council (WTTC), who suggest that travel and tourism-
related activities account for over 230 million jobs, or 8.7 per cent of
jobs worldwide (WTTC, 2006).
19
Nearly 260 million jobs worldwide are supported by tourism

industry, either directly in the industry or in related sectors. And these
jobs are vital not only for the livelihoods of those employed, but also for
their families and the wider communities in host destinations. Today
there are few people who have neither contributed to the growth of
tourism industry through their own spending, nor felt the impacts of
others expenditure (WTTC, 2012).
In Romania, the tourism industry can become a source of
attraction both for Romanian and for foreign tourists, but this is difficult
because of the strong competition from neighbor countries and the
extent of issues connected to competitiveness.
In the tourism enterprises, the human resources (the employees)
are considered the essence of the offer, because of the complex role and
the responsibilities it has. The contact personnel in the tourism services
has a crucial role, representing the interface. The contouring of the
company image depends to a great extent on the time in which they
answer the requests, the precision and politeness they show.
In the tourism enterprises we can find several roles of the human
resources (Lovelock, C. şi al., (2008)):
- they represent the company in the relationship with the
clients;
- they represent the trademark image, and the confirmation of
qualitative standards and the trademark name before the
clients depends on their behavior;
- they represent an important factor of differentiation and
competitive ad-vantage;
- they represent an essential part of the service offer, the
visible one, that takes place before the clients or with their
participation, determining the objective quality of the
service, and the most abstract and profound aspects of the
consumers’ satisfaction as well.
Competitiveness in tourism can be described with the elements that
make a destination competitive as defined by Ritchie and Crouch (2003),
‘...its ability to increase tourism expenditure, to increasingly attract
visitors while providing them with satisfying memorable experiences and
to do so in a profitable way, while enhancing the well-being of
destination residents and preserving the natural capital of the destination
for future generations’. Thus competitiveness in tourism has several
dimensions: economic, socio-cultural and environmental.
Competitiveness has become a central point of tourism policy. As
competition increases and tourism activity intensifies, tourism policy
20
focuses on improving competitiveness by creating a statutory framework

to monitor, control and enhance quality and efficiency in the industry and
to protect resources (Goeldner, Ritchie, & McIntosh, 2000).
2. HUMAN CAPITAL CONCEPT IN THE CONTEXT OF

KNOWLEDGE-BASED ECONOMY
In the literature, the knowledge-based economy concept has no
single definition, and is most often defined by describing the features of
this type of economy. A relevant definition of the term was given by
experts of the Organization for Economic Cooperation and
Development, who appreciate the knowledge economy as "economy
which is directly based on the production, distribution and use of
knowledge and information." (OCDE, (1996))
Knowledge-based economy is also a goal for the European Union.
The EU has set as a strategic objectiv, since 2000, during the Spring
European Council in Lisbon on 23-24 March 2000, becoming the most
competitive and dynamic economy in the world, based on knowledge,
capable of sustainable economic development with more and better jobs
and a greater social cohesion (Conseil Europeen Lisbonne, (mars,
2000)). This objective is reflected in the strategy "Europe 2020: A
European strategy for smart, sustainable and inclusive growth" which
proposes that first priority for the European economy "smart growth:
developing an economy based on knowledge and innovation" (European
Commission, 2010).
It can be seen that the action of European forums prioritize
information and communication technologies role in assisting intelligent
learning activities, innovation and knowledge management, supporting
the wider adoption of best practices, with special attention to small and
medium-sized enterprises.
Knowledge-based economy has a number of implications for
business organizations and their management. Thus, the organization is
determined not only by their physical asset value, but mainly the value
of intangible assets, by human resources and by knowledge or
information they hold. This type of organizations is called knowledge-
based organizations.
Knowledge-based organization represents a new paradigm in
business since the beginning of XXI century.
In such of organizations, knowledge is a new category of
resources, considered to be more complex, difficult to assess, and much
more effective compared to other categories of resources. Under the
21
impact of knowledge occur quantitative, qualitative and structural

changes in all other categories of resources (Nicolescu, O. et. Nicolescu,
Luminiţa, (2005)).
Generation and exploitation of knowledge became, at present,
vital sources of increased global welfare and the states and
organizations are aware of it. Knowledge is also central to determining
competitiveness. Consequently, countries of the world, especially
developed ones, are concerned with the systematic generation of
knowledge, thus developing national systems and international
interactions more sophisticated.
Human capital is recognized as the fundamental factor of overall
progress in the knowledge-based organizations. The experts agree that
long-term investment in human capital has strong drive-propagation
effects at the individual, organizational, national and global level.
The human capital concept shows the quality side of human
resources: knowledge, skills and abilities of employees in the organization.
Human capital is defined as “all general and specialized
theoretical knowledge, the skills acquired in vocational education and
training or in workplace experience. This knowledge and skills are used
by their owner in the creation of goods and services that produce
revenue for both their owner and for society.” (Perţ, (2000)) Therefore,
the human capital shows the quality side of human resources.
In M. Armstrong's view, human capital is a component of
intellectual capital that is “the accumulation and flow of knowledge
available to an organization” (Armstrong, (2003)).
According to Armstrong’s conception, intellectual capital has
three components: human capital - knowledge, skills and abilities of
employees in the organization; social capital - accumulation and
knowledge flows arising from the networks of relationships inside and
outside the organization; organizational capital (also called structural
capital) - institutional knowledge held by an organization, stored in the
database, manuals etc. This tripartite concept of the intellectual capital
emphasizes, as M. Armstrong noted, that although individuals (human
capital) are those who generate, store and retain knowledge, such
knowledge is enhanced by interactions between individuals (social
capital), generating institutional knowledge that possess the
organization (organizational capital). Although knowledge and skills of
employees are those that create value, however, organizational
effectiveness depends on proper recovery of human knowledge. This
knowledge must be developed, collected and traded (knowledge
management), to create organizational capital.
22
At the organizational level, human capital development is

critical to achieving the organization's competitiveness. Companies can
not afford such an investment will have no chance in global
competition, increasingly stiffer. Investing in human capital has proven
that is the most sustainable and profitable long term investment, with
long-term beneficial effects of continuous and sustained growth.
3. HUMAN CAPITAL DEVELOPMENT CONTRIBUTION TO

INCREASE COMPETITIVENESS IN ROMANIAN TOURISM
ENTERPRISES
For Romanian enterprises, Romania's integration in the EU has
determined the increase of competition both on the domestic market and
on the external one. In this context, the challenges faced by Romanian
tourism companies (most of which are small or middle-sized) are
numerous.
These companies' chance to stay (or become) competitive, in a
competitive environment at the junction between the evolutions of the
global factors (the demands imposed by globalisation and regional
integration) and the factors pertaining to the specific features of the
national socio-economic environment is closely connected with human
capital development.
In the Romanian enterprises, many changes and progress are
needed, first of all at the mental level, regarding the meaning of work
and competitiveness in the new competitive context, regarding the
impact of human resource quality and of the human resource
management on the general performance of the company, the
assimilation of the new realities, and the importance of learning at the
individual and organisational level.
The specialists agree that an essential part in this respect is played
by the promotion of an effective managerial style that presupposes the
sharing of some humanist values recognised and accepted by all the
members of the company, which will lead to the increase in employee
satisfaction and at the same time the rise of their loyalty towards the
company. Under these circumstances, those managers with a managerial
philosophy based on well defined values will totally change the approach
to human resources: they will treat employees not only as a costly
resource or a mere means to obtain profit and do business, they will
interpret human relations not only from the point of view of their concrete
manifestation in financial contracts, and they will conceive the work-
places so as to stimulate employees to reach performance (Luţ, 2010).
23
In the tourism enterprises the human resources development is a

strategic factor for increase competitiveness.
We can say that in the tourism enterprises human resources
management is an integrant part of the marketing mix because it is
indissolubly related to the customers’ satisfaction and the company
image. In this case, human resources management activities have a
special role. Recruiting, selecting and integrating the employees are
difficult activities, because in this field, a good professional training
must be doubled by talent, charm, style and a personality suitable to the
job. The intrinsic quality of the future employee and vocation cannot be
acquired, training only refining talents.
There are many aspects that define the relationship tourism-
human resources management under the qualitative aspect, such as: the
level of qualification, the report between the number of full-time
employees and part-time employees, the proportion of seasonal workers
and the personnel fluctuation, the cost of the professional training, the
motivation of employees etc.
There has been much discussion regarding the industry’s need to
invest in human resources development. This is made more pronounced
by the number of small businesses that dominate the industry, and their
inability either to support or recognize the importance of investing in
human resources to improve overall professionalism and the quality of
the tourism product (Cooper at al., 1994).
A great part of the specialists argue that tourism needs personnel
with a high level of qualification, with a large horizon of knowledge,
well trained, knowing a foreign language of international circulation,
capable of recommending and promote the tourism services.
It is widely argued that people are vital for the successful delivery
of tourism services and, as a consequence, those who work in tourism
are widely portrayed as a critical dimension in the successful operation
of businesses within the sector. “The story of successful tourism
enterprises is one that is largely about people – how they are trained and
educated, how they are valued and rewarded, and how they are
supported through a process of continuous learning and career
development. None of this happens by accident” (Failte Ireland, 2005).
Szivas (1999) argues that “only competent and motivated
employees can deliver high-quality service and achieve competitive
advantage for their firms and tourist destinations. There is a wide range
of problems, both as far as the quantity and also the quantity of
management are concerned, the facilities from tourism, the
accommodation and the catering. Many of these can contribute to the
24
reduction of amateur management which characterizes the small

businesses which dominate most of the tourism industry.”
In this sector the part time jobs are preferred in a greater extent
than in others and there are applied flexible methods to the work force
employment These flexible formulas of occupation respond to the needs
of certain segments of the population-women, students, retired people,
creating however difficulties in the recruitment of the working force
(Gruescu, 2007). These particularities influence the number and also the
dynamic of workers, the level of the labour productivity, the recruitment
policies and the professional training.
On the other hand, the structure of the seasonality can be used as a
means of obtaining high abilities. While labour flexibility may be a
positive attribute, it can also be detrimental. Although labour markets
are increasingly flexible, occupations requiring a flexible workforce
may not be identified as viable career choices – in the UK part-time
tourism and hospitality employment is significantly higher than in other
European Union countries (Keep and Mayhew, 1999). The high
proportions of casual and part-time staff employed within the industries
may be less inclined to view the tourism industry as a long-term career
option, perceiving it to be a transient job. Subsequently, part-time and
casual employees may be unwilling to invest in industry-related
qualifications. (Beech and Chadwich, 2006).
One factor likely to contribute to poor qualification attainment
within the tourism industry is the willingness of the employers to recruit
people without the necessary qualification. Some owner-managers are
seriously deficient in management skills, notably financial management
and human resource skills. This affects the viability of small tourism
business as well as impacting on their ability to offer an attractive career
package for ambitious employees (Beech and Chadwich, 2006).
We therefore believe that at this point, one of the most important
requirements for the development of human resources refers mainly to
the professional training of human resources, in order to acquire the
knowledge and qualifications corresponding to the new technological,
informational, and communicational developments taking place in the
world at this time, in all fields, and which are also felt in the Romanian
tourism market.
The emergence of new occupations or the enrichment of the
profile of some occupations specific to tourism lead to the increase in
the demand for skilled staff, as well as to the increase in the level of
professional training of the workers in this field, making continuous
learning and training absolutely vital. These conditions are essential in
25
order to maintain (or reach) competitiveness in Romanian enterprises, in

the actual context of globalisation and EU integration.
Therefore, investment in professional training and proper
involvement of the human resources in tourism is actually a
preoccupation aiming to improve the quality of the tourism services.
Although the value of human capital or cost includes several
components, the essential active component is education and training.
The extent of economic and social change in contemporary society - a
knowledge-based society - requires a different kind of approach to
education and training. This type of society requires a reconsideration of
the importance and role of human capital in the society and above all,
education and training. Investing in education and training means to
promote growth, given that in the new knowledge-based economy the
basic factor of wealth is firstly, knowledge acquisition and use and not
material factors of production. Education and training is now a global
concept under which they are meeting all aspects of education and
training in the formal, non-formal and informal system.
Since the '70s, the focus is, more and more, on lifelong education
and training. If at first the initial education and continuous professional
training were considered complementary concepts, those concepts were
then integrated into a single concept that covers all aspects of education.
According to Faure Report (UNESCO 1972), continuous education and
training is not only a coherent system, but is the principle that underlies
the organization of the entire global system of education and training
and, consequently, the development of each of its parts.
The new concept of lifelong education and training appeared as a
response, as an alternative to the major problems facing humanity, as a
result of globalization, under new requirements imposed by knowledge-
based society and knowledge-based economy. In such a society, human
capital becomes a strategic asset and the investment in such assets is
critical to economic and social development. Lifelong education and
training is one of the major targets of the EU and this actually came as a
result of the study and understanding of current economic and social
environment and the challenges it posed. This concept was reconsidered
at each stage of work on European Employment Strategy (EES 1997), as
evidenced by the debates which took place in the European Council
meetings in order to establish the strategy to be followed every year in
this respect: the Lisbon European Council, March 2000, European
Council in Santa Maria de Feira, June 2000, the European Commission
Memorandum of Lifelong Learning, October 2000 and subsequent
26
European Councils (Stockholm - 2001, Barcelona - 2002 Brussels - 2003,

2004, 2005).
In Romania, the priorities on human capital are reflected in
Romanian economic and social policies of development during the
period 2007-2013 (Luţ, 2010).
At present we can not talk in our country, about an articulated
training system and a coherent framework of qualifications applied to
both initial training and lifelong training that allow partial certification
qualifications.
4. CONCLUSIONS
As we show above, human capital, as a component of human
resources, is today considered as the most valuable asset at the
organizational and national level.
Lifelong education and training of human resources is now widely
regarded as an essential component of development strategies in the
developed states of the world. It is a major factor for continued and
sustained economic growth, to improve competitiveness and employment.
Tourism and travels must be included within the general policies
for workforce, trade, investments, education, culture and environment
protection. Romania has to undertake an image campaign in order to
increase the information of public and private factors relating the
tourism industry contribution and the development potential.
Public trade policies play an important role in this respect, as they
should promote and support the development of human resources within
small and medium-sized enterprises, as a main means to increase their
competitiveness.
References
Armstrong, M. (2003), Managementul resurselor umane–manual de practică,
Editura Codecs, Bucuresti, p. 47.
Beech, J. and Chadwich, S.(2006). The Business of Tourism Management,
Pretince Hall, imprint of Pearson Education.
Conseil Europeen Lisbonne, (mars 2000), Conclusions de la Presidence,
(http://www.europarl.europa.eu.htm);
Cooper, C. at al., (1994). Tourism Hospitality and Education in Travel and
Tourism, Teros International, 1(1).
European Commission (2010), „Europe 2020. A European strategy for smart,
sustainable and inclusive growth”, (disponibil on-line la adresa:
http://ec.europa.eu/eu2020/index_en.htm);
27
Failte Ireland. (2005). A human resource development strategy for Irish

Tourism. Competing through People, 2005–2012. Dublin: Failte Ireland.
Gruescu R.(2007). International Tourism, Economical and Social Aspects,
Sitech Publishing House, Craiova 2007.
Keep, E. and Mayhew, K. (1999). The Leisure Sector. Skills Task Force
Research Group: Paper 6, Oxford and Warwick Universities: ERSC
Centre on Skills, Knowledge and Organizational Performance.
Lovelock, C. şi al. (2008), Marketing des services, Ed. Pearson Education-
Tourisme, Paris.
Luţ, Dina Maria (2010), Lifelong Education and Training - Major Condition of
Human Capital Development, Analele Universităţii Eftimie Murgu
Reşiţa, Fascicola II – Studii Economice, ISSN 1584-0972, pp. 404-412.
Nicolescu, O., Nicolescu (2005), Luminiţa, Economia, firma şi managementul
bazate pe cunoştinţe, Editura Economică, Bucureşti, 2005, p. 48;
OCDE (1996), The Knowledge-Based Economy, Paris, 1996, p. 7
(http://www.oecd.org/dataoecd/51/8/1913021.pdf);
Perţ, Steliana (2000). „Capitalul uman, factor cheie al dezvoltării economice
durabile. Convergenţe şi disparităţi”, IEN, Bucureşti;
World Travel and Tourism Council (WTTC), (2012)
http://www.wttc.org/research/annual-review/.
Szivas, E., & Riley, M. (1999). Tourism employment during economic
transition. Annals of Tourism Research, 26(4), 747–771.
NOTES ON AUTHORS
management and leadership within Romanian organizations.
Florea Vlad is Associate prof. at the Faculty of Management in Tourism and

Commerce Timişoara, „Dimitrie Cantemir” Christian University. He holds a
PhD. In Management with the thesis Management in the Logistics and
Distribution of Oil Products. He is the author of numerous books and articles
on management, the latest one being Management strategic, metode de
elaborare, Eurostampa, 2010.
28
CURRENT DEMOGRAPHIC AND URBAN

PROBLEMS IN THE DANUBIAN DOBRUDZHA
(REGION BULGARIA)
Milen Penerliev
Abstract: The administrative units in Dobrudzha in Bulgarian part of

the Danube are municipalities of Silistra and Tutrakan. The
demographic crisis is a very negative fact in Bulgaria. The article
examines the contemporary situation in this part of the country. It
researches the trend of decreasing number of population, the reasons
and the trends in the future. The decreasing number of children in
schools is pointed out. An attempt has made to highlight the specific
problems for this part in the country through a comparative analysis.
The author describes the reasons for these trends.
Keywords: population, urban, Danubian Dobrudzha, problems, trends
INTRODUCTION
Territorial range
Danubian Dobrudzha in Northern part of Bulgarian territory
comprises Tutrakan, Glavinitsa, Sitovo and Silistra municipalities. The
Southern and Western boundary is disputed but it considers all territory
of Silistra municipalities and mostly of Tutrakan municipality goes into
the range of Bulgarian part of Danubean Dobrudzha. With them are
Glavinitsa and Sitovo municipalities with outlet on the Danube River.
Without details this area border with Ludogorie (Deliorman – in Turkish
language). And the border between them passes through Tutrakan
municipality Southern Staro selo village, alongside Kolofapa gorge
encircle Tutracanian forest plateau Boblata, then passes Northern from
Shumentsi village through Dabtaka gorge continue on Elbasan hill
between Antimovo and Tsarev dol and then through Bogdantsi and
Zefirovo villages alongside the road Tutrakan – Silistra through
Kolarovo and Nova Dolina villages after this passes the land of Polyana
village, the border goes down to Sitovo village (Iliev, 2007).
29
We describe this border but for the aim of this research we have to
take in mind the real area borders of municipalities. How this can be
subjective for an ethnographic and natural geographic detached
territory? This is in respect of use and the right interpretation statistics
data for the population and the settlements in this part of Bulgaria. In
this meaning even it isn’t comprise the whole territories of Tutracan,
Glavnitsa and Sitovo municipalities we will analyze the present
statistics data for whole their territories.
METHODS AND DATA

In the four municipalities of Silistra region which have outlet on
the Danube river in 2013 lived 79 967 people (Table 1). The biggest and
populated is Silistra municipality with near 50 000 people. This is
almost 62 % from the whole population in Danubian municipalities.
This presence a big concentration of people in regional center. Two of
every three citizens live in this municipality. The poorest populated
municipality is Sitovo with around 5000 people.
Table 1. Population in Danubian municipalities for the period 2001 – 2013
Municipality Total (people) In towns (people) In villages (people)
2001 2013 2001 2013 2001 2013
Tutrakan 19152 14780 10322 8373 8830 6407
Glavinitsa 13743 10553 2087 1521 11656 9032
Sitovo 6740 5197 - - 6740 5197
Silistra 61294 49437 41597 34216 19697 15221
TOTAL 100929 79967 54006 44110 46923 35857
Source: NSI
It is interest in demographic aspect Sitovo municipality - 100 % of

its population lives in villages which means - the municipal center is a
village. In distribution of population in towns and villages has an
interesting trend. The quota of urban population (so called level of
urbanization) in the researched area is at least 55 %! Here we can
mention that the average level of urbanization in Bulgaria in 2013 is 73
% - the quota of the urban population. Danubian municipalities give a
essential response with this trend.
From one side its due of entirely village municipality, but at all its
influence with population 5200 people is not essential.
In Table 1 we can see Glavinitsa municipality has very small
quota of its urban population- only 11 %. Over 9 000 people live in
villages. The urban level in this researched territory is on the average
30
one for the country in 60s of 20th century. Only Silistra municipality
has index near to the average one for the country- in 2013 the urban
level was 68%
If proposed for analysis demographic data are examined in
comparable principle for a longer period, then appear interesting trends.
In comparable aspect in the period 2001- 2013 obviously the population
greatly decreases. In the researched municipalities from 100 000 people
in 2001 has decreased to under 80 000 people in 2013 – reduction in 20
% (Penerliev, 2013). This trend is higher than the average one for the
country. For the researched period the population of country decreases
with around 8 %. There in Danubian Dobrudzha the trend of
depopulation is greatly represented. In regional plan, on municipality
level this trend is permanent. Interesting coincidence has in the quota of
decreasing population in the municipalities with outlet on Danube.
Tutrakan, Sitovo, Glavinitsa municipalities have decreased their
population exactly with 23 % each. Silistra municipality also follows
this trend with 20 % reduction. In fact the conclusion is that all
researched municipalities have depopulated faster to average rates in
country.
The examination actual process of depopulation in towns and
villages shows a sequence of negative trends. For example in period
2001 – 2013 if in Bulgarian towns have lost their population in 3.3 % in
these researched municipalities this quota was 21 %. This process of
urban depopulation is with extreme negative parameters even according
EU scale. Some more: Glavinitsa municipality has decreased its town
population for the aforesaid period with over 27 %. Silistra municipality
also has lost (as the biggest and most economic developed among all)
with 17 %. Obviously the problems of the towns in these municipalities
are bigger than the other ones. In analysis of village depopulation
essential response with the average indexes are not represented. With
average rate in Bulgaria of the village depopulation 19 % for the period
2001 – 2013, for villages of Danubian municipalities is around 24%.
Tutrakan municipality is the first one with this index 27 % (Table 1).
Where are hidden the reasons? Primary analysis

The extremely negative trends which we mark above they need
detailed analysis. With use of the regional approach we have searched
the differences and similarities in demographic development. The
demographic crisis in the country affects all regions. Still in Danubean
Dobrudzha have to search those particularities of the territory which
lead to this result.
31
One of the main indexes characterized the level of economic

development and potential is unemployment. At the end of 2013:
Glavinitsa municipality- 41,3 %, Sitovo municipality – 24,8%, Tutrakan
municipality – 18,4 % and Silistra municipality – 11,3 % have levels of
unemployment over the average one for the country. For whole Silistra
region divided on their educational status in the total number of
unemployed people predominates these ones with primary and
elementary education which quota is 51 %, people with secondary
education 42 % and these ones with university education – 7 %. The
division in age groups preserve the quota of unemployed people age
over 50 years old - 40 %, next group 30 to 49 years – 44 % and the
youth group till 29 years – 16 % (Employment agency). But if the
unemployment is a consequence, the real reason for this negative trend
has to clear up.
If we see on settlement structures in researched municipalities
there are some characteristics. There are only three towns – Silistra,
Tutrakan and Glavinitsa from 69 settlements in four municipalities. If
we check with the statistics (www.nsi.bg) we can see in the first three
months of 2014 unemployment in towns is 11 % and in villages is 20 %.
It‘s no need analysis. In rural territories of these four Dunabean
municipalities the population has less opportunity for work. This fact
discourages the people and they try to make living in other regions in
the country and abroad. There are leak of these enterprises of
manufacturing industry on which base the agricultural recourses create
workload. As Petrov (2013) mentions:
“… even in towns like Silistra and Tutrakan have possibilities for
building food factories this isn’t done …”
There isn’t clear strategy for building mill bases in respect of this
– Dobrudzha is Bulgarian granary. If we examine another indicator –
the average population density (in people/sq.km). It can characterize the
demographic potential of territory. Implementing the regional approach
we examine this index on municipal level. With average density for
Bulgaria - 65 people/sq.km the differences there are more striking! The
average density in Sitovo municipality is only 19,1 people/ sq.km, in
Glavinitsa municipality is 21,9 people/ sq.km and in Tutrakan
municipality is 33 people/ sq.km. These municipalities have lower
indexes. The process of depopulation is obvious. We consider about the
fact these municipalities are rural and in Bulgarian villages live only 1.9
million people. Obviously in respect of the only three towns the low
32
average density is not surprising. But it is a threat for future social –

economic development of the territory.
In the research of population in settlements we can outline
potential settlement centers for a future development. In Danubian
Dobrudzha municipalities have only 15 villages with population under
100 people. In national plan this is good index. These villages suppose
to have no future in respect of there live people in pension age. On the
other side there are villages with population over 500 people. Even
according Bulgarian standards these are big villages. They are 24. Eight
in Glavinitsa municipality, seven in Tutrakan municipality, six in
Silistra municipality and four in Sitovo municipality. In fact for the
country predominant are villages with population under 200 people.
There the villages on this index are bigger which from one side gives
potential for future demographic planning. Is that true?
Table 2 Educational centers (by type) in the villages in Danubian Dobrudzha

municipalities (Except municipality centres)
Village School Nursery Population
school /number of people/
Bradvari 1008
municipality
Silistra
Prof. ishirkovo 1097

Kalipetrovo 4387
Idemir 6571
Zefirovo 918
municipality
Glavinitsa
Listets 579
Sokol 357
Stefan Karadja 1009
Kalugerene 561
Zebil 677
Dobrotitsa 441
municipa
Sitovo
lity
Iskra 1961
Varnentsi 349
municipality
Tutrakan
Tsar Samuil 1362

Nova Cherna 1698
Source: MUS, Population data from CSS – 15.06.2014
33
Their demographic future is definite by present number of

educational centers in them. In Glavinitsa municipality and its eight
villages with population over 500 people have six educational centers.
In four villages have primary schools and in three ones have nursery
schools. Only in Zafirovo village have both educational centers. This is
one of the biggest villages with population of 918 people (June 2014).
In fact the biggest village Stefan Karadja hasn’t educational center. In
this municipality the number of new - borns are 103. The common
analysis of Table 2 shows that nowhere in the villages have secondary
schools. The educational centers are till 8 grades which show their
demographic potential. Even more, they shelter children from near
villages who travel by bus. The smallest village Varnentsi with around
300 people have educational center. Confusing fact is the less numb
nursery schools toward primary schools. It points highly reduced birth –
rate and small quote of the group of 7 years children. The enviable
position is in Tutrakan – there is only one nursery school in town
municipality center.
It’s the fact that in bigger villages functioning educational centers.
Their territorial location toward the municipality center as and among
them also have geographical aspect. For example Idemir village is the
biggest village in Bulgaria but there isn’t school. It is because its
location – near to Silistra.
We examine the villages in context of educational network and we
can conclude a primary conclusion. Where have educational centers
there have favorable perspectives. In these centers we have to direct the
efforts to hold the youth. It have to find active variants for a
contemporary pro- analytic politics – financial stimuli, work load and
concentration of manufacturing industry.
CONCLUSIONS
Even it is short the scope of the main demographic processes in
Danubean Dobrudzha municipalities represents highly negative
trends. They are in the following:
Predominating of village population
Small quota of towns ( only three towns)
Low birth - rate and low average habitant density
Low number educational centers and lack of secondary schools
It has to be analyzed and prognoses:
34
Geographical location of villages with educational

centers
The educational centers and their functioning in
settlements located on equal distances from municipality
center as and the villages give students for the
educational center
It will pointed centers (villages) with demographic effect.
These ones with educational centers.
In this villages have to stimulate the economic in respect
of decreasing migration.
This has to be executed with use of whole theoretic –
methodological power of Geographical science I respect of its practical
character and to be near with people.
Bibliography
Iliev, V. 2007, Granitsi i obhvat na Ludogorieto, Problemi na geografiata, кн.
1-2, С. (in bulgarian);
www.nsi.bg
www.grao.bg
Petrov, K. 2013. Vazmoznosti za geoikonomichesko razvitie na Silistrenska
oblast v usloviata na evropeiska integracia i transgranichno
satrudnichestvo, Sbornik Novata ikonomicheska geografia, S. (in
bulgarian);
Penerliev, М. 2013, Savremenen etnodemografski oblik na prigranichnite
teritorii na Dobrudzja, Sbornik Mejdukulturen dialog i obrazovanie v
Balkanite i Iztochna Evropa, Veliko Tarnovo, (in bulgarian).
NOTE ON AUTHOR
Milen Penerliev: Department “Geography and Methodology and teaching
geography”, University of Shumen, 9712- Shumen sity, Universitetska str.
115, Bulgaria; penerliev@yahoo.com
35
THE SOCIAL-ECONOMIC IMPACTS OF A NEW

PLANT OF A LARGE COMPANY AS A NEW
INVESTMENT
Brigitta Zsoter, Sandor Harcsas, Nicoleta Trandafir
Abstract: The subject of this research is the economic-social impact

assessment of a plant in Makó, as a new investment, owned by a large
company.
What impact do the workplaces generated by a new investment
have on their direct environment? We chose this given company because
it was the largest green-field investment of the past few years around
Makó. The company presented itself as an important employer thus
diminishing the unemployment rate in the environs.
Assessing the economic impacts it became clear how the area can
benefit from the activity, how it reduces the unemployment rate and in
what way it helps increase the income spent locally.
Keywords: Makó; large company; commuting; employees; social-
economic impact
1. INTRODUCTION
The purpose of exploring the social impacts is that we can get a
more exact picture on how a company can become a part of people’s
life, either they are commuters or local people. We would mention here
that migration and commuting have been studied by a considerate
amount of specialized literature (Illés S., Michalkó G. 2008) (Illés S.
Kincses Á., 2012) (Gál J. 2008). How can a large company have effect
on its direct environment by establishing a new plant (Bernek Á. 2001)
(Bernek Á. 2002)? Today’s society is interested in the state of their
environment, so the environmentally aware behaviour on behalf of a
company is of great importance. Its assessment and precise study can
help give exact answers which is worth researching in the answers
coming from the inhabitants, too (Gál J. 2000).
The presence or lack of workplaces accessible locally or by
commuting and the available income considerably affects the ability to
36
retain and maintain the population of settlements and regions (Kis K.

2008a). To improve this ability, enterprises have a key role, since
through providing employment and income possibilities, they determine
the satisfaction of people’s needs by means of accessibility of different
goods and services (Kis K. 2008b).
We made some hypotheses related to these questions which we
planned to prove in our research:
1. Most of the employees of the plant come from the small region
of Makó. Besides, its catchment area includes the whole
Csongrád county.
2. Commuters go to work by car or by coach paying their own
travelling costs. Local people can go on foot or by bicycle.
3. The employees do their shopping in the small shops of Makó on
a daily or weekly basis buying basic foods. In addition, they are
a significant purchasing power in other shops, too.
4. The responders frequent catering places in Makó, in addition to
their workplaces, also they utilize some services in their free-
time.
5. The employees spend a considerate amount of money from their
incomes every month in Makó.
2. MATERIAL AND METHOD

To collect the necessary data for the research we chose the
questionnaire as a primary data-collection method. Before starting the
research the HR colleagues of the plant helped us to compile the
questionnaire and to formulate it more precisely.
The questionnaire survey is the most common primary research
technique the purpose of which is to collect information on a certain
group or groups of people (Majoros P. 2004).
The questionnaire survey started int he first week of September,
2014 and lasted to 10 October, 2014.
The most important question in the questionaire was the
assessment of the impact the plant has on the economic-social life of
Makó. Regarding it, the questionnaire has three main parts.
In the first part the questions were directed to the residence and
the means of transport the employees use which can be employed to
define the workforce catchment area of the plant and the means of
transport they use to get to their workplace. Besides, we could see
whether the employees finance their daily commuting from their own
money or the company does it for them.
37
In the second part there were questions related to the habits of

everyday administration of the employees. The assessed field involved
the amount they spend on shopping from their income in Makó, the
frequency of different catering places and utilization of different
services. One of the main purposes of the research is to define the
income spent by the people working in Makó in the town itself, and
what demands certain local services have. Finally, we asked the
employees’ sex, age and their position in the workplace.
We used SPSS statistics program to process the questionnaires
(Jánosa A. 2011).
3. EVALUATION OF THE RESEARCH RESULTS

The survey was based on 270 people involving both local and
commuting employees in a variety of positions. This plant of the large
company employs 410 people so the proportion of the completed
questionnaires is 65,8%. Our work was slightly impeded because we
were not allowed to enter the premises, so the questionnaires were
completed in co-operation with the HR department. The questionnaires
were filled in voluntarily and anonymously.
69 persons of the 270 live in Makó, the number of commuters was
201. As regards the distribution by sex, there were 79 women and 192
men, 18 of the women are local residents and 60 commuters, there are
51 local inhabitants and 141 commuters of the men.
Considering the residences of the responders, 69 people were
from Makó, 123 from Szeged and 18 from Hódmezővásárhely. There
was only one responder who commutes from Orosháza. The others
commute from the villages and small towns around Makó.
As regards the means of transport, most of them chose the car as
an option, altogether 162 people. 36 of them marked the bicycle as an
answer. Besides, 9 chose the coach and 6 people the motorbike as a
means of transport used to get to the workplace. Only a few responders
gave the ’coach’ as an answer. The reason for this is that the plant
operates more contracted buslines which are used by the employees
living farther away to reach their working place more easily. It is not a
negligible aspect that this way the employees do not load the public
transport at the end of the shifts. The contracted line, as an option, was
marked by 72 people. Going to work on foot is not typical at all.
62,2% of the employees do not shop in the local groceries, so our
hypothesis does not seem to be confirmed. Customers usually buy for
the basic foods. It is followed by the category of fruit and vegetables,
38
than, in the same proportion, the meat, sweets, soft drinks, cosmetics
and toiletries. Less people buy cleaning products.
There are almost as many employees who frequent the catering
places of Makó as those who do not. On this basis, we can say that
besides the local employees, there are some commuters who visit
certain catering places in Makó (e.g. pizza restaurant, pub…).
We brought up the question of the services accessible in Makó
(hairdresser’s, thermal spa…etc.) in the following query of the
questionnaire. 47,7% (129 people) of the responders do not make use of
any of these services in Makó. Regarding the 270 persons in the survey,
it is a significant figure. 72,3% (102 people) of those who use these
services chose mainly the spa „Hagymatikum” as an answer.
We gave the proportion of the spent income in different categories
so the responders could choose from six options. We had to take into
consideration the earlier data according to which 132 people do not do
their shopping regularly in the town. Almost half of the responders,
48,9%, chose the sum under 5,000 fts which coincides with the 132
people who do not do their shopping regularly in Makó. The higher
categories were marked by the local inhabitants who chose mainly the
categories over 50,000 Fts and between 30,000 and 50,000 fts. It is
typical that the lower categories were chosen by the commuters coming
from the catchment area of Makó.
4. ASSESSMENT OF THE HYPOTHESES, SUMMARY

The assessment of our hypotheses is as follows:
1. We can conclude from the results of the survey that most
of the employees, who completed the questionnaire,
commute from Szeged, altogether 123 people. While the
number of local residents is 69, besides, 48 people
commute from the catchment area of Makó. Considering
the area of the small region of Makó it is 117 people. 18
employees commute from Hódmezővásárhely, as a bigger
town in Csongrád county. As regards the other settlements,
altogether 12 people come from two settlements of
Csongrád county: Újszentiván and Mindszent, and one
person from Orosháza, in Békés county. Thus, the
catchment area of the plant includes not only Csongrád
county but also Békés county.
2. It turned out from our research that the coach is not a
typical means of transport because the plant operates more
39
contracted buslines which are used by the employees to get

to their workplace. The contracted line as a means of
transport was chosen by 72 employees, while the coach by
9 employees. Most of them (162 people) answered that
they use a car to go to work. 36 people marked the bicycle
and 6 people the motorbike. In case of the local employees
it depends on the weather which means of transport they
use. Going on foot is not typical.
Our next hypothesis was that the commuters pay for
getting to the workplace. It was not proved by the data
since most of the employees chose the option which says
that the company contributes to the travelling costs in a
way.
3. Firstly, we analyzed the shopping in smaller shops. Our
previous hypothesis was not supported by the answers.
62,25% of the responders (168 people) do not go shopping
in the groceries of Makó. The remaining 37,8% (102
people) is a regular costumer of these shops where they
buy basic foods, vegetables, fruit, meat, sweets, soft drinks,
toiletries, cleaning products and others. As a conclusion it
can be said that regarding the research data the employees
of the plant do not seem to be a significant purchasing
power in Makó.
4. On the basis of the answers it can be said about the first
half of our hypothesis that a little more than the half of the
responders (51,1%) visit any of the catering places of
Makó. Most of those who said ’yes’ (126 people) said that
they frequent any of the restaurants of Makó. Much less
chose the other options.
Our next hypothesis was that the employees are
pleased to make use of the services available in Makó.
Since our research was based on a relatively large amount
of commuters, it can be concluded that this hypothesis of
ours was not proved to be true, as almost half of the
responders do not visit these services. In connection with
the services it is worth mentioning the spa Hagymatikum.
There were 102 people who chose the spa as a service
which is 72,3% of the 141 people who marked at least one
service from the options.
5. We gave six categories to define the proportion of the spent
income. Most of the employees from Makó chose the
40
category between 30,000 and 50,000 fts which means that

the employees doing their shopping in Makó spend a large
amount of their income locally.
Our most important purpose was to assess the impact
of the new plant of the large company on the settlement.
Since the plant has not been working for a long time in
Makó, certain effects cannot be observed in the short run
so it cannot be assessed truthfully. With our research we
planned to see more clearly what impacts a large company
like this have both economically and socially.
Summing up our research, we can conclude that the new plant can
play an important part in the social-economic life and development of
Makó in the future. The company presented itself as a significant
employer thus reducing the unemployment rate in a good proportion.
We can apply the tetrahedron model of Tóth József (1988). The new
plant provokes positive effects in the economy which then bring about
social changes. The employees’ income will rise as a result of which
they can reach a better standard of living. The operation of the plant will
give more income for the town council so they have more resources to
develop the local infrastructure. So, it can be stated that in addition to
the society, the plant influences the infrastructure, too, in a positive way.
Finally, besides the positive effects, a negative one must be mentioned,
that is the environment. This sphere is effected negatively by the
changes because the activity of the plant loads the environment.
References
BERNEK Á.2001 A stratégiai földrajzi hely fogalma a transznacionális
vállalatok nemzetközi üzletpolitikájában. Tér és társadalom, 2001 (15)
3-4
BERNEK Á 2002 A transznacionális vállaltok világgazdasági jelentősége.
Nemzeti Tankönyvkiadó, Budapest
GÁL J. 2000 Informatika az öko-controlling szolgálatában, Magyar
Informatikusok II. Világtalálkozója, Budapest, 2000. június 5-8, LSI
Informatikai Oktatóközpont, Budapest, 2001, ISBN 963-577-311-0,
ISBN I. kötet 963-577-312-9, pp. 421-422.
GÁL J. 2008 A vöröshagyma vizsgálatának néhány érdekessége és hatása
Makóra, 50. Jubileumi Georgikon Napok Konferencia, Keszthely,
2008.09.25-26. konferencia cd, ISBN 978-963-9639-32-4, 6 oldal
ILLÉS S. –MICHALKÓ G. 2008 Relationships between international tourism and
migration in Hungary: Tourism flows and foreign property ownership.
Tourism Geographies, vol. 10. no. 1. pp. 98-118.
41
ILLÉS S. – KINCSES Á. 2012 Hungary as a receiving country for circulars.

Hungarian Geographical Bulletin, vol. 61. no. 2. pp. 197-218.
KIS K. 2008A Employment and income in the Hódmezővásárhely micro-
region. Agrár- és Vidékfejlesztési Szemle, Vol. 3., No. 1., pp. 1-5.
KIS K. 2008B The examination of settlement functions in the
Hódmezővásárhely micro-region according to the institutional
provision. Agrár- és Vidékfejlesztési Szemle, Vol. 3., No. 1., pp. 1-6.
KIS K. 2008 The examination of settlement functions in the Hódmezővásárhely
microregion
according to the institutional provision.
JÁNOSA A. 2011 Adatelemzés SPSS használatával. ComputerBooks Kiadó
Kft, Budapest
MAJOROS P. 2004 A kutatásmódszertan alapjai. Tanácsok, tippek, trükkök.
Perfekt Gazdasági Tanácsadó, Oktató és Kiadó Részvénytársaság,
Budapest
TÓTH J. 1988 Urbanizáció az Alföldön. Akadémia Kiadó, Budapest
NOTES ON AUTHORS
Brigitta Zsoter (Dr. Ph.D.) (Mezohegyes/Hungary, 03/10/1979): she works in
the position of the university lecturer in the Institute of Economy and Rural
Development at the Faculty of Engineering in the University of Szeged. She
has six degrees. She obtained her PhD in 2010. Her research field: regional
and settlement development; assessment of the economical character of
investments. As a supervisor lecturer she has supported the scientific activity
of many young and talented university students. Some of them had
outstanding results at Student Conferences.
Sandor Harcsas: he graduated from the Faculty of Engineering at the

University of Szeged, as an agricultural engineer of economy and rural
development in 2014. He started his scientific researches under the
supervision of dr. Zsótér Brigitta. He had excellent results at Student
Conferences of the Faculty. He has always completed his scientific researches
with unbroken enthusiasm.
Nicoleta Trandafir - PhD student; Vest University of Timișoara, FEAA Faculty,

Romania.
42
THE ECONOMY OF TATABÁNYA, A MIGRATION

INITIATOR BETWEEN 1950 AND 2014
Brigitta Zsoter, Balazs Rabai, Nicoleta Trandafir
Abstract: The success of the mining town Tatabánya, which was the
most prosperous and appealing in the second half of the 20th century,
came to the end with the political transformation. The leaders of the
town have to do something with the large number of closing workplaces
and the unemployed. Working out a new strategy, the situation has been
channeled into a normal direction with development of both
infrastructure and education.
It turned out from our questionnaire survey that there is a
significant amount of commuters from the town who are ready to take
even 50 kms every day. A large number of people with higher education
did not earn their degrees in Tatabánya but in some other towns or
cities. The inhabitants do not consider the population holding capacity
of Tatabánya good because besides town functions, there are no
community functions.
It can be clearly seen from the data of KSH (Central Bureau of
Statistics) and the results of our survey that more people migrate from
Tatabánya than those who settle down there.
Keywords: Tatabánya, migration, daily commuting, the number of
commuters, population holding capacity
1. INTRODUCTION
The subject of the research is the economy of Tatabánya as the

initiator of migration processes between 1950 and 2014. The population
census taken by the KSH shows a negative trend both in Tatabánya and
in the country. In the research we examined which economic factors
bring about changes in population in the given settlement and how the
leaders of the town try to solve this negative process.
We aimed at proving the following hypotheses:
Hypothesis 1: More than a quarter of the population of Tatabánya
go to work or learn to other settlements every day.
Hypothesis 2: More than two thirds of the commuters travel more
than 50 kms as a daily routine.
43
Hypothesis 3: More than a half of those who finished their higher

education in other settlements stay there.
Hypothesis 4: The inhabitants do not consider the population
holding capacity of Tatabánya good.
Hypothesis 5: Daily commuters have chosen this way of living
because of the higher salary.
Hypothesis 6: Around half of the inhabitants, if they could, would
move to another part of the country or abroad.
2. MATERIAL AND METHOD
For the secondary examination we used resources mainly from the

specialized literature and the database of KSH. The primary research is
based on a questionnaire survey.
The questionnaire includes both open and closed questions thus
giving a kind of freedom for responders to express their thoughts and
opinions. (Horváth, 2004)
The basic principles for compiling a questionnaire (Horváth Gy.
2004)
- It has to include simple questions which are easy to answer.
- You should not ask a lot of questions – max. 10-12 ones.
- You should use different types of questions.
- The questions have to be short and brief, understandable and
clear for everyone.
- In case of different options, all potential options have to be
given.
- The questions should not influence the responders in their
answers.
- The answers have to be voluntary.
- The answers or options have to be suitable to process them
numerically.
Besides, we examined the composition of the population of
Tatabánya. We asked the inhabitants in proportion of the distribution of
different age groups. The questionnaire includes 19 questions. Three
questions of them are open, while the others are closed. In addition to
simple yes-no questions you can find other types, too, where the
responder can give his/her opinion other than what is listed. Also, a
Likert-scale can be seen in the questionnare where 7 aspects can be
assessed from 1 to 5. The questionnaire finishes with 3 questions related
44
to demography. The research data were assessed with the use of the
statistic program SPSS.
3. ASSESSMENT OF THE RESEARCH RESULTS

The fundamental factor in migration is mobility. Regarding
mobility we can distinguish spatial and social mobilities. This latter one
characterizes only us, humans organized in societies. Migration is a type
of spatial mobility which involves moving within a given settlements,
migration and tourism, too (Illés S., Michalkó G. 2008).
Migration can be categorized in different ways. For example, from
the point of view of crossing the borders. Another aspect is when we
consider it from the point of view of the migrant. Furthermore, it can be
classified on the basis of the number of migrants. In this case we can
distinguish individual and group migration. Migration can be categorized
in relation with the reasons for and the purposes of migration. Another
possibility is when we consider the legality of migration. According to
this latter one, there are legal and illegal migration. Another possible way
of classification is when we distinguish migrants on the basis of the time
span of their migration. This way we can discern settlers and temporary
migrants. Of course, there are some overlaps between certain categories,
nobody can be ranked into only one category (Illés S., Kincses Á., 2012)
(Illés S. 2000).
As reasons for migration nature, economic environment and
politics can be listed.
As a town, Tatabánya has existed since a departmental order signed
by the Minister of the Interior in 1947. The predessor settlements had had
mining activities for more decades by that time (Gyüszi L. 2007).
After the first mines had been opened the number of population
increased dynamically which continued after the fusion of the
settlements, too. In the census of the year 1949 the number of the
inhabitants exceeded 40.000. 75% of the employees worked in the
industry, 50% of them earned a living from mining (Antalóczy et al.
1972).
By the next census, which was 11 years later, the number of the
inhabitants had increased by 12.000 to 52.079. This growth was partly
due to the natural reproduction (47%) and partly to the migration (53%).
In this decade Tatabánya became the largest industrial town of the
country where the 15.000 people working in the mines amounted to the
12% of the total national industrial sector (KSH, 1961).
45
The number of pupolation increased between 1960 and 1970. In

10 years the population of Tatabánya grew by 13.000 people which was
the result of the migration of 9.000 people in the first half of the decade
(KSH, 1970).
The population expanded by more 10.000 people up to the
following census in 1980. In this period the natural reproduction was
more typical rather than migration. The industry remained the main
employer (KSH, 1981).
A gradual decrease can be experienced in the number of
inhabitants of the settlements from 1980. There is a small reduction of
about 700 people up to the political transformation. At the time of the
first census of the new millennium 72.470 people lived in the town
which is by 3000 less than 11 years earlier. Besides reduction of the
population, unemployment appeared, too (KSH, 1992).
After losing the markets of Comecon countries, in the beginning
of the 1990s, 12.000 workplaces were terminated in the town. The
employment rate was reduced from 48% to 38,5%. The heavy industry
started to recede so it was necessary to reorganize the industrial
structure of the town. It was followed by a series of measures as a result
of which the technical infrastructure improved, the area of the Industrial
Part got selected where more international companies could find their
place. All in all, about 6.000 new workplaces were established helping
the situation. Furthermore, the College of Modern Business Studies has
been founded and a vocational training centre has also been established
where the working force for the factories in the industrial park is trained
(Nagyvárosok Belső Tagozódása Tatabánya, 2003).
A reduction of 6,5% can be observed by 2011 which was caused
by the natural loss and migration half-and-half (KSH, 2013).
A commuter is the person who does not work in the same place as
he lives actually. Daily commuters are leavers from a place to another
from the point of view of their actual residence and day-boarders from
the point of view of their working place (Lakatos M., Váradi R. 2008).
Separation of the workplace and the residence became more
common only after the World War II. The reasons for commuting daily
involve that there is no workplace in the residence or if there is at all, it
does not often meet the job seeker’s expectation or qualifications. We
can distinguish daily commuters who leave their home to go to work
every day and then they go back. There are long-term commuters who
go home only on a weekly or monthly basis. Most of them are men
(79%) aged between 15-29 (Lakatos M., Váradi R. 2008).
46
Commuting in Tatabánya
In the second half of the 20th century the workforce profit of
Tatabánya was 17% which means that the number of commuters exceeds
the number of employees of the total population of the town by 17%.
After the political transformation this profit of 17% was reduced to the
loss of 2% and with this figure Tatabánya is unique among the country
seats (http://konyvtar.ksh.hu/inc/kiadvany_ksh/OFA/ofa4/main.html).
A typical phenomenon in the beginning of the 21st century is the
labour influx across the borders, which is due to the enlargement of the
EU, inter alia, and the diffusion of the free labour – together with the
influx of knowledge (Gál J. 2006 A) It can cause a social-economic
tension that while the sender country spends money on training, it is the
accepting country which benefits from the trained workforce (Gál J.
2006 B). The situation is complicated by the influx between different
sectors which makes certain tranings almost unnecessary. Tatabánya is
in a similar situation. Today, about 7.000 of the 28.000 employed of the
town commute to other towns to work, together with a considerate
amount of students (1300 people). The number of people commuting to
Tatabánya is around 7000, too, and around 3.100 student from the
neighbouring places attend schools in Tatabánya (Nagyvárosok Belső
Tagozódása Tatabánya, 2003).
The summary of responses to our own questonnaire:
The event took place in summer 2014 in two busy spots (Fő
Square and around Vértes Center) of Tatabánya. Altogether 394
questionnaires were filled in in the survey.
The 394 responders included 240 women (61%) and 154 men
(39%).
Regarding the ages the subjects fall in the following categories:
under 18 – 14 people (4%), aged between 19 and 24 – 56 (14%),
between 25-35 – 108 (27%), between 36 and 50 – 78 (20%), between 51
and 65 – 96 (24%) and over 66 – 42 (11%).
Considering the highest qualification the sample has the following
categories. 6% of the responders has min. primary education (22
people). 12% of them has vocational education (48 people). Those who
finished a specialized secondary school were 104 people (26%). 18%
has a grammar school certificate (732 people) and 38% of them
graduated from a college or university (148 people).
Half of the subjects work or learn in Tatabánya. 27% of them (106
people) commute to another town and work or learn/study there. 4% of
the responders (14 people) is on maternity leave now. 16% (64 people)
has retired. Finally, the rate of the unemployed is 3% (12 people).
47
Those who go to work or study to another town can be divided

into four groups according to the distance they take in one day. 19% of
them (20 people) travel less than 10 km. The number of those who take
a distance between 11 and 50 km is 44 (40%). The distance between 51
and 80 km is taken by 35% of the commuters (38 people) twice a day.
The proportion of those who travel more than 80 km is 6% (6 people).
About three fourths of the commuters from Tatabánya are men, while
the proportion of women is only 29%. Besides, 63% of the commuters
is younger than 35, the group aged between 25 and 35 has the highest
number. The percentage of people over 36 is 37%.
38 of the responders said that they had changed their residence to
the town where they work. It is presumable that they have settled down
in Tatabánya. 26 of the 106 responders would change their residence to
the town or to a nearby town/village where their workplaces are. The
remaining 80 people would stay in Tatabánya.
Most of them (252 people) think that the population holding
capacity of Tatabánya is average. 76 people consider it rather bad, while
66 rather good.
2% of the responders (8 people) has moved abroad. 32% of them
(126 people) has thought about it, 26% (104 people) has not but reckons
that it would be better. 40% of them (156 people) would not leave
Tatabánya. The following question closely related to it. The most
popular countries are Germany (68 people), Great Britain (50 people)
and Austria (42 people). Switzerland (12 people), the Netherlands and
the USA (6-6 people) are worth mentioning, too. In addition, Ireland (5
people), Norway, China, Sweden, Canada, Finland and France are on
the list (1-2 people). It can be seen from the answers that 42% of those
who would like to move abroad belong to the 2 age groups between 19
and 35. The proportion of under 18 and over 66 is 3% and 4%. If we
observe the highest qualification of the responders, it is clear that most
of them, 43%, have a college or university degree. 29% has a certificate
from a vocational school or a specialized secondary school. 19% of
them has a grammar school certificate, and 9% of them has finished the
eight classes of the primary school.
About half of the responders (52% - 204 people) has a relative
living in a foreign country or a relative who has moved to another town
from Tatabánya. 48% (190 people) does not have such a relative. These
relatives live in Germany (44 people), Austria (40 people) and Great
Britain (28 people). Also, the USA (8 people), Switzerland (5 people,
the Netherlands, Italy, Spain and Ireland (2-2 people), Israel, Poland and
48
Croatia (1-1 person) are on the list. Most of them who migrated within
the country moved to Budapest or to the agglomeration.
10 of the graduates got their degrees locally, while 64 in other
towns or cities. The most popular ones are Budapest (80 people),
Sopron (24 people) and Győr (16 people). Other towns on the list are
Miskolc (6 people), Kecskemét, Veszprém and Esztergom (2-2 people),
while Eger, Szombathely, Kaposvár and Pécs with 1-1 person.
According to the 15% of the responders, those who learn or study
in another town will settle down in the given place, while 49% of them
does not see any connection between the two things.
The responders think that the main reason for commuting is the
better salary. 242 of them chose this option. The second reason right
after it is that they cannot find work locally. 244 of the subjects chose
this option. 84 reckon that some extra benefits from the employer may
stimulate commuting. 28 of them see the working atmosphere as an
important reason, while 12 people the company’s social responsibility.
129 of the participants in the survey (42%) feel their job secure.
144 of them (48%) do not feel it totally secure and 30 people (10%)
think it unsecure.
11% is satisfied with the salary (34 people), 43% (136 people) is
satisfied but thinks that it could be more. The group of the dissatisfied
ones is the biggest, 46% of the responders (148 people) is not satisfied
with their salary.
The inhabitants are the least satisfied with the system of health
care and the public transport. In both cases the quarter of the responders
evaluated these services very bad. The entertainment facilities were
considered very bad by 16% of the responders. In the category of ”bad”
these services had the most options. 12-17% of the responders evaluated
the number of workplaces, the living conditions, the number and quality
of educational institutions bad.
A half of the responders evaluated the number and conditions of
the flats medium, and 42% ranked the number of workplaces in this
category. Almost a third of the subjects (29-31%) classed the number of
educational institutions, the level of education, the system of health care
and entertainment facilities into the category „medium”. Public
transport is considered medium only by 26%.
The number of educational instituations got most of the score
„good” – 44%. It is followed by the quality of education which was
thought good by 40% of the responders. The number of workplaces was
considered good in 29%, while the number and condition of flats is a bit
under it, 23%. 17% of the inhabitants thinks that the entertainment
49
facilities are good, while the system of health care (12%) and public
transport (11%) were considered the least good.
A very small number of the responders ranked the public services
provided by the town very good. The number of workplaces and
educational institutions got the best results with 6-6%. It is followed by
the number, condition of the flats and the level of education with 44%.
Only 3-3% of the responders has a very good opinion on the system of
health care and the entertainment facilities. The public transport of
Tatabánya can be classed into the category „very good” the least, only
1% of the responders has this opinion.
4. SUMMARY
Our first hypothesis, which says that more than a quarter of the
population of Tatabánya goes to work to another town every day, has
been proved. 106 of the 394 responders (26,9%) commute between their
homes and workplaces every day.
According to the second hypothesis, more than two thirds of the
commuters take more than 50 km at one time. It has not been proved
since only 44 commuters said that they take a distance of more than 50
km at one time. It is 41% of the total number of commuters.
Our third hypothesis states: „Those who finish their higher
education in another city or town, they are most likely to settle down
there.” This hypothesis has not been justified because the responders
thought half-and-half (51% yes and 49% no) that those who do not
graduate from a college or university in their hometown will live in the
given town or city.
The fourth hypothesis according to which the population do not
consider the population holding capacity of Tatabánya good has been
rather proved than has not. 76 of the responders found this capacity bad
and 66 good. The remaining 252 people think it average.
According to the fifth hypothesis, the daily commuters choose this
lifestyle because of the better salary. This assumption of ours has proved to
be true since commuters (106 people) chose the better salary mostly (68
people) as a reason for commuting. The second one was that they cannot
find work locally (58 people), it was followed by the extra benefits from
the company (16 people) then by the working atmosphere (5 people),
finally the company’s social responsibility and other reasons (2-2 people).
According to our sixth and the last hypothesis, a half of the
population, if they could, would move either to another part of the
country or abroad.
50
Overall, it can be said that the first, the fourth and the fifth
hypotheses have proved to be true, while the second, the third and the
sixth have been rejected.
References
ANTALÓCZY ET. AL 1972 Tatabánya története II. kötet, Alföldi Nyomda,
Debrecen 159-173.
Foglalkoztatottak napi ingázásának jelentősége,
http://konyvtar.ksh.hu/inc/kiadvany_ksh/OFA/ofa4/main.html
(2014.05.08.)
GÁL J. 2006A Gondolatok a nemzetközi vándorlás és a tudásáramlás
logisztikai értelmezéséről, Agrár- és vidékfejlesztési szemle, 1. évf. 1.
szám SZTE MGK, Hódmezővásárhely, 2006/1 ISSN 1788-5345, pp. 75-
79.
GÁL, J. 2006B View of Employers at EU Level on an Environmental
Dimension to Agro-Industrial Relation, Scientific Papers Faculty of
Agriculture XXXVIII, 2006.05.18-19. Timisoara, Románia, ISSN 1221-
5279, pp. 481-484.
GYÜSZI L. 2007 Tatabánya történelmi olvasókönyve II. kötet, Alfadat-Press
Nyomdaipari Kft, Tatabánya 60-65., 345.
HORVÁTH GY. 2004 A kérdőíves módszer, Műszaki Könyvkiadó, Budapest 24-
48.
ILLÉS S. 2000 Belföldi vándormozgalom a XX. század utolsó évtizedeiben,
KSH NKI, Budapest 32-34.
ILLÉS S. –MICHALKÓ G 2008 Relationships between international tourism and
migration in Hungary: Tourism flows and foreign property ownership.
Tourism Geographies, vol. 10. no. 1. pp. 98-118.
ILLÉS S. – KINCSES Á 2012 Hungary as a receiving country for circulars.
Hungarian Geographical Bulletin, vol. 61. no. 2. pp. 197-218.
KÖZPONTI STATISZTIKAI HIVATAL 1961 1960. évi népszámlálás Komárom
megye személyi és családi adatai, Budapest
KÖZPONTI STATISZTIKAI HIVATAL 1970) 1970. évi népszámlálás 1. Előzetes
adatok KSH. Budapest
KÖZPONTI STATISZTIKAI HIVATAL 2013 2011. évi népszámlálás 3. Területi
adatok 3.12. Komárom-Esztergom megye, Veszprém
LAKATOS M., VÁRADI R. 2008 A foglalkoztatottak napi ingázásának
jelentősége a migrációs folyamatokban, Statisztikai Szemle, 87(7-8),
764-794.
KÖZPONTI STATISZTIKAI HIVATAL 1981 1980. évi népszámlálás 11.a
Komárom megye számlálókörzetei és külterületi adatai , Budapest 474-
508.
KÖZPONTI STATISZTIKAI HIVATAL 1992 1990. évi népszámlálás 14.
Komárom-Esztergom megye adatai, Budapest 166-221.
51
NOTES ON AUTHORS
Brigitta Zsoter (Dr. Ph.D.) (Mezohegyes/Hungary, 03/10/1979): she works in
the position of the university lecturer in the Institute of Economy and Rural
Development at the Faculty of Engineering in the University of Szeged. She
has six degrees. She obtained her PhD in 2010. Her research field: regional
and settlement development; assessment of the economical character of
investments. As a supervisor lecturer she has supported the scientific activity
of many young and talented university students. Some of them had
outstanding results at Student Conferences.
Balazs Rabai: he graduated from the Faculty of Engineering at the University

of Szeged, as an agricultural engineer of economy and rural development in
2014. He started his scientific researches under the supervision of dr. Zsótér
Brigitta. He had excellent results at Student Conferences of the Faculty. His
work is characterized with accuracy of the highest degree.
Nicoleta Trandafir - PhD student; Vest University of Timișoara, FEAA Faculty,

Romania.
52
SELECTION OF CANDIDATES IN THE PROCESS OF

RECRUITMENT AND SELECTION OF PERSONNEL
BASED ON THE SWARA AND ARAS METHODS
Dragisa Stanujkic, Bojan Djordjevic, Darjan Karabasevic
Abstract: At the time when employees nowdays represent an important

resource in achieving business success, there is an increasing focus on
the process of recruitment and selection of personnel, because every
company seeks to fill a vacant position with the best candidates, ie.
those who best meet the requirements of the job. Therefore, this paper
will propose an MCDM approach to the recruitment and selection of
personnel by applying methods for decision making, in this case, by
applying SWARA and ARAS methods. In order to determine the
effectiveness of the proposed model, in the paper will also be presented
a numerical example.
Keywords: recruitment, selection of personnel, MCDM, SWARA, ARAS.
INTRODUCTION
In contemporary business conditions, which are characterized by
rapid and unpredictable changes in both environment, as well as in the
organization. The organization must be and must remain flexible as to
track changes in environment and to remain competitive, also to
maintain a competitive advantage.
Organizations increasingly manage human resources strategically,
i.e. define the strategy for the development of human potential of the
organization. Human Resources undeniably becomes part of strategic
management over time at the company.
Recruitment is the process of attracting qualified candidates in
numbers that will allow organization to choose the best candidates for
filling vacancies. Selection of candidates represent a process in which is
performed selection between the available candidate for the job and
where afterwards a decision is made on his future employment.
(Petkovic et al, 2005; Bogicevic Milikic, 2006).
The process of recruitment and selection means that firstly is
needed to determine the characteristics necessary for the effective work
53
performance of the job i.e. job analysis. Upon completion of the work
analysis, then is carried out an evaluation of the extent to which each
candidate meets or does not meet the requirements of a particular job.
Should bear in mind that there are also cases in modern
organizations which often for filling vacancies performed internally
recruitment which implies finding candidates within the organization,
i.e. among employees.
This manuscript aims to establish an effective MCDM model for
personnel selection, in this case for the position of Sales Manager in the
hospitality industry. MCDM model will be based on the SWARA
method for determining weights of evaluation criteria, and on the ARAS
method for ranking alternatives in this case ranking of candidates in the
selection process.
Therfore, this manuscript is organized as follows: in section 1
criteria for the selection of personnel are presented, in section 2 SWARA
method is shown, in section 3 ARAS method is shown, in section 4
numerical example is presented, finaly in section 5 conlusions are given.
1. CRITERIA FOR THE SELECTION OF PERSONNEL

When the company have a vacant position, or there is a need to
create a new position, the company always strives to find a candidate
who will best and successfully perform the tasks in that vacant position
i.e. future job position. However, before the company starts with the
hiring process, it is necessary to define the criteria for the position, ie.
consider the job requirements, which will be the basis of the entire
future hiring process, and candidates will be selected in accordance with
the defined criteria and requirements of the job. So, job analysis as the
process involves gathering relevant information for the position and
specifying the knowledge, abilities, skills and other requirements
necessary for the performance of concrete job.
The evaluation criteria in the recruitment and selection process is
obtained on the basis of the process of job analysis and based on them it
is necessary to choose a predictor or a test that will measure the
qualities or characteristics necessary to perform for the specific job.
In the recruitment and selection process for the evaluation of
candidates can be applied different types of tests and the interviews
such as structured interviews, intelligence tests, psycho tests,
personality tests, cognitive tests and so forth, and all that with aim to
evaluate the candidates in the best possible way (Miller & Gordon,
2014; Cook & Cripps, 2005).
54
One part of the literature is devoted to the use of MCDM or

MADM methods for the selection of personnel such as a GRA-based
intuitionistic fuzzy multi-criteria group decision making method for
personnel selection (Zhang & Liu, 2011), personnel selection fuzzy
model (Petrovic-Lazarevic, 2001), personnel selection using analytic
network process and fuzzy data envelopment analysis approaches (Lin,
2010), a fuzzy AHP approach to personnel selection problem (Güngör et
al., 2009), extension of TOPSIS method for R&D personnel selection
problem with interval grey number (Wang, 2009), a fuzzy multi-criteria
decision making approach for solving a bi-objective personnel
assignment problem (Huang et al., 2009), and a rough-set based approach
to design an expert system for personnel selection (Akhlaghi, 2011).
So based on the studied literature, authors of the manuscript
proposes the following evaluating criteria in the proces of recruitment
and selection of Sales Manager in hospitality industry. Evaluation
criteria for the mentioned position are shown in table 1.
Table 1. The set of evaluation criteria

Criteria Designation
C1 Work experience We
C2 Education Ed
C3 Organizational skills Os
C4 Communication and problem solving skills Cp
C5 Computer skills Cs
C6 Foreign languages Fl
2. THE COMPUTATIONAL PROCEDURE

OF THE SWARA METHOD
The Step-wise Weight Assessment Ratio Analysis (SWARA)
technique was proposed by Kersuliene et al. (2010). Similarly to the
ARAS method, the SWARA is also a newly proposed method, however
it is also used for solving many problems such as: a rational dispute
resolution (Kersuliene et al. 2010), an architect selection (Kersuliene &
Turskis 2011), the design of products (Zolfani et al. 2013), a machine
tool selection (Aghdaie et al. 2013), the prioritizing of the sustainability
assessment indicators of the energy system (Zolfani & Saparauskas
2013), personnel selection (Zolfani & Banihashemi 2014)), investment
prioritizing in high tech industries based on SWARA-COPRAS
approach (Hashemkhani Zolfani & Bahrami, 2014) and developing a
55
new hybrid MCDM method for selection of the optimal alternative of

mechanical longitudinal ventilation of tunnel pollutants during
automobile accidents (Hashemkhani Zolfani et al, 2013)
The process of determining the relative weights of criteria using
SWARA method, based Kersuliene et al. (2010) and Stanujkic et al. (In
press), can accurately be shown by using the following steps:
Step 1. The criteria are sorted in descending order based on their

expected significances.
Step 2. Starting from the second criterion, the respondent expresses the
relative importance of criterion j in relation to the previous (j-1) criterion,
for each particular criterion. According to Kersuliene et al. (2010), this
ratio is called the Comparative importance of average value, sj.
Step 3. Determine the coefficient kj as follows

1 j 1
kj . (1)
sj 1 j 1
Step 4. Determine the recalculated weight qj as follows

1 j 1
kj 1
j 1. (2)
qj
kj
Step 5. The relative weights of the evaluation criteria are determined as

follows
qj
wj n
, (3)
qk
k 1
where wj denotes the relative weight of j-th criterion, n denotes number

of criteria.
3. THE COMPUTATIONAL PROCEDURE

OF THE ARAS METHOD
A new additive ratio assessment (ARAS) method was proposed by
Zavadskas and Turskis (2010). Therefore the ARAS method can be
classified as a newly formed, but effective and easy to use, MCDM
method. The ARAS method has been applied to solve various decision-
56
making problems, and also have been formed its fuzzy and grey
extension, named ARAS-F (Turskis, Zavadskas 2010b) and ARAS-G
(Turskis, Zavadskas 2010a). From many papers, here we mention only a
few, such as: Zavadskas et al. (2010, 2012), Bakshi and Sarkar (2011),
and Stanujkic et al. (2013).
Based on Stanujkic and Jovanovic (2012), the procedure of

solving problems by using ARAS methods, in cases when MCDM
problem incude only benefit criteria, can be precisely described by
using the following steps:
Step 1: Determine optimal performance rating for each criterion.

After creating a decision matrix, the next step in the ARAS method is to
determine the optimal performance rating for each criterion. If decision
makers do not have preferences, the optimal performance ratings are
calculated as:
x0 j max x ij , (4)
i
where x0 j is optimal performance rating in relation to the j-th criterion.
Step 2: Calculate the normalized decision matrix R [rij ] . The

normalized performance ratings are calculated by using the following
formula:
xij
rij m
, (5)
i 0 x ij
where rij is normalized performance rating of i-th alternative in relation

to the j-th criterion.
Step 3: Calculate the weighted normalized decision matrix V [vij ] .

The weighted normalized performance ratings are calculated by using
the following formula:
vij w j rij , (6)
where vij is weighted normalized performance rating of i-th alternative in
relation to the j-th criterion.
Step 4: Calculate the overall performance index for each

alternative. The overall performance index Si , for each alternative, can
57
be calculated as the sum of weighted normalized performance ratings,

using the following formula:
n
Si vij . (7)
j 1
Step 5: Calculate the degree of utility for each alternative. In

the case of evaluating faculty websites, it is not only important to
determine the best ranked website. There is also important to determine
relative quality of considered websites, in relation to the best ranked
website. For this we use degree of utility, which can be calculated using
the following formula:
Si
Qi , (8)
S0
where Qi is degree of utility of i-th alternative, and S0 is overall

performance index of optimal alternative, and it is usually 1.
Step 6: Rank alternatives and/or select the most efficient one. The
considered alternatives are ranked by ascending Qi, i.e. the alternatives
with greater values of Qi have a higher priority (rank) and the
alternative with the largest value of Qi is the best placed.
4. A NUMERICAL EXAMPLE
In order to demonstrate the efficiency and simplicity of the proposed
apprach in this section, a numerical example is presented. To determine
the weight of the criteria the team of three experts was formed. The
attitudes of the first expert, as well as the calculated weight of criteria,
are shown in Table 2.
Table 2. The responses obtained from the first of the three

experts and calculated weights of criteria
Criteria sj kj qj wj
C1 Work experience 1 1 0.25
C2 Education 0.11 1.11 0.90 0.23
C3 Organizational skills 0.05 1.05 0.86 0.22
C4 Communication and problem solving skills 0.25 1.25 0.69 0.17
C5 Computer skills 0.9 1.9 0.36 0.09
C6 Foreign languages 1.15 2.15 0.17 0.04
3.97 1.00
58
The values in the column sj represent the attitudes of expert, i.e.

values given by experts. The values in columns kj, qj and wj obtained
using Eqs. (1), (2) and (3).
The attitudes of second and third expert are shown in tables 3 and
4, as well as the corresponding weights of criteria.
Table 1a. The responses obtained from the second of the three
C2 Education 0.11 1.11 0.90 0.23
C3 Organizational skills 0.15 1.15 0.78 0.20
C5 Computer skills 0.9 1.9 0.34 0.09
C6 Foreign languages 1 2 0.17 0.04
3.85 1.00
Table 3. The responses obtained from the third of the three

C2 Education 0.11 1.11 0.90 0.30
C3 Organizational skills 1 2 0.45 0.15
C5 Computer skills 1 2 0.18 0.06
C6 Foreign languages 1 2 0.09 0.03
2.98 1.00
After that, the overall weight of criteria are determined as

geometric mean of weights obtained from experts. Table 4 shows the
weights of evaluation criteria.
Table 4. The weights of the criteria

Criteria wj
C1 Work experience 0.28
C2 Education 0.25
C3 Organizational skills 0.19
C4 Communication and problem solving skills 0.15
C5 Computer skills 0.08
C6 Foreign languages 0.04
59
The ratings of four candidates, obtained from three experts are

shown in Tables 5, 6 and 7.
Table 5. The data obtained from the first expers

We Ed Os Cp Cs Fl
A1 5 3 3 3 2 4
A2 4 4 5 5 3 5
A3 4 5 4 4 4 4
A4 2 5 5 5 5 5
Table 6. The data obtained from the second expert

We Ed Os Cp Cs Fl
A1 5 3 3 3 3 4
A2 4 4 5 3 4 5
A3 3 4 3 4 3 4
A4 3 5 5 4 5 5
Table 7. The data obtained from the third expert

We Ed Os Cp Cs Fl
A1 4 3 3 3 4 3
A2 4 4 4 3 4 5
A3 3 4 3 4 3 4
A4 3 5 3 4 5 5
The overall ratings of evaluated candidates are determined as

geometric mean of ratings obtained from experts. Table 8 shows the
weights of evaluation criteria.
Table 8. The average ratings of candidates

We Ed Os Cp Cs Fl
A0 4.64 5.00 4.64 4.31 5.00 5.00
A1 4.64 3.00 3.00 3.00 2.88 3.63
A2 4.00 4.00 4.64 3.56 3.63 5.00
A3 3.30 4.31 3.30 4.00 3.30 4.00
A4 2.62 5.00 4.22 4.31 5.00 5.00
In Table 8 are also shown optimal performance ratings, in row A0,

obtaided using Eq. (1). Normalized ratings, determined using the
Formula (3), are shown in Table 9.
60
Table 9. The normalized decision-making matrix

We Ed Os Cp Cs Fl
wi 0.28 0.25 0.19 0.15 0.08 0.04
A0 4.64 5.00 4.64 4.31 5.00 5.00
A1 4.64 3.00 3.00 3.00 2.88 3.63
A2 4.00 4.00 4.64 3.56 3.63 5.00
A3 3.30 4.31 3.30 4.00 3.30 4.00
A4 2.62 5.00 4.22 4.31 5.00 5.00
In Table 9 are also shown weights of criteria. The overall

performance indexes and is degrees' of utility, obtained by using the
formulae (7) and (8), are shown in Table 10.
Table 10. The overall performance indexes and degrees' of utility

Si Qi Rank
A0 0.23
A1 0.17 0.74 4
A2 0.20 0.86 1
A3 0.18 0.78 3
A4 0.20 0.86 2
Data from Table 10 indicate that the Candidate labeled as A2 has

the highest total importance, and therefore has best results in terms of
evaluated criteria.
5. CONCLUSION
From the above shown numerical example it can be concluded
that proposed and applied MCDM model based on SWARA-ARAS
methods can successfully resolve problems in terms of personnel
selection. The proposed model is easy to use and for the better
evaluation of candidates in recruitment and selection process additional
criteria can be supplemented. As a direction for future research, other
MCDM methods can be used to solve similar problems such as
WASPAS, VIKOR and MULTIMOORA.
References
Aghdaie, M. H., Zolfani, S. H., Zavadskas, E. K. “Decision making in machine
tool selection: An integrated approach with SWARA and COPRAS-G
methods”. Inzinerine Ekonomika -Engineering Economics 24(1) (2013):
5-17.
61
Akhlaghi, E. “A Rough-set Based Approach to Design an Expert System for

Personnel Selection”. World Academy of Science, Engineering and
Technology 5 (2011).
Bakshi, T., Sarkar, B. “MCA based performance evaluation of project
selection”. International Journal of Software Engineering &
Applications (IJSEA) 2(2) (2011):14-22.
Bogicević Milikic Biljana. Menadzment ljudskih resursa. Beograd: Ekonomski
fakultet, 2006.
Cook, M., Cripps, B. Psychological Assessment in the Workplace: A
Manager's Guide. New York: John Wiley & Sons. 2005.
Güngör, Z., Serhadlıoğlu, G., Kesen S. E. “A fuzzy AHP approach to
personnel selection problem.” Applied Soft Computing 9(2) (2009): 641-
646.
Hashemkhani Zolfani, S., Bahrami, M. “Investment prioritizing in high tech
industries based on SWARA-COPRAS approach.” Technological and
Economic Development of Economy 20(3) (2014): 534-553.
Hashemkhani Zolfani, S., Esfahani, M. H., Bitarafan M., Zavadskas, E. K.,
Arefi, S. L. “Developing a new hybrid MCDM method for selection
of the optimal alternative of mechanical longitudinal ventilation of
tunnel pollutants during automobile accidents.” Transport 28(1)
(2013): 89-96.
Huang, D. K., Chiu, H. N., Yeh, R. H., Chang, J. H. “A fuzzy multi-criteria
decision making approach for solving a bi-objective personnel
assignment problem.” Computers & Industrial Engineering 56(1)
(2009): 1-10.
Kersuliene, V., Turskis, Z. “Integrated fuzzy multiple criteria decision making
model for architect selection.” Technological and Economic
Development of Economy 17(4) (2011): 645-666.
Kersuliene, V., Zavadskas, E. K., Turskis, Z. “Selection of rational dispute
resolution method by applying new step - wise weight assessment ratio
analysis (SWARA).” Journal of Business Economics and Management
11(2) (2010): 243-258.
Lin, H. T. “Personnel selection using analytic network process and fuzzy data
envelopment analysis approaches.” Computers & Industrial
Engineering 59(4) (2010): 937-944.
Miller, V. D., Gordon, M. E. Meeting the Challenges of Human Resource
Management: A Communication Perspective. New York: Routledge,
2014.
Petkovic M, Janicijevic N, Bogicevic Milikic B. Organizacija. Beograd:
Ekonomski Fakultet, 2005.
Petrovic-Lazarevic, S. “Personnel selection fuzzy model.” International
Transactions in Operational Research 8(1) (2001): 89-105.
Stanujkic, D., Jovanovic. R. “Measuring a Quality of Faculty Website Using
ARAS Method.” in Proc. of International scientific conference
Contemporary Issues in Business, Management and Educatio '2012,
62
selected papers, Vilnius Gediminas Technical University, Lithuania, 15

November 2012. pp. 545-554.
Stanujkic. D., Karabasevic, D. Zavadskas, E. K. (in press) “A framework for
the selection of a packaging design based on the SWARA method”.
Engineering Economics.
Stanujkic, D., Djordjevic, B., Djordjevic, M. “Comparative analysis of some
prominent MCDM methods: A case of ranking Serbian banks. ” Serbian
Journal of Management, 8(2), (2013): 213-241.
Turskis, Z.,Zavadskas, E. K. “A novel method for Multiple Criteria Analysis:
Grey Additive Ratio Assessment (ARAS-G) method.” Informatica 21(4)
(2010a): 597-610.
Turskis, Z., Zavadskas, E. K. “A new fuzzy Additive Ratio ASsessment
method (ARAS-F). Case study: the analysis of fuzzy multiple criteria in
order to select the logistic centers location.” Transport 25(4) (2010b):
423-432.
Wang, D. “Extension of TOPSIS Method for R&D Personnel Selection
Problem with Interval Grey Number.” Management and service science.
International conference. (2009.)
Zavadskas, E. K., Vainiunas, P. Turskis, Z., Tamosaitiene, J. “Multiple criteria
decision support system for assessment of projects managers in
construction.” International Journal of Information Technology &
Decision Making 11(2) (2012): 501-520.
Zavadskas, E. K.; Turskis, Z. “A new additive ratio assessment (ARAS)
method in multicriteria decision-making.” Technological and Economic
Development of Economy 16(2) (2010): 159-172.
Zavadskas, E. K.; Turskis, Z.; Vilutiene, T. “Multiple criteria analysis of
foundation instalment alternatives by applying Additive Ratio
Assessment (ARAS) method.” Archives of Civil and Mechanical
Engineering 10(3) (2010): 123-141.
Zhang, S-F, Liu, S-Y. “A GRA-based intuitionistic fuzzy multi-criteria group
decision making method for personnel selection.” Expert Systems with
Applications 38(9) (2011): 11401-11405.
Zolfani, S. H., Banihashemi, S.S.A. “Personnel selection based on a novel
model of game theory and MCDM approaches.” In Proc. of 8th
International Scientific Conference "Business and Management 2014",
15-16 May 2014, Vilnius, Lithuania, 191-198.
Zolfani, S. H., Saparauskas, J. “New Application of SWARA Method in
Prioritizing Sustainability Assessment Indicators of Energy System.”
Engineering Economics 24(5) (2013): 408-414.
Zolfani, S.H., Zavadskas, E. K., Turskis, Z. Design of products with both
International and Local perspectives based on Yin-Yang balance theory
and SWARA method. Ekonomska istraživanja-Economic Research
26(2) ((2013): 153-166.
63
NOTES ON THE AUTHORS

Dragisa Stanujkic is an Associate Professor at Graduate School of Computer
Sciences and Faculty of Management in Zajecar, Megatrend University,
Serbia. His current research has been focused on the decision-making theory,
expert systems and intelligent decision support systems.
E-mail. dragisa.stanujkic@fmz.edu.rs
Bojan Djordjevic is an Associate Professor at Faculty of Management in

Zajecar, Megatrend University, Belgrade, Serbia. His current research has
been focused on the international business, bank management and
marketing, stock and commodity trading.
E-mail. bojan.djordjevic@fmz.edu.rs
Darjan Karabasevic currently Ph.D. candidate at the Faculty of

Management in Zajecar, Megatrend University, Serbia. His current
research has been focused on the human resource management,
management and decision-making theory.
E-mail. darjankarabasevic@gmail.com
64
BUSINESS SIMULATION OF TOURISM COMPANIES

USING THE LEVEL I EXERCISE FIRM MODEL
Nora Codruţa Curta, Răzvan Petruşel,

Corina Anamaria Iftinca
Abstract: This paper follows up on our previous papers introducing an

extension of the teaching-learning and evaluation model of Training
Firms method. We now focus on the business simulation of tourism
companies. Based on the Michael Porter’s five forces model, our
approach is to create a virtual business environment consisting of
several mini-companies that interact directly (so-called Mini-Training
Firms). The Mini-Training Firms enable immediate enactment of
activities such as negotiation, contracting, invoicing, receivables and
payables management, employee recruitment, etc. To support activities,
a software application can be used by the teacher and student, thus
improving their digital competences. Our proposed mini-training firm
method targets any high school students in technological and services
curricula, with diverse skills and theoretic background.
Keywords: training firm, virtual business environment, Michael
Porter’s five forces model, business simulation, tourism, software
application, teaching-learning model
1. Introduction
Simulation of the economic activity has become one of the most
used teaching methods whose purpose is to mitigate the reduced
efficiency of internships performed by students at businesses because
they do not provide students the necessary experience to integrate the
activities taking place in the real economy.
On the other hand, the level I exercise firm model, which we have
implemented and tested previously in trade domain, has been shown to
have immediate benefits (Petruşel, 2014) (Curta, 2014):
- It meets the requirements of the European Parliament on key
competences for lifelong learning (including digital
competence and, respectively, sense of initiative and
entrepreneurship) (European Commission, 2006);
65
- Remove disadvantages found over time in operation level II

training firms (Petruşel, 2011);
- Make the transition from traditional methodology to the current
methodology in teaching and learning entrepreneurship
(Ciobotaru, 2013).
Applying the model we proposed to trade proved to be a success
(it was accepted by students without problems), which led us to focus
our efforts on expanding it to tourism.
The curriculum for tenth grade school, Tourism specialization
includes the following specialized modules: Economic Management,
Hotel and Quality hotel services. For the ninth grade, specialty modules
are Restoration Basics, Organization of catering establishments and
tourism, respectively Hygiene and safety in tourism and food.
Therefore, we believe that the tenth grade students have minimal
economic knowledge needed to be active within the simulation, without
too many troubles.
2. The level I exercise firm

In essence, the level I exercise firm model is to create a virtual
business environment in each class. It consists of mini-training firms,
operating in 4-5 related fields, chosen from the class specialization. The
purpose of creating these mini-training firms is to allow students to use
the skills acquired during the theoretical classes.
Schematic representation of the class virtual business environment,
consists of four mini-training firms A, B, C and D, coordinated by the
teacher, as it was conceived by us, is found in Figure 1, together with a
general configuration interactions that occur between these entities and
the software application.
From the point of view of the teacher, classroom organization in
mini-training firms actually means classroom organization in working
groups, each group having in its composition a number of 4 students. To
form groups of students, the teacher can use several methods that we
presented in our previous work (Petruşel, 2014) (Curta, 2014). Also
there we described the method of teaching and learning through level I
exercise firm. In short, it includes the following elements:
- A mini-training firm consists of four departments;
- One student is assigned to each of the departments;
- A mini-training firm interacts both with other mini-training firms
within the class and the teacher, as we illustrated in Figure 1;
66
- Interactions between companies occur when each of them playing

the role of supplier or the customer, to each other;
- At the mini-company of exercise, students interact with each other
for work tasks received from professor to solve the initiated
learning situations;
- The software application simulates some of the entities in the
external environment of the firm, thereby closing the model
proposed by us, such as the Trade Register Office, banks,
financial administration, etc. as we shown in Figure 1;
- Each mini-training firms interact with the software application at
different times under the supervision and coordination of the
teacher;
- On the other hand, the teacher can check the work done by
students in mini-company via the software application;
- The software application facilitates the activities of the mini-
company exercise.
Teacher
A - mini exercise B - mini exercise

firm firm
C - mini exercise D - mini exercise

firm firm
Computer
application
Fig. 1. Schematic representation of the virtual business environment of class

(including the software application)
67
3. The Porter's five forces applied to the tourism industry

In one of the previous work, I tried to create a conceptual
framework that allows treating tourism as an industry (Curta, 2013). To
this end, I considered necessary and appropriate that a part of specific
strategic management tools are adapted to the situation of tourism
companies. One of these tools is the model of Michael Porter's five
forces, which I have adapted to tourism (Curta, 2014b). I present it in
Figure 2.
New comers potential
Customer
Service providers Tour operators
Replacement
products
Fig. 2. Applying the five forces model to tourism industry
Under this new approach, the tourism industry is made up of tour

operator companies. Service providers are trained in hotels, restaurants,
transport companies, insurance companies. The potential newcomers
include transportation companies, hotel chains, banks, even large
networks stores. Customers can both travel agencies and tourists alike,
if tour operators have an option for direct distribution of its products.
Substitution products are formed from similar products with tourist
packages offered on the market. On a smaller scale, we can discuss the
case of travel agencies, when they have economic and financial power
to act as tour operators at local, regional or local level. The difference
arises when service providers. Other industries belonging to tourism,
such as hospitality, tourism transport industry, entertainment, etc plays
providers’ role that offer "raw material" needed to achieve tourist
packages.
New formulation that I gave the definition of the tourism industry,
which the tourism industry is "the set of all tour operators and travel
agencies because tourism product is a sum of tourist services that can
not be purchased separately from other markets, but only from tourist
market" (Curta, 2013: 25) has certain advantages, namely:
68
- Highlights the contribution of each component better than the

tourist activity to achieve package tour, which is the final product;
- Allows streamline the flow of information necessary for decision
making regarding the activity of tourism companies;
- Removes confusion over objects of them.
4. Extending the level I exercise firm model for tourism

Starting from the two models above, the company's level I firm of
exercise (in general) and the tourism industry (formulated based on five
forces model of Michael Porter), we proposed an extension of the level I
exercise firm model for tourism domain, which can be represented
schematically as follows (see Figure 3):
Computer
application
n
tio
e rac
int
Hotel Interaction be
tween mini-fir
restaurant inte
ms
be rac
tio
min twee
i-f ir n
n
interaction
Travel
ms
Tour operators between agency
mini-firms
between mini-firms
interaction
ms
i- fir
min
een
b etw
tion
r ac
Inte
Catering interaction Teacher

firm
Fig. 3. Schematic representation of the model level I exercise firm expanded to tourism
Class virtual business environment (as we present in Figure 3)

comprises the following companies (one or more from each category):
- Hotel and restaurant;
- Catering firm;
- Tour operator;
- Travel agency.
Each firm is composed of a group of 4 students who occupy
positions in the relevant departments (see Table 1):
69
Table 1. Structure of mini-companies that make up the virtual

business environment of class:
Nr. crt. Name of the mini-exercise firm Departments
- Front-office;
- Human resources;
1 Hotel & Restaurant
- Accounting;
- Marketing;
- Supply;
- Production;
2 Catering firm
- Accounting;
- Sales;
- Preparation of tourism products;
- Administration of tourism products;
3 Tour operator
- Marketing;
- Sales;
- Travel (internal and external);
- Human resources;
4 Travel Agency
- Accounting;
- Marketing;
All four companies interact in business class due to customer

relations arising during their activity. They simultaneously interact with
both the teacher and the software application.
The content for each customer-supplier relationship between mini-
existing firms of exercise designed new model is identical to that we
presented in the initial model (see Figure 4):
Inquiry/ catalogues/
list price
issue tax invoice p urchases
pay tax invoice purchases

Mini-training Mini-training
firm A issue sal es tax invoice firm B
pay sales tax invoice
negot iation of sal es contract
Fig. 4. Scheme interactions between two mini-training firms
70
Description of activities and documents used in the mini-training

firms composing business class is shown below:
a). Travel Agency:

Activities Documents
- Ticketing (reservation and ticket sales - Offers travel;
for plane and bus); - Flights and coach tickets;
- Sale of tourist services; - Tickets for rest and treatment;
- Complete travel insurance (medical, - Vouchers;
Green Card); - Invoices, receipts, money orders,
- Sale of tourism products; checks;
- Rent a car; - Analysis of price;
- Calculate the price of tourist products; - Questionnaires of opinion;
- Evaluation of tourists' satisfaction; - Tourist programs;
- Organization of optional tours; - Promotional;
- Promoting tourism; - Travel insurance;
- Preparation of accounting; - Deductions for excursions;
- Negotiate contracts; - Accounting documents;
- Organize and update customer file; - Tourist contracts;
- Records of employees; - Employment contracts, etc.
b). Tour operator:

- Request for the tourism service - Quotation;
providers; - Offers travel;
- Analyze the offers received; - Promotional;
- Conclusion of contracts with service - Tourist contracts;
providers; - Analysis of price;
- Promoting the supply; - Invoices, orders, checks;
- Negotiate tourist contracts; -Partner sheet (suppliers and customers);
- Calculate the price of tourism - Employment contracts, etc.
products;
- Organize and update customer file;
- Preparation of accounting;
- Records of employees;
71
c). Hotel-restaurant:
- Making hotel supply; - Offer hospitality;
- Promoting the supply; - Promotional;
- Registration and booking of tourist - Reservation form;
arrivals; - Forms announcing the arrival and
- Preparation of rooms for guests; departure of tourists;
- Provision of accommodation services; - Notes payable;
- Registration of tourists departure; - Sheets customer account;
- Negotiate hotel contracts; - Invoices, receipts, money orders,
- Evaluation of tourists' satisfaction; checks;
- Preparation of accounting; - Register the hotel;
- Records of employees; - Other registers (luggage, loss);
- List of arrivals and departures;
- Vouchers;
- List of displaying rates;
- Accounting documents;
- Employment contracts, etc.
d). Catering firm:

-Develop list-menu; - List submenu;
- Contacting suppliers of raw materials; - Offer dining;
- Negotiate contracts of sale; - Documentary evidence for primary
- Preparation of food; commodities (invoices, entry-
- Sending products to customers / reception, bon consumer records
customer service; storage, etc.);
- Calculation of prices; - Documents for receipts and payments;
- Promote the offer; - Contracts of sale;
- Preparation of accounting; - Promotional;
- Records of employees; - Accounting documents;
- Employment contracts, etc.
5. Conclusions
The proposed model to simulate new business tourism firms has
several main advantages. It implements the principle of “learning by
doing”, essential for the new methodology of teaching entrepreneurship.
Enacting situations occurring in a real company, under direct
supervision of the teacher, captivates the attention and encourages
72
involvement in class activities. Our model allows every student to carry

out all types of firm activities, given the small working group and the
principle of “resource rotation”. The model implements direct
interaction and communication among students, thus developing
communication skills of students who use business language and apply
knowledge acquired during other specialized modules.
As we know, this is the first attempt to simulate the business of
tourism companies at high school level.
References
Ciobotaru, A. C. - "Entrepreneurial education as a society project. An essay on
the conceptualization of the spirit of initiative and entrepreneurship in
the educational field", Review of Economic Studies and Research
"Virgil Madgearu", "Babeş-Bolyai" University of Cluj-Napoca, Faculty
of Economics and Business Administration, no. 1, pp. 41-76, 2013
Curta, N.C. - "Strategies of the Romanian companies”, Books of Science
Publishing House, Cluj-Napoca, 2013
Curta, N.C.; Petruşel, R.; Iftinca, C.A. - "Implementing and Testing extension
of Level I Training Firm", Studia Universitatis “Babeş-Bolyai",
Psychology-Pedagogy, No. 2, December 2014, pp. 41-61, 2014a
Curta, N.C.; Duşe, D.M. - "A New Perspective about Tourism Industry",
Quality- access for success, no. 15, November 2014, pp. 60-67, A.S.E.
Bucharest, 2014b
Petruşel, R. (eds.) - "Teaching of level I Exercise-firm", course support, the
project "Improvement of secondary school teachers who teach economic
disciplines", contract POSDRU /87/1.3/S / 63908, "Babeş-Bolyai"
University of Cluj-Napoca, Faculty of Economics and Business
Administration, 2011
Petruşel, R.; Curta, N.C.; Iftinca, C.A. - "Auxiliary curricular for level I training
firm - the tenth class", Cluj University Press, Cluj-Napoca, 2014
European Commission - "Recommendation 2006/962 / EC of the European
Parliament and of the Council of 18th of December 2006 Key
Competences for Lifelong Learning", Official Journal L 394 of
30.12.2006 (2006) available at http://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:32006H0962&from=EN
NOTE ON THE AUTHORS

Nora Codruţa Curta
Technological High School "Alexandru Borza" Cluj-Napoca
Graduate of the Faculty of Chemistry and Chemical Technology, University
"Babeş-Bolyai" Cluj-Napoca
Graduate of the Faculty of Economics, University "Babeş-Bolyai" Cluj-Napoca
Ph.D. in Management and Industrial Engineering
73
Teacher teaching degree I

She teaches specialized economic disciplines.
She is interested in strategic management, pedagogy and methodology of
teaching economic subjects.
She published works in the field of strategic management for tourism
businesses, dictionaries, case studies and supported communications at
scientific symposia and conferences.
codrutacurta@gmail.com
Răzvan Petruşel
Ph. D., Associate Professor, Department of Economic Informatics, Faculty of
Economics and Business Administration, "Babeş-Bolyai" University of Cluj-
Napoca
He teaches the following courses:
- Degree courses: Virtual Business, Business Process Simulation and Modeling;
- Undergraduate courses: Design of Information Systems Management
(Romanian and English line)
The research fields are:
- Modeling decision making;
- Understanding of business processes used by people.
razvan.petrusel@gmail.com
Corina Anamaria Iftinca

Theoretical High School "Ana Ipătescu" Gherla
Graduate of the "Babeş-Bolyai" University of Cluj-Napoca, Faculty of Economics,
Economic informatics
Graduate of the Technical University of Cluj-Napoca, Faculty of Mechanical
Engineering, specialization technological equipment for heat processing
Teacher teaching degree I
She teaches specialized economic disciplines and technology of information
and communication.
She is interested in pedagogy and methodology of teaching economic subjects.
74
EVALUATING COMMERCIAL PERFORMANCE

IN AN OIL PRODUCTS DISTRIBUTION FIRM
Vlad Florea, Dina Luț
Abstract: The present article investigates the main strategies of oil

products distribution. Thus, we identify: the satisfaction of demand, the
promptitude of the distribution system and the power to negotiate on the
distribution circuit.
Keywords: evaluation, strategy, distribution, oil products, average
margin
Introduction
The present article starts from the idea that we suppose the sales
agent of oil products has identified some strategic variants of
distribution and that they want to find out which of these is the best.
Thus, they must evaluate each variant based on some criteria: demand,
negotiation, performance, promptitude and competitiveness.
The degree of demand satisfaction represents the rapport between

satisfied demand and the potential of the market. This indicator must be
analyzed from the point of view of the volume and the structure of the
potential demand of the market, along with the volume, structure and
quality of the offer1, taking into account the following factors: product
dispersion, client dispersion, geographical dispersion.
The promptitude of the distribution system reflects the capacity of
the logistic system to ensure delivery necessities which are
unpredictable as far as the time is concerned, with little costs, due to
market demand. It is given by the response to unforeseen solicitations
for delivery due to: duration of response, response costs.
1 BĂILEŞTEANU, Gh. Diagnostic, Risc şi Eficienţă în Afaceri, Ed. Mirton,

Timişoara, 1998, p. 52-55
75
The number of days’ supplies zero on stock (Ns0). It is an

indicator which expresses the correctness of finished product stock
dimensions. It can be determined for each category of finished product
stock. It is studied from the point of view of effects and nature of
supplementary costs or income reduction which are registered due to
late delivery.
The power of negotiation on the distribution circuit reflects the
economic and financial power of the company and the way it manifests
at the level of negotiating with providers and beneficiaries. At the level
of logistics interface/ marketing, the power to negotiate can be reflected
following the next indicators: average margin (mv), total margin,
average payment deadline. In order to appreciate the power of
negotiation, the level of these indicators is compared with the level of
average similar indicators or those registered by competition.
Competence and selection of intermediaries reflects abilities,
responsibilities and the modality of manifesting that is achieving targets,
by intermediaries in the distribution channels, the modality they fulfill
logistic and marketing activities established in the contractual relations
that were previously established. The criterion may have qualitative and
quantitative expressions, depending on the nature of objectives that we
established for each intermediary.
Evaluating informational performance

Equipment of the logistics system is a qualitative criterion, as it is
for most criteria of evaluating informational performances of logistic
system. It represents the degree of I.T. technology of the logistic system
as far as the hardware and software requirements, the technical and
technological levels are concerned.
The degree of development of application represents the technical
level and the software performances to monitor physical, script and
accounting operations of the logistic and control activities.
The degree to integrate and interface applications is a criterion to
evaluate the informatics system of the logistic activity which is related
to the applications of monitoring logistic operations and applications
that interact with logistics. The relationships between applications are
analyzed from the point of view of existence, relevance, efficiency,
efficacy of information and data that integrates them.
The degree of standardization of communication interfaces,
applications, procedures and platforms represents the compatibility of
applications procedures and support platforms from 2 points of view:
76
internal, used in the points of logistic activity and those interact with
these activities, inside the company; the external ones are connected to
the electronic data exchanges.
The decisional assistance of the informational system reflects the
modality in which the informational system allows the logistics
management to use data and information that is necessary in an optimal
quantity, quality and structure to be able to support the decision-making
process. It is appreciated according to capacity to gather information,
the modality to transfer post-factum or real data; capacity to transmit
and work with information; the degree of data filtering.
Assistance in managerial functions refers to the quality and
technical level of assistance applications regarding the activity of
forecast/ planning, coordination, organization/ design and control.
Final considerations on the scope of performance

criteria and logistic activities
In order to facilitate the analysis of the degree of satisfaction of
evaluation criteria of management performance in the logistics and
distribution system and to better focus on activities that lead to
satisfying criteria of evaluation we considered that a table is a better
approach. This approach will also allow a focus on the vulnerabilities of
the logistic system on the level of system component and the activities
developed, as an intermediary stage to elaborate on logistics and
distribution strategies which form the basis of restructuring/ redesigning
the actual system.
77
Performance criteria and logistic operations and activities
ACTIVITIES, PROCESSES, LOGISTIC OPERATIONS
Planning the necessary

CRITERIA OF
Processing documents
Dimensioning stocks
PERFORMANCE
NO.
Service post-sales
Processing orders
OF LOGISTIC
and information
Transportation
SYSTEM
Administration
Manipulation
Packaging
supplies
Storage
Division
0 1 2 3 4 5 6 7 8 9 10 11 12
The degree of
demand satisfaction
X X X X X X X X
of the production
system
The average degree

X X X X X X X
of loading capacities
The degree of
mechanization of X X X X X
operations
The degree of
automation of X X X X X X X
operations
The logistics
X X X X X X X X X X X
transfer coefficient
The number of days

X X X X X
of stock zero supply
Promptitude of
logistics system
Standardization of
X X X X X X X X X X
logistics system
Flexibility of logistics
system
Maintenance of
logistics system
Reliability of
logistics system
Costs of logistics
activity 1000 UM X X X X X X X X X X X
turnover
Reservation towards
profitability of X X X X X X X X X X X
logistics activity
The costs of a zero

stock day
Cost of response to
unforeseen
requirements about
stocks
Costs of maintaining
the logistic system
78
0 1 2 3 4 5 6 7 8 9 10 11 12
Speed of stock
X X X X X X X
rotation
Rotational speed
X X X X
claims
Speed of debt rotation X X X X X X X
Cost of
designing/restructurin X X X X X X X X X X X
g the logistic system
Growth effect brought

about by the
implementation/restru X X X X X X X X X X X
cturing of logistic
system
Internal rate of
profitability of X X X X X X X X X X X
investment
Net value of
restructuring X X X X X X X X X X X
investments
Duration of return on
investment
Degree of demand
satisfaction
Promptitude of
distribution system
Number of days pf
X X X X X X X
zero supply stock
Power of negotiation
on the distribution X X X X X
circuit
Competence and
selectivity of X X X X X X X X X X X
intermediaries
Equipping logistic
X X X X X X X
informational system
Degree of
development of X X X X X X X
applications
Degree of integration
and interfaces of X X X X X X X X X
applications
Degree of
standardization of
communication,
X X X X X X X X X X
application,
procedures and
platforms Interfaces
Decisional support of
the informational X X X X X X X X X X
system
Assistance in
performing X X X X X X X X
managerial functions
79
References
BĂILEŞTEANU, Gh. - Diagnostic, Risc şi Eficienţă în Afaceri, Ed. Mirton,
Timişoara, 1998
CAVINATO, J. - “A General Methodology for Determining a Fit Between
Supply Chain Logistics and Five Stages of Strategic Management- “
International Journal of Physical Distribution and Logistics
Management, Vol. 29 No. 3, 1999, pp. 162-180
Florea Vlad “Sistemul logistic. Concept, metodologie”, Ed. Mirton, Timisoara,
ISBN 973-661-580-4, pagini 189, 2005
GATORNA, J.L., - Managementul logisticii şi distribuţiei, Ed. Teora,
Bucureşti, 2001
NOTE ON THE AUTHORS

Florea Vlad is Associate prof. at the Faculty of Management in Tourism and
Commerce Timişoara, „Dimitrie Cantemir” Christian University. He holds a
PhD. In Management with the thesis Management in the Logistics and
Distribution of Oil Products. He is the author of numerous books and articles
on management, the latest one being Management strategic, metode de
elaborare, Eurostampa, 2010

management and leadership within Romanian organizations
80
BUSINESS INTERNATIONALISATION AND

THE CHOICE OF INTERNATIONAL STRATEGY
IN CASE OF SLOVAK COMPANIES
Jana Gálová, Elena Horská
Abstract: The paper deals with patterns of business internationalisation

in the Slovak Republic and the choice of their international strategy.
The main objective of this paper is to present some results from the
research about various aspects of internationalisation of Slovak
enterprises as a part of a research project StG-21310034 with the title
“Patterns of Business Internationalisation in Visegrad Countries – In
Search for Regional Specifics” financed by the International Visegrad
Fund in the years 2013-2014. The empirical research was conducted by
the consortium of five Central European universities, among them the
Slovak University of Agriculture in Nitra, and led by the Cracow
University of Economics, Poland. The research objective of the paper is
to identify the time of internationalisation of businesses in Slovakia and
the relation between the size of companies and the international
strategy they use on foreign markets. The research was conducted
through a questionnaire survey available in electronic document and
online specifically designed password protected form. The sample
consisted altogether from 143 businesses from Slovakia with
international activities. To verify the scientific hypotheses, we applied
procedures such as descriptive statistics and inductive statistics for
calculations of frequencies and analysis of contingency tables, and
Pearson's chi-square test of independence to reject or confirm the
hypotheses.
Keywords: internationalisation, business, marketing, strategy, SMEs,
large firms
Introduction
The current development of the world economy is increasingly
influenced by integration and globalization tendencies. In the face of
globalization and an increasingly interconnected world many firms
attempt to expand their sales into foreign markets. International
expansion provides new and potentially more profitable markets, it
81
helps increase the firm’s competitiveness and facilitates access to new

product ideas, manufacturing innovations and the latest technology.
However, internationalisation is unlikely to be successful unless the
firm prepares in advance (Hollensen, 2007).
Literature review
The world business has undergone significant changes in recent
years. Each company, whether it is big or small, operates in a
competitive environment and has its own global competitors (Kretter,
2010). Intensification of economic life in global view, especially in last
decades, results in increasing number of firms involved in the process of
decision-making whether to enter a foreign market and which mode
would be the most suitable for them (Kleinová & Ürgeová, 2011).
However, if the firm does not know how to apply marketing in the
domestic market, it cannot be able to carry out marketing in the
international field. Therefore, an essential precondition for the company
when entering the foreign market and trying to implement marketing in
international scope, is excellent knowledge of marketing as it is
(Horská, 2007). There are several characteristic trends towards greater
internationalisation. Paul & Kapoor (2008) highlight three macro factors
as the decline in trade barriers, the removal of restrictions on foreign
investment and the technological change (e.g. the development in
communication, information processing, or transportation technologies).
During internalisation migration and knowledge flow are both important
factor nowadays (Gál, 2006a; Gál, 2006b).
The decisions of the company related to the market selection and
entry or operation on the foreign market are based on the principles of
international marketing which can be defined as implementation of
marketing activities exceeding national borders of countries. It presents
the philosophy of company management focused on foreign markets
and aimed at optimal placement of goods and services on these markets
(Horská, 2014).
Marketing activities are shaped by the environment in which they
are carried out. Applying marketing activities in an international context
is therefore a very complex process because a marketer faces two or
more sets of uncontrollable variables originating from various countries.
A firm’s marketing mix is determined by the uncontrollable factors
within each country’s environment as well as by the interaction between
the sets. The degree of overlap of the sets of uncontrollable variables
will dictate the extent to which the four Ps of marketing must change –
82
the more the overlap, the less the modification (Onkvisit & Shaw,
2009). One of the greatest challenges to the global marketer is to
understand when it is possible to exploit similar needs and behaviour
and when it is important to adapt to different buyer conditions. In
addition, many buyers increasingly search the world for products. This
intensifies competition and requires global marketers to understand their
markets and address the needs of their buyers (Mühlbacher, Leihs, &
Dahringer, 2006).
The form of the firm’s response to global market opportunities
depends greatly on the management's assumptions or beliefs, both
conscious and unconscious, about the nature of doing business around
the world. This worldview of a firm's business activities can be
described as the EPRG framework (Perlmutter, 1969 in Hollensen,
2007), its four orientations summarized as follows:
 Ethnocentric: the home country is superior and the needs of the
home country are most relevant. Essentially, the headquarter
extends ways of doing business to its foreign affiliates. Controls
are highly centralized and the organization and technology
implemented in foreign locations is the same as in the home
country.
 Polycentric (multidomestic): each country is unique and
therefore should be targeted in a different way and viewed
independently. The polycentric enterprise recognizes different
conditions of production and marketing in different locations
and tailors strategic decisions to suit those different conditions in
order to maximize profits in each location (Kotabe & Helsen,
2010). The control with affiliates is highly decentralized and
communication between headquarters and affiliates is limited.
 Regiocentric: the world consists of regions (e.g. Europe, Asia,
the Middle East). The firm tries to integrate and coordinate its
marketing programme within regions, but not across them.
 Geocentric (global): the world is getting smaller and smaller, the
company may offer global product concepts with local
adaptation (‘think global, act local’).
The regio- and geocentric firm (in contrast to the ethnocentric and
polycentric) seeks to organize and integrate production and marketing
on a regional or global scale. Each international unit is an essential part
of the overall multinational network, and communications and controls
between headquarters and affiliates are less top-down than in the case of
the ethnocentric firm (Hollensen, 2007).
83
Research materials and methods

The paper deals with patterns of business internationalisation in
the Slovak Republic and the choice of their international strategy.
First, we gathered secondary data to our literature review. Next, as the
main objective of this paper we presented some results from the
research about various aspects of internationalisation of Slovak
enterprises as a part of a research project StG-21310034 with the title
“Patterns of Business Internationalisation in Visegrad Countries – In
Search for Regional Specifics” financed by the International Visegrad
Fund in the years 2013-2014. The empirical research was conducted
by the consortium of five Central European universities, among them
the Slovak University of Agriculture in Nitra, and led by the Cracow
University of Economics, Poland. 1 The research was conducted
through a questionnaire survey available in electronic document and
online specifically designed password protected form. The
questionnaire was distributed among internationally involved
businesses in Slovakia between October 2013 and February 2014
(Horská & Gálová, 2014; Wach, 2014a; Wach, 2014b; Wach &
Wojciechowski, 2014; Knežević & Wach, 2014; Kiendl-Wendner &
Wach, 2014; Daszkiewicz, 2014; Duréndez & Wach, 2014; Gubik &
Wach, 2014).
The research sample consisted altogether from 143 businesses
from Slovakia with international activities. For data analysis the
software "MATLAB® R2010b" was used. To verify the scientific
hypotheses, we applied procedures such as descriptive statistics and
inductive statistics (to obtain critical values) for calculations of
frequencies and analysis of contingency tables, and Pearson's chi-square
test of independence (Berenson & Levine, 1993) to reject or confirm the
hypotheses (the calculated G characteristic was compared with the
appropriate chi2 value).
The research objective of the paper is to identify the time of
internationalisation of businesses in Slovakia and the relation between
the size of companies and the international strategy they use on foreign
markets. Therefore, the following research hypotheses were assumed:
H1: In general, firms from the Slovak Republic implement
traditional process approach toward their internationa-
lisation.
1 Further information at: http://www.visegrad.uek.krakow.pl/ (accessed on March 20,

2015).
84
H2: SMEs from the Slovak Republic apply mainly ethnocentric

and regiocentric strategy of internationalisation.
H3: Large firms from the Slovak Republic apply mainly
polycentric and global strategy of internationalisation.
Research sample and its characteristics

The consistency of the sample of surveyed companies according
to the year of their establishment and their first international activity is
shown in table 1. The year 1993 indicates the formation of the
independent Slovak Republic, in the year 2004 Slovakia joined NATO
and the EU and in 2009 it became part of the Eurozone. Considering the
year of establishment, the majority of the firms were established after
1993, there is very similar distribution until the accession of the EU in
2004 and in the period after it (44.1 %, respectively 39.2 %). Taking
into consideration the year of the first international activity, the situation
is a bit different; nearly half of the companies (49.0 %) stated that they
began their international operations after the entry of the Slovak
Republic to the EU. In many cases it was a matter of classical business
development, following Uppsala model of internationalisation when
firms first gain experience from the domestic market before they move
to foreign markets (Johanson & Vahlne, 1977).
Table 1 Companies from Slovakia participating in the survey according to the year of
establishment and the year of their first international activity
Establishment Year Year of the First International
Activity
Frequency Share in % Frequency Share in %
Before 1993 24 16.8 15 10.5
1993-2003 63 44.1 58 40.6
2004-2013 56 39.2 70 49.0
2004- 36 25.2 35 24.5
from 2008
which: 2009- 20 14.0 35 24.5
2013
Total 143 100.0 143 100.0
Source: own study based on the V4 survey results of 2014 (n = 143).
85
Table 2 Number of years of the company's life in Slovakia before

starting international activities
Time of Frequency Share Cumulative Cumulative
Internationalisation in % Frequency Share in %
The same year 61 42.7 61 42.7
1–5 years 56 39.2 117 81.8
6–10 years 12 8.4 129 90.2
11–15 years 6 4.2 135 94.4
16–20 years 2 1.4 137 95.8
More than 20 3 2.1 140 97.9
years
Total 140 97.9 . .
Missing 3 2.1 143 100.0
Total 143 100.0 . .
The comparison of the year of establishment and the start of the

international activity firstly showed that three companies must have
been left out from the analysis because they stated incorrect information
(the international activity was sooner than the establishment). 61
surveyed companies went international immediately after their
incorporation and 56 within five years (together comprise 81.8 % of all
companies). Detailed distribution of the sample is presented in table 2.
We further analysed the surveyed firms based on the criteria of
employment and categorized them according to the Centre for Strategy
and Evaluation Services (2012), results can be found in table 3. The
categorization showed the highest share of micro firms nearly equal to
small firms (together accounting for 69.2 %), followed by medium size
companies (21.7 %) and large ones (reaching 9.1 %).
Table 3 Size of the studied firms in Slovakia

Category Number of Frequency Share Cumulative Cumulative
employees in % Frequency Share in %
Micro <10 51 35.7 51 35.7
firm
Small <50 48 33.6 99 69.2
firm
Medium <250 31 21.7 130 90.9
firm
Large 250≤ 13 9.1 143 100.0
firm
Total 143 100.0 . .
86
Primary economic activity based on NACE classification ensured

dividing firms according to the groups of business sectors. One-third of
all companies are involved in manufacturing; followed by wholesale and
retail trade, repair of motor vehicles and motorcycles (nearly 21 %); other
service activities (17.4 %); transporting and storage (12.5 %); agriculture,
forestry and fishing ((9.1 %), and construction (8.3 %). Other NACE
categories have not reached 3 % each. However, it must be noted that
some enterprises were involved in more than one NACE category,
therefore 15 businesses chose two categories, 4 enterprises selected three
categories and 1 company is active in six NACE activities.
Figure 1 presents the territorial scope of activities in surveyed firms.
Within and beyond the EU markets was the most frequent answer (in
30.1 % of cases) followed closely by activities within the EU market
(26.6 %). Approximately similar number of companies operates only
within the national market either on national, regional or local level
(accounting for 31.5 % in total). Only neighbouring countries are target for
nearly 12 % of companies. No company stated its activities only beyond
the EU markets. Answers related to the territorial scope are very important
from viewpoint of further research on directions of further expansion, not
only within the neighbouring V4 countries, EU, but also beyond the EU
borders (Gálová & Horská, 2013; Omarkulova, Horská & Gálová, 2013).
Figure 1 Territorial scope of activities among studied firms in Slovakia

Results and discussion

The first scientific hypothesis was dealing with the relation
between the year of establishment and the year of the first international
activity on foreign markets, as follows:
H1: In general, firms from the Slovak Republic implement tra-
ditional process approach toward their internationalisation.
This hypothesis was rejected by descriptive statistics. The
research question was answered by 140 firms from the total sample of
87
143. There were only 36 enterprises which implemented traditional

process approach (25.71 %) while the other 104 businesses (which is the
majority 74.29 %) implemented accelerated approach, that means three
out of four investigated firms internationalised faster – within three
years after establishment. After further research of the answers we
found out that mainly the majority of micro enterprises had rapid
internationalisation process, in case of the other firms the rapid
internationalisation was just slightly prevailing.
Figure 2 International strategies by the size of the studied firms

Next, we were focusing on the fact whether there is relation

between the size of the firm and the planning and formalization of their
international strategy. First, we must note that 48 Slovak companies
have no planned strategy for internationalisation (34.5 % from the total
number of firms answered), 61 have partially planned, but not
formalised strategy (43.9 %) and 30 have the international strategy
(21.6 %) while four enterprises gave no answer (figure 2).
Next, we offered the possibility to describe the type of strategy
used on foreign markets by choosing between four answers, that is from
ethnocentric strategy (on international markets the use of the same
marketing and management specifics as on domestic market, the
international activity has secondary meaning), polycentric strategy (on
particular international markets the specific conditions for marketing
and management strategy are included), regiocentric strategy (the use of
different strategies for a couple of blocked international markets, in
which there are similar marketing and management conditions) and
finally geocentric strategy (on all or at least most of international
88
markets the use of standardized and single marketing and management

strategy). These four strategies create the EPRG framework. Here, we
formulated the following scientific hypotheses:
H2: SMEs from the Slovak Republic apply mainly ethnocentric
and regiocentric strategy of internationalisation.
H3: Large firms from the Slovak Republic apply mainly poly-
centric and global strategy of internationalisation.
Calculated on the basis of Chi-square (for H2 chi2 = 3.84, df = 1,
G = 0.05; for H3 chi2 = 3.84, df = 1, G = 8.72) it was proved that there
is a correlation between the type of the ERPG strategy and the size of
the company in case of SMEs (small and medium sized firms) where the
hypothesis was supported, but in case of large firms the hypothesis was
rejected (figure 3). SMEs use mainly ethnocentric and regiocentric
strategies (which is 55 % of all companies using any strategy and 91 %
of companies using ethnocentric and regiocentric strategy), as stated in
table 4. The same strategies are preferred by large enterprises, however,
only 11 of them answered the question related to their strategy, from
which 7 companies prefer the mentioned ethnocentric and regiocentric
strategies over polycentric and global ones.
Figure 3 The EPRG strategy type by the size of the surveyed firms in Slovakia
Table 4 The EPRG strategy type of internationalisation in case of companies in Slovakia

Strategy type Total
ethnocentric (E) and polycentric (P)
regiocentric (R) and global (G)
Size of small and 71 47 118
firms medium firms
large firms 7 4 11
Total 78 51 129
*Note: 14 values missing
89
Statistical evaluation of the hypotheses led to the following conclusions

considering sample firms:
H1: In general, firms from the Slovak Republic supported
implement traditional process approach toward
their internationalisation.
H2: SMEs, from the Slovak Republic, apply supported
mainly ethnocentric and regiocentric strategy
of internationalisation.
H3: Large firms, from the Slovak Republic, apply rejected
mainly polycentric and geocentric strategy of
internationalisation.
Conclusions
Based on the empirical results and the statistical calculations we
can conclude that taking into consideration the year of the first
international activity, observed companies started their international
operations mostly after the entry of the Slovak Republic to the EU. In
most cases it was a matter of classical business development, following
traditional process approach toward internationalisation.
As a focus market, within and beyond the EU (global) markets
was the most frequent answer (in 30 % of cases) followed closely by
activities within the EU market (27 % of the sample). Only
neighbouring countries (Central and Eastern European – CEE markets)
are target for nearly 12 % of companies and no company stated its
activities only beyond the EU markets.
It was supported statistically that in our survey SMEs (small and
medium enterprises) from the Slovak Republic apply mainly
ethnocentric and regiocentric strategy of internationalisation. On the
other hand, in case of large firms the statement about applying mainly
polycentric and geocentric strategies was rejected.
Some business relations to Eastern countries follow the European
Neighbourhood Policy (ENP) as a foreign relations instrument of the
European Union which seeks to tie those countries to the east and south
of the European territory of the EU to the Union.Using similarities of
neighbouring markets accounts the advantage for smaller and less
experienced businesses. Entering the Eastern European markets means
implementation of the Eastern policy rhetoric into real practice. This
issue can be in the centre of further research.
90
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NOTE ON AUTHORS
ING. JANA GÁLOVÁ – PROF. DR. ING. ELENA HORSKÁ
Department of Marketing
Faculty of Economics and Management
Slovak University of Agriculture in Nitra
Tr. A. Hlinku 2, 949 76 Nitra, Slovak Republic
xgalovaj@is.uniag.sk, elena.horska@uniag.sk
92
Jana Gálová is a 3rd year doctoral student. Her dissertation thesis is related to
reinventing international marketing strategies for emerging markets,
designed to agri-food industry. ELENA HORSKÁ is her supervisor and a professor
at the Department of Marketing and the Dean of FEM SUA in Nitra. Together
they published many scientific publications related to the topic of
international marketing, such as chapters in 2013 in Sustainability in Business
and Society: Global Challenges - Local Solutions (Horská and Yespolov et al.)
published in Kraków, Poland; in Selected Issues in International Marketing
(Omarkulova and Horská et al.) published in Almaty, Kazakhstan, and in 2014
in International Marketing: Within and Beyond Visegrad Borders (Horská et
al.) published in Kraków, Poland.
93
THE GROWING IMPORTANCE OF SOCIAL MEDIA

IN BUSINESS MARKETING
Pavel Ciprian
Abstract: The growing importance of social media marketing among

businesses is very clear. So the question is no longer if you must use the
social media tool in your marketing activities, but how to do it better.
Business owners should pay attention to which social platforms help
them reach their goals with relevant audiences, whether that’s
generating sales or greater visibility.
Keywords: social media, benefits of social media marketing, increased
exposure, increased traffic
Introduction
Where is almost everyone today? Probably online! Thinking about
it, we can say that social media marketing is one of the most important
types of online marketing where not only big businesses are marketing
their products/services and brands on social media websites like
Facebook, Twitter, LinkedIn, etc.
The growing importance of social media marketing among
businesses is very clear1.
Social media marketing has become an essential part of online
marketing strategy among small businesses because of its cost-
effectiveness, ability to reach targeted audiences quickly and generate
more leads/sales.
Growing importance of social media

According to the study EY Romania, "Social media and business
environment," companies operating in our country use social media for
brand communication - 87%, and for sales, 85%.
1 www.mediabistro.com
94
Many companies have accounts on social networks are used by

these online platforms for recruiting new employees, for networking or
to perform a market analysis. Over 85% of the companies in our country
use social networks to promote the company and more than 50% use
marketing on social networks at least 3 years.
Of these companies, 50% post almost daily data on social
networks and their usefulness for the company believes will increase
significantly in the near future. According to market research2, the most
commonly used networks are Facebook with 93% utilization rate,
YouTube channel 43% and LinkedIn 43%.
Social media in Romania

Social network User accounts Unique visitors
Facebook 7.400.000 NA
Linkedin 1.551.901 NA
You Tube 772.518 5.340.000
Source: Accumulating data from different sources, such as ZeList Gemius, Thinkdigita
“The study took into account the responses received from several
hundred representatives of romanian companies operating in different
areas and target the way they approach marketing through social
networks. Around 80% of respondents are representatives of companies
with annual revenues exceeding 10 million euro”3.
According to research results, to promote social media, 39% of
Romanian companies that took part in the study were already in their
structure a special office for communication through social media.
Those involved in 83% appreciate that social networks are an
effective way to present new products and services to customers.
More and more companies using social networks to promote
activities which indicates that many managers are beginning to realize
the potential of these channels. Research shows that social networking
site Facebook is used by 9.3 out of 10 and the platform Twitter has a
utilization rate of only 26%. LinkedIn in Romania already has a
utilization rate of 41% among company representatives who took part in
this study.
2 www.creativision.ro/articole-social-media-marketing/cele-mai-accesate-retele-
sociale-din-romania
3 www.themarkers.ro
95
Advantages using social media

Social media is effective and inexpensive
Social media marketing is very important for businesses because of
its inexpensiveness and ability to reach large number of targeted
audiences within less time and very little efforts. According to Forbes,
94% of corporates are using social media and 85% said that it has given
their business more exposure4.
Branding can be done effectively on social media
Social media marketing is the best tool for small businesses for
branding. According to Socialmediatoday, 83% of customers prefer to
connect to the brand on Facebook5.
Many online users count on social media while making purchase
decision and 50% of shoppers made purchases based on the
recommendations on social media websites.
Customer acquisition is easy on social media
With more than half of the world's population registered with
different social media platforms, the chances of acquiring customers are
fairly high on social media websites. There are approximately 1.74
billion social media users according to eMarketer and social media
websites play a crucial role in acquiring customers to the businesses. In
2013, 36% of marketers acquired customers via Twitter, 52% via
Facebbok and 43% via LinkedIn6.
Social media enables direct customer interaction
Through social media, businesses can interact with customers
directly. Businesses can attract customers by engaging them with some
interactive methods like Question and Answers, Polls, etc. According to
Socialmediatoday, 53% of marketers are using social media as a two-
way conversation and engagement tool7.
Social media marketing can generate more leads/sales
Social media marketing plays an important role in generating leads
and thus increasing sales to the businesses. A survey by
Socialmediatoday revealed that 71% of social media users are more
likely to purchase products from brands that they are connected on
4 www.forbes.com
5 www.socialmediatoday.com
6 www.emarketer.com
7 www.socialmediatoday.com
96
social media websites. Social media produces almost double the

marketing leads than any other marketing method8.
After understanding the benefits of social media marketing, many
small businesses have increased the time and investment spent on social
media marketing. Businesses that are active on social media and share
useful content have seen improvement in their business.
The top two benefits of social media marketing are increasing
exposure and increasing traffic. A significant 92% of all marketers
indicated that their social media efforts have generated more exposure
for their businesses. Increasing traffic was the second major benefit,
with 80% reporting positive results9.
Conclusions
Social media networks were a novelty 5 years ago, but today their
importance is no longer debated. Businesses have definitely realized the
power of social media and accepted that social media marketing has to
be part of their marketing and PR mix.
In Social Media Examiner’s 2013 End of Year Report, marketers
now place very high value on social media marketing10:
86% of marketers stated that social media is important for their
business
89% of marketers stated that increased exposure was the number
one benefit of social media marketing.
Amoung the definitive benefits of social media marketing we
found: increased exposure, increased traffic, developed loyal fans,
generated leads, improved search ranking, grew business partnerships,
reduced marketing expenses, improved sales, provided marketplace
insight.
Business owners should pay attention to which social platforms
help them reach their goals with relevant audiences, whether that’s
generating sales or greater visibility.
Of course, social media is not an end unto itself. It must be
integrated and work hand-in-hand with all your other marketing and PR
initiatives which should be continued to reach all your marketing touch
points and your ultimate success.
8 Idem
9 www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2014
10www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2013
97
Biblioghraphy
Alan Charlesworth, Richard Gay, Rita Esen, Marketing on-line. O orientare
abordata spre client, Editura All, 2009, Bucuresti
Camelia Cmeciu, Tendinte actuale in campaniile de relatii publice, Editura
Polirom, 2013, Bucuresti
Philip Kotler, Managementul Marketingului, Editia a V-a, Editura Teora,
2008, Bucuresti
www.emarketer.com
www.forbes.com
www.iquads.ro
www.mediabistro.com
www.socialmediatoday.com
www.themarkers.ro
NOTE ON AUTHOR
Ciprian Pavel is lecturer at the Faculty of Management in Tourism and
Commerce, Dimitrie Cantemir Christian University Timişoara. He holds a PhD.
in Marketing since 2010, with a thesis entitled Contribuții cu privire la politica
de comunicare în marketingul produselor și serviciilor bancare. He is author or
coauthor of various books and articles: Politica de comunicare în marketingul
produselor și serviciilor bancare, Editura Universităţii de Vest, Timişoara,
2013, Bazele marketingului, Editura Eurobit, Timişoara, 2011. He is a member
in AGER and American Marketing Association.
98
ACCOUNTING AND FINANCE
99
100
EFFECTIVENESS PROBLEMS AT URBAN PUBLIC

TRANSPORT – FROM THE PERSPECTIVE
OF THE EUROPEAN COURT OF AUDITORS
Sándor Nagy
Abstract: In my article I concisely deal with the questions and structure

of performance audits, the general and unique characteristics of public
transport from the perspective of external auditing and the notion of
„public good”. I shortly outline the remarks of the European Court of
Auditors regarding the effectiveness problems which can be observed at
EU co-financed projects.
Keywords: public good, urban public transport, external auditing,
European Court of Auditors, performance auditing
INTRODUCTION
The urban public transport as a public good/public service plays a
special role owing to its contribution to „public welfare” at state level – or
as we discuss, at EU-level. Therefore the utilization and sound financial
management of public resources spent on community transport projects are
relevant and justified. In the EU the logic of finance can be derived from
the notion of European Added Value (EAV), which essence is the
generation such impacts and long-term effects which cannot be realized at
local, regional or member state level. The European Court of Auditors
(ECA) is responsible for the independent, external auditing of the EU's
budget and public finance management. In its performance/value-for-
money audits (called special reports at this institution) the aspects of sound
financial management are analyzed focusing on pre-selected thematic
fields of EU spendings. By the examination of economy, effectiveness and
efficiency dimensions the ECA could get a deeper insight into them.
EU ADDED VALUE EFFECT, THE EXTERNAL AUDITING

AND THE LOGIC OF PERFORMANCE AUDITS
Public spending at the european level should meet two criteria: (1) it
should generate positive net benefits – the benefits of investments or
101
public services should exceed the costs of public spending; and (2) the
net benefits of EU public spending should be larger than those at the
regional or member state level. The european added value (EAV) can be
derived from several factors such as the limitations of wasteful
competition and government failures; quality from greater choices;
benefit spillovers, production efficiency – in a nutshell the emergent
synergies (RAND CORPORATION 2013).
The EAV is getting enjoy increasing attention in general and in
the public finance management as well. The European Court of
Auditors (ECA) is the independent, external auditor of the EU-budget
and the public finance management. As an EU-institution it has the
supreme level mandate to audit the existence of the „3E” (economy,
effectiveness, efficiency) and to monitor the progression/development
of the accountability system. By doing this the ECA performs several
audit types: (1) financial audits, (2) compliance audits, (3)
performance audits, (4) follow-up audits and recently (5) landscape
review.
Regarding the performance audits the ECA formulates the
following thoughts:
„...Auditing performance involves assessing different aspects of the

public intervention process, including inputs (financial, human,
material, organisational or regulatory means needed for the
implementation of the programme), outputs (the deliverables of the
programme), results (the immediate effects of the programme on direct
addressees or recipients) and impacts (long-term changes in society that
are attributable to the EU’s action). (ECA homepage)”
The following figure depicts the analytical framework of a certain

performance audit dealing with the public intervention under scrutiny.
The „economy” refers to the cost reduction of inputs without
endangering the planned or given level of outputs or results. We can talk
about „efficiency” in the relation between inputs and outcomes (results
and impacts). The efficiency increases if the amount or quality of
outcomes raise while the inputs are unchanged. The problem of
effectiveness arise when the public intervention does not produce the
expected outputs or outcomes (ECA 2013).
102
Figure 1, Analytical framework of performance audits (ECA)
Source: ECA (2013)
THE URBAN PUBLIC TRANSPORT AS A SPECIAL

„PUBLIC GOOD/PUBLIC SERVICE”
The theory of pure public goods can be attached to SAMUELSON

(1954, 1955). He highlighted the basic characteristics of this economic
notion: it is not excludable, and the consumers do not compete for
obtaining and enjoyment (non-rival). Of course many interpretations
and reinterpretations exist (see STIGLITZ 2000).
The urban public transport can be considered as a special public
service. It's importance can be detected in its broad and diverse
contribution to the sustainable development which could derive from
the evolvement of the European Added Value. The emplacement of the
community transport into the sustainability dimensions can be easily
observed in the next illustration created by the SWISS FEDERAL
STATISTICAL OFFICE (2013).
103
Figure 2, Switzerland’s overview of key national indicators, categorised according to

three qualitative objectives
Source: (SWISS FEDERAL STATISTICAL OFFICE 2013 quoted in OFFICE OF THE AUDITOR-
GENERAL NEW ZEALAND 2013)
I list below the most distinctive attributes of the community

transport:
- there are no revealed and clear consumer preferences for public
goods (HOLCOMBE R. G. 1997)
- no market (benchmarking) indicators contrary to the competitive
sector
- it is not a pure public good: urban service only locally disposable,
not free for all (excludable) and rivalrous (crowded vehicles)
- financed not only by public money, it can be produced by private
sector as well
- long-term thinking should be necessary, and long-run effects and
impacts should be taken into account and measured
- financial profitability emerge on long-term or never, but could
induce positive social effects (urban development, static
competitive advantage…)
104
- no direct (evolutional) selection on market: often monopolistic

structure
- regulatory tool: for instance it could underpin other regulations
e.g. congestion charge
- tries to solve several problems (e.g. market failures, urban
development issues, „green” challenges)
- could serve short-term political interests (votes for re-election)
The European Union – subordinated to EAV and the public welfare

in the community – identified the problems and challenges of the urban
public transport and elaborated its ideas and priorities (EC 2004, EC
2011, ECA 2014, STEAD D. 2007). In larger settlements, cities and
agglomerations growing urban population, commuters, persistent traffic
jams can be expected up to 2050. The air pollution and the number of the
traffic accidents should be radically reduced in the same time.
In the future the urban public transport will enjoy the same
priority as the development of Trans European Network (TEN), since
the long-range travels' initial and arriving stage take place usually in
crowded urban regions (EC 2011). In this context the eliminations of
negative externalities should also be harmonized with the EU 2020
Strategy, moreover there is a strong need for integrated, holistic
approach and the issues of complexity should be taken into
consideration as well.
The European Commission's crystal clear objective – due to the
circumstances mentioned above – is the sustainable urban transport:
freedom of movement, increasing the quality of life of current and
future generations – including health, security, environmental
conditions, inclusivity – for anyone should be provided the access to
quality transport services (e.g. elderly or disabled citizens). In order to
realize them urban mobility strategies and plans must be made and the
EC supports research, fosters better management reactions and
disseminates good practices and knowledge.
OBSERVATIONS OF THE EUROPEAN COURT OF AUDITORS

The ECA has been reporting about several field of EU
intervention affecting the public transport (see e.g. ECA 2010/No. 8
Special Report – TEN & rail; ECA 2012/No. 4 Special Report –
seaports; ECA 2013/No. 5 Special Report – road investments). In 2014
the Court's first Special Report was dealing with the urban transport –
„Effectiveness of EU-supported public urban transport projects
105
2014/No. 1”. The auditors addressed the following questions in order to

analyze the performance: (1) Were the projects implemented as planned
in the grant applications? (2) Did the services provided by the projects
meet user needs? (3) Did the projects achieve their objectives in terms
of utilisation? In the publication 26 projects were selected. In the last
two financial/programming period (MFF 2000-2006; MFF 2007-2013)
the EU spent in total 10.651 million euros on urban transport from
ERDF and CF funding. Poland, Hungary, Greece, Portugal were the
„winner” recipients/beneficiaries: PL (2882 m), H (1528 m), GR (1414
m), PT (1073 m). Germany, Romania, Slovakia, Lithuania, Bulgaria
lagged behind: D (62 m), RO* (92 m), SK (126 m), LT (130 m) and
BG* (143 m) (*RO and BG EU membership from 2007) (ECA 2014).
In connection with the first question the ECA found only 4
projects were significant implementation delays were found. The
maximum was 4 years in Italy at a metro line extension. The second
question focusing on consumer/travellers preferences. These preferences
in terms of public finance sustainability seem slightly paradoxical:
punctual, frequent, comfortable, clean, easily accessible and affordable.
The third question analyze the utilization of services financed by the
EU. This is the aspect of examination which affect the effectiveness.
The ECA revealed some projects where the utilization was significantly
fewer than in forecast. In five cases the rate of actual users compared to
planned was under 50%. These outstanding cases encompass metro and
light metro constructions. According the observations of the auditors the
main factors of underutilization were the insuffiencies in design and
planning processes (not well-founded feasibiliy studies) and weaknesses
in mobility policies (lack of coordination between transport methods
and parking strategies or the lack of urban mobility plans). The overall
conclusion of the report is that the EU co-financed urban transport
investments' performance (the contribution to EAV or EU-level public
welfare) is negatively affected by the underutilisation (ECA 2014). To
understand and the measurement of performance – in a wider context –
is not an easy task. Usually the following indicators are used: numbers
of passengers, trips, kilometers traveled, rate of occupancy, the total
savings in traveling/commuting time compared to other means of
transport, the reduction of pollutant emmission and the cost reduction (it
refers to the sustainability of public finances) achieved by the
replacement of bus services especially in case of new tram, light metro
and metro lines (EC 2009).
106
CONCLUSIONS
Spending the public money wisely, their proper utilization and its
transformation to public welfare became essential especially in the era of
financial and economic crisis, emergent sovereign debts of member states
and the needs for hunting greater efficiency. The community transport in
this respect has an outstanding importance. The European Court of
Auditors conducted a performance audit focusing on this special field
(Special Report 2014/No. 1). Based on its observations the ECA made the
following suggestions: a wider indicator set would be necessary in
accordance with the user satisfaction surveys, expected benefits such as a
reduction in pollution, noise and congestion, better road safety and
monitoring emergent behaviour of users. However, in similar performance
audits not only the effectiveness problems, but the efficiency questions and
the detection of impacts should be taken into consideration as well.
Moreover all the dimensions of sustainable development should be
assessed on project and external auditing level.
References
EC (2004): Towards a thematic strategy on the urban environment.
COM(2004) 60 final, European Commission.
Link: http://ec.europa.eu/environment/urban/towards_com.htm
EC (2009): A „konvergencia” célkitűzés keretében a magyar régiókban az
Európai Regionális Fejlesztési Alapból és a Kohéziós Alapból származó
közösségi strukturális támogatásra vonatkozó „Közlekedés operatív
program” részét képező „Budapest 4-es metróvonal I. szakasz”
nagyprojektről. A Bizottság határozata – CCI No 2008HU161PR003.
B(2009)6793, European Commission.
EC (2011): Roadmap to a Single European Transport Area – Towards a
competitive and resource efficient transport system. SEC(2011) 358
final, European Commission.
ECA (2013): Performance Audit Manual. Overview. European Court of Auditors.
ECA (2014): Effectiveness of EU-supported public urban transport projects.
Special Report 2014/No. 1., European Court of Auditors.
Link:
http://www.eca.europa.eu/Lists/ECADocuments/SR14_01/QJAB14001
ENC.pdf
HOLCOMBE R. G. (1997): A Theory of the Theory of Public Goods. In: Review
of Austrian Economics, Vol. 10, No. 1 (1997) p.1-22. ISSN:0889-3047
OFFICE OF THE AUDITOR-GENERAL NEW ZEALAND (2013): Public sector
financial sustainability. Discussion Paper. ISBN 978-0-478-41022-8.
RAND CORPORATION (2013): The European Added Value of EU spending:
Can the EU help it member states to Save Money? Exploratory Study.
Bertelsmann Stiftung, Gütersloh, Germany.
107
Link: http://www.bertelsmann-stiftung.de/cps/rde/xbcr/SID-5FC258A0-
DBB4BC45/bst_engl/xcms_bst_dms_38323_38324_2.pdf
SAMUELSON P. A. (1954): The Pure Theory of Public Expenditure. In: The
Review of Economics and Statistics, Vol. 36, No. 4., p. 387-389.
SAMUELSON P. A. (1955): Diagrammatic Exposition of a Theory of Public
Expenditure. In: The Review of Economics and Statistics, Vol. 37, No.
4., p. 350-356.
STEAD D. (2007): The European Green Paper on Urban Mobility. EJTIR, Vol.
7, No. 4 (2007) p. 353-358.
link: http://repository.tudelft.nl/assets/uuid:0605f22c-2783-4137-ad3e-
fcc498896579/2007_04_06european.pdf
STIGLITZ J. E. (2000): Economics of the Public Sector. 3rd edition, W. W.
Norton & Company, New York.
SWISS FEDERAL STATISTICAL OFFICE (2013): Sustainable Development – A
Brief Guide 2013: 17 key indicators to measure progress, Neuchatel,
p.23.
NOTE ON THE AUTHOR

Sándor Nagy: economist, assistant professor; University of Szeged, Faculty of
Engineering Department of Economics and Rural Development, Mars tér 7.
6724 Szeged, Hungary; phone: +36 62 546 000; email: nagys@mk.u-szeged.hu
108
ACCOUNTING AND TAX LEGISLATION ISSUES

REGARDING THE PROCUREMENT AND THE
SUPPLY FOR INTRA-COMMUNITY GOODS
Marius – Nicolae Miculescu
Abstract: The paper addresses a number of aspects regarding the

entrepreneurship of a company and especially the import and export of
goods in the the European Union and the coverage of major accounting
operations performed. It also presents a series of particularities relating
to the calculation of the cost of the goods imported from states in the
European Union, as well as tax implications that are generated by their
marketing in the country and in the EU. From this study we can draw a
number of conclusions regarding the payments that have to be done to
the budget which can prejudice the Romanian State.
Keywords: accounting, commercial activity, accounting operations,
intra- community acquisitions, intra-community supplies, triangular
operations, goods.
I. Introduction
Purchasing goods with the purpose of reselling between economic
operators situated in different European States in the European Union is
a type of business which has experienced a large increase and began to
take root in our country.
From the point of view of an economic operator, tax registered in
Romania, it may carry out the following types of operations:
- Intra-Community acquisition - delivery of goods within the
country. The assets have to be purchased by a Romanian buyer
from a supplier in a State which is a member of the European
Union and then be delivered on the Romanian territory.
- Intra-Community acquisition - intra-Community delivery of
goods. The assets have to be purchased by a Romanian buyer
from a supplier in a State which is a member of the European and
then be delivered to a customer in another EU State.
- Triangular operations. The goods have to be purchased by a
109
buyer-reseller in Romania, from a supplier in the EU, and then

delivered to a client in another EU State directly from the supplier
to the actual consumer.
These intra - community operations are influenced by a number of
factors that disrupt the economic activity and create some advantages
for economic operators in the European Union countries that have not
yet introduced the euro currency and who have the bookkeeping in
national currency thus leading to a disadvantage of that state. The factors
that cause these disturbances can be:
- Changes in the exchange rate of the national currency against the euro
currency
- The time gap on the transfer of the ownership of the goods
- The VAT rate which is different in the EU states.
All these factors stimulate the economic operators to defraud the
system and to acquire some advantages. Fraud, in terms of value added
tax (VAT), has a significant effect on the financial incomes of EU states
and distorts the economic activity in the internal market by creating
unjustified flows of goods and then the placement of goods on the
market with abnormally low prices.
The shortcomings of the intra-community VAT and the system for
the exchange of information regarding the supply of goods within the
community1 is one of the causes of this fraud. Especially, the time that
elapses between a transaction and the corresponding time of the
exchange of information within the system of is an obstacle for the
effective use of that information to combat tax fraud.
II. The accounting treatment of transactions carried out by

a buyer-reseller operator from Romania.
From the point of view of an economic operator, tax registered in
Romania, it may carry out the following types of operations: intra-
community acquisition - delivery of goods within the country, intra-
community acquisition - intra-community delivery of goods, triangular
operations.
1. Intra-community acquisition
Example:
SC “X” SRL performs in the financial exercise N an intra-
community acquisition from a country from the EU (Netherlands), in
the following conditions:
1
Estalished through Directive 2006/112/CE of the EC
110
- The external value of the FOB invoice: 100 000 /€;

- The transport costs along the external / internal (up to the
supplier's warehouse) are: 5000 / €;
- Cargo insurance costs: 5% of the invoice amount;
- The exchange rate on the date of shipment based in the notice and
the proforma is 4,2 lei /€;
- The exchange rate at the date of acquisition of the goods is 4,4 lei
/ € (the date of acceptance in the deposit);
- The exchange rate at the date of external payment and the invoice
for external transport is 4,5 lei / €
- VAT 24%;
- Payment for the external provider of goods is made by payment
orders;
- Goods are sold to domestic customers with an importer margin
(mark-up) of 30%;
The acquisition cost of imported goods = the net price of

imported goods + external transport costs + irrecoverable taxes paid at
customs (customs duty, customs fee, excises) + internal transport costs
(from the border to the SCE storage). Their value is calculated in lei at
the exchange rate in the acquisition date.
Foreign Value in lei Unit Pcs.

Crt. currency value
Elements Currency
No. value (€)
exchange rate
4,4 lei/€
1 External FOB value 100 000 440.000 440 lei 1000
2 External shipment 5 000 22.000 44
3 Cargo insurance costs 5 000 22.000 22
4 External CIF value 110 000 484.000 506
(1+2+3) (value at
custom)
5 Custom duty (3x20%) - -
6 Custom fee (3x0,5%) - -
7 Cost of acquisition in - 484.000 506
custom (4+5+6)
8 Importer margin 145.200 152
(7x30%) (mark-up)
9 VAT (7+8)x24% - 151.008 157
10 Value of the goods at 780.208 780,21lei 1000
the selling price
(7+8+9)
111
In the accounting for the Romanian company we will do the

following accounting records in a chronological order with supporting
documents according to the International Accounting Standards (IAS)
and legal regulations from Romania:
The company X in Romania buys goods from the Y Company in
Netherlands with a value of 100.000 euros. The company receives the
invoice on 1.02.N at an exchange rate of 4,2 lei / euro, and receives the
goods on 7.03.N at an exchange rate of 4,4 lei / euro.
But on 01.02.N the company had no actual goods entering the
establishment, so we can not use the account of stock 3712 which is why
the goods will be highlighted in account 327 "Goods under supply".
1. Accounting records on 01.02.N are the following:
- The invoice from the supplier at RNB (Romanian National

Bank) exchange rate valid on 01.02.N: 1000 pcs. * 4.2 lei = 420.000lei.
327 “Goods under = 401 “Suppliers” 420.000

supply” (external) lei
Note: the 327 account is not registered in management only in accounting.
- Reverse charge - this is done on the date of the invoice as the

chargeability of tax for intra-community acquisitions, occurs on the date of the
invoice:
(420.000 lei*24% - if the goods are subject to the standard rate).
4426 deductible VAT = 4427 output VAT 100.800

lei
- On 28.02.N the unpaid supplier is remeasured at the RNB exchange

rate from that date.
2
In this case, under paragraph 276 align. (3) from OMFP no. 1802/2014 approval of
accounting regulations on the annual individual and consolidated financial statements,
such stocks that have not yet arrived in the unit but were transferred to this rights and
obligations from the supplier to the beneficiary, are recorded in accounting using the
group accounts 32 " Stocks under supply ", respectively the account 327: "Goods
under supply”.
112
2. The records for the acceptance in the deposit, the shipping expenses
and insurance costs in 07.03.N.
371 = % 484.000
“Goods” lei
401 “Suppliers” (external)
401 “Suppliers” (transport services) 440.000
401 “Suppliers” (Insurance Broker Services) lei
22.000 lei
22.000 lei
- The cancelation of current goods as they arrived in the unit and

were received :
327 “Goods under = 401 “Suppliers” (external) - 420.000

supply” lei
- Recording the VAT difference as a result of foreign exchange

differences 100,000 Euro * (4,4 – 4,2) * 24% = 4.800 lei:
4426 deductible VAT = 4427 output VAT 4.800 lei
3. Determining the retail price and the record of the trading margin for the
importer and VAT:
371 = % 296.208
“Goods” lei
378 “Difference of prices on goods” (Trade
margin) 145.200
4428 “ VAT under settlement” lei
151.008
lei
2. Deliveries of goods on Romanian territory

The delivery of goods towards a registered tax operator in Romania is
done at the amount of retail sales and the accounting records are the following.
We assume that in April all the goods were sold to customers.
113
1. Selling goods to customers in the amount of 780,208 lei VAT included:
4111 = % 780.208
“Clients” lei
707 “Revenue from sale of goods”
629.200
4427 “output VAT” lei
151.208
lei
2. The receipt through the bank of accounts payable amounting to 780.208lei:
4111
5121 “Bank accounts - Lei” = 782.208 lei
“Clients”
3. Discharge of goods at the value of the goods sold:
= 371 780.208
% “Goods” lei
607 “Expenses on goods” 484.000

378 “Difference of prices on goods” (Trade lei
margin) 145.200
4428 “ VAT under settlement” lei
151.208
lei
4. Payment of liabilities to suppliers amounting to 100,000 Euro at the rate of

4,5 lei/Euro = 450.000 lei:
= 5121 “Bank 450.000

%
accounts - Lei” lei
401 “Suppliers”
440.000
665 “Expenses from exchange
lei
rate differences”
10.000 lei
5. Closing the income and expenditure accounts and determining the

taxable profit:
114
121 “Profit and = 607 “Expenses on goods” 484.000

loss” 665 “Expenses from exchange lei
rate differences” 10.000
= 121 “Profit and loss” 629.200
707 “Revenue from
lei
sale of goods”
6. Recording the income tax expenses:

Taxable profit = I – Exp. + Non-deductible expenses – taxable
income
Taxable profit= 629.200 – 494.000 = 135.200 x 16% = 21.632 lei
691 “Income tax = 441 “Income tax” 21.632 lei

Expenses”
121 “Profit and = 691 “Income tax 21.632 lei
loss” Expenses”
As a result of this operation the entity has to pay to the state

budget the following fiscal obligations resulting from the transaction:
- Income tax 21.632 lei
- Payable VAT 151.208 lei
NET PROFIT: 113.568 lei
3. Intra-Community supply with goods

We are in the same situation, on 07.03.N company X procures goods
from Netherlands worth 100,000 euros to which we add shipping costs
amounting to 5000 Euro and another 5000 Euro the merchandise insurance.
Exchange rate in 07.02.N is 4,4 lei/Euro. The evidence of such goods shall
be held at the entrance value + expenses because it is kept in the warehouse of
the company.
1. The recording in accounting the goods received in the warehouse and

drawing up the warehouse sheets.
371.21 “Goods = % 484.000 lei

in warehouse”
401 “Suppliers” (external) 440.000 lei
401 “Suppliers” (transport 22.000 lei
services) 22.000 lei
401 “Suppliers” (Insurance
Broker Services)
115
2. On 25.03.N we pay the debt to the supplier worth 100.000 Euro on

the exchange rate of 4,5 lei/Euro = 450.000 lei
= 5121 “Bank 450.000

%
accounts - Lei” lei
401 “Suppliers”
440.000
665 “Expenses from exchange rate
lei
differences”
10.000 lei
3. On 25.04.N goods are sold to a customer in Italy with a mark-up of 30%.

Exchange rate on 25.04.N is at 4,2 lei/Euro.
100.000 Euro * 30% = 30.000 Euro.
The value of the sale price is 130,000 Euro respectively 546 000 lei,
amount that will be billed.
4111 “Clients” = 707 “Revenue from sale of goods” 546.000

lei
4426 “deductible VAT” = 4427 “output VAT” 131.040

lei
4. Discharge of goods.
607 “Expenses 371.21 “Goods in 484.000

=
on goods” warehouse” lei
5. Closing the income and expenditure accounts and determining the

taxable profit:
121 “Profit and = 607 “Expenses on goods” 484.000
loss” 665 “Expenses from exchange lei
rate differences” 10.000
= 121 “Profit and loss” 546.000
707 “Revenue from
lei
sale of goods”
116
6. Recording the income tax expenses:.

Taxable profit = I – Exp. + Non-deductible expenses – taxable
income
Taxable profit = 546.000 – 494.000 = 52.000 x 16% = 8.320 lei
691 “Income tax = 441 “Income tax” 8.320 lei

Expenses”
121 “Profit and = 691 “Income tax 8.320 lei
loss” Expenses”
As a result of this operation the entity has to pay to the state

budget the following fiscal obligations resulting from the transaction:
- Income tax 8.320 lei
- Payable VAT 0 lei
NET PROFIT: 43.680
4. Triangular operation
The particularity of this operation is that the goods are only registered in
the accounting records of the buyer-reseller. The reception of the goods is
impossible!
Triangular operations presume the existence of a sequence of transactions
between three people (or more...), located and registered for VAT purposes in
different EU states. If, on paper, the goods pass from one partner to another,
physically they run directly from the supplier to the final beneficiary.
In the event that all three persons are registered for VAT, it is possible,
and recommended the application of simplification measures (taxation at
destination) only if the transport of goods is the responsibility of the buyer-
supplier or reseller (.. . intra-Community supplies ...).
Otherwise, for a contract under a EXW (ex works) condition where the
goods are made available to the buyer in the origin state, the buyer will have to
register for VAT purposes in that state, then he must make a physical delivery
to the final beneficiary.
III. Conclusions
Following this case study it can be seen how in the first case the
company pays contributions to the state in a higher amount than the second
case, when, due to the lower exchange rate, the company contributes much
117
less to the state budget. Most of these amounts are transferred to the state in
which the final beneficiary is tax resident.
The situation payments to be made to the state budget in the two cases
analyzed:
Foreign Case 1 Case 1
Ctr. currency
Elements Intra-Community Intra-Community
No. value (€)
acquisition / country acquisition / Intra-
delivery Community delivery
1 Income 130.000 629.200 546.000
2 Expenses 110.000 494.000 494.000
3 gross 135.200 52.000
Profit
4 Profit Tax 21.632 8.320
16%
5 Net Profit - 113.568 43.680
6 Payable - 151.208 0
VAT
In this case the economic operator will be interested to purchase the

goods from abroad and store them for a while, then find a client in the Member
States of the European Union and to sell them.
The profit which the economic operator in Romania will win in euro will
be the same regardless of whether the goods are sold within the country or in
other EU states. The difference is major when the values are expressed in lei,
especially when the value of the euro depreciates against the national currency.
In the 1st case when the goods were sold in the country, the value of the goods
was set at a rate of 4,4 lei / euro and all the calculations were made in relation to
this value including the sale. In the the second case, the purchase was made at a
rate of 4.4 lei / euro, the payment of the external debt was done at 4.5 lei / euro
and the sale of goods at 4.2 lei / euro. The company earned a fair amount in
euro, but compared the euro on the day of the sale the revenues are lower which
causes a lower profit for the company and automatically less tax to pay to the
state budget. Taking this into account, the economic operators will be interested
to do such operations with the thought of paying fewer taxes to the state, without
realizing what kind of prejudice they brought to the state budget.
In conclusion to effectively combat this type of fraud, it is necessary for
the administration, in the state in which the VAT is chargeable, to receive
information regarding the intra - community supplies of goods within a period
of one month. For the cross-checking of information to be useful in combating
fraud, it should be ensured that the intra - community transactions are declared
for the same tax period by both the supplier and the buyer or recipient.
Given the evolution of the business environment, the state should make
118
available to the economic agents some simple electronic procedures in order to

minimize the administrative burden.
To keep the balance between the objectives of the Community in the
fight against tax evasion and reducing the administrative burden for the
economic operators, it is appropriate to provide the possibility for economic
operators to file quarterly recapitulative statements on intra- community
supplies of goods when their value is not significant. The states member in
the EU that wishes to organize a progressive implementation of this
possibility should be able to fix the amount, on a transitional basis, at a
higher level. Similarly, it should be possible for states to authorize operators
to submit quarterly information on intra- Community supplies of services.
Bibliography
[1]***Directive 2006/112/CE of the EC
[2]*** OMFP no. 1802/2014 approval of accounting regulations on the annual
individual and consolidated financial statements
[3]*** “International Accounting Standards 2000”, Economic Publishing
House, Bucharest 2000, p. 119.
[4]*** IAS 2 Stocks
NOTE ON THE AUTHOR

Marius Nicolae Miculescu is Associate Professor at the Faculty of Mangement
in Tourism and Commerce Timişoara, „Dimitrie Cantemir” Christian
University, Bucharest. He holds a PhD. In Accounting with the thesis
Possibilities to Improve Accounting in the Health Care System in Romania. He
is the author of numerous books, the most recent ones being: Contabilitatea
entităţilor de comerţ, turism şi servicii, Editura Eurostampa, Timişoara, 2011,
Contabilitatea publică. Particularităţi regăsite la nivelul entităţilor de sănătate
publică din România, Editura Eurostampa, Timişoara, 2010, Gestionarea
finanţării entităţilor de sănătate publică din România, Editura Eurostampa,
Timişoara, 2009. He is a member of CECCAR, AGER, Danube Adria Association
for Automation & Manufacturing - DAAAM International Vienna.
119
INTERNAL FINANCIAL ACCOUNTING

CONTROL OF PRIVATE ENTITIES
Radu Dorin Lenghel
Abstract: Internal control is an integrated process carried out by the

management and staff of the entity, designed to approach risks and to
provide a reasonable assurance in the exercise of the entity's mission,
by the fulfilment of the following objectives: realization of functions and
assignments in an economic, efficient and effective manner; observance
of legal regulations and management orders; protection of resources
against abuses, losses or frauds; development, maintenance and supply
of accurate and complete financial information for the substantiation of
management decisions. The activity of financial accounting control is
exercised by the accountant in chief and heads of offices from the
financial accounting department.
The internal financial accounting control of the entity applies for
the assurance of an accounting management and a financial follow-up
of its activities, in order to achieve the objectives defined. The financial
accounting internal control is a major element of internal control. It
targets the totality of processes for obtaining and communication of
accounting and financial information and contributes to the realization
of reliable information in compliance with the legal requirements.
The internal control organized at entity level is the responsibility
of management and represents the totality of measures taken by the
management and implemented by the whole staff regarding the
organizational structure, the procedures, instruments and techniques
applied for the purpose of achieving the objectives of the entity.
Keywords: internal control; internal financial accounting control;
internal control components, control activities; objectives of internal
financial accounting control, correction of errors.
1. Purpose and objectives of internal control

The purpose of internal control is to assure the coherence of
objectives, to identify the key factors of success and to communicate in
real time to entity leaders the information regarding performances and
perspectives. Regardless of the nature or size of the entity, the efforts
120
made for the application of a satisfactory internal control are related to

the application of good practices.
Internal control is an integrated process carried out by the
management and the staff of the entity, designed to approach risks and
to provide a reasonable assurance in the exercise of the entity's mission,
by the fulfilment of the following objectives: realization of functions
and assignments in an economic, efficient and effective manner;
observance of legal regulations and management orders; protection of
resources against abuses, losses or frauds; development, maintenance
and supply of accurate and complete financial information for the
substantiation of management decisions.
The internal control organized at entity level is the responsibility
of management and represents the totality of measures taken by
management and implemented by the whole staff regarding the
organizational structure, the procedures, the instruments and techniques
applied, for the purpose of achieving the objectives of the entity.
The internal control system represents the totality of policies and
procedures adopted by management, which contribute to the fulfilment
of management objectives, to the prevention and detection of frauds or
errors, to the accuracy and exhaustiveness of accounting entries and to
the preparation in due course of financial accounting information.
The role of internal control can be summarized as follows:
limitation of uneconomical and inefficient operations; assurance of
patrimony integrity; assurance of a thorough and efficient management
of activities; observance of orders given by the management; observance
of legal provisions; reality and accuracy of accounting information.
In accordance with the legislation in force1, the internal control
represents the totality of policies and procedures elaborated and
implemented by the management of public entity in order to assure: the
achievement of entity objectives in an economic, efficient and effective
way; the observance of rules specific to the field, policies and decisions
of the management; protection of goods and information, prevention and
detection of frauds and errors; quality of accounting documents and the
provision in due course of reliable information for the management.
In the meaning of legal regulations, the internal control of the
entity aims at assurance of:2 conformity with the legislation in force; the
application of decisions made by the management of the entity; the
1
Law no. 672/2002 regarding internal public audit, republished in 2011.
2
OMFP no. 1802/2014 for the approval of accounting regulations regarding the annual
individual financial statements and the annual consolidated financial statements.
121
good operation of internal activity of the entity; the reliability of

financial information; the effectiveness of entity's operations; the
efficient use of resources; the prevention and control of risks of not
achieving the objectives set etc.
Therefore, the internal control procedures have the objective:
– on one hand, the follow-up of integration of the entity's
activity and staff behaviour in the framework defined by the applicable
legislation, the values, norms and internal rules of the entity;
– on the other hand, checking whether the accounting, financial
and management information communicated reflects correctly the
activity and situation of the entity.
The internal control applies throughout the operations carried
out by the entity as follows:
– prior to the realization of operations, on the occasion of
drawing up the budget, which will allow the budgetary control after
the realization of operations;
– during the operations, such as the determination of percentage
of physical realization of production in progress of execution or the
percentage of scrapings recorded;
– after the completion of operations, in which case the checking
is designed, for example, to analyse the profitability of operations and
to note the existence of conformity or possible anomalies which must
be corrected.
Depending on the moment when it is exerted, internal control can
be: preventive (ex-ante), made before the approval of operation and with
a diversity of concrete forms, among which the most known are
preventive financial control and the authorizations issued by the legal
department or another specialized department; hierarchical-operative
(concomitant), executed by persons with management positions during
the process flow; subsequent (ex-post), made post-factum, usually by
the management control department and by heads from different levels
of the company.
2. Internal control components and activities

a. Internal control components
In order to achieve its objectives internal control has the following
components closely related as follows:
– a clear definition of responsibilities, resources and adequate
procedures, information methods and systems, adequate instruments
and practices (control environment);
122
– internal dissemination of pertinent, reliable information whose

knowledge allows each person to carry out his/her responsibilities
(information and communication);
– a system which aims, on one hand, at the analysis of the main
identifiable risks regarding the objectives of the entity and, on the
other hand, the assurance of existence of risk management procedures
(evaluation of risks);
– adequate control activities for each process designed to reduce
risks which may affect the accomplishment of entity's objectives
(control activities);
– a permanent supervision of internal control device and an
examination of its functioning (monitoring of controls).
b. Control activities
Control aims at the application of internal control norms and
procedures at all hierarchical and functional levels: approval,
authorization, checking, evaluation of operational performances,
reporting, supervision, securitization of assets, separation of functions.
Apart from the control activities integrated in management line
(self-control, mutual, hierarchical), specialized controls can be
organized carried out by structural components specially created
(commissions, control departments etc.), whose activity is carried out
based on a plan designed by taking into account risks.
The internal control system must be developed and implemented
by the manager up to the level which allows him a better control over
the operation of all activities in order to achieve the objectives set.
Internal control is found in the structure of each activity, being a
process made by all the employees, so it is not a distinctive department
in the entity.
The control activities are carried out in the whole entity, at all its
levels and positions.
The management of the entity establishes for each activity which
are the most adequate forms of internal control in view of limitation of
risks.
Internal control is found in the structure of each activity and must
be formalized by procedures, based on the job descriptions and check
questionnaires.
As far as it concerns the method of implementation of control
activities, in most entities they are not formal (there are not specific
procedures).
123
3. Objectives of internal financial accounting control

The internal financial accounting control activity is carried out by
the accountant in chief and heads of offices from the financial
accounting department.
The internal financial accounting control of the entity applies in
view of assuring an accounting management and a financial follow-up
of its activities in order to achieve the objectives defined.
The internal financial accounting control is a major element of
internal control. It aims at the totality of processes for obtaining and
communication of financial and accounting information and contributes
to the realization of reliable information compliant with the legal
requirements.
Just like internal control in general, it is supported by a system
which comprises especially the elaboration and application of policies
and procedures in the field, including the supervision and control
system.
The internal financial accounting control aims at the assurance
of:3
– conformity of accounting and financial information published,
with their applicable rules
– the application of instructions elaborated by the management in
relation to this information;
– protection of assets;
– prevention and detection of frauds and accounting and financial
irregularities;
– reliability of information disseminated and used at internal level
for control purposes, to the extent that they contribute to the
elaboration of accounting and financial information published;
– reliability of annual financial statements published and other
information communicated to the market.
The internal financial accounting control has the following
objectives to check:
organization and updated running of accounting;
whether all the operations made the object of a registration
(exhaustiveness);
whether any entry is justified by an operation (reality);
whether there are errors in the accounting of amounts
(accuracy);
3
OMFP no. 1802/2014 for the approval of accounting regulations regarding the annual
individual financial statements and annual consolidated financial statements.
124
organization and running of accounting of fixed assets,

inventory items, materials;
establishment and payment of money rights owed to staff;
establishment and transfer of company contributions and salary
tax;
establishment and transfer of taxes and duties;
establishment and performance of deductions with third parties;
existence of cash and other valuables in cash register according
to the cash book and accounting;
the method of keeping operative records and the agreement with
accounting records;
whether the results of annual inventory were correctly
revaluated;
control of accounting correlations (correspondence of accounts,
between synthetic and analytical accounting, trial balance and
annual financial statements);
the method of drawing up trial balances and annual financial
statements.
4. Settlement of errors noticed after financial accounting control

The errors noticed in accounting can refer either to the current
fiscal year or to the previous fiscal years. Such errors include the effects
of mathematical mistakes, errors in the application of accounting policies,
ignorance or wrong interpretation of events and frauds. The correction of
errors noticed on the occasion of internal financial accounting control is
made at the date of acknowledgement depending on the moment of
acknowledgement, their size and significance threshold.
Accounting errors can affect both the balance sheet and the profit
and loss account or only one of the two components relating to the annual
financial statements. Accounting errors which affect only the balance
sheet are due to: the omission of registration of fixed assets, material
goods, use of inadequate accounts, registration of wrong amounts in
accounts, errors which do not influence the registered results.
The accounting errors which affect the income and expenses
accounts are more serious because they influence the profits of the
company from current or previous periods, with implication on the
taxable profit, which may lead to the payment of fines, interests, delay
penalties and the value of dividends.
125
If the errors relate to the current fiscal year, their correction is

made in the profit and loss account, therefore if the errors belong to the
fiscal year which ends and are noticed until the closure of fiscal year
(submission of balance sheet), their correction will be made in the
current fiscal year.
The correction of insignificant errors related to the previous fiscal
years is made either in the account of carried forward profit, I or in the
profit and loss account, therefore, their correction will be made in the
annual financial statements of the fiscal year which ends. The correction
of significant errors related to the previous fiscal years is made in the
account of carried forward profit.
Following the correction of errors from the previous fiscal years
the financial statements of those fiscal years do not change, therefore it
is assured the observance of intangibility principle, according to which
the opening balance sheet must correspond to the closing balance sheet
of the previous fiscal year. In case of errors in the previous fiscal years,
their correction does not imply the adjustment of comparative
information presented in financial statements. The comparative
information regarding the financial position and financial performance,
respectively the change of financial position, is presented in explanatory
notes. In case of correction of errors which generate carried forward
accounting loss, this loss must be covered before making any allocation
of profit. Supplementary information regarding the errors noticed must
be presented in explanatory notes (note 10) to financial statements.
5. Case studies regarding the settlement of errors noticed

after the internal financial accounting control
Exemple no. 1
In a company it is noticed in August 2015, after the internal
financial accounting control, that no delay interests were recorded in
amount of 5.000 lei and the delay interests were acknowledged in the
fiscal inspection report, and were calculated for the non-payment of
budgetary obligations for the period April-June of the same year.
Solution:
Because the errors relate to the current fiscal year, their correction
is made in the profit and loss account. Because the error was discovered
in the same fiscal year, its correction will be made directly in the accounts
of expenses with penalties by the following accounting formula:
6581 = 4481 5.000 lei
126
Exemple no. 2
In a company, after the internal financial accounting control
carried out in July 2015 it is noted that the company did not record an
invoice representing services provided in amount of 20.000 lei, at its
issue (30th April 2014). According to the accounting policies of the
entity any error is significant if its value is higher than 1% of the total
assets of the entity (significance threshold). According to the normative
acts in force, the insignificant error related to the previous fiscal years is
corrected in the carried forward profit account or in the profit and loss
account.
Solution:
a. The case when the insignificant errors are corrected at the
expense of the carried forward profit:
– according to the accounting policies of the entity, the
significance threshold is 1% of total assets of the entity,
1%*3.000.000 lei=30.000 lei;
– the error is insignificant because it is lower than the
significance threshold;
– registration of omitted invoice in the carried forward
profit account:
4111 = 1174 20.000 lei
b. The case when insignificant errors are corrected at the

expense of the profit and loss account:
– according to the accounting policies of the entity, the
significance threshold is 1% of total assets of the entity,
1%*3.000.000 lei=30.000 lei;
– the error is insignificant because it is lower than the
significance threshold;
– registration of omitted invoice in the profit and loss
account:
4111 = 704 20.000 lei
Exemple no. 3
In June 2015, on the occasion of internal financial accounting
control it was acknowledged the omission of registration of expenses
invoiced by third parties in amount of 20.000 lei (the significance
threshold is 18.000 lei). According to the accounting policies of the
entity the error is significant (it exceeds 18.000 lei). According to the
normative acts in force the significant error related to the previous fiscal
years is corrected in the carried forward profit account.
127
Solution:
– registration in 2015, of expenses invoiced by third parties for
the fiscal year 2014 in the account of the carried forward profit:
1174=401 20.000 lei
– after the approval by the General Meeting of Shareholders of

annual financial statements for the year 2015, we will record the
allocation of profit for the coverage of the loss resulted from the
correction of accounting error:
1171=1174 20.000 lei
Exemple no. 4
In June 2015, on the occasion of merchandise inventory it was
reported a minus in inventory of 20.000 lei. Following the interrogations
the inventory commission acknowledged that the merchandise was sold
in December 2014, but the invoice was not recorded in accounting
books (the value of invoice is 30.000 lei). The significance threshold is
20.000 lei. According to the accounting policies of the entity the error is
significant (it exceeds 20.000 lei). According to the normative acts in
force the significant error related to the previous fiscal years is corrected
in the account of the carried forward profit.
Solution:
– the registration in 2015 of the invoice for sale of merchandise
related to the fiscal year 2014, in the account of carried forward profit:
4111=1174 30.000 lei
– registration in 2015 of the discharge of management :
1174 = 371 20.000 lei
Example no. 5
A company incurs expenses with the modernization of a
production shopfloor in 2014, in amount of 300.000 lei, which it records
as fixed assets in December 2014 and decides their depreciation for a
period of 10 years, starting from January 2015.
In August 2016, following the internal financial accounting
control, it is noticed that these expenses were wrongly recorded as
tangible assets because the recognition criteria was not observed and
128
they should have been recorded as expenses with repairs. The

significance threshold is 1% of total assets (1%*15.000.000 lei)
=150.000 lei
Solution:
The correction of significant errors is done as follows:
– modernization works recorded in December 2014:
212 = 722 300.000 lei
– cancellation in the year 2016 of modernization works performed in the

previous years, at the expense of the carried forward profit:
212 = 1174 – 300.000 lei
– cancellation in 2016, of the depreciation recorded in the year 2015:

monthly depreciation: 300.000 / 120 * 12 = 30.000 lei
1174 = 2812 – 30.000 lei
– cancellation in the year 2016, of the depreciation related to the

current fiscal year: 300.000 / 120 * 7 = 30.000 lei
6811 = 2812 – 17.500 lei
6. Conclusions
In relation to the method of organization and exercise of internal
financial accounting control, we can draw the following conclusions:
the activity of internal financial accounting control is carried out
by the accountant in chief and heads of offices from the financial
accounting department;
the internal financial accounting control aims at the totality of
processes for obtaining and communication of accounting and
financial information and contributes to the realization of
reliable information in compliance with the legal requirements;
as far as it concerns the method of implementation of internal
financial accounting control activities, it is noted that in most
entities they are not formal (there are no specific procedures);
the correction of errors noted on the occasion of internal
financial accounting control is done at the date of
129
acknowledgement depending on the moment of

acknowledgement, their size and significance threshold.
from the legal regulations (OMFP no. 1802/2014), it does not
clearly result which are the procedures and policies for
implementation of internal financial accounting control which
apply to a private entity;
in the legal regulations only a certain form of internal control is
developed, represented by internal accounting and financial
control (financial accounting control) as if the other forms of
internal control were inexistent;
as for internal control components, they are presented in another
form, but similar to the already consecrated models of internal
control (Coso and Coco );
as for the methods of implementation of internal financial
accounting control only some general aspects are presented;
the general objectives of internal financial accounting control are
presented also in the legal regulations;
the legal regulations do not present the procedures or specific
techniques of checking the internal financial accounting control,
they propose that they are represented by: inspection,
observation, investigation (interview, interrogation),
confirmation, calculation, analytical procedures etc;
as one can see, the legal regulations attribute a significant
importance to only one of the internal control components,
which is the internal financial accounting control, from where
result the details of the general objectives of the internal control
of financial and accounting function;
regardless of the way the internal control is organized, the
manager in the fulfilment of managerial objectives, has to
choose the most adequate forms, techniques or procedures of
internal control;
in relation to the case studies we presented the methods of
registration in accounting of the errors acknowledged as a result
of internal financial accounting control.
Bibliography
Lenghel Radu Dorin, Control şi audit financiar (Financial Control and Audit),
Risoprint Publishing House, Cluj-Napoca, 2011;
Lenghel Radu Dorin, Control şi audit intern (Internal Control and Audit),
130
Law no. 672/2002 regarding internal public audit, republished in 2011;

OMFP no.1802/2014 for the approval of accounting regulations regarding the
annual individual financial statements and the annual consolidated
financial statements.
NOTE ON THE AUTHOR

Lenghel Radu Dorin, doctor in economics, reader at the Finance and
Accounting Department from the Faculty of Economic Studies Cluj-Napoca.
He is the author of many scientific works and specialized books in the field of
accounting, financial control and financial audit. He has now the teacher
tenure of bachelor's and master's degree courses in the following subjects:
Financial Control and Financial Audit, Auditing of financial statements,
Internal Control and Internal Audit, Accounting of Public Institutions,
Management Accounting.
radulenghel@yahoo.com
131
PERISHABLE ITEMS
Radu Dorin Lenghel
Abstract: By perishable items we understand the losses which occur

during transport, handling, storage and sale of merchandise as a result
of natural transformation of merchandise, which lead to loss of weight
or their depreciation, including by fermentation processes.
Perishable items do not represent the losses included in
technological consumption quotas and those produced by negligence,
stealing and those produced by other causes imputable to guilty persons
or those determined by force majeure events.
Perishable items can be written off only after a factual checking of
quantities of products that exist in management, established after
weighing, counting, measuring and other such procedures and after
making compensations according to the legal provisions.
The perishable items produced in the legal conditions are
approved by the manager or director of the legal person, as applicable,
at the level of the quantities noticed as natural losses at the reception of
transported merchandise, inventory taking or handover of management.
The difference established in minus following the compensation
and application of all loss quotas representing prejudice for the entity is
recovered from the guilty persons according to the legal provisions.
Keywords: patrimony inventory, procedure of writing off perishable
items, conditions of writing off perishable items, rules of writing off
perishable items, registration of inventory differences.
1. Procedure of writing-off perishable items

By perishable items1, we understand the losses which occur
during the transport, handling, storage and sale of merchandise,
determined by natural processes such as: drying, evaporation,
volatilization, spraying, hydrolysis, cooling, freezing, melting,
oxidation, adhesion to the walls of waggons or vessels in which they are
transported, decomposition, drainage, imbibition, thickening, scattering,
1.
Government Decision 831 of 2004 regarding the allowed limits of perishability in
merchandise in the sale process.
132
crumbling, breaking, including fermentation processes or other

biophysical processes, in the sales process in the distribution network
(wholesale warehouses, retail commercial units and public nutrition
units) in normal limits, legally approved.
By perishable items we understand the losses which occur during
transport, handling, storage and sale of merchandise as a result of
natural transformation of merchandise, which lead to the loss of weight
or their depreciation, including by fermentation processes.
Because such phenomena cannot be avoided, it is natural that
these objective losses are allowed up to certain limits without being
attributed to negligence or poor administration.
These normal quantitative losses are not the fault of the
warehouse manager or other persons and therefore, they must be
deducted from managements as non-imputable losses.
The competence of approval of loss quotas belongs in all cases to
the management of the company.
Therefore, the management will have to estimate from case to
case according to concrete conditions, how much of the established
quota is approved for each management.
The perishable items are approved only on occasion of inventory
taking, only in the condition of effective inventory minuses and only in
their limit.
The following are not considered normal losses and therefore, no
perishable items are written off for:
losses owing to negligence, bad administration, bad intention,
deterioration etc., whether they are lower or higher than the
normal limits;
losses caused to the materials subjected to processing which are
included in the specific consumption quotas, respectively in the
category of technological losses;
products obtained from own production, except for the cases
when they were handed over to another management different
from the management of shopfloors or laboratories which
produced them;
The maximum perishability limits allowed for storage and sale are
established at the level of the whole activity of the legal person who
pays profit tax, by the application of the coefficient established for the
group of merchandise, to the registration price of incoming merchandise
or to the delivery price for the merchandise sold in the period between
two inventories. The same maximum perishability limits are written off
for merchandise in stock.
133
The perishability coefficients are established by the management

of each entity, depending on the actual losses from the previous period
and the new conditions created in the activity of transport, handling, and
storage of those goods.
The losses or reductions in quantity, which exceed the established
perishability quotas are not fiscally deductible.
From fiscal point of view, the perishable items given for
merchandise are deductible expenses in the calculation of profit tax in
the limit of perishability quotas approved by Government decisions.
The losses or reductions in quantity which exceed the perishability
quotas established are not fiscally deductible.
The traders can establish different perishability quotas by
assortments, by warehouses, stores, managements, in order to be
allowed as deductible expenses from taxable profit, with the obligation
of observing the maximum perishability limits provided for the
respective group of merchandise.
The management of the entities can approve perishability quotas
above the limits approved by the Government or for other assortments
of merchandise. These perishable items reduce the patrimonial liability
of warehouse managers. The perishable items whether they are
established by the Government or by the management of the entity are
not given in advance, but only after the acknowledgement of an actual
minus in inventory or in the reception of supplied goods.
a. Perishable items during storage
The perishable items during storage can be determined by many
computation methods such as:
 Calculation of perishable items depending on the average
loss by time unit (by hour, by month etc.);
stock;
storage time;
 Calculation of perishable items depending on the rollover
recorded between two successive inventories, the most
common computation method etc.
b. Perishable items during transport
They refer to the losses which occur in the quantity volume and
sometimes quality volume of goods and are usually calculated by the
application of loss quotas to the quantity or value of transported goods.
134
The maximum perishability limits during transport are applied

only once for the incoming quantities of merchandise or as applicable
delivered quantities of merchandise, depending on the delivery
condition established between the supplier and beneficiary.
For the mass materials which are usually transported in bulk and
are taken over in the management of entities based on accompanying
documents (weighing of waggons is carried out in the dispatch station),
the perishable items are given only at the inventory of respective
warehouses and the calculations are made depending on the volume in
value or quantity of entries between two successive inventories.
If the takeover of goods in management is done by weighing,
measuring etc., the perishable items are calculated and written off based
on the documents which acknowledge the differences in reception,
drawn up for each transported batch, in the limit of perishability quotas
and the actual differences noted, less the losses caused by the fault of
the supplier, carriers or other force majeure events. For the losses
caused by break-ins during the transport, it is necessary to draw up a
report for acknowledgement and destruction or revaluation of samples,
apart from reception acts which prove the non-imputable minus.
For certain categories of goods, the quotas can be different
depending on the distances of transport, the duration of transport or the
season in which the transport takes place and the means of transport
used.
c. Perishable items during sale (handling) are usually calculated
by the application of loss quotas to the quantity sold between two
successive inventories.
2. Case studies regarding the writing-off of perishable items

a. Case study no. 1
Following the performance of inventory it was noted:
– in assortment X, a minus of 5 kg flour, purchase cost 3
lei/kg.
– the perishable items allowed during storage were 5kg.
Establish the situation in inventory.
1. registration of minus in amount of 15 lei, fully covered by
perishable items:
607 = 371 15 lei
135
b. Case study no. 2

Following the performance of inventory it was noted:
– in assortment X, a minus of 50 kg of flour, purchase cost 2
lei/kg.
– the perishable items allowed during storage were 2 kg.
Solution:
1. registration of minus in amount of 100 lei:
607 = 371 100 lei
2. imputation to warehouse manager 48 kg ( 50-2 ):
4282 = % 119 lei
7588 96
4427 23
3. retention of this prejudice from the guarantee initially
deposited by the warehouse manager:
4281 = 4282 119 lei
c. Case study no. 3
Following the performance of inventory it was noted that:
– in assortment X, a minus of 200 kg flour with 4 lei/kg.
– the perishable items allowed during storage were 10kg.
– the perishable items allowed during transport were 5kg.
– the perishable items allowed during sale were 2kg.
Solution:
1. registration of minus in amount of 800 lei:
607 = 371 800 lei
2. imputation to warehouse manager 183 kg ( 200 – 17 ):
4282 = % 908 lei
7588 732
4427 176
3. retention of this prejudice from the guarantee initially

deposited by the warehouse manager:
4281 = 4282 908 lei
136
d. Case study no. 4

Following the performance of inventory it was noted that:
– in assortment X, a minus of 10 kg flour with 2,5 lei/kg.
– the perishable items allowed during storage were 10,5 kg.
Solution:
1. registration of minus in amount of 25 lei fully covered by
perishable items:
607 = 371 25 lei
e. Case study no. 5

An entity picked up 10.000 kg of peppers which were stored in
crates. At the sale it is noted that they weigh 9.980 kg as a result of their
natural degradation. The perishable items allowed during storage were
0,07 %, and the production cost was 2 lei/kg. Establish the situation of
management.
Solution:
– at sale it is noted a minus of 20 kg ( 10.000 - 9.980)
peppers;
– The perishable items allowed during storage were
10.000kg* 0,07 %= 7 kg.
– non-imputable minus at sale (natural degradation) 13 kg.
1. registration of non-imputable minus in amount of 20 kg * 2 lei
(natural degradation ):
711 = 345 40 lei
2. for the non-imputable minus of 13 kg ( degradation ) after the
writing-off of perishable items the VAT is adjusted:
635 = 4426 6 lei
3. Conclusions
In relation to the writing-off of perishable items, we can draw the
following conclusions:
– the establishment of inventory results is done by comparing the
quantities and values noted in inventory lists with the quantities
and values recorded in accounting system. From the comparison
mentioned above it may result pluses or minuses of inventory for
137
which the inventory commission will demand written

explanations from the warehouse manager;
– the maximum perishability limits allowed at storage and sale are
established by the application of coefficient established for the
group of merchandise to the registration price of incoming
merchandise or to delivery price for the merchandise sold in the
period between two inventories. The same maximum
perishability limits are written off for merchandise in stock;
– the perishable items can be written off only after a factual
checking of the quantities of products that exist in management,
established after weighing, counting, measuring and by other
such procedures and after the making of compensations
according to the legal provisions in force;
– the perishability coefficients are established by the management
of each entity, depending on the actual losses from the previous
period and the new conditions created in the activity of transport,
handling and storage of the goods;
– from fiscal point of view, the losses noted in merchandise are
deductible expenses in the calculation of profit tax, in the limit
of perishability quotas approved by Government decisions;
– the losses or reductions in quantity which exceed the
perishability quotas established are not fiscally deductible;
– the traders can establish different perishability quotas by
assortments, by warehouses, stores, managements, in order to be
allowed as deductible expenses from taxable profit, with the
obligation of observing the maximum perishability limits
provided for the respective group of merchandise;
– for all the pluses, minuses and depreciations noticed in goods,
the inventory commission requires written explanations from the
persons who have the responsibility of managing the goods.
Based on the explanations received and the analysed documents,
the inventory commission establishes the nature of minuses,
losses, damages and depreciations acknowledged and the nature
of pluses and proposes according to the legal provisions in force,
the manner of settlement of differences between the accounting
data and the factual data resulted from inventory;
– in case presumptions of legal losses are fulfilled, the inventory
commission will propose the writing-off of perishable items;
– in relation to the case studies presented, we can assume as
follows: in the first case, following the writing-off of perishable
items it resulted a minus in value of 15 lei, covered by perishable
138
items, in the second case, an imputable minus of 96lei after the

writing-off of perishable items, in the third case study, an
imputable minus of 732 lei after the writing-off of perishable
items, in the fourth case it resulted a minus of 25 lei fully
covered by perishable items and in the last case it resulted a non-
imputable minus of 40 lei;
– the proposals regarding the writing-off of perishable items will
be included in the report of the inventory commission, report
which is presented within seven days as of the conclusion date of
inventory operations, to the director of the patrimonial entity.
The director of patrimonial entity with the approval of the head
of finance accounting department decides on the method of
settlement of proposals made (compensation of inventory
differences), with the observance of the legal provisions in force;
– optimization of storage conditions will lead to the reduction of
quantitative losses and implicitly, the perishable items which
will be written off;
– these perishable items given in legal limits reduce the
patrimonial liability of warehouse managers.
Bibliography
Lenghel Radu Dorin, Control şi audit financiar (Financial Control and Audit),
Lenghel Radu Dorin, Control şi audit intern (Internal Control and Audit),
GD no. 831 of 2004 regarding the allowed perishability limits for merchandise
in the sale process.
OMFP no. 2861/2009 regarding the inventory of patrimony.
NOTE ON THE AUTHOR

139
THE SIMULTANEOUS WRITING-OFF
OF COMPENSATIONS AND PERISHABLE ITEMS
Radu Dorin Lenghel
Abstract: For the goods for which losses are accepted, in case of
compensating minuses with pluses established in inventory, the losses
are calculated only if the missing quantities are higher than the
quantities noticed in excess.
In each category, the order of writing-off perishable items is used
in the compensation of goods (starting with the assortment which has
the highest unit price). The losses are given first of all for the
assortments in which minuses were noted and if there still remain
quantitative differences in minus, they can be given also for other
assortments in which pluses were recorded.
If following the application of losses there still remain quantitative
differences in minus, the loss quotas can be applied to the other goods
allowed in compensation, to the goods in which pluses were noted or
where no differences resulted.
The difference established in minus following the compensation
and application of all the loss quotas, which represents prejudice for the
entity is recovered from the guilty persons, in accordance with the legal
provisions in force.
The competence of approval of compensations and perishable
items belongs in all the cases to the leaders of patrimonial entities.
Keywords: patrimony inventory, inventory procedure, conditions of
writing-off compensations and perishable items, rules of compensation
and writing-off of perishable items, procedure of simultaneous writing-off
of compensations and perishable items, registration of inventory
differences.
1. Procedure of simultaneous writing-off of compensations

and perishable items
For the goods in which losses are accepted1, in case of
compensation of minuses with pluses established in inventory, losses
1.
OMFP no. 2861/2009 regarding patrimony inventory.
140
are calculated only if the missing quantities are higher than the
quantities noticed in excess. In case of material goods mistakeable
between them, the quantitative perishable items (Pq) are given only if
the sum of missing quantities is higher than the sum of quantities in
excess and only in the limit of these differences (Pq ≤ Σbi – Σai). If the
quantities in excess are higher than the quantities in minus, no
perishable items are given and neither when after the compensation of
equal quantities a negative difference in value results. The losses are
given first of all for the assortments in which a minus was noted and if
there still remain quantitative differences in minus, they can be given
also for the other assortments in which pluses were recorded or there
are no differences. In each category the order of writing-off perishable
items is used in the compensation of goods (starting from the
assortment which has the highest unit price). The minuses in value
(Lv), which can be covered by the perishable items are composed of
the value of missing quantities, which exceed the quantities noted in
excess, to which are added the negative differences in value resulted
from the compensations of equal quantities. The difference established
in minus after the compensation and the application of all loss quotas,
which represents a prejudice for the entity, is recovered from the guilty
persons, in accordance with the legal provisions in force. In the
combined writing-off of perishable items and compensations for
assortments of material values mistakable between them, the following
situations can appear:
1. The quantitative perishable items (Pq) calculated are smaller
than the minuses in quantity (Lq) but as a value, perishable items (Pv)
cover the minuses in value (Lv), therefore: Pv > Lv and Pq < Lq. In
this situation, although perishable items in value (Pv) cover the minus
in value (Lv), the guilty persons are imputed the minus in quantity (Lq),
which exceeds the quantitative perishable items (Pq). The imputation is
done in the order in which the goods were eliminated from the
calculation of compensations (starting from the lowest unit price).
2. The quantitative perishable items (Pq) calculated cover the
minus in quantity (Lq) noted, but as value, perishable items (Pv) are
lower than the minuses in value (Lv) noted: Pq > Lq and Pv < Lv. In
this situation, quantitative perishable items are written off (Pq) only in
the limit of the minuses in quantity (Lq), and as value the guilty persons
are imputed the difference between the higher minuses in value (Lv),
and the lower perishable items in value (Pv).
141
3. The perishable items in quantity and in value (Pq and Pv) are
lower than the minuses in quantity and value (Lq and Lv) noted in
inventory: Pq < Lq and Pv < Lv. In this case, the calculated perishable
items in quantity and value are written off in fulll and the minus in
quantity and value which exceeds these perishable items is imputed.
4. The perishable items in quantity and value (Pq and Pv) cover
the minuses noted both in quantity (Lq), and in value (Lv): Pq > Lq
and Pv > Lv. In this situation, perishable items are written off only in
the limit of minuses noted in quantity and value and it is not necessary
to establish patrimonial liability by imputation.
2. Case studies regarding the simultaneous writing-off

of compensations and perishable items
a. Case study no. 1

Following the inventory of a warehouse with mistakable
assortments, inventory differences were noted according to the table
below.
Table no. 1
Acquisition Quantitative differences (Kg) Rollovers of entries
Assortment cost
+ - (Kg)
~ lei ~
S1 1 10 1.000
S2 2 10 2.000
S3 3 10 3.000
S4 4 10 4.000
S5 5 5 5.000
Establish the situation in inventory knowing that the perishable

items allowed during storage represent 0,05% of rollover, and S
represents different mistakable assortments.
The compensation and writing-off of perishable items are carried
out according to the table below:
142
Table no.2
Quantitative Differences
Acquisition Perishable items
Assortment differences in value
cost
+ - + - Calculated Written off Value
S1 1 10 10 0,5 0,5 0,5
S2 2 10 20 1 - -
S3 3 10 30 1,5 1,5 4,5
S4 4 10 40 2 0,5 2
S5 5 5 25 2,5 2,5 12,5
Total 20 25 60 65 7,5 5 19,5
Eliminations from
5 5
compensation -S1
Compensation 20 20 60 60
Result of compensation - - - -
Source: own projection
Because there is a minus of 5kg eliminated from compensation,

we will accept perishable items starting from assortments in minus,
which have the highest prices.
Calculation of perishable items during storage:
Pd S1 1.000 0,05% 0,5 kg
Pd S2 2.000 0,05% 1 kg
Pd S3 3.000 0,05% 1,5 kg
Pd S4 4.000 0,05% 2 kg
Pd S5 5.000 0,05% 2,5 kg
Even if from the calculation the allowed losses are higher than the
actual minuses (7,5 > 5), we will only give perishable items in amount of 5
kg.
The analysis of compensation procedure and writing-off of
perishable items is:
1. non-compensated minus: 5 lei;
2. minus after compensation: 0 lei;
3. total minus: 5 lei;
4. perishable items written off during storage: 19,5 lei;
5. imputable minus: 0 lei;
6. registration in accounting system of the total minus of 5 lei,
which is fully covered by perishable items:
607 = 371 5 lei
143
b. Case study no. 2

below.
Table no. 3
Acquisition Differences in quantity

(Kg) Rollovers of entries
Assortment cost
(Kg)
~ lei ~ + -
S1 5 10 10.000
S2 4 10 1.000
S3 3 10 1.000
S4 2 10 1.000
S5 1 5 1.000
Establish the situation in inventory, knowing that the perishable


Table no. 4
Differences in Differences
Acquisition quantity Perishable items
Assortment in value
cost
+ - + - Calculated Written off Value
S1 5 10 50 5 5 5
S2 4 10 40 0,5 - -
S3 3 10 30 0,5 - -
S4 2 10 20 0,5 - -
S5 1 5 5 0,5 - -
Total 20 25 60 85 7 5 5
Eliminations from
5 5
compensation -S5
Compensation result - - - 20
144
Because there is a minus of 5kg eliminated from compensation,

we will accept perishable items starting from the assortments in minus,
which have the highest prices.
Calculation of perishable items during storage:
Pd S1 10.000 0,05% 5 kg
Pd S2 1.000 0,05% 0,5 kg
Pd S3 1.000 0,05% 0,5 kg
Pd S4 1.000 0,05% 0,5 kg
Pd S5 1.000 0,05% 0,5 kg
Even if from the calculation the allowed losses are higher than the
actual minuses (7 > 5), we will only accept perishable items in amount
of 5 kg.
The analysis of compensation and writing-off of perishable items

is:
1. non-compensated minus: 5 lei;
4. perishable items written off during storage: 5 lei;
5. imputable minus: 20 lei.
6. registration in accounting system of total minus of 25 lei ,
which is only partially covered by perishable items:
607 = 371 25 lei

7.imputation of minus not covered by perishable items ( 25-5):
4282 =% 24,8 lei

7588 20
4427 4,8
8. retention of this prejudice from the guarantee initially submitted
by the warehouse manager:
4281 = 4282 24,8 lei
c. Case study no. 3

below.
145
Table no. 5
Differences in
Acquisition cost quantity (Kg) Rollovers of
Assortment
~ lei ~ entries (Kg)
+ -
S1 1 10 1.000
S2 2 10 2.000
S3 3 10 3.000
S4 4 10 4.000
S5 5 5 5.000
Establish the situation in inventory knowing that the perishable

Table no.6
Differences Differences
Perishable items
Acquisition in quantity in value
Assortment
cost Written
+ - + - Calculated Value
off
S1 1 10 10 -
S2 2 10 20 -
S3 3 10 30 -
S4 4 10 40 -
S5 5 5 25 -
Total 25 20 65 60 -
Eliminations from
5 5
compensation -S1
Compensation result - - - -
Because there is a plus of 5kg eliminated from compensation, no

perishable items will be written off.
The analysis of compensation procedure is:
1. non-compensated plus: 5 lei;
4. perishable items written off during storage: 0lei;
5. total plus : 0 lei.
6. registration in accounting system of total plus of 5 lei:
371 = 607 5 lei

146
3. Conclusions
In relation to the simultaneous writing-off of compensations and
perishable items we can draw the following conclusions:
the inventory results are established by comparing the quantities
and values noted in inventory lists with the quantities and values
recorded in accounting, and from this comparison pluses or
minuses of inventory may result, for which the inventory
commission will demand written explanations from the warehouse
manager;
for all the pluses, minuses and depreciations of goods, the
inventory commission requests written explanations from the
persons who have the responsibility of goods management. Based
on the explanations received and the analysed documents, the
inventory commission establishes the nature of minuses, losses,
damages and depreciations noted as well as the nature of pluses,
and will propose the settlement according to the legal provisions
of differences between the accounting data and the factual data
resulted from inventory-taking;
in case imputable minuses are noted in management, the directors
have to impute the missing goods to guilty persons at their
replacement value. In case of goods noted in minus, which will be
imputed, which cannot be bought from the market, the imputation
value is established by a commission made of specialists in the
field;
the lists with assortments of products, merchandise, packaging
and other material values which fulfil the compensation
conditions because of risk of confusion are approved every year
by directors, main credit release authorities or the person who has
the obligation of managing the patrimony and serve for internal
use in the respective entities;
perishable items can be written off only after a factual checking of
quantities of products that exist in management, which are
established after weighing, counting, measuring and such other
procedures and after the making of compensations, in accordance
with the legal provisions in force;
if the presumptions of confusions and legal losses are fulfilled, the
inventory commission will propose the simultaneous writing off
of compensations and perishable items;
in relation to the case studies presented after the simultaneous
writing off of compensations and perishable items, we can draw
147
the following conclusions: in the first case, it resulted a minus in

value of 5 lei, covered by perishable items, in the second case it
resulted an imputable minus of 20 lei, and in the third case it
resulted a plus in value in amount of 5 lei ;
the proposals regarding the compensation of inventory differences
will be included in the report of the inventory commission, report
which is presented within seven days as of the conclusion date of
inventory operations, to the director of the patrimonial entity. The
director of patrimonial entity, with the approval of the head of
finance accounting department, will decide on the method of
settlement of the proposals made (simultaneous writing off of
compensations and perishable items), with the observance of the
legal provisions in force; considering that the danger of confusion
is determined by the similarity between products, danger which
may appear as a result of careless handling, when labels disappear
from packaging, when bar codes are missing, and because of
negligence of warehouse managers, we propose a better coding of
the products and a better training of warehouse managers;
also the optimization of storage conditions will lead to the
reduction of quantitative losses and implicitly the perishable items
which will be written off.
Bibliography
1.Lenghel Radu Dorin, Control şi audit financiar (Financial Control and
Audit), Risoprint Publishing House, Cluj-Napoca, 2011;
2.Lenghel Radu Dorin, Control şi audit intern (Internal Control and Audit),
3. OMFP no. 2861/2009 regarding the inventory of patrimony.
NOTE ON THE AUTHOR

148
DETERMINATION OF THE OPTIMUM

PRODUCTIONS SURFACE (MONOFACTORIAL
MODEL) HAVING AN INITIAL FIXED CAPITAL
Ciprian Ioan Rujescu, Adrian Nicolae Mateia,

Simona Martin, Ramona Ciolac
Abstract: Optimum size of the area destinated for agricultural crops is

a actual subject in sustainable rural development strategies; most often
presents interest to estimate a priori the areas used starting from an
fixed capital, situations commonly encountered in allocation of funds
practicing destinated to rural development projects. Mathematically,
optimization models can have multiple starting points; here the
optimization study is realized starting from the condition of using the
fixed capital in amount S, originally established, strictly, for the entire
production process, in case in witch there is no question of the existence
of a minimum value of production. The proposed model is based on the
restriction caused by the equality between initial fixed amount and
product between optimal surface and the amount of fixed and variable
costs expressed per unit area. It will be use a single factor production
function, as a function of the second degree, which will express the
dependence between production per unit area dependent by the variable
expenses for fertilization soil. The original data are those from the 2013
agricultural year level.
Keywords: rural development, optimum surfaces, agricultural crops,
monofactorial model
INTRODUCTION
When we speak about optimizing agricultural production surfaces
problem, the problems can be totally different as design: direct
observations on size of the size of some other similar farms and
correlation of their dimension with economic benefits, optimize the
surface in the concrete situation of the existence of a stabile contract on
the selling of a given quantity from the final product, etc. There are also
the case in witch is not required a minimum quantity of production, the
restriction being given by an initial investment strictly fixed. So the
149
product between quantity economic optimum related of nitrogen

fertilization respective Noptim, pN the price of fertilization unit, to witch
are add the fixed amounts per unit area (sf) with optimum production
surface will be equal to S, an amount initially fixed (capital) for
production: N optim p N s optim s f s optim S . The object of this paper is
to determine the optimal area destinated to an agricultural production,
starting from the fixed capital S, for the current, concrete situation. The
model has on base previous theoretical studies, here production function
having a monofactorial expression, Q = aN 2 bN c (a simplified case
in witch we consider that production is directly and significantly
influenced by a single factor) (Rujescu C., et al., 2005.2014)
Optimization problems are not a novelty; they have an appreciable
length and practically we can say that its foundations were laid together
with the development of differential calculus concepts and theory
foundation regarding the determination of extreme points of real
functions by one or more real variables (Floudas 2009, Intriligator 2002,
Steven 2008). Their use is found permanent in current issues from
agriculture, field that shows a continuous economic instability (Otiman,
2005). Thus, not infrequently a farm manager, before performing a
calculation on contracting an amount for investments in agriculture
(such as projects funded with EU founds) is faced with a real problem,
namely the use of a sum date (strictly) originally fixed, in an optimal
way.
MATHEMATICAL METHOD
To calculate the maximum profit that can be achieved in a farm, in
the theoretical model case we don’t considered the exploitation price of
the products obtained as being constant (Rujescu C., 2005); we started
from the hypothesis that the price depends on market demand, which is
the lower as higher is the price and vice versa. Usually this dependence
can be expressed mathematically by the equation: p = p (k), where "p"
represents the price, and "k", the quantity existent on the market.
With the notations above, the dependence of the profit it can also
be expressed by relationship:
(1)
Canceling the partial derivate with respect to N, of the profit
function we obtain:
150
,
So a linear relationship minus the expression of the optimal value:
So
.
So the maximum profit per unit area will be determined by
substituting this optimum value of N in relation (1):
So we have:
In agreement with the initial condition, given by the case in witch

the manufacturer has a fixed amount "S" for allocation the production
process and in the case we consider that it has sufficient land area
(optimal area for culture „soptim” to be less than the total available sT),
we have:
,
Meaning
from where optimal surface expression is derived:
(2)
151
or
(2’)
So profit that is obtained if is cultivated this surface will be given
by the expression:
Figure 1 Flow chart corresponding to mathematical model
152
RESULTS AND DISCUSSION

We will study an example, for a function that indicates the
influence of nitrogen doses on wheat production, on a cambic
chernozem soil in kg/ha (Borlan, Hera, 1982, 1984) having the
expression (fig. 2):
y = -0.073 N2 + 13.57 N + 4191.
Figure 2 The influence of nitrogen quantity on the production of wheat (kg/ha)
Data from 2013 level indicates the price of ammonium nitrate

fertilizers 33.4% approximated to 331.8 euro/tone and fixed costs per
hectare of wheat of 270 euro. Suppose set the price of wheat, p (k) = 0.3
euro/kg (inss.ro, anaf.ro, apia.org.ro).
Substituting data in relation 2 is obtained:
We obtain the data shown below.

S available (euro) Optimal surface (ha)
10000 33,52
12000 40,22
14000 46,92
16000 53,63
18000 60,33
20000 67,04
25000 83,80
153
Optimal surface
90
80
70
60
50
40
30
20
10
0
10000 12000 14000 16000 18000 20000 25000
Figure 3 Optimal surface vs available capital.

Results obtained after values of available capital
CONCLUSIONS
The calculations of the model are easy algorithm-based, they also
involving a smooth transposition without difficulties in a software
application. The flowchart shown in Figure 1 indicates in fact a test of
the classification of optimal area in total area and generating the value
of optimal surface in the concrete case.
Current bibliography of the field indicates many monofactorial

production functions, which expresses the dependence between
production and a major influential factor that can be used in studies of
this type.
Also, these calculations can be useful at farm level, where
economic context require that necessity of some previous optimization
calculations. One of the situations encountered in practice, which can be
implemented in such a model, represent the calculations of projects with
EU funds, when the manager will face the situation of optimal using of
a fixed amount, initially set. Just this aspect justifies equality (strict)
from the initial restriction: "the equality between fixed capital and
product between optimal surface and the total costs per unit area".
154
References
Borlan, Z.; Hera, Cr., 1982, Tabele si nomograme agrochimice, Editura Ceres,
Bucuresti
Boldea, M., Sala, F., Radulov, I., Crista, F., & Berbecea, A., 2010, On the
Functional Dependence Between the Agricultural Yield and the
Fertilization with w Single Type of Fertilizer. Research Journal of
Agricultural, 42(3), 38-43.Brudiu Ileana, Biostatistica în abordarea
practică, Ed. Eurobit
Creţ F., Rujescu C., Rotariu Lia, Boldea M., Ivan M., 2000; Elemente de
matematici speciale. Teorie şi aplicaţii, Editura Mirton, Timişoara
Floudas, Christodoulos A.; Pardalos, Panos (EDS.), 2009, Encyclopedia of
Optimization, 2nd ed., Springer
Goian M., Otiman P.I., Borza I.,Gergen I., Goian Maria, Sâmbotin L.,
Rădulescu Hortensia, Sala F., 1993, 200 probleme de fertilizare
rezolvate, Editurile Mera şi Prouniversitaria
Hera CR., Eliade Gh., Ghina L., Popescu Ana, 1984, Asigurarea azotului
necesar culturilor agricole, Editura Ceres Bucureşti
Institutul Naţional de Statistică, România; http://statistici.insse.ro/shop/
Intriligator Michael David, 2002, Mathematical optimization and economic
theory, Philadelphia: SIAM, Society for industrial and applied
mathematics, cop. 2002.
Otiman P.I., 2005, Agricultura romanească, realităţi şi perspective ale
integrării în Uniunea Europeană, Grupul ecologic de colaborare Nera
Otiman P.I., Creţ F., 2002, Elemente de matematici aplicate în economia
agroalimentară, Editura Agroprint, Timişoara
Rujescu Ciprian Ioan, 2005, Optimization model for the dimensions of the
agricultural exploitation in the case the production selling price varies,
Proceedings of International workshop on Applied Mathematics – on
the occasion of opening the National Seminar of Applied Mathematics,
Timisoara August 26-27, 2004, p.152-155, Ed. Mirton
Rujescu Ciprian Ioan, Ciolac Ramona, Martin Simona Cristina, Butur Marius,
2014, The use of a two-factor model for the fertilization of agricultural
crops in order to determine the optimal production area, LSMA vol.
XVI (1)
Steven N. Durlauf and Lawrence E. Blume., EDS., 2008, The New Palgrave
Dictionary of Economics. Second Edition. Palgrave Macmillan
http://static.anaf.ro, Codul fiscal cu normele metodologice de aplicare
http://static.anaf.ro, Preţurile medii în anul 2013 ale produselor agricole pe
baza cărora se calculează impozitul la veniturile din arendă, exprimate
în natură conform art. 62 alin. (1) din Codul Fiscal
www.apia , Agenţia de Plăţi şi Intervenţie Pentru Agricultură
155
NOTE ON THE AUTHORS

Ciprian Ioan Rujescu, Simona Martin, Ramona Ciolac - Banat`s University of
Agricultural Sciences and Veterinary Medicine “King Michael I of Romania”
from Timişoara, Faculty of Agricultural Management, Timişoara, Romania
Adrian Nicolae Mateia “Dimitrie Cantemir” Christian University, Faculty of

Management in Tourism and Commerce Timisoara, Romania
156
STATISTICAL YEARBOOK OF ROMANIA,

A PUBLIC GOOD
Filip Pațac, Janeta Weisz
Abstract: The statistical yearbook of Romania is a traditional

instrument of official statistics which is published based on statistics
research. The elaboration of the Statistical Yearbook can be improved
both from the point of view of indicators and the introduction of new
ones. The assurance of data continuity is highly necessary. In 1990 a
problem occurred. Due to the fact that Romania is, in many statistics,
with low rankings, statistical data should be used to improve problems
in the health system, in infrastructure, etc. Statistics should be studied in
high school and in Economic faculties. Intensifying education for
correct reports of statistical data is another requirement.
Keywords: statistical yearbook, work productivity, balance of payments,
exhaustive statistic research, selective statistic research
Introduction
According to the methodology of statistic research in education, a
document elaborated by the National Institute of Statistics in Romania
(2009), statistic research ensures the necessary information to describe the
state of facts, the level of performance of the educational system, on the
one hand and an analysis of the evolution in time and space of this activity
domain, providing comparative data nationally and internationally for
their users. Collecting data through exhaustive statistic research from
educational units, regardless of the type, level, form of organization and
propriety, entitles two main methods: census and statist reports. The
legislative frame that regulates this type of research on the European
level, to produce and transmit statistic information about education to
Eurostat is realized based on a protocol agreed by all member states of
the European Union and candidate countries, and on the national level
there is Law nr. 268 from 13 June 2003, to modify and complete the
Education Law nr. 84/1995, regarding the organization and functioning
of the national education system; the Ordonnance passed by the
157
Romanian Government nr. 9/1992 regarding the organization of official

statistics was republished, with further modifications and annotations,
and the Governmental Decision nr.957/2005 regarding the organization
and functioning of the National Institute of Statistics.
With the help of selective statistic research, we register the
characteristics of a part of the statistic population units, the main
methods being the statistic survey, the questionnaire, and observing the
main part. From the types of selective statistic research used by the
National Institute of Statistics, which could be accessed to obtain
information for the indicators that are the basis for empiric research in
this report we remind: The Investigation regarding the on-going
professional formation (FORPRO), The Investigation on the workforce
(AMIGO), The Investigation on family budgets (ABF).
The Statistic Yearbook is one of the traditional instruments of
official statistics. Without knowledge of the concrete data about figures
and fundaments of public policies, people lose interest in statistics,
which in turn, loses its utility as science of a state.
The basis of the yearbook is statistic research which represents a
complex work of collecting, processing, analysis and dissemination of
data regarding the state and evolution of phenomena and economic and
social processes.
The data presented in the yearbook are the result of two categories
of sources:
- Exhaustive statistic research or the survey, which are
included in the annual National statistics program..
- Administrative sources;
The yearbook is a public good of great importance that is statistic
knowledge offered to all categories of statistic data users, to every
citizen who is interested in statistical radiographies of the Romanian
society.
Methodology and results
If we look at the 2013 Statistic Yearbook we refer to information

regarding work productivity and the balance of payments. The data on
work productivity and balance of payments refer to “work productivity
for an employed person” (lei/person) and “work productivity per hour”
(lei/hour). It is very low, taking into account the fact that Romania is
behind developed countries and the average in the E.U. The indicator
work productivity is one of the most useful in macroeconomic analysis,
158
and economy made it possible that service productivity may be

constitute an interesting problem.
The dictionary of economic terms (Dobran, 2001: 248-250)
presents the following terms:
- Work productivity: (WL=Q/L);
- Land productivity: (WL=Q/Sp);
- Global productivity: (Wgl=Q/Fpi);
- Marginal productivity:
- Average productivity (W=ΣQ/ΣFp)
- Partial productivity
- Capital productivity: (Wk=Q/K)
According to the National Institute of Statistics (Statistic
Yearbook: 362) work productivity for each employed person is
calculated as a rapport between the gross added value and the number of
employed persons, whereas work productivity per hour is calculated as
a rapport between the gross added value and the number of working
hours.
The report of the Centre for the study of the living standard in
Canada (1998) defines productivity, including work productivity as a
relation between the goods and services output, on the one hand, and
human and non-human resource inputs, used in the production process,
with a relation usually expressed as a rapport. Both outputs and inputs
are measured in physical volume, not being affected by price variations
Prices on a certain period are used to add different units of inputs and
outputs to be combined in agreed measures. The institutions that deal
with the analysis of statistic data do not collect statistic data on
productivity directly from economic agents, but calculate productivity
on the basis of the data about inputs and outputs. Thus, the data
regarding productivity, workforce employment, prices, investments, raw
materials, stocks, are used to elaborate analysis related to productivity.
159
Data:http://statistici.insse.ro/shop/index.jsp?page=tempo3&lang=ro&ind=CON110A
Graphic 1. Evolution of work productivity per employed person
Although in the Statistic Yearbook there is an increase in work

productivity, in Romania things seem to be different (Renașterea
bănățeană: 1). From Graphic 1. We observe that between 1999-2010
work productivity has evolved significantly every year, the most
spectacular increase being in 2008 due to the economic boom, followed
by a decrease in the next two years, as an effect of the economic crisis.
On an European level, shown in Table 1, we highlight the same
situation (expressed in percent). Romania has registered weak values
(25-40%) between 2001-2009 in comparison with countries like
Belgium, Finland or Germany where the percentage of work
productivity is over 100%. For our country, an excuse could be the fact
that we tend towards a capitalist economy and we cannot be on the same
level with the countries mentioned.
Table 1. Work productivity per employed person, EU27=100
160
Source: Work Productivity Report, printed within the project Office to observe labour
market and job quality, Project co-financed from Social European Fund
OperationalProgram for the Development of Human Resources 2007-2013, [online]:
http://194.117.236.69:7893/Docs/BAR_F.pdf, accessed 12.03.2015
From the Work Productivity Report, it results that low

productivity of Romanian economy is not caused by high salaries or by
the number of employees. Exports cannot become the basis of economic
relaunch as productivity in export-oriented sectors is lower than
productivity in internal-oriented processes, even during recession.
Romania is, at present, an importing country of goods and services.
The lack of continuity in synthetic indicators such as national
income, social product, nominal salary, real salary creates discrepancies
in scientific analysis of statistic data. Although no longer important, the
first two indicators are still useful. They can be used by the reader who
is interested in knowing phenomena and economic and social processes.
As far as the balance of payments is concerned, we do not know
who the creditors are, and they are difficult to be identified. There is a
practice to camouflage, and the real investors are not known. People
who sign contracts, the Ministry of Finance, the National Bank have
information that may conduct to identification of investors. It is very
161
important to know who we are dependent on, and where most of the
profits go. The state may declare the origin of the capital, but it does not
want to scare investors who may retreat from the market. Economic
history is incomplete: free circulation of capital is prevented by
knowing the real investors.
Conclusions
Simply knowing the figures is not sufficient, that is why we need
more complex analysis and correlations to understand the truth, which
supposes scientific research.
P=PC+PV
Where:
p = plus value,
pc = part of profit added to existent capital,
pv = part of profit added to constant capital.
The fact that in certain situations published data in the Statistic

Yearbook does not express the economic and social reality is discussed
in our paper. Using indicators and the balance of payments does not
clearly mention the real financing sources influences negatively,
especially on the long run, scientific research, the effects being
discussed in governmental decisions regarding economic and social
aspects of the entire society.
References
Dobran, Maria-Mariana (2001), Dicționar economic explicativ, ediția a II-a,
revăzută și adăugită, Editura Eurostampa, Timișoara, p. 248-250.
***Productivity: Key to Economic Success (1998), Report of Centre for the
Study of Living Standards, Ottawa, March, [online]
http://www.csls.ca/reports/productivity.pdf, consulted 03.09.2012
*** Barometrul Productivității Muncii, Material editat in cadrul proiectului
Biroul pentru observarea pietei muncii si a calitatii locurilor de munca,
Proiect cofinantat din Fondul Social European prin Programul
Operational Sectorial Dezvoltarea Resurselor Umane 2007-2013 ISBN:
978-973-0-09747-4, [online]:
http://194.117.236.69:7893/Docs/BAR_F.pdf, consultat în 12.03.2015;
***Anuarul statistic al României, p. 362;
*** Renașterea bănățeană, 20 martie 2015, p.1.
162

Filip Paţac is Associate professor at “Dimitrie Cantemir” Christian University,
Faculty of Management in Tourism and Commerce Timișoara. He holds a PhD.
in Economics.
Janeta Weisz is a Teaching Assistant at “Dimitrie Cantemir”Christian
University, Faculty of Management in Tourism and Commerce Timișoara. She
is also a PhD. Student at The West University, Timisoara with a research
project on productivity and external effects of intensive intellectual services
applied to educational institutions in Romania. janets_w@yahoo.com.
163
EXTRAORDINARY FINANCIAL RESOURCES - TRENDS
Corina Miculescu
Abstract: In a market economy, state revenues procured from taxes, as

well as from businesses and properties not fully cover spending.
Therefore, public authorities turn to loan resources the way public
credit. This is achieved in two ways: by direct contracting state loans
from individuals or legal entities holding cash on hand; through
specialized institutions (banks, savings banks, insurance houses and
pensions, insurance and reinsurance), which collects available money
market and entrusts the State for a period of time.
Keywords: debt, national debt, external debt, repayment, indebtedness
1. General considerations
Public debt is the total amount of state commitments, including
costs generated by it.
The total public debt obligations sums of money the state
(government, public institutions financial, administrative units) at a
time, resulting from internal and external loans (in domestic and
foreign) to individuals and businesses in the internal market in the short
term, medium and long term, and the state's obligations to its own
treasury, amounts advanced temporarily to cover the budget deficit.
Loans can be contracted state (government through the Ministry of
Finance) on their own behalf or guaranteed by it.
For 2014, the Romanian government debt to gross domestic
product was as follows:
total public debt - 39.6%
domestic public debt - 19.0%
external public debt - 20.6%
direct foreign public debt - 14.0%
guaranteed external debt - 6.6%
(source: www.mfinante.ro).
164
Table. 1. Evolution of total public debt of Romania during 2008-2014 (million lei)
Indicators 2008 2011 2013 2014
The total public debt 69.020,4 193.200,9 242.194,0 265.391,0
% GDP 13,2% 34,2% 38,0% 39,6%
(source: www.mfinante.ro)
Public debt service (including both capital reimbursements and

the cost of public debt) increased significantly in 2009 to 59.4 billion
USD level to 14.3 billion USD in 2008, both amid rising public debt
and that the budget deficit and public debt refinancing were made
mainly by issuing short-term government securities as a result of the
worsening domestic and foreign markets with the worsening financial
crisis capital.
Public debt is calculated and managed separately for the two
forms namely domestic public debt and external debt (Figure No. 1).
Fig. 1. Forms total government debt
165
Domestic public debt is an integral part of public debt and

represents all direct obligations of the State to domestic creditors,
payable in local currency, including private loans in amounts Treasury.
Romania's domestic public debt evolved as stated in the table
below:
Table. 2. Evolution of domestic public debt of Romania during 2008-2014 (million lei)
Indicators 2008 2011 2013 2014
Domestic public debt 27.808,6 98.147,7 110.155,0 127.266,9
% GDP 5,3% 17,4% 17,3% 19,0%
External public debt, which is part of the public debt from loans
to foreign creditors, includes all direct state obligations payable in
foreign currency.
External public debt increased during the period 2008 - 2014 as shown
in Table. 3.
Table. 3. Evolution of the external public debt of Romania during 2008-2014 (million lei)
Indicators 2008 2011 2013 2014
External public debt 41.211,8 95.053,2 132.039,0 138.124,1
% GDP 7,9% 16,8% 20,7% 20,6%
The level of public debt is outstanding is expressed by the

following financial categories:
- Floating debt (short-term) includes short-term loans, usually up
to one year, to cover gaps caused by the mismatch house while
revenue budget expenditure (goals in treasury).
- Consolidated debt includes all debt on loans of state launched
medium and long term or by deferring repayment of short-term
loans in medium and long term loans.
The internal and external borrowing public debt ceiling must be
respected.
Public debt ceiling includes all loans that you can obtain stable
and secure in a calendar year. This ceiling is set annually by law.
166
Annual financial effort of the State representing payments due in

public debt is debt service, which is determined separately for the two
forms of debt, namely:
domestic public debt service;
external public debt service
Domestic public debt service payments owing on credit includes a
period of one year, interest earnings and fees and expenses of issuance
and placement of securities.
External public debt service payments payable includes all the
year from private foreign debt guaranteed by the state, including interest
and fees.
2. Domestic public debt

Domestic public debt includes the total amount of loans to the
State and other public law by citizens and legal persons in the country.
Domestic public debt is determined by:
short-term loans contracted by the State National Bank of
Romania, to balance the state budget, which will be
reimbursed during the year; if you cannot repay, the
repayment period is extended, i.e. consolidate and include in
debt at the end of the year;
issuance of treasury bills for the same purpose, reimbursable
budgetary resources by the end of the year. If they cannot
redeem state issue new documents, which leads to debt
consolidation, the state still remains indebted
placement of documents on medium and long term by
public subscription, purchase necessary monetary resources
to cover annual budget deficits; These documents can also
enhance meaning that increase state debt;
State guarantees granted to domestic bank loans received by
operators or local authorities for specific requirements of
economic development which also include domestic public
debt;
Use short-term cash accounts Public Treasury.
To assess the size of domestic public debt using several indicators,
among which:
▪ Indebtedness of the state, which is determined by dividing the
amount of domestic debt to GNP. The higher this ratio is, the
more indebted country.
167
▪ Internal public debt per capita, by comparing the amount of

domestic debt in the total population, in which case it is good to
be as small indicator.
Domestic public debt is concentrated mostly to banks, commercial,
insurance and reinsurance various national and foreign rentiers.
The value of government securities on state loans are reimbursed
according to the legal conditions of issue and the date of repayment
obligations are extinguished state.
By repaying state loans means repayment of amounts borrowed,
the redemption of debt securities from their owners. Typically, the State
undertakes to repay term loans only.
Reimbursement may be made:
a) reimbursement at a single time called maturity, global
repay the loan when the state;
b) the repayment instalments, which is used for long-term
loans, the classic method amortization.
In the field of state loans by damping means repayment of
borrowed capital operation in certain factions within a certain
timeframe. Depreciation mass gradually reduce public debt and interest
on the loan amount still outstanding.
Depreciation (repayment) of loans is frequently in the following ways:
1. Determination and payment of annuities. Annuity consists of

borrowed capital and interest, gains etc. The state is obliged to
pay annually. Depreciation of the annuity is used in situations
where the state has few lenders that determine the conditions of
repayment. This is the least used, it involves many administrative
expenses and is less accepted by creditors, who receive their
capital and fractionated gradually.
2. Depreciation by lot is used for repayment of loans contracted with
a large number of creditors. The law launching loans, the state
sets and annual depreciable value of bonds by lot.
3. Depreciation of redeeming the stock exchange securities lent.
This way of extinguishing the loan is used in cases where the law
provides that the loan cannot be repaid before maturity or a
certain period of time.
The State may use certain methods to not keep previous
commitments, such as:
a) Bankruptcy itself, which is a process by which the state
arbitrarily cancel part or all of its debts, no longer recognizes
168
previous debts. For example, the Soviet government repudiated

debt contracted by the tsarist regime.
b) Conversion, representing financial operation that changes the
original terms of the loan state (damping, interest rates, earnings,
etc.).
c) Forced Consolidation - this means converting floating debt
(Treasury bills) with lower ence to one year in a long-term loan
of 10, 20, 30 years - without the consent of holders of
consolidated loan holders.
3. External public debt

3.1. The concept and content of external public debt
External public debt includes all loans denominated in freely
convertible currency, goods or services contracted by a foreign state and
outstanding creditors. This can come from borrowing abroad to
stimulate domestic economic development, payment of machines,
equipment etc. purchased from imports, with the consequences of
natural disasters, implementation of large investments etc. External
public debt is recorded today especially in LDCs and developing. The
public external debt is higher, the dependence is more pronounced. As a
result, in some cases, external public debt is a pretext for interference in
internal affairs of the debtor country.
External debt includes, in addition to public external debt
contracted state debt contracted abroad by individuals and private legal.
External public debt includes the following important tools:
currency bonds issued in foreign capital markets;
loans from foreign governments, foreign government
agencies, financial institutions and other international
organizations;
syndicated loans on short, medium and long term;
direct loans from private investors in the short, medium and
long term.
External public debt is guaranteed by the State. This is all
guarantees issued by the Ministry of Finance on behalf and on behalf of
the state, for loans to businesses and local authorities. Guarantees are
issued in foreign currency.
The total amount of state guarantees for foreign loans to be
granted in one year must be within the external public debt ceiling.
169
3.2. Indicators for assessing the external public debt

External debt indicators highlights indebtedness of the country
from abroad and effort economic, social, financial and foreign exchange
you should do.
Examples of indicators:
a) Absolute magnitude of external public debt, showing
indebtedness to foreign country at a time.
b) The average size of public debt per capita, which is
determined by reporting the amount of external public debt
per capita of the country in debt. The higher this indicator,
the country is less burdened.
c) External loans interest rates. If interest rates are high, in a
number of years their value may exceed the amount of the
loans.
d) The ratio of external public debt service and earnings
from exports of goods and services. The lower this ratio is,
the situation is easier for the debtor country.
Ceiling foreign loans and foreign debt can be determined using
the following indicators:
1. The share of foreign debt in gross national product.
DPE
PDE * 100
PNB ,
in which:
PDE external public debt in gross national product;
DPE = external public debt resulting from borrowing in the medium and
long term;
GDP = gross domestic product.
The higher this indicator, the country is indebted to abroad.
2. Relationship between trade deficit and gross national product,
which is calculated as:
DBC
* 100
PNB ,
in which:
DBC = the trade deficit;
GDP = gross domestic product.
It is desirable that this indicator be below 5%.
170
3. The ratio of external public debt service and exports of goods

and services, which is determined as follows:
SDPE
* 100
VE ,
in which:
SDPE = external public debt service;
VE = annual volume of exports of goods and services.
The indicator is calculated for determining the timely procurement

of currency needed for the external public debt service. Every year this
indicator should be below 15%. If the ratio is smaller, the situation is
easier for the debtor country.
4. Foreign exchange reserves of the state, reflecting the country's

ability to cope with various external obligations, in cases where
foreign exchange earnings from exports of goods and services
would experience a decline. This indicator is calculated as:
RV
* 100
DPE ,
in which:
RV = foreign exchange reserves;
DPE = external public debt
It is best if foreign reserves to offset more than 25% of a country's

external debt contracted during the year.
Internationally it is considered prudent that a state's external
public debt must be less than or equal to twice the value of exports of
goods and services produced in a year.
3.3. Repayment foreign public

Reimbursement due installments and interest payments, fees and
charges related to external public debt set is made of resources provided
for this purpose in the state budget, local budgets and the budget of the
loan recipient, as appropriate.
Due installments each year in foreign loans, interest, charges and
fees are external public debt service.
All external debt commitments are recorded in chronological
order, the external public debt register established by the Ministry of
Finance.
171
Ministry of Finance with the National Bank of Romania in the

balance of payments provide resources needed to repay foreign loans,
interest payments, fees and related charges.
National Bank Finance Ministry at regular intervals and analyzes
the evolution of country's foreign exchange resources, identify any
difficulties that arise in paying the foreign debt and propose appropriate
solutions.
Romania recorded in 1980 foreign debt of $ 11 billion as a result
of imports of crude oil prices rising continuously very low efficiency
and processed products.
In the period 1980 - 1989, Romania's foreign debt, with interest
paid, represented, published data, a total of 17 billion US dollars
While Romania was paying 10-15% interest she lent communist
countries 2% interest or no interest.
Repayment of foreign debt made by sacrificing the most basic
living conditions of the population affected by amplifying restrictions
yearly income Romanian citizens, health conditions, and education. The
efforts and sacrifices of our people have been exacerbated by the effects
of global economic crisis, monetary and financial disturbance
frequency, trade and customs barriers.
To accelerate the liquidation of foreign public debt, dictator
Nicolae Ceausescu ordered abroad in 1986 delivered a quantity of 80
tons of gold, which was a real betrayal of the country's vital interests.
He got a good price for 1040 million dollars, which were used
exclusively for the repayment of loans in foreign public debt.
Basically, during the first quarter of 1989 ended full payment of
Romania's foreign debt. The intention was that later, the 80 tons of gold
to be redeemed.
However, during the events of 1989, Romania had bank accounts,
stocks of over 1.8 billion dollars that were spent in a very short time.
It is necessary for the future to achieve the following objectives:
a) external debt service to be within tolerable economic
potential of the country.
b) establishment of foreign reserves to help maintain exchange
rate stability.
c) maintaining current account deficit to the extent possible the
realization of loans with foreign investment, contribute to
restructuring and national economic recovery.
There is a risk that Romania will have problems in the balance of
payments support. After years of grace which our country has benefited
arrived at first maturity loan repayments.
172
4. Conclusions
Romania's public debt includes debt of public administration,
according to national legislation include, in addition to public debt
according to the methodology of the European Union (EU), debt
guaranteed by the Government, through the Ministry of Public Finance
(MPF), and the ATU repaid from own sources guarantee of the
beneficiaries and the availability CCGTS loans, while debt according to
EU methodology additionally contain economic debt reclassified
government sector. The distinction between financial obligations of the
central and local authorities is government debt, expressing all internal
and external financial obligations of the state, at a time, on loans
contracted directly or guaranteed by the Government, through the
Ministry of Finance, on behalf of Romania of financial markets. Local
Government debt, which highlights all external and external financial
obligations local authorities at a time, from loans contracted directly or
guaranteed by the financial markets.
Bibliography
Miculescu C., (2010), Finance, Eurostampa, Timisoara;
Patac F., Miculescu C., (2007), Finance, Eurostampa, Timişoara.
Stancu, I., (2003) Financial management of the enterprise, Economic
Publishing House, Bucharest;
I. Vasilescu, CICE C., Dobrea C., George A. (2009), I nvestment
management, EficonPress Publishing House, Bucharest;
*** - Www.mfinante.ro

Corina Miculescu is lecturer at the Faculty of Management in Tourism and
Commerce Timişoara, „Dimitrie Cantemir” Christian University. She holds a
PhD. In Managerial Accounting with the thesis Managerial Accounting in
Textile industry. She is co-author (with Patac Filip) of Finanţe, published at
Eurostampa, Timişoara, 2007, and author of numerous articles. She is a
member of Danube Adria Association for Automation & Manufacturing -
DAAAM International Vienna
173
OPPORTUNITIES FOR PREVENTION

AND FIGHTING TAX EVASION
Corina Miculescu
Abstract: Tax evasion is one of economic and social phenomena

particularly important facing the countries of the world. Since the
eradication of tax evasion is still a desideratum, states are trying to find
solutions to limit as much as unintended consequences of this
phenomenon. The negative effects it generates indisputable tax evasion
are felt directly on the level of tax revenue receipts, causing major
distortions in the functioning of the market mechanism. In Romania tax
evasion has taken over the last twenty years, a special scale, severely
affecting the country's economic development. However, evasion tax is
still very difficult to control and quantify. A thing is due CEST several
factors, among which imperfections and particularities of tax law, the
low living standards of the majority of the population, low level of
civilization, culture and civic consciousness, aggressive fiscal policies
promoted by the state and not least corruption, which is present in the
bodies with responsibilities in combating tax evasion..
Keywords: tax evasion, tax pressure, tax, investment, efficiency
1. General considerations and trends

Excessive tax burden on the trend of taxable results in its
disappearance, knowing that tax kills tax.
Taxpayers aimed almost always put their interests before the
general interest of society. Most tax payers considered more as an injury
and not as a legitimate contribution to public spending, they see with an
evil eye financial bodies the way it reduces income taxes heritage. It is
well known that since ancient times, taxpayers have sought to reduce
their tax liabilities, using the most varied and ingenious methods.
Tax evasion is the result of imperfections, uncertainties and
inconsistencies tax laws and methods of determining the taxable and tax
bases.
In conditions of transition to a market economy, economic and
financial legislation was drafted late, adaptation to reality, trying to
174
reconcile both immense bureaucratic state apparatus and incentives to

promote private initiative. But the result of these measures has resulted
in blocking economic system, rejecting large potential investors abroad
uncontrolled leakage of national wealth and artificial concentration of
important material and money in the hands of businessmen.
If ignorance is added to these phenomena by officials of the state
apparatus operating principles of the market economy and corruption
that included these professionals resulting economic and social
environment favorable for economy.
In a market economy, financial authorities are faced with a
phenomenon that has mass scale tax evasion as a result of the tendency
to evade the law under substantial taxable income. The proliferation of
illegal acts, especially in finance and economics, is the consequence of
imperfect legislation or lack of regulations.
The democratization of our country's finances caused a reaction
against taxes especially among those who before the tax reforms were
exempt or tax privileges enjoyed significant.
After the events of 1989 occurred overt aggression phenomena of
public wealth, illegal transfers of capital, large-scale embezzlement,
fraudulent bankruptcy, acts of smuggling, abuse and deception special
fake documents evidencing import or export, massive removals country
currency, rare and radioactive metals and goods of national and
universal cultural heritage.
Almost all sectors have found cases of non-compliance on the
establishment of companies, acts of abuse and corruption in the supply
of private, state of non-involvement of management and protection
factors responsible companies as a whole.
Economic and financial crime in its complexity covered almost all
economic and social spheres, from technical-material supply in the
economy and ending with the privatization process and settlement of
financial transactions, foreign exchange and banking.
In the transition occurred criminal acts of great complexity and
diversity in terms of number of participants, injury and economic
importance and the institutions concerned.
Romanian society faces the existence of "underground" economy
of large-scale, characterized by the infiltration of banking and financial
markets by criminal structures and their attempt to take control of
important sectors of the national economy.
Business crime tends to be currently an antisocial phenomenon,
resulted in a degree of organization and specialization manifested as a
formal network of organizations and individuals information which, by
175
the most diverse and sophisticated means and methods come to corrupt
makers place up to the highest level in the political, legislative, judiciary
and administration.
Illegal transfer of assets by entrepreneurs, theft, deception and
fraud to the detriment of public property, illegal export of capital,
smuggling, illegal actions serve the forms and methods more or less
sophisticated, but illustrating the term "organized crime economic and
financial ".
Tax evasion is manifested not only nationally but also
internationally, owing to increased international economic cooperation
and development of relations between states with different tax systems
and different levels of taxation.
A very commonly used by transnational companies to avoiding
the imposition of a portion of the profit, is the establishment of branches
and subsidiaries in countries where taxes are lower and the organization
of artificial relationships between them and producing units within the
territory of another country, the tax is high. Such "tax oasis", "tax
havens" or "tax havens" are in Switzerland, Luxembourg, Cyprus,
Bermuda, Bahamas, Panama, Balearic Islands, Liechtenstein and others.
2. Subjects and objects of tax evasion

There are numerous means, ways of evading taxes that may be
contained in: repercussion taxes and tax evasion.
By means repercussion tax shift from taxable to the recipient
subject, ie the tax bearer. In other words, the repercussion is the shift of
the tax burden on the taxpayer's actual legal taxpayer. Real taxpayer
(tax bearer) is the person or entity required to pay tax effectively and
definitively, in the final analysis supporting the income or his wealth.
Transmission of tax burden (repercussion) is achieved most easily
if indirect taxes because they are paid by the enterprise to the state
budget, and the latter adds to the price of goods and transfers them to
the buyers. The repercussion may occur within certain limits and certain
direct taxes on income and wealth.
The main routes of transfer of the tax burden on others by
entrepreneurs are adding to the sales price of the goods or services of
indirect tax rates and recovery from the buyer; buying when the market
allows for raw materials, fuels, etc. at low prices, making it possible to
translate the buyers tax etc. Tax evasion is to circumvent various ways
and in any form, in whole or in part from taxes, fees, contributions and
176
other amounts owed to the national budget and off-budget special funds
by natural or legal persons Romanian and foreign.
If the battle is between taxpayers, one trying to throw each other's
shoulders tax, evasion battle is between taxpayers and the state.
Tax evasion is a clever use of the possibilities offered by law to
evade the payment of taxes and fees.
Of course in addition to sanctions and even before their
citizenship education is needed, fiscal civics, knowing that the company
has not only rights but also certain obligations.
May be subject to tax evasion accountants, managers, other
employees with tasks in the field of taxation from businesses, regardless
of the nature of capital - state, private or mixed - and persons authorized
or unauthorized.
Generally, tax evasion is the subject of economic and social
relations on the establishment of the state budget revenues, local
budgets, budgets of state social insurance, health insurance budget,
special extra-budgetary funds, etc., due to legal and natural persons.
3. Forms of tax evasion

The Romanian and foreign specialized literature in law and
financial practice known many forms of tax evasion.
After how it can be committed tax evasion two forms, namely:
1) tax evasion legal, lawful (permissible);
2) tax evasion, fraudulent, unlawful, illegal (tax evasion).
1. Tax evasion legal, licit (tolerated) consists in removing, law

sheltered from tax as a result of the interpretation of legal regulations on
complete and accurate application of the legislation, misapplication of
the law, by circumventing the law, intentional or not intent, so that
income or parts of them are not taxed. For example, an accountant,
ignorance or inattention, gives a partial tax declaration or tax authorities
commit some errors in the calculation of income and taxes.
Below are some examples of legal tax evasion:
▪ overestimation by the legal establishment amortization fund
in an amount greater investments required, representing a
reduction of taxable income tax base;
▪ grant temporary exemptions, establishment of new companies
from corporation tax;
▪ granting tax incentives in the form of tax exemptions, partial
exemptions, reductions, allowances, which constitutes a
177
suitable framework detour and evade payment of tax

liabilities through various means;
▪ fiscal gaps using the legal system in Romania etc.
Exporters and importers licit or illicit practice various means to
evade the payment of state foreign currency by acute such as private
compensation, accurate insufficient tariffs, currency transfers to and
from the country in violation of laws, different operations tourism etc.
“fiscal Paradise sites" is an additional way to achieve legitimate
tax evasion, because in their domicile and residence are established both
the legal platform and the individuals and for these tax havens they
direct their profits in other countries, thus avoiding financial bodies.
2. Tax evasion fraudulent, unlawful, illegal (tax evasion),

consists of knowingly concealing taxable object in underestimation of
the amount of taxable or use other means of evading the payment of
taxes due.
Financial Practice confirms that there are a variety of methods for
practicing tax evasion and fraudulent taxpayers can use the following
forms:
▪ accounting tax evasion, which is difficult to identify in practice
is to create the impression of a proper accounting records, using
false documents, in order to increase costs, reduce revenues,
reduce taxable income and ultimately, tax obligations by the
national budget ;
▪ traditional tax evasion, which consists of partial or total theft of
tax debts by failure to produce documents required by applicable
law or incorrect preparation of documents that include
operations such as: the pursuit of economic and social activities
paid by a clandestine, illegal, intentional and unjustified increase
spending by reducing taxable income through cash receipts and
sales receipts with no invoice; production and sale of goods,
work and services illegally;
▪ legal tax evasion - This is to hide the true nature of a contract to
avoid tax obligations;
▪ tax evasion through evaluation, which is to reduce the amount
of inventories, depreciation and provisions overestimation in
order tax while driving.
Tax fraud is to concern the taxpayer to violate tax laws in force.
At the same time, tax evasion can be national and international.
National Tax Evasion occurs within the borders of each state. It
is presented in two forms, namely:
178
a) National tax evasion craft - has the major characteristic that it is

less defined details for carrying out or scale thefts from paying
taxes to the state budget, how isolated mode of action of their
authors. The craft carrying evasion acting alone without
resorting to an organization for this purpose, that does not work
with others.;
b) National industrial tax evasion - is manifested through the use
of complex procedures and legal arrangements; this guy has both
fiscal evasion and criminal. This form of evasion is achieved by
splitting the action of evading taxes to the palace in an
underground network that aims to support the various operations
fictitious. In this form of evasion involving more natural or legal
persons carrying large profits by evading taxes.
International Tax Evasion is that which is practiced abroad by
playing international double taxation due to national tax regimes and
following the tax burden. To avoid being subject to two separate tax, the
taxpayer intended to be subjected to none, he fled to areas in terms of
tax. The techniques used are numerous, which contains a number of
subtle combinations useful.
International Tax evasion is linked to the branching production of
certain companies to countries with more favorable tax and social
legislation; it is facilitated and encouraged by the existence of free
zones, territorial enclaves, customs and foreign element receiving
escaping all or part of national laws.
4. Causes and effects of tax evasion

Understanding the phenomenon of tax evasion in all its forms,
combating and preventing them require knowledge of its causes first.
Fiscal pressure and many excessive tax burdens cause some
categories of taxpayers to evade, in various forms and in some ways
from the payment of taxes.
The degree of resistance to paying taxes is directly proportional to
the amount of tax obligations.
At the same time, it must be said that one of the causes of tax
evasion and failure is the civic education, civic, education tax payers
and tax bodies’ excesses.
A major cause gain tax evasion is the fiscal and legal system,
which although incomplete, has large gaps, inaccuracies, ambiguities
and even contradictions, however making a taxpayer escapist have a
179
wide margin of maneuver to perform various transactions to evade the

payment of taxes owed to the state.
Insufficient financial control, no control well organized,
professionally-trained personnel, consistent and uncompromising may
be another cause of tax evasion offered based impose statement.
In conclusion, the main causes of tax evasion are:
▪ existence of legal regulations ambiguous, incomplete, vague,
showing large gaps, uncertainties and allow interpretation of
the law in the desired direction, fraudsters having a broad
space for maneuver for avoiding tax obligations;
▪ excessive tax burden on taxpayers presses;
▪ failure citizenship education and fiscal;
▪ excess or exaggeration tax authorities;
▪ inconsistencies between normative acts;
▪ legislation incomplete, confusing and ambiguous;
▪ ignorance, ignorance or misapplication and misuse of tax
legislation;
▪ resistance to tax payers as a matter of fiscal civics;
▪ changes in tax law complexity and imperfections in legal
texts developed that subjective determinations and even
abusive especially regarding tax benefits for certain
categories of taxpayers;
▪ vagueness, imprecision and lack of unity;
Lack of rigorous control, competent, demanding and well organized to
be carried out by a professionally-trained staff, fair, objective and
principled
5. Opportunities for preventing and combating tax evasion

Central and local tax authorities have a duty to combat and
prevent tax evasion.
For this purpose, the tax system must be thoroughly trained and
have the correct behavior, dignified, perfect, to know all the ways of
practicing tax evasion, first to inform businesses on the content of tax
law to guide on how of their own bookkeeping, preparation of papers,
completing the tax return, the accurate calculation of the tax base, the
effective enforcement of tax rates, to exercise close supervision, firm,
uncompromising, the payments of taxes and, in the case of deviations,
applying legal tax penalties.
Combating and preventing tax evasion requires the government to
invest significant resources from the state budget in the corresponding
180
salaries of their staff, very good material supplies (transportation modern

computerized technology class, efficient means of communication, etc.),
employing specialists related areas of fiscal control (lawyers, engineers,
etc.).
At the same time it is necessary cooperation between control bodies
and secret services, the latter being able to provide accurate information
about tax evasion (companies involved, people, routes, places of storage
and marketing, cash transfers or bank settlements, identification the
system or corrupt persons involved in illegal trade, etc.).
To combat and prevent tax evasion can be used in the following
ways:
▪ unification of tax legislation and its better correlation with the
overall legislative framework in the economy;
▪ eliminate those provisions of the normative acts, which may
encourage tax evasion and better matching of tax incentives;
▪ reorganization of territorial structures of the Ministry of Finance
unit so as to eliminate duplication and overlap in the activity of
financial control in terms of fiscal supervision and combating tax
evasion;
▪ organization of the tax on the basis of separation of powers;
▪ transition to the forefront of control and permanent control sample;
▪ editing specialized publications by the Ministry of Finance to
facilitate uniform interpretation of laws;
▪ determining an optimal ratio between salary and incentives for the
fiscal incentives and even abolition of the system damaging both
the state and the taxpayer;
▪ implementing a system to provide the data necessary to identify,
analyze and combating tax evasion;
▪ establishing a system of internal training and personnel of the
Ministry of Finance, with responsibilities in identifying and
combating tax evasion etc.
4. Conclusions
Proposals to streamline the fight against tax evasion
To have a consistent and effective regulatory measures to combat
tax evasion to consider some key;
▪ The tax authorities must establish taxes so that they are
acceptable to taxpayers;
▪ Certainty discovery that the taxpayer's tax evasion has a greater
impact than criminal penalties;
181
▪ Increased training of officials of fiscal control bodies and

establish a fair and transparent system of incentives for them;
▪ Intelligent mechanisms must be found to determine the taxpayer
to fulfill tax obligations constrained by the need to conduct
business;
▪ Regulation of tax evasion offenses should be as clear, accessible
recipients criminal law so as to avoid problems of interpretation
of the law;
▪ Establishment of a national filing system natural or legal persons
who fail to pay outstanding liabilities.
Bibliography
Miculescu C., (2010), Finance, Eurostampa, Timisoara;
Patac F., Miculescu C., (2007), Finance, Eurostampa, Timişoara.
Stancu, I., (2003) Financial management of the enterprise, Economic
Publishing House, Bucharest;
I. Vasilescu, CICE C., Dobrea C., George A. (2009), I nvestment management,
EficonPress Publishing House, Bucharest;
Vintilă, G., (2005), Financial management of the enterprise, Didactic and
Pedagogic Publishing House, Bucharest.

Corina Miculescu is lecturer at the Faculty of Management in Tourism and
Commerce Timişoara, „Dimitrie Cantemir” Christian University. She holds a
PhD. In Managerial Accounting with the thesis Managerial Accounting in
Textile industry. She is co-author (with Patac Filip) of Finanţe, published at
Eurostampa, Timişoara, 2007, and author of numerous articles. She is a
member of Danube Adria Association for Automation & Manufacturing -
DAAAM International Vienna
182
LEGISLATION IN TOURISM
183
184
PREPARATORY CONTRACTS REGARDING

THE PREFERENTIAL OBLIGATION
Gheorghe Pinteală
Abstract: A pact of preference is a contract used by a contracting part,

called promisor, to be obliged towards the other part, who accepts the
promise, called beneficiary, that they will not close a certain contract
with a tertiary part before they propose the closing of the respective
contract to the beneficiary under the same conditions. As in the case of
negotiation contract, a pact of preference can be found by a separate
contract or can be included in an express contractual clause inserted
into another contract.
Keywords: Preparatory contracts, promisor, beneficiary
1. Preparatory contracts that have as an object a preference

obligation (pact of preference)
A pact of preference is a contract used by a contracting part,
called promisor, to be obliged towards the other part, who accepts the
promise, called beneficiary, that they will not close a certain contract
with a tertiary part before they propose the closing of the respective
contract to the beneficiary under the same conditions1 .
As in the case of negotiation contract, a pact of preference can be
found by a separate contract or can be included in an express contractual
clause inserted into another contract.
The pact of preference is the source of a priority right to closing a
contract, similar to conventional preemption right2 in favour of the
beneficiary, whose correlative obligation, for the promisor, is to propose
to the beneficiary a priority closing of a contract, but only in case the
promisor will decide to contract in the future.
1 P. Voirin, M. Dagot in Fl. I. Mangu, Contracte civile si administrative de valorificare

a fondurilor europene, Ed. Eikon, Cluj Napoca, 2013, p. 132.
2 L. Pop in in Fl. I. Mangu, Contracte civile si administrative de valorificare a
fondurilor europene, Ed. Eikon, Cluj Napoca, 2013, p. 132.
185
Thus, in the pact of preference there is no obligation for the

promisor to contract in the future, but only to give priority, unlike the
unilateral promise to contract or pre-contract unilaterally.
In case the promisor closes the contract with a tertiary part,
disregarding the preferential right of the beneficiary, they will be
engaged in contractual responsibility, being forced to pay damages for
the caused prejudice by disregarding his conventional duty.
2. Preparatory contracts that generate the obligation

to close a definitive agreement
2.1 Framework agreement
According to article 1176 from the Civil Code “(1) the
Framework agreement is the agreement used by parts to negotiate, to
close or to maintain contractual rapports whose essential elements are
determined by it. (2) The modality to enforce a framework agreement,
especially time and volume of benefits, as well as, if that is the case,
their price, are stipulated by further conventions”.
The framework agreement is a contract used by contracting parties
to define and establish main regulations and conditions that will govern
the closing of further contracts called “application” or “enforcing” of
framework contracts3.
A framework contract is a contract that aims at modalities which
are established in advance, a final and rapid closing of some contracts of
application4.
Thus, by a framework agreement, we prepare a multitude of
further contracts whose essential elements are fixed in the contract.
Starting from this contract, where only essential conditions are fixed for
future collaboration among parties, these parties will be able to initiate
further negotiations regarding definitive contracts, to close such
contracts or, if, there already are contractual rapports at the time of
closing a framework agreement, to continue under the agreed conditions
in the framework agreement5.
All these future conventions which will be closed in the
framework agreement will establish the modality to enforce it, as it is
completed with the contents of each convention. That is why, the
3 L. Pop in Fl. I. Mangu, Contracte civile si administrative de valorificare a fondurilor

europene, Ed. Eikon, Cluj Napoca, 2013, p. 140.
4 C. M. Cosmin in Fl. I. Mangu, Contracte civile si administrative de valorificare a
5 Fl. I. Mangu, Contracte civile si administrative de valorificare a fondurilor europene,
Ed. Eikon, Cluj Napoca, 2013, p. 140.
186
framework agreement constitutes, for these future contracts, closed on it

basis, a preparatory contract which initiates the obligation for further
contracts, as it is the responsibility of both parties.
2.2 Unilateral promise to contract

The unilateral promise to contract is defined in literature6 as being
“the convention by which one of the parties, called promisor, engages to
the other, called beneficiary, to close a certain contract, in the future,
upon its request, a contract whose essential content is determined at
present, by the promise to contract”.
From the unilateral promise to contract comes an obligational
juridical rapport with a content that includes, on one side, the obligation
of the promisor to close the promised contract (the obligation to do)
and, on the other, the right of the beneficiary to opt (secondary right)
between to request or not to request the closing of that contract, usually
within the terms convened upon by the parties7. According to article
1279, line (2) Civil Code, “in case of nonperformance of the promise,
the beneficiary has the right for damages –interests”, and, according to
line (3) of the same article, “also, if the promisor refuses to close the
promised contract, the court, on demand formulated by the party that
has fulfilled its obligations, may pronounce a decision to replace the
contract, when the nature of the contract allows it, and the law to
validate it also allows it”.
Thus, in case that, after the beneficiary formulates an option, that
is, it demands to close a definitive contract, the promisor does not fulfill
the obligation promised, unjustified, the beneficiary has the possibility
to address the court of justice and to require a foreclosure of the
obligation of the promisor by issuing a decision to replace the contract.
This can happen only if the following conditions are observed: a) the
nature of the contract allows it, b) all the validity conditions are fulfilled
and c) the beneficiary has not fulfilled all the obligations (in case there
are any). This “remedy” can be accompanied by granting damages-
interests or every time the beneficiary of the promise brings proof of
damage due to the late performance of the contract or even due to
nonperformance by the promisor.
6 M. Cosmin, M. Muresan, V. Ursa in Fl. I. Mangu, Contracte civile si administrative

de valorificare a fondurilor europene, Ed. Eikon, Cluj Napoca, 2013, p. 142.
7 L. Pop in in Fl. I. Mangu, Contracte civile si administrative de valorificare a
187
If the three conditions are not all fulfilled, the beneficiary will
have the right only to damages-interests, as an expression of foreclosure
by the equivalent obligation of the promisor.
2.3 Reciprocal promise to contract
The reciprocal promise to contract (also called pre-contract,
provisional agreement etc.) is the contract where the parties are firmly
and reciprocally obliged to close, in the future, a definitive contract,
with essential elements fixed at present (within the promise)8.
The reciprocal promise to contract is different from the unilateral
promise to contract, as each party has an obligation towards the other,
their obligations being reciprocal and interdependent, whereas in the
case of unilateral promise, only one party (the promisor) is obliged
towards the other (the beneficiary).
The unilateral promise to contract has as a result reciprocal and
interdependent obligations, which imply, in the future, the closing of an
express and implicit term of the definitive contract with essential
clauses which are included in the promise9. According to the article
1279, line (1) from the Civil Code, the reciprocal promise to contract
should include all those clauses of the promised contract, without which
the promise cannot be fulfilled.
All the other observations made under the unilateral promise to
contract are valid accordingly for the reciprocal promise to contract.
2.4 Option agreement
According to article 1278, line (1) Civil Code, “when the parties
agree that one of them stays tied to its own agreement, and the other may
accept it or refuse it, in this case this agreement is considered an
irrevocable offer and may produce the effects stipulated in article 1191”.
Thus, the option agreement can be defined as a contract (the
parties agree upon something) where one party, called the promisor, is
obliged towards the other party called, beneficiary to close a contract
(“one of them is tied to its own agreement), the beneficiary has the right
to opt within a certain time period (initially determined or undetermined
by the parties), to accept or refuse the closing of the contract (“and the
other party may accept or refuse”)10.
8 L. Pop in Fl. I. Mangu, Contracte civile si administrative de valorificare a fondurilor

9 D. Chirica in Fl. I. Mangu, Contracte civile si administrative de valorificare a
10 Fl. I. Mangu, Contracte civile si administrative de valorificare a fondurilor
188
The option agreement is different from the contract it prepares,

being the antechamber of the definitive contract, as the most advanced
form of preparatory contract. This is due to the fact that the option
agreement includes the consent of the promisor for the closing of the
definitive contract, even if for the valid form of the definitive contract, a
mutual consent of the parties is needed, whereas the consent of the
beneficiary is lacking the consent of the beneficiary, being reserved for
the future. In this case, the beneficiary accepts the agreement of the
promisor who only gets the right for an option, having the freedom to
offer or not the consent to close the future definitive contract, within the
terms established by both parties in the content of the agreement or, if
such a stipulation is missing, in the term fixed by the court of justice, by
presidential ordonnance, with both parties cited (article 1278 line (2)
Civil Code). This option right of the beneficiary is a true reciprocal right
and it characterizes the option agreement, being a particularity for this
agreement, setting it apart from the other agreements and from the
promised contract11.
Under these circumstances, the definitive contract is closed by
exercising an option, that is the beneficiary accepts the agreement of the
other party, under the conditions agreed upon (article 1278 line (4) Civil
Code). Thus, it is sufficient that he beneficiary raises the option, that is
to accept without any reservations the proposal made by the promisor in
order to close the definitive contract. That is why the option agreement
must include all the elements of the contract that the parties must close,
so that they may be able to close it simply when the beneficiary accepts
the option (article 1278, line (3) Civil Code.
After the beneficiary raises the option, if the essential conditions
to validate the definitive contract are fulfilled, the definitive contract is
written, without any further prestations.
NOTE ON THE AUTHOR

Gheorghe Pinteală is a lecturer at the Faculty of Management in Tourism and
Commerce Timisoara, Dimitrie Cantemir Christian University Bucharest. He is
also a lawyer.
11 Ph. Malaurie, L. Aynes, P. Y. Gautier in Fl. I. Mangu, Contracte civile si

administrative de valorificare a fondurilor europene, Ed. Eikon, Cluj Napoca, 2013, p.
151-152.
189
THE PRE-CONTRACTUAL PHASE AND

THE NEGOTIATIONS REGARDING THE
CONTRACT IN THE ROMANIAN CIVIL CODE
Gheorghe Pinteală
Abstract: The pre-contractual negotiation stage is represented by the

“exploratory period” when future contracting parties exchange points
of view, formulating and discussing the proposals in order to determine
the content of the contract, without the assurance that the contract will
be closed. This is an essential phase and both the balance of the
potential contract and the quality of the contract depend on its
development and success.
Keywords: pre-contractual, negotiations, obligations, contracts
1. Generalities
The pre-contractual negotiation stage is represented by the
“exploratory period” when future contracting parties exchange points of
view, formulating and discussing the proposals in order to determine the
content of the contract, without the assurance that the contract will be
closed. This is an essential phase and both the balance of the potential
contract and the quality of the contract depend on its development and
success1.
The pre-contractual stage may suppose a progression or a
regression in achieving the contractual agreement, that is may or may
not lead to closing a contract. Regardless of the final solution of this
stage, it takes place in the light of the freedom in negotiating which is
addressed in article 1183, line (1) Civil Code, according to which “the
parties have the freedom to initiate, develop and break negotiations and
cannot be held responsible for failure”. This freedom of negotiation is
characterized by the parties’ right to choose their own negotiation
partners, to interrupt pre-contractual debates whenever they consider
adequate, to accept or to refuse signing a contract after having finished
1 Fr. Terre, Ph. Simpler, Y. Lequette in Fl. I. Mangu, Contracte civile si administrative
de valorificare a fondurilor europene, Editura Eikon, Cluj-Napoca, 2013, p. 110.
190
negotiations2. In fact, we can see here the application of freedom of

rightful subjects who can close any contract, for which they can
negotiate when, how much and how they want. The rightful subjects
who get involved in negotiations are free to do so by occasional
representatives, as well as professionals3 (for example, real estate
agencies, car dealers, lawyers).
The contractual freedom allows parties of a future convention to
put up rules to be applied when negotiating4 the contract that finalizes
the process of negotiations.
Also, the substantial freedom of negotiation implies a total
freedom of expressing the intention to enter into contracts for possible
contractual negotiations. That is why basically announcements are
published and spread, physically or virtually, advertising or presenting
characteristics of goods and services, as well as informing partners
about possible tariffs and prices. Such documents are not considered
contractual writings, and the responsibility of those who circulate them
is strictly tortious5.
2. Juridical conditions applicable to the pre-contractual stage

When establishing the juridical conditions applicable to the pre-
contractual stage, it is necessary to consider the sources of incidental
obligations, that is, if they are stipulated by law or if they are created by
parties (contravention obligations).
Thus, if we speak about breaking legal obligations, responsibility
is extra-contractual, tortious, whereas, if we deal with breaking a
contractual obligation, responsibility is contractual, under the provisions
in the preparatory contract that was signed6.
The law that is applied to the pre-contractual stage is considered
to be the law applicable to the projected contract. Thus, regardless of the
characterization of responsibility described above, the national law
which is applicable will be that of the final contract, according to article
12 Rome Regulations II regarding the applicable law to extra-
2 Ph. Malaurie, L. Aynes, Ph. Stoffel-Munck in L. Pop, I. Fl. Popa, S.I. Vidu, Tratat
elementar de drept civil. Obligatiile, Editura Universul juridic, Bucuresti 2012, p.91.
3 P. Vasilescu. Drept Civil. Editura Hamangiu. Bucuresti, 2012, p. 278.
4 M. Fabre-Magnan in P. Vasilescu. Drept Civil. Editura Hamangiu. Bucuresti, 2012,
p. 576.
5 P. Vasilescu. Drept Civil. Obligatii. Editura Hamangiu. Bucuresti, 2012, p. 278.
6 L. Pop, I. Fl. Popa, S.I. Vidu, Tratat elementar de drept civil. Obligatiile, Editura
Universul juridic, Bucuresti 2012, p.98.
191
contractual obligations, the only condition being that breaking

obligations to enter the notion of culpa in contrahendo7. Thus, the law
applicable to the pre-contractual stage is finally determined by the rules
established by article 2 and the following from the Regulations Roma I
regarding the law applicable to contractual obligations8.
The negotiations describe a factual situation, and juridical, not
psychologically, sociologically or economically, it is interesting to see
the behavior of those engaged in such contractual negotiations9. The
pre-contractual freedom is under certain limits that are given by the
presence of some legal or conventional explicit or implicit obligations.
3. Specific obligations to pre-contractual stage

When speaking about specific obligations to pre-contractual stage,
we refer both to legal obligations and to a series of obligations that can
be implied from these and which can be characterized as implicit
obligations. Another category of obligations can be the result of
preparatory conventions closed by parties in the negotiation phase. Such
obligations are:
a. The obligation of good will. It is a legal obligation, provided by
article 1183 (2) Civil Code, according to which “the party that is
involved in a negotiation must respect the requirements of good will.
The parties cannot agree upon excluding this obligation”. This
obligation is a mandatory obligation which supposes that parties cannot
eliminate or restrict it.
From the good-will obligation we can imply numerous
obligations, sometimes called “implicit”, the most significant one being
pre-contractual information.
b. The obligation of confidentiality is the second legal obligation
retained in the negotiation phase. It is stipulated in article 1184 Civil
Code, according to which “when confidential information is
communicated to a party during negotiations, the other party must not
divulge it and not use it for its own interest, whether the contract is
closed or not. Breaking this obligation attracts responsibility of the
guilty party”. This time, due to the fact that we speak about a
7 I. Bach, P. Huber in L. Pop, I. Fl. Popa, S.I. Vidu, Tratat elementar de drept civil.
Obligatiile, Editura Universul juridic, Bucuresti 2012, p.98.
8 A. Bonomi in L. Pop, I. Fl. Popa, S.I. Vidu, Tratat elementar de drept civil.
Obligatiile, Editura Universul juridic, Bucuresti 2012, p.98.
9 P. Vasilescu. Drept Civil. Obligatii. Editura Hamangiu. Bucuresti, 2012, p. 275.
192
disposition, parties can derogate from the provisions of article 1184

Civil Code, allowing the use of obligations obtained during negotiations
and during relations with other persons, possible during other
negotiations. This permission is equivalent to a requalification of
information exchanged as not being confidential.
c. The obligation of pre-contractual information is not clearly
stipulated, but the theory of vices of consent leads to holding in this pre-
contractual phase of this obligation, being legal and implicit10, implied
from the general obligation of good-will. The object of the obligation of
information is given by a sum of information related to future contract
and which is considered important to closing a contract.
The obligation of information is considered to be an obligation of
result, that is, the one who owes it must be sure that transmitting
information is realized and thus, the purpose of obligation was realized,
as well as being sure that the recipient of information has understood the
information that was provided11 to him.
d. There are also contractual obligations and obligations resulted
from preparatory conventions, closed before organizing the pre-
contractual phase, for example: the obligation to negotiate, to continue
negotiations, to be honest, to have exclusive right on negotiations, to
assist, to bear certain pre-contractual costs, etc.12.
4. Classification of pre-contractual negotiations

Pre-contractual negotiations can be of two sorts, according to the
way they are organized, such as: free negotiations or common
negotiations (governed by the common law – article 1182-1185 Civil
code) and negotiations organized conventionally or contractually (by
rules established by parties).
5. Free or common negotiations

Due to the fact that they are not organized conventionally, the
juridical stage of initiation, development or/ and breaking negotiations
193
is governed by the norms of common law represented, as we have

already demonstrated, by article 1182-1185 Civil Code.
The pre-contractual stage of negotiation must be characterized by
at least the same characteristics that define the contractual stage13. Thus,
if we speak about the freedom to contract, that has no other limits than
law, public order and good manners, there must be freedom to negotiate,
within the same limits, universally valid, to which we referred above.
This right to free initiation, development and breaking of
negotiations is considered, along with the right to contractual freedom, an
essential piece in modern market economy, conferring to parts, among
other things, the faculty to bear simultaneous negotiations with more
potential partners, with the finality to compare various offers received, to
choose the most advantageous and to break discussions with those who
do not fulfill expectancies of the one involved in negotiations14.
6. Conventionally organized negotiations

In the pre-contractual stage, discussion partners may close
different kinds of conventions, which can be generically called
“preparatory contracts” and which have the role to prepare the future
definitive contract from the point of view of its content15.
These contracts can be grouped in three categories, according to
the nature and the intensity of obligation:
a. preparatory contracts that result into the obligation of negotiation
(negotiation contracts);
b. preparatory contracts that have as an object a preferential
obligation;
c. preparatory contracts that generate an obligation to close a
definitive contract.
7. Negotiation contracts
Negotiation contracts (also called negotiation agreements,
agreement in principle, negotiation pact etc.) have as an object the
conventional organization of rapport between parties in the negotiation
13 Fl. I. Mangu. Contracte civile si administrative de valorificare a fondurilor

europene. Editura Eikon, Cluj-Napoca, 2013. P.111
194
phase of the definitive contract. Their main aim is to organize

negotiations (already started or the ones that will be initiated) in the
sense that conditions and development modalities should be determined,
to confer the whole security desired to close a definitive contract16.
The negotiation agreement is defined in literature as being the
contract where the parties engage to negotiate willingly the signing of a
future contract, whose elements are not yet established or are only
partially outlined17.
In fact, the obligation of negotiation can result either from a
contract or in a negotiation clause inserted in a contract.
As far as the effects of such a convention are concerned, the main
obligation that results into an agreement in principle is that to negotiate,
to have discussions in order to close a future definitive contract, with
conditions that will be revealed during negotiations. That is why,
breaking it will conduct to paying damages-interests to the injured party
due to the contractual civil responsibility or to abuse of rights18.
8. Partial agreement or scores

If negotiations stretch on a longer period, the parties may come to
an agreement regarding certain elements of the future definitive
contract. These elements to which the parties agree not to return
unilaterally, not to bring them back into discussion, are pointed to
within the partial agreement. This partial agreement represents an act of
will, partial and definitive, on which parties agree not to return
unilaterally. Thus, during negotiations, more scores can be closed, every
time the partners come to a consensus regarding elements of the future
definitive contract.
NOTE ON THE AUTHOR

Gheorghe Pinteală is a lecturer at the Faculty of Management in Tourism and
Commerce Timisoara, Dimitrie Cantemir Christian University Bucharest. He is
also a lawyer.

europene. Editura Eikon, Cluj-Napoca, 2013. P.118.
17 J. Goicovici in Fl. I. Mangu. Contracte civile si administrative de valorificare a
fondurilor europene. Editura Eikon, Cluj-Napoca, 2013. P.119.
18 J. Flour, J. L. Aubert, E. Savaux in Fl. I. Mangu. Contracte civile si administrative
de valorificare a fondurilor europene. Editura Eikon, Cluj-Napoca, 2013. P.120.
195
LEGISLATIVE PROPOSALS ON SPECIALIZATION

AND IMPROVEMENT OF RURAL TOURISM
Romeo Cătălin Creţu, Adelaida Cristina Honțuș,

Traian Ioan Berbecaru
Abstract: As an alternative of Romania’s sustainable development,

rural tourism is considered to be an assembly of product- price-
consumption, which awards the country multiple opportunities for
integration into European structures. Taking into consideration the
Government Decision no. 20/2012 on the approval of multi-annual
programmer for destinations, forms and tourism products development,
the 3rd article, the 1st line, e item “actions regarding a specialized
ranking of reception structures with accommodation in the
hydropathical (spa) and rural tourism in Romania”, as well as the
measures covered in the Strategic and Operational Marketing Plan for
Romania during 2011-2015, the National Authority for Tourism
together with the National Organization for Rural, Ecological and
Cultural Tourism, The Partnership Federation in Romanian Tourism
and the Management, Economic Engineering in Agriculture and Rural
Development at the University of Agronomic Sciences and Veterinary
Medicine in Bucharest launch the pilot project: “A thematic
specialization of tourism and agritourism guest houses in Romania”.
Keywords: management, strategy, innovation, agritourism, sustainable
development.
1. INTRODUCTION
Tourism is one of the economic sectors that have experienced the
most rapid expansion in recent decades. The economic benefits of the
tourism industry are manifold.
The tourism industry generates a significant number of jobs and
investment in this area have a relatively short amortization period. Local
economy as a whole benefits as a result of tourism development (Crețu
R.C., 2012).
196
Tourists creates additional demand for consumer goods and

services, stimulating the tertiary sector (services, trade, craft industries,
etc.).
Meanwhile, rural tourism infrastructure tend to have more
developed urban infrastructure and services. Transport and real estate
are two major branches that have earned through tourism development
(Honțuș A.C., 2015).
Should be considered, indirect benefits obtained by increasing the
visibility and interest in those regions of Romania which records a large
influx of tourists.
If you currently share of tourism in GDP is low at both national
and regional level (about 2-3%), medium term this can easily double,
even without expansion of tourist reception by adopting projects
innovative and sustainable (Honțuș A.C., 2005).
In this paper we propose several criteria to identify sustainable
agro guesthouses and specialized.
2. CURRENT STATUS OF TOURISM IN ROMANIA
Because to the tourism potential of Romania, in 2007 developed a

master plan for this area for the period 2007-2026, which is a necessary
tool in the long-term development of tourism, providing a framework
for policy support at the national level to develop a sustainable
management in the tourism industry (Honțuș A.C., 2014).
According to the Statistical Yearbook of Romania (INSSE, 2012),
the main tourism industry are presented in table no. 1.:
197
Table 1.The main indicators of the tourism industry (31 July 2011)
Regions
South-Muntenia
Bucharest-Ilfo
Indicators/
South-West
South-East
North-Wes
North-Eas
Oltenia
Centre
West
Tourist reception
1. 650 1,197 604 974 533 155 377 513
– no.
Tourist
2. accommodation 28,459 45,388 21,927 95,587 24,111 21,086 18,274 23,671
capacity - seats
Existing
accommodation
3. capacity - 8,830.6 12,867.4 6,423.5 14,336.2 7,199,8 7,644.1 4,761.2 6,354.5
thousand places -
days
Arrivals of tourists
4. 799,8 1435,8 696,2 1134,8 615,9 1282,6 426,8 639,7
- thousands
Number of
5. overnights - 2,084.6 3,311.6 1,556.4 4,050.3 1,677.9 2,129.6 1,486.2 1,682.8
thousands
Source: INSSE – (2012), pg. 230-235
From table no. 1 can find that in our country the first two places
are occupied by south-east and centre.
With a very generous nature and cultural heritage of great value,
Romania has a high tourism potential and diversified. Without
attempting a clear separation between forms of tourism in Romania, we
consider useful to their differentiated analysis (Antonoaie et al, 2002).
Since most research and studies to date resulted conclude that forms of
tourism with the highest growth potential are: mountain tourism, health
tourism, cultural tourism and rural tourism.
Net use index of accommodation capacity decreased from nearly
55% in 1990 to about 23% in 2010, which means that, on average,
remain unfilled accommodation nine months a year.
It requires the adoption of measures to attract domestic and
foreign tourists in the tourism accommodation for increasing
employment
Given the potential of the Romanian agritourism propose a
marketing tool to promote hostels and attract tourists.
198
3. PILOT PROJECT OBJECTIVES

The Pilot Project “A thematic specialization of tourism and
agritourism guest houses in Romania” requires the volunteer
participation of tourism economic agents and it does not replace the
present classification by degree of comfort in reception structures with
accommodation, being complementary to it.
The project’s goal lies in public recognize, encouragement and
economic agents stimulation that make efforts and obtain important
results to develop their own competitively through quality.
The goals of the pilot project “A thematic specialization of
tourism and agritourism guest houses in Romania, are as follows:
A customization of the tourism offer highlighting the quality,
variety and uniqueness of products related to the rural tourism;
The improvement of tourism economic agents competitively by an
increase of products and services quality;
An increase of the awareness on offer’s diversity and quality in
Romanian rural tourism, by promoting a good example of
quality.
4. THE PROJECT TARGET GROUP

Eligible applicants may be: economic agents who have tourism
and agritourism guest houses authorized by the active law.
The proposals of thematic specialization categories for tourism
and agritourism guest houses in Romania as well as the criteria are
presented in the Appendix 1, which are subject to public debates by
the National Authority for Tourism during June the 10 th and July 30,
2013.
Please note that comments or suggestions for improving the
criteria will be send to the e-mail address: preşedinte@mturism.ro.
The benefits for taking part at the project are:
- The accomplishment of a bilingual material (brochure and
CD) to present specialized guest houses;
- The promotion of specialized guest houses on the Ministry
web page;
- Granting a diploma where in one may write “Tourism guest
house recommended by the National Authority for Tourism
that is specialized”
199
5. PRODUCT INNOVATION TOURISTIC AND

AGROTOURISTIC
Marketing research was conducted by applying questionnaires
among owners of hostels in Romania and tourists. As a result of
research have emerged following types of pensions:
Guest houses for riding

TYPES OF PENSIONS
Guest houses for fishing
Guest houses specialized on folk art
Guest Houses in Vineyards
Guest houses specialized in cycle- tourism (for cycling)
Charming guest houses
TYPES OF PENSIONS
Guesthouses
Guest housesfor
forfamilies
spa wellness
with children
Guest houses for meetings, seminars and conferences
Guest houses
Green guest for trips
houses
Figure 1. Types of pensions (personal contribution)
In table. 2 we present theTraditional

proposed classification criteria for each
Cuisine
type of pensions:
Table 2. Types of pensions and criteria for the classification

Types of
Nr. crt. Criteria for the classification
pensions
Guest o The structure should be classified;
houses o TheTraditiGuest
structure hou
has a specialized workshop, where one
specialized may practice/ evidence the folk art (by example:
on folk art
popular painting craft; clay craft; wood carving craft;
folk craft);
o At the
ses specialized on folk art the guest house owner may
tourists demand,
hold work sessions to show the craft process of
product;
o It is recommended that the owner to hold and present
onal Cuisine
information about craftsmen in the area;
o The structure has an available parking;
o The structure has a special area for the display of
products related to folk art;
o The road to guest house should be signposted;
200
Guest The structure should be classified;

Houses in The structure should be situated in a winegrowing area;
Vineyards The vineyard environment is reflected into the
internal and external design of the structure;
Free informational materials to discover details
about wine and grape varieties are available to guests;
The structure is equipped with dedicated spaces to
keep and taste own wine varieties;
At guests request, the owner should arrange visits to
the cellars where the wines are kept, at some mansions
ore castles in the area; the owner should also organize
tasting sessions, trips to vineyards, especially during the
harvest season and so on;
The internal design should be appropriate to the area
and it is recommended to use in decorating the rooms,
products and materials related to rural live (rustic
wooden tables, chairs and so on);
The road to guest house should be signposted.
Guest o The structure should be classified;
houses for o The internal design should be appropriate to the
riding area and it is recommended to use in decorating the
rooms, products and materials related to rural live
(rustic wooden tables, chairs and so on);
o The guest house should have horses, stables, horse
feed, specific tools for taking care of the horses and
riding equipments, or it should be placed at a distance
of about 5 km of a herd of horses;
o At the guest house should be at least a person trade
in riding and can provide information to clients ;
o At guests request, the owner should assure the
clients lessons for teaching and training the riding;
o The road to guest house should be signposted.
Guest 6. The structure should be classified;
houses for 7. The structure should be placed in areas where one
fishing may practice fishing (near the rivers and lakes). They
have spaces for keeping boats, fishing tools, spaces for
fish processing and storage;
8. The internal design should be appropriate to the
area and it is recommended to use in decorating the
rooms, products and materials related to rural live;
9. The structure has available parking;
10. It is recommended the guest house to have
specialized magazines for tourists;
11. The road to guest house should be signposted.
201

houses for 13. The guest house should have a playground;
families 14. The menu must be suitable for children needs
with 15. The furniture should be proper for developing
children
some indoor games for children, but also other
activities such as painting or colouring;
16. In the guest house there should be high chairs for
children, a surrounded playground with at least four
elements, T.V and so on ;
houses 19. The guest house is recommended to provide the
specialized possibility to rent bicycles, free of charge or surcharge;
in cycle-
20. The structure should offer the clients a parking for
tourism (for
cycling) bicycle, bike repair services, information about routes
and cycle lanes and so on;
21. The guest house offers maps, informative materials
and information about tourism routes;
Charming 23. The structure should be classified;
guest 24. The design is innovative, harmonious, spectacular
houses in using forms, materials, colours, light and space
without functions neglect;
25. Gardens are designed in a particular way, using
attractive furniture
houses for 28. The guest house should have certain facilities
spa wellness including sauna, herbal baths, massage, swimming pool
or it should be placed on a distance of about 5 km away
of a treatment or wellness base ;
29. Into the accommodation rates are also included
pool and sauna access;
30. At the guest house there is at least a person trained
in wellness and available for answering the clients
questions about health;
31. The menus are very well balanced and there is at
least a vegetarian one;
32. Into the rooms should be displayed information
about health and wellness philosophy;
33. There are at least 50% of rooms for non- smoking
people;
202

houses for 36. The structure should have a conference hall with a
meetings, minimum of 25 seats;
seminars 37. In the conference hall should be tables, chairs,
and computers, a flipchart, a screen for video projection, free
conferences internet access;
38. The structure should have access to public
transportation;
39. The structure should have a space that can be used as
office work and be properly equipped with fax, internet
access;
houses for 42. The structure is situated in regions where one may
trips go into trips;
43. Trails are well marked around the structure;
44. Tourists will found information about cabins, huts,
weather, public transport and so on ;
45. The structure provides clients the opportunity to
serve a healthy breakfast, and those who leave early in
the morning, coffee at thermos and possibly a package;
Green guest 47. The structure should be classified;
houses 48. The structure should be placed into a distinct, natural,
quiet and private;
49. The structure should have a yard, with a well
designed garden;
50. The structure should use alternative energy sources;
51. The structure has own plant and animals production;
Traditional 6. The structure should be classified;
Cuisine 7. At the guest house are offered local and traditional
menus and drinks;
8. The house speciality, the ingredients it contains
and its history are presented into the guest house
promotion brochure;
9. Regarding the tourists’ demand, the guest house
owner should organize activities for harvesting
medicinal plants, forest fruits or mushrooms;
10. Regarding the tourists’ demand the guest house
owner should organize a picnic at the edge of the
forests;
11. The guest house menu must provide clients at least
five categories of specialities;
12. The guest house should provide new and old
cookery books, receipts or literature;
Source: Personal contributions
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6. CONCLUSIONS
For Romania, tourism is one of the branches of the economy, with
agriculture can contribute to increasing GDP per capita if they adopt
innovative and sustainable strategies in these sectors.
The pilot project presented in this paper is an innovative and
durable, its role is to identify, based on consumer demand for tourism
products and bidders, types of hostels that meet in a much larger market.
In this paper we have identified several criteria for sustainable and
innovative agro guesthouses and specialized subject areas, depending on
supply and demand.
The Pilot Project “A thematic specialization of tourism and agritourism
guest houses in Romania” requires the volunteer participation of
tourism economic agents and it does not replace the present
classification by degree of comfort in reception structures with
accommodation, being complementary to it.
ACKNOWLEDGMENT
The authors thank the specialists of the National Authority for Tourism for
cooperation and support in this project.
Thanks and owners of guesthouses, Romania ANTREC members who
responded to the questions in our questionnaire, and we dialogued tourists to
complete this study.
References
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aspects at the industrial enterprises level, Supplement of “Quality-
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essential elements of year in tourism planning area, Scientific Papers.
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Hontuş Adelaida Cristina. Land Planning for tourism and agrotourism - the
Second edition revised and enlarged, Ed CERES, Bucharest, 2015
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at the level of tourist accommodation facilities, Bulletin of University of
Agricultural Sciences and Veterinary Medicine Cluj-Napoca.
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Horticulture. Editura Academic Press Publishing House, ISSN 1843-

5254; Electronic ISSN 1843-5394. ISI Thomson Reuters Master Journal
List, 2013
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Ioana NICULAE, STUDY REGARDING CONSUMPTION OF
ORGANIC PRODUCTS IN ROMANIA, Published in Scientific Papers.
development", Vol. 14 ISSUE 2
*** National Institute of Statistics, Statistical Yearbook of Romania.
Romanian Tourism - Statistical Summary, 1990-2015.
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NOTE ABOUT THE AUTHOR

Romeo Cătălin Creţu
University of Agronomical Sciences and Veterinary Medicine - Bucharest,
Faculty of Management, Economical Engineering in Agriculture and Rural
Developments, No. 59, Mărăşti Boulevard, no.1 Sector, Bucharest, cod
011464, Romania, e-mail: creturomeocatalin@yahoo.com
Adelaida Cristina Honţuș

University of Agronomical Sciences and Veterinary Medicine - Bucharest,
Faculty of Management, Economical Engineering in Agriculture and Rural
Developments, No. 59, Mărăşti Boulevard, no.1 Sector, Bucharest, cod
011464, Romania, e-mail: adelaidahontus@yahoo.com
Adelaida Cristina Honţuş born in 1970, graduated in 1996 University of

Agronomic Sciences and Veterinary Medicine Bucharest, Faculty of Land
Reclamation and Environmental Engineering. In 1997 he completed advanced
studies in the Faculty of Land Reclamation and Environmental Engineering
Specialization: Rehabilitation of land improvement. In 2001 he graduated
from the Faculty of Management, Economic Engineering in Agriculture and
Rural Development of the University of Agronomic Sciences and Veterinary
Medicine Bucharest. In 2003 he earned a PhD in the Faculty of Land
Reclamation and Environmental Engineering. He has published 10 specialty
books as sole author and coauthor, 21 specialized textbooks as one author
and co-author, he published an impressive number of papers and studies in
ISI and BDI. Of textbooks published by Mrs Adelaida Cristina HONŢUŞ include:
"Touristic and Agrotouristic Geography of Romania" - the Second edition
205
revised, Ceres Publishing, ISBN 978-973-40-0830-8, Bucharest, 2009; "Land

Planning for tourism and agrotouristim - the Second edition revised and
enlarged", Ceres Publishing, ISBN 978-973-40-1090-5, Bucharest, 2015; "
Agrotouristic Building - the Second edition revised and enlarged", Ceres
Publishing, ISBN 978-973-40-1074-5, Bucharest, 2014.
Traian - Ioan Berbecaru born in 1970 graduated the high school "Anghel
Saligny" in 1988. He graduated in 1999 the University of Bucharest, Faculty of
Law and became PhD in sociology in 2012 at West University of Timisoara,
Faculty of Sociology and Psychology. He has published several articles and
studies on restitution of property, the last work is Property restitution in
transition, published in 2013 by publishing house Belladi, Craiova.
206
THE MARKET LAND LIBERALISATION

IN ROMANIA ECONOMIC, SOCIAL, LEGAL
AND POLITICAL IMPLICATIONS
Dumitru Adrian Crăciunescu
Motto:
No slavery is more shameful than the one offered willingly.
Seneca Lucius Annaeus
The concept of the Internal Market designates an area without

internal frontiers (Art. 7A of SEA-Single European Act), where the four
freedoms are fully insured : free movement of goods, free movement of
persons, free movement of services and free movement of capital, in
accordance with the Treaty of the European Union. The measures
destined to the creation of the internal market stipulated achieving this
objective by 31 December 1992. The Internal Market concept is
relatively new, the term used until 1985 being Common Market, whose
objective was the elimination of all barriers for the community
exchanges, to merge national markets in a single market, whose
conditions should have been closer to those of a single national markets.
In specific, the terms as European internal market and the single
European market are used to specify the same thing –a large continental
market- governed by unique rules established at Community level and
characterized by the existence of the four freedoms.
European Common Market represents from the perspective of
integration, the prospect of a European Internal Market preparatory
phase where the governing rules were not yet sufficiently harmonized
and its functionality was not guided by common rules- production
factors, goods or services.
The four liberties - constitute the foundation of the Great
European single market. A market can be considered unified when there
is total free movement of goods, services, capital and people. These are
the four fundamental freedoms that everyone could benefit of , after
207
1993. The Single Market is a unified market, as a result of the

integration of all markets, as the market for goods and services as well
as the factors market and the competition rules. The creation of a
common market which subsequently became a single market, meant the
first step towards the European Economic Union.
European Economic Union begins to function as a separate unit at
the same time with the establishment of the unified market on a
continental scale, that was accompanied by common policies and
policies that were meant to make corrections. The creation of the market
was scheduled carefully aiming to apply the four freedoms: freedom of
movement of goods, freedom of movement of services,freedom of
movement for the capital and people. For this objective it was allocated
12 years. The same issue is taken up by the Single European Act (SEA)
up to a very precise date of realization.
Single European Act (SEA) states that ,, the community will take
all reasonable steps designed to put in place the internal market
progressively over a period that will expire on 31 December 1992 .
Following the Single Act terms ,, internal market represents an area
without internal frontiers in which the free mvement of goods, services,
people and capital are provided under the provisions of this Treaty’’
(Article 8A of the SEA).
The Single Market could not be achieved without the Common
Market. The result would be the fact that both treaties are incoroprating
the same objective, but at a distance of 30 years. This distance of 30 years
may be related to the following conditions: for a long period of time, the
process of integration has stagnated or was very slow, the constitution of
the Common Market has passed from the enthusiasm phase- specific to
her early years to the a more pessimist phase related to the mid 80s of the
last century; in this last specific period, the economic environment has
changed, which involved reviewing the Treaty of Rome involving a
reformulation of the original objective that was stipulated in the initial
treaty. The difficulties of the 70s of the 20th century regarding the line of
integration led to the necessity to relaunch the community dynamics that
could not be realized only by switching to the single European market
which means a depth of integration in a vertical plan.
The European Single Market is an extremely complicated legal
system and it is essentially the representation of Community acquis on
the economic plan. To build the legal base of the Single Market legal,
two methods were used:
Harmonization
Mutual recognition.
208
Although very different the two terms presented above, they are
often confused. Speaking of harmonization or even homogenization in
relation to the Community legislation, harmonization is required when
national resources are so varied that European unification is required.
Therefore, the text creates piece by piece, a body of common rules. This
way, the most difficult way, was adopted for certain technical norms.
Mutual recognition is the simplest and most commonly used
method. Member States have committed to recognize as valid, the rule
that other countries apply. This was a method used for diplomas in
certain cases. The creation of the internal market was relying also on the
principle of subsidiary. Its meaning is simple: each subject should be
treated in the most effective way and the Community should not treat
only the areas where European echelon is better placed. National states
retain the essence of their competences.
Agriculture and national sovereignty

Through the Treaty of Accession to the European Union (EU),
Romania is obliged to liberalize the land market for individuals in the
EU from January 1st 2014, which will amend the existing regime, in
which the only legal persons had the right to buy land.
As per the Treaty of Accession to the EU, Romania engaged itself
to liberalize the land market starting with January 1st 2014, so therefore
foreigners, European Union individuals could buy without any
restrictions agricultural land.
The European Union is an organizational formula for the relations
between the European countries. Formulas come and go, people remain
and that is the reason why is better that this formula to be evaluated
realistic and not from a mythic point of view or by having it examined
more than it could express in every moment of evolution. The land sale
to foreign nationals will establish the country's total dependence on
foreign countries. In this changed political context, how will the lands
be recovered from foreigners? State sovereignty effect is reduced not
only on those with dual citizenship but also on the part of the national
territory bought by foreigners. What kind of country is this that has no
sovereignty over its own citizens and the entire territory?
Current liberalization of agricultural markets raises questions both
to the developed countries, who want to protect the population that
integrated in this sector of activity- but especially to the less developed
countries whose unsubsidized farmers manage with difficulty to face the
competition coming from the subsidized products of developed
209
countries. Developed countries (EU), although with a small part of the

population integrated in the domain of agriculture, but with high
productivity that is also subsidized in proportions up to 50% grain
production, livestock, animal sector. US subsidizes with 50% including
cotton product for a production of cotton of 40.000 tones for 2004,
creating great difficulties to the farmers deprived of subsidies from less
developed countries.
The feeding of large populations will raise special problems of
agriculture and farmland. Its value will increase particularly in the next
half century. Who will have good land will be rich. Agricultural land
will become more expensive than gold.
In order to restrict agricultural land transactions, the Ministry of
Agriculture initiated a bill that was approved by the Parliament on
December 17th 2013 but it has been amended and suffered some
modifications, one of the changes aiming to eliminate the preemption
right for young people up to 40 years. Thus the sale of land outside the
city, from 2014, the owners may sell land outside the city while
respecting the right of preemption to co-owners, tenants, neighbors,
individuals and the Romanian state. The law also stipulates the
establishment of the Administration and Regulation Authority of the
land market, which will take over operations, staff and assets of the
Domain of the State and it will pass under the subordinate of the prime
minister. According to the Alliance RO CAP, the bill referring to the
sale and purchase of agricultural land by foreigners proposed the
Ministry of Agriculture has a character of land expropriation, aiming for
a more energetic purpose in the favor of European speculators.
Foreigners already posses in Romania, through their set-up
companies, between 1 and 1.2 million hectares, but so far I have not
seen foreigners working these areas. The same Romanian farmers are
taking care and work these lands and they only remain with the
subvention coming from the EU. Neither the land production is moving
towards the farming circuit, but it is destined to be transferred to the
energetic cultures. (...) After the law is applied, we will have the
opportunity to see the real disaster that is happening in the land market
in Romania, shows the president of the RO CAP, Claudiu Franc,
president of Cattle Breeders Federation of Romania. On the other hand,
the MARD representatives consider that this law aims the merging of
agricultural land so it would grow the dimension of the agricultural
farms and the creation of the economically viable exploitations, while
the middle class of agriculture was not sustained in the last years.
210
Today, 11,000 farmers that have more than 30 hectares, hold in

total 4.5 million acres and take half of the subsidies, while 800,000
farmers have between 1 and 5 hectares. According to MARD data from
the year 2011, foreign-owned agricultural land in Romania at the end of
2011 amounts to over 700,000 hectares, representing 8.5% of the arable
land of Romania, although Anecdotal RGA in 2010, IS has announced
that just 470,000 hectares are being held by foreigners. In a ranking list of
buyers of land in Romania, Italy is ranked first with 24.29%, followed by
Germany with 15.48% and 9.98% by the Arab countries. However,
Hungary holds 8.17% of the more than 700,000 hectares of agricultural
land bought in Romania, Spain (6.22%), Austria (6.13%), Denmark
(4.52%), Greece and the Netherlands by 2 4% and 0.78% Turkey.
Currently, in Romania, the price for one hectare of agricultural
land can go from 2,000 euro and can reach up to 18,000 euro, but if the
irrigation system would be restored, the price will increase considerably
and will reach the price range established in other EU countries, over
30.000 euro. Romania has 13,298,000 hectares of agricultural land, of
which nearly 9 million hectares is represented by arable land.
Romanian land market was liberalized in 2014. Here is an
exemplification of how other European countries took action in the
same situation. Poland has limited the purchasing of land that is 100
kilometers of the border, and in France it is stated that the owner cannot
do what he wants with the field, because it is considered part of the
national heritage.
The Bulgarian parliament voted to extend until 2020 the
forbiddance of selling agricultural land to foreigners. The European
Commission has warned that it is a violation of international
commitments of Bulgaria and Sofia and that it could be liable to
financial penalties. In order to join the EU in 2007, Bulgaria has
amended its Constitution, lifting the ban imposed to foreigners to
acquire agricultural land. A moratorium that expires on January 1st 2014
was introduced and the ministers have however decided to extend the
term until 1 January 2020, a decision that contravenes, according to
experts, to the EU accession treaty.
The Ukrainian Parliament has decided in November 2012, to
extend the interdiction in regards to the sale of agricultural land until
January 1, 2016. Ukraine has an agricultural area of over 41.6 million
hectares, of which arable land is 32.48 million hectares. About 7 million
plots are owned by individuals. The ban imposed on the sale of
agricultural land in Ukraine existed since 1996 and was supposed to
expire on 1 January 2013.
211
In Hungary, the new European rules in regards to the sale of

agricultural land without restrictions may be applied as of June 15th
2014, but the Hungarian government tries to protect their agricultural
land through some drastic measures. Therefore, the people from
Hungary which are found to be involved in the sale of Hungarian
agricultural land to foreigners shall be liable to up to 5 years in prison,
said Gyula Budai, State Secretary in the Ministry of Regional
Development in Hungary.
,,Agricultural land will be owned by Hungarians” said the Prime
Minister Viktor Orban, after signing an agreement in Budapest. The
Hungarian government decided, starting with April, to offer to lease
200,000 hectares of arable land to farmers through a new program that
applies to land parcels that are currently leased and are under contract
until 31 May 2017. The purpose of the program is to strengthen family
farms as well as small and medium farms. Hungary intends to reduce
the share of large farms to 20 percent of total arable land, compared to
the 50% share as per present time. Through these measures, the
Hungarian legislation seeks to protect agriculture fro speculations and
foreign capital. It is believed that up to one million hectares of farmland
from Hungary were sold to strangers.
In conclusion, although the current century gives us the
opportunity to live and experience the meaning and the values of
freedom in the most various ways, returning to local values is perhaps
one of the most necessary changes that society must embrace. In many
less developed countries, the power of the most developed countries
freedom to purchase land can be associated to a beautiful mirage that is
hiding a bag of tears, because land expropriations will only lead to
increasing the disparities between the rich and poor.
Bibliography
1. Nicoleta Diaconu, Dumitru Adrian Crăciunescu, Dreptul Uniunii Europene
privind politicile economice, Ed. Universul Juridic, București 2010,
p. 121-129.
2. Traian Ionașcu, Drept Civil- Bunuri I, Tipografia Universității, București,
p. 36-43.
3. Constantin Stătescu, Corneu Bîrsan, Drept civil- teoria generală a
drepturilor reale, București 1980, p.30-41.
4. Marin voicu, Mihaea Popracă, dreptul de proprietate și alte drepturi reale,
Ed. Lumina Lex București, 2002, p. 200-209
5. Eco-Economia și dezvoltarea durabilă- Conferință internațională a AOSR,
Vrașov 2013, p. 377-390
212
SOCIAL AND EDUCATIONAL

ENVIRONMENT
213
214
GUIDELINES FOR BUSINESS CORRESPONDENCE
Luiza Caraivan
Abstract: The paper focuses on some aspects of writing letters, and e-

mails for business purposes. Some general rules are listed in order to
create clear and effective letters or e-mails so that the writer may
achieve htheir purpose: to be understood by the reader and to have the
reader do the required tasks.
Key words: letters, e-mails, effective writing
The world of business has always been based on up-to-date

information put to good use with the help of excellent communication.
Nowadays, more than ever, business communication is definitely related
to information due to the massive invasion of technology in all aspects
of life in the 21st century. Each and every type of business depends on
communication, which is done most often in writing, as the 24-hour day
is no longer enough to allow for conversations with all your (possible)
business partners. From hierarchical organizations to flat entrepreneurial
ones and to the most recent information-age organizations, written
communication plays a major role, as most business people need to deal
with writing traditional business letters, e-mails, reports, memos,
promotional materials and different other documents.
From my experience, the majority of business people have not
been trained to write for business, as verbal communication seems more
appropriate when teaching/ learning Business English. Learning how to
write is not one of the major preoccupations of business students as they
do not see the immediate result, especially if they are not faced with
those situations during their studies. In the end, when it comes to
writing for business, many business people resort to teachers, trainers or
their assistants, instead of doing it themselves.
However, with the ever-increasing use of technology, writing
(especially effective writing) has become a major concern for business
people who want to improve their business skills. In order to present your
products or services, to request materials and information, to maintain
215
contact or to look for new business partners, you are faced with the single
possibility of writing. Oral communication may not be as effective as the
written one, words may be misunderstood, and communication may be
hindered due to external factors. People may not have the time to answer
to your questions over the telephone, but they will find a moment to deal
with your e-mail. Face-to-face communication remains essential in
business, but written communication is a major issue to consider in the
long term. That is why I have chosen to identify some “golden rules” for
busy students and business people preparing to write in English. The
tips you are going to read are followed by distinctive chapters on
writing business letters, e-mails, memos, reports, proposals, CVs and
press releases with clear examples to be followed. They are aimed at
intermediate to advanced business English students, either at the
beginning of their career or already in business who would like to write
their own compositions rather than to have it done by somebody else.
What and how you write represents you as much as your physical
appearance and helps you build good relationships. Remember that the
written word is part of a company’s permanent record, while verbal
agreements may be broken.
Although practice makes perfect here are a few suggestions to
keep in mind when you begin to write.
Less is more
In one word: concision. Express what you want to say in fewer
words than you would be tempted to do. Consider the fact that people
have short attention span both as listeners and as readers, so get to the
point. Make your writing clear, brief and easy to read; get your ideas
flowing towards a conclusion. Think about what you would like to read
and write as you would be one of the readers. Avoid lengthy sentences,
especially those Romanian-like sentences which are more than 3 lines
long. In today’s Business English the paragraph tends to be short.
Consider the following:
In response to your letter of the 8th September 2011, relating in
part to the printers and copy-machines you have ordered from us
in August 2011and also to the question of our possible meeting
in connection with a discount for a bulk purchase, concerning
the latter I would say that I could arrange a meeting with our
manager on the 9th of October so that you could discuss further
details.
216
Why not make it simpler and write:

In response to your letter of 8th September 2011, I would like to
inform you that our manager could meet you on 9th October to
discuss a possible discount for a bulk purchase.
Avoid specialized or technical language

Unless both you and your readers are used to such language
belonging to your trade or profession, do not resort to terms that are
difficult to understand without a dictionary. Try using simple words and
phrases that can be understood without any efforts. Remember, you
want to get your ideas across and not necessarily impress the reader
with the amount of words that are similar to their Romanian
correspondents. One of the reasons people are afraid of writing for
business is that they have to use words like “synergy” or “pervasive”, to
give just two examples, that ultimately, mean the same as “interaction”
or “widespread”. While sometimes business documents or technical
specifications require specialized words, most of the times it is
sufficient to use plain language.
Pay attention to names, titles, and genders

It is embarrassing to call Mr. Jones “Ms. Jones” throughout a
document. Or, to mistake the first name for the surname: Ivana Mihai,
for example (how should you call him/her: Dear Ms. Mihai or Dear Mr.
Ivana?). If you’re not sure about the spelling of someone’s name, about
their job title, or their gender you can:
ask someone who does know (their assistant, for example);
in the case of gender, use the full name (Dear Ivana Mihai) and
gender-neutral language, such as you, your, they and their. He
and she have lately been replaced with the third plural pronoun
(they) which is becoming an acceptable gender-neutral pronoun:
Every manager hopes that their project will go as planned.
Take into consideration the Wh-questions

Remember the 5 Wh- interrogative words (and don’t forget the
How): Who? What? When? Where? Why? and How? Before you write
you should answer all the questions relevant to your audience. Who is
going to read, what should they know, when and where will it apply,
217
why is it important to offer some information, and how will this

information be put into practice? These six interrogative words will help
you identify any questions raised by whatever you have written.
Consider your readers

Effective writing is more about what readers understand and use
after you have given them some information and less about lists of
product characteristics. Your product features should be replaced with
the benefits a buyer may obtain from such a product. For example, a
new machine that can “print up to 9 high quality color pages a minute,
copy up to 6 photo quality A4 images a minute and scan 6 full color A4
documents a minute” is more likely to be described in terms of benefits
for the potential buyer: that is, their work is done more rapidly.
Remember that your readers would also like to do everything easier and
better.
Proofread twice
There are two reasons why you should check your writing
immediately after you have finished and a couple of hours (or even
days) later. First, turn on the ‘spell-check’ on your computer. And even
with this help, a second reading will point out that there are some
mistakes that have skipped your attention. Remember that more often
than not, people are harshly judged for their mistakes.
Second, typing errors and grammar mistakes are nothing
compared to things said in anger. Re-reading the second day may offer
you the opportunity to reconsider the emotions you want to transmit,
especially in letters of complaint.
Formal or informal, be as professional as you can

Although most people tend to think that business writing is
formal, the truth is that there are many informal pieces of writing in
business communication, as you will see in the following chapters.
However, informal is not a synonym of ‘rude’, ‘too familiar’ or
‘offending’. Keep in mind that everything you send may be used in
public and goes to a certain record. The same goes for things you say on
your blog or your Facebook page, so think twice about what a certain
piece of writing would make you look like in a couple of years, or even
less.
218
Ask for feedback or (re)action

Remember that the purpose you want to achieve is to get some
feedback or (re)action from your readers, so let them know exactly what
you expect from them. If you want to offer information or price lists,
they can all be enclosed with your letter and not described in the letter.
If you offer people plenty of time to decide, or lots of things to choose
from, they will postpone the action, or even worse, choose nothing. So
always use endings such as: I’ll call you… to discuss this matter. Please
let me know if I can be of any further assistance. Once I have your
approval, I will proceed with…
Save a copy
Always save the document for future reference or even for future
use, because there is a great chance that you will need it especially after
it has gone into the recycle bin. However, don’t forget to modify it
before resending it to somebody else (names, personal details).
Pay attention to the introduction and to the conclusion

State a purpose and write towards a conclusion. The first
paragraph should state the reason for writing. Do not get tangled in
tedious personal details. An effective introduction aims to build readers’
interest, to explain the purpose, and to provide a preview of the
document. The conclusion should not introduce a new topic and it
should not restate your ideas in other words (especially for short
documents). It should, however, refer to future contact or require the
receiver to take some action (see rule number 8).
Ask for help

If you know your writing should be more formal, and you are not
sure about the style, always check with a professional to proofread it.
Nevertheless, PRACTICE will help you improve both your business
writing skills and your communication skills.
There is a difference between writing in school and the world of work

Remember that a teacher may assess your writing as being good
even if your letter has a sloppy format. Teachers and trainers usually
219
appreciate the content and give you guidelines on letter format and
appearance. However, in the world of business, one mistake may cost
you the job you want or the order you are trying to get because your
readers may consider you careless.
References
Luiza Caraivan. 2011. Writing for Business. Timişoara: Editura Eurostampa.
NOTE ON THE AUTHOR

LUIZA CARAIVAN este lector universitar la Facultatea de Management
Turistic şi Comercial din Timişoara, Universitatea Creştină „Dimitrie
Cantemir”. A obţinut titlul ştiinţific de Doctor în domeniul Filologie în anul
2010, cu teza Nadine Gordimer and the Rhetoric of Otherness in Post-
Apartheid South Africa. Este autoarea a First Steps in Business English (2009)
şi Writing for Business (2011). A publicat numeroase articole şi studii în
reviste din ţară şi străinătate (Orizont – Timişoara, British and American
Studies - Timişoara, Romanian Journal of English Studies – Timişoara, Europa
–Novi Sad), precum şi capitole în volume colective, cel mai recent capitol fiind
„The story of a South African Romance” în Romance: The History of a Genre
(editor Dana Percec), Cambridge Scholars Publishing, 2012.
220
DO WE REALLY UNDERSTAND
ANGLICISMS USED IN TOURISM
AND HOSPITALITY TERMINOLOGY?
Mihaela Lazovic, Slavoljub Vicfic
Abstract: The English language has indubitably become the language of

world communication and as such it is generally accepted as a
consequence of globalization. As a result, English has a great impact on
almost every language in the world, including Serbian. Consequently,
anglicisms are very frequently used in Serbian especially in the domain
of tourism and increasingly in hospitality terminology.
This is a corpus based research. The corpus was extracted from
numerous web sites and brochures of Serbian hotels, restaurants and
tourism agencies. The examples from the corpus were then used to
create a questionnaire in order to determine whether the readers, or the
visitors of the mentioned web sites, actually understand the anglicisms
used in tourism and hospitality terminology in the Serbian language.
And whether this new hybrid language often called Angloserbian
facilitates the communication between the reader end the writer or, on
contrary, makes it impossible for the reader to understand the message,
or even worse, the message is misunderstood.
Key words: anglicisms, tourism and hospitality terminology,
Angloserbian language, translational equivalents
1. Linguistic Angloglobalization
Today, the English language has indubitably become the language
of world communication, a lingua franca. The global expansion of this
language started in the second half of the 20th century, when USA
become the leading world force in every domain, thus having a crucial
role in the global expansion of the English language. The fast-growing
technological prosperity, the computer revolution and invention of the
internet brought upon the absolute domination of the English language.
Rapidly, various scientific, educational, entertainment and other
information have become available in the English language to millions
of people. Consequently, through mass media and the internet, the
221
English language found its way into every kind of written and spoken
means of communication.
In the last ten years, we witnessed a great influx of English words
into Serbian (and not only Serbian). This unique linguistic, sociological
and cultural phenomenon initiated the linguistic anglomania and became
a recognizable status symbol.
Consequently, the massive influence of the English language on
Serbian brought upon a gradual hybridization of the Serbian language
creating in such a way, a new, hybrid language which can be named
Angloserbian. Angloserbian is a new sociolect used mostly by young
urban people who are consciously or unconsciously using English
words in the Serbian language considering themselves to be more
fashionable, refined and socially superior.
This hybrid language is in fact a variety of Serbian language
which has adopted the semantic, pragmatic, grammatical and even
spelling norms of the English language (Prcic 2005: 56). It is safe to
say, that the Angloseriban language represents a linguistic anomaly
which developed parallel linguistic norms which are incorporated into
every linguistic domain (Panic-Kavgic 2006: 21, Prcic 2005: 78):
Spelling. Namely, the English spelling is used in the Serbian
language mostly because people do not know the actual spelling norms
of the Serbian language, so they simply adopt the spelling norms of the
English language and use them in Serbian without phonetic
transcription. For example: web site instead of vebsajt, or e-mail instead
of imejl.
Grammar. The structure of compounds consisting of two nouns
like chocolate cake, cheese cake is simply copied into Serbian
(čokolada kolač, sir torta), even thought there is an actual Serbian
construction which corresponds to the English one (čokoladni kolač,
torta od sira).
Semantics. The words of the English language are simply used in
the Serbian language even though there is a Serbian translational
equivalent. For example: the word edukacija (from English education)
is used instead of obrazovanje, or menadžment (from English
management) instead of rukovodstvo, poslodavstvo or menadžer (from
English manager) instead of rukovodilac, šef, upravnik, director.
Pragmatics. Refers to the use of English discourse norms even
though there are translational equivalents in the Serbian language. For
222
example: Mogu li da Vam pomognem? (from English Can I help you?)

instead of simply Izvolite.
Due to its enormous influence on every aspect of our professional
and personal lives, English terms are very frequently used in the
Serbian language especially in the domain of tourism and increasingly
in hospitality terminology. The research conducted for this paper has
shown that anglicisms have a great impact on their Serbian translation
equivalents at all levels: written, spoken, grammatical, semantic and
pragmatic. A question arises whether this anglomania has positive or
negative consequences. And whether the people who visit websites
actually understand the information presented to them or the frequent
use of anglicisms and Angloserbian language in fact makes the
communication more difficult since the reader does not really
understand the message the writer wanted to convey.
2. The Research
This is a corpus based research which aim was to determine
whether the examinees fully understood the anglicisms used in tourism
and hospitality terminology.
2.1. The Questionnaire and the Corpus

The corpus for the research was extracted from various web sites
of different hotels and restaurants in Serbia as well as web sites of
Serbian tourist agencies. The corpus included all the Serbian sentences
in which an English word or phrase has been used. The sentences were
copied as they occurred in the above mentioned sites, this is why some
Serbian sentences from the corpus consist of words with the original
English spelling and in some sentences the phonetic transcription has
been used. The corpus consists of 100 sentences which were then used
to create a questionnaire.
The questionnaire consists of 15 Serbian sentences with 29
anglicisms. The anglicisms were underlined in each sentence. The
questionnaire also included additional questions which helped clarify
whether the examinees actually understood the anglicism or not.
Namely, the first examinees’ task was to state whether they
understand, fully or partially, the underlined anglicism in the given
sentence. If they understood the anglicism they had to provide its
Serbian translational equivalent. Finally, the examinees had to state
whether they consider the underlined word or phrase a foreign word or
223
they think the word has been domesticated and adopted into the Serbian
language, and as such can be freely used.
An example question from the questionnaire:
Check in i check out vreme određeni su prema pravilima
objekta.
Do you understand the meaning of the underlined words or
phrases?
YES NO PARTIALLY
If you understood the meaning of the underlined words or phrases,
please replace them with Serbian translation equivalents, if such
replacement is possible.
_____________________________________________________
___________________
To what existent do you consider the underlined words or phrases
foreign? 1 2 3
1- the underlined word looks and sounds completely foreign / I
have never heard nor used it in my life
2 - the underlined word looks and sounds foreign, but I might use it
in this sentence or elsewhere
3 - the underlined word is domesticated and I do not see why we
would not use it in this sentence or elsewhere
2.2. Examinees
The examinees were divided into three groups. The first group
consisted of university professors of hospitality management, restaurant
management, gastronomy management and tourism management. The
second group of examinees consisted of students of hospitality
management, restaurant management, gastronomy management and
tourism management. And the third group consisted of other university
graduated people who do not have any professional knowledge of
tourism and hospitality terminology.
The total number of examinees is 45. Each of the three groups had
15 examinees.
Such structure of the examinees gave a better and clearer insight
into the understanding of anglicisms used in hospitality and tourism
terminology.
The initial hypothesis was that the professors will know all the
underlined words or phrases and will be able to provide the accurate
translational equivalents, while the third group was expected to have the
224
least knowledge of the meaning of anglicisms used in hospitality and

tourism terminology. And the knowledge or students of hospitality and
tourism was expected to be somewhere in between.
3. The Results of the Research

The research has shown that the majority of the examinees
answered that they understood the underlined words or phrases without
providing the translational equivalent, thus answering the third question
by circling the number 3, expressing in such a way their opinion that the
underlined anglicism has been domesticated and can be freely used in
the Serbian language. The professors did not provide a Serbian
translational equivalent in 46.6 % of their answers, students in 40.2%
and the third group of the examinees did not provide a Serbian
translational equivalent in 32.1% of their answers. This can be
explained by the fact that the examinees are familiar with the meaning
of the underlined anglicisms and often use them or come across them in
the relevant literature.
On the other hand, there were examinees who stated that they
understood the underlined anglicism, but provided an incorrect
translation of the given word. This happened in 20% of the total
answers of all the examinees.
Professors provided the incorrect translational equivalent in 9% of
the examples, students in 17% and other examinees in 14% of the
examples regardless of whether they stated that they understood the
underlined anglicism or not.
The incorrect answers are most often literal or word for word
translations of the anglicisms without any consideration of the
grammatical or semantic rules of the Serbian language, for example:
cena prvog minuta, u prvom momentu, prvog minuta, početni minut for
first minute price, servis za budjenje for wake-up service, prevozne
usluge, transport prevoza for transport services, servis za limuzine,
limuzina servis for limo service, sobna usluga for room service,
reklamno upravljanje for marketing management, proveriti for check-in,
užina bar for snack bar.
On the other hand, even though the examinees said that they
understood the underlined anglicisms they provided completely
incorrect translational equivalents which prove that they do not know
the actual meaning of the anglicisms. For example: Ljudi koji brinu o
gostima u odredjenoj firmi, osoba koja reklamira neki hotel, poznata
licnost for manager, prženi sir for cheeseburger, dostava hrane,
225
serviranje hrane, promocija, spremanje hrane, ishrana for catering,

kalsa, imidž, vrste luksuznih hotela, popularni, poznati, jedinstven,
lanac hotela for brand, salon lepote, dobra linija for fitness and spa.
Lastly, a surprisingly small number of the examinees stated that

they understood the underlined word or phrase and actually provided the
correct translational equivalent. This happened in 42.6% of the
professors’ and students’ answers and 51% of the answers of the third
group of the examinees.
Some of the correct answers the examinees provided are: cena
rane rezervacije for first minute, program putovanja for intinerery,
usluživanje u sobi, usluga pranja, usluga buđenja for room service,
laundry service, wake up service, upravljanje tržišnim poslovanjem for
marketing menagement, rezervacija for booking, marka for brand, sve
usluge su uključene u cenu for all inclusive, prva (početna) ponuda for
first minute, prijavljivanje i odjavljivanje for check in and check out,
kanapei, sitni zalogaji for finger food.
As previously mentioned, the questionnaire consisted of fifteen

questions, every question had three additional questions. The first was
to state whether the examinees fully or understood the question or did
not understand the question. The second additional question was to
provide a Serbian translational equivalent and the third to state to what
extent they consider the word foreign.
The research has shown that the majority of examinees answered
that they understand the underlined anglicisms. The anglicism that was
unfamiliar with the most examinees is itinerary. Only one professor,
thirteen students and seven third group examinees stated that they do
not know what itinerary is and two professors, two students and one
third group examinee and said that they partially understand that
word.
One of the most interesting results of this research is the fact that
the professors consider the majority of the anglicisms in the
questionnaire domesticated and already a part of the Serbian language
and as such they should not be translated, but freely used in the Serbian
language. The anglicisms the all examinees consider domesticated are
given in the table below.
226
Table 1. The domesticated anglicisms
professors students others

check in, check out 3 7 3
first minute 5 3 5
all inclusive 6 10 6
booking 5 5 3
itinerary 7 2 3
brand 6 9 9
fitness and spa center 11 10 7
transport service, rent-a- 6 7 6
car, limo service
room service, laundry 4 4 1
service, wake up
service…
snack bar, brunch, menu, 6 6 4
buffet, finger food
catering 9 12 8
steak 7 9 3
hamburger, 13 9 9
cheeseburger, milkshake
marketing 11 10 7
managers 9 11 9
According to the results of the questionnaire, it can be argued that

the most domesticated anglicisms that already are in the vide use in the
Serbian language are fitness and spa, marketing, manager, all inclusive.
On the other hand, the words which are considered completely
foreign are itinerary, steak.
According to the results of the questionnaire, it can be concluded

that only 45.4 % of the questions were answered correctly by the
examinees. Thus, a small percentage of the examinees actually
understood the underlined anglicisms, which indicates that the
Angloserbian words are not quite clear and familiar to the public. Thus,
even though striving to sound posh, modern and “educated” the creators
or writers of websites do not actually convey the intended message,
rather the readers or visitors of such websites do not understand or, what
is even worse, misunderstand the information provided on the hotel,
restaurant websites and websites of tourist agencies.
227
The writers or creators of web sites should always bear in mind

that the purpose of any kind of communication is the correct
interpretation of the intended message. In other words, the information
must be communicated in such a way that the readers can easily
interpret the information correctly. Maybe before using the anglicism,
the writers should ask themselves whether there already exists a Serbian
word that expresses the same meaning. Or the idea can be productively
conveyed by other linguistic means not just by copying the English
word into the Serbian sentence.
It should be pointed out, that the intention of the authors of this
paper was never to fully exclude the use of anglicisms. The influx of
foreign words into any language is a natural process, especially in the
modern times, but it should be channeled by nurturing the native
language as much as possible. It could be done by introducing topics
such as Languages in Contact and Contrastive Analysis of the English
and Serbian Language into curriculums of both English and Serbian
language courses in elementary and secondary schools. A due attention
should be paid to the phonetic transcription of the English words and the
Serbian orthography and spelling.
The most intriguing result of this research is that it is the
university professors who stated that the majority of the anglicisms in
the questionnaire are domesticated and as such should not be translated
into Serbian, but still offered the accurate translational equivalents
which proves that the translational equivalents do exist in Serbian and
that majority of the professors know them. Therefore, it is our
suggestion that the university professors point out the Serbian
translational equivalents to the students even though the anglicism is
frequently used.
It is important to point out that the authors of this paper do not
consider that the use of anglicisms should be avoided at all costs, since
they enrich and modernize not only the Serbian language but the culture
as well (Bugarski 1996: 23), but the use of anglicisms should not come
down to just copying the English words into the Serbian language.
4. Conclusion
The examinees’ answers to the questions in the questionnaire have
proven a very poor knowledge and understanding of anglicisms. Even
though only 3.5% of all the examinees answered that they do not
understand the underlined anglicism, it turned out that the majority of
the examinees who answered that they understood the anglicisms in fact
228
did not provide the correct translational equivalent. A question arises:

what poses a greater difficulty for the reader, when he/she does not
understand the anglicism and is aware of that or when the reader thinks
that he/she understands the anglicism when in fact he/she does not
interpret it in the correct way. It might be argued that there is a
communication gap between the creators of websites and the
readers/visitors. Since the creators do not use the means of
communication which are clear to the readers which results in an
incorrect or false interpretation of the message.
It should be pointed out that the writers’ superficial and
unprofessional translation as well as their relying solely on their own
competence (linguistic and extra-linguistic) reflects their negligence and
disregard of the communication outcome, than a conscious intention to
mislead the reader by making the intended message harder to
understand, even when the author consciously or subconsciously wants
to sound erudite, sophisticated or follow latest linguistic trends.
References
Literature
Burarski, Ranko (1996). “Strane reči danas: pojam, upotreba, stavovi” In: J.
Plankoš, i dr. O leksičkim pozajmljenicama. SANU, Beograd: 17-25.
Panic-Kavgic, Olga (2006). Koliko razumemo nove anglicizme. Novi Sad:
Zmaj.
Prcic, Tvrtko. (1997). Semantika i pragmatika reci. Sremski Karlovci - Novi
Sad: Izdavacka knjizarnica Zorana Stojanovica.
Prcic, Tvrtko. (2002). Adaptacija novih reci iz engleskog jezika
prevodjenjem. Primenjena lingvistika 3: 95-101.
Prcic, Tvrtko. (2004). Nemarni “funkcionalni stil”: u potrazi za zagubljenim
znacenjem. Funkcionalno raslojavanje srpskog standardnog jezika.
Nau&ni sastanak slavista u Vukove dane 32/1: 297-305. c
Prcic, Tvrtko. (2005). Engleski u srpskom. Petrovaraden: Alfa graf.
Vasic, Vera, Prcic, Tvrtko, Nejgebauer, Gordana (2001). Du yu speak
anglosrpski? Recnik novijih anglicizama. Novi Sad: Zmaj.
Dictionaries
Recnik srpskohrvatskog knjizevnog jezika. (1967-1976). Matica srpska: Novi
Sad
Dictionary of English Language and Culture (1992). London: Longman.
Oxford Advanced Learner’s Dictionary of Current English (1995). Oxford:
Oxford University Press.
Bujas, Zeljko. (1999). Veliki hrvatsko-engleski rjecnik. Nakledni zavod
Globus: Zagreb.
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Bujas, Zeljko. (2008). Veliki englesko-hrvatski rjecnik. Zagreb: Nakledni

zavod Globus.
THE AUTHORS
Mihaela Lazovic is a full professor of English language at The College of Hotel
Management in Belgrade.
She obtained the title Professor of English Language and Literature (2003) as
well as the title of Magister in Linguistics (2009) and Doctor in Linguistics
(2012) at the English Language Department at the Faculty of Philosophy,
University of Novi Sad.
She published over 35 scientific papers in the field of comparative linguistics,
tourism and hospitality and participated in many national and international
conferences.
She is also a published translator (English, Romanian and Serbian).
Slavoljub A. Vicic, born in Cicevac 1957, lives and works in Belgrade as a full
professor and director of the College of Hotel Management. After graduating
from the Faculty of Law, University of Belgrade, he obtained a degree of
Master of Law and a doctorate in Law.
He is the author and coauthor of several scientific papers in the area of law,
sociology and tourism.
230
BABEL TOWER – AN INDICATION OF HUMAN

ASPIRATION TO SACREDNESS
Christina Andreea Mițariu
Abstract: Babel Tower, regardless of the signification that people used to

give it, represents the place where the sacred and the profane
communicate. The legendary building – which used to represent the
ancient wish of people to surpass their condition, to make a huge
ontological leap – is mentioned as a place (Babel) in Genesis 10, as
belonging to the land of Nimrod. As proto-fathers have lost their status
and their immortality, the ambitious „architects” of pride would lose the
comfort to be able to understand to one another in one language.
Considered a surrogate of the lost Eden, this city is the symbol of human
ambition and arrogance: „Come, let us build for ourselves a city, and a
tower whose top will reach into heaven, and let us make for ourselves a
name, otherwise we will be scattered abroad over the face of the whole
earth“ (Book of Genesis 11, 4). If Eden was “planted” by Jehovah (Book
of Genesis 2, 8), being a garden, or rather an orchard (2, 15), „ pleasing
to the sight and good for food “ (2, 9), Babel would be built with bricks
and tar (Book of Genesis 11, 3-4). Thus, nature is confronted with
construction material, especially produced. In the Old Testament, Babel
and its temples become a symbol of decadence, a fact that is revealed by
the meaning of its name in Hebrew: “confusion, mixture“(balal).
Keywords: Babel tower, idolatry systems, qadhos, transcendent, imitatio
Dei.
It is definitely not a coincidence the fact that Babel Tower was the
first city built after the Flood, a place where humanity was united, all
people speaking one language. According to the legend, Noah’s
descendants built the Tower to get to the sky. The first Babel tower
disappeared under Hammurabi, around 1700 B.C., but the descendants
of this king built another one on the same foundation. It seems that the
Tower existed for one century, until Xerxes, the Persian king,
conquered the Babylon and ordered its destruction. When returning
from India, Alexander the Great felt overwhelmed by the colossal ruins
and tried to destroy them, as Strabo mentions. First, 10,000 men worked
there, and then the entire Macedonian army destroyed the tower.
231
In Akkadian, Bab-ilim means „Gate to God:, yet they were not

looking for God, but for the certitude that they are able to do something
by their own power. The builders did not intend at all to worship God;
they built the tower based on a fake religion, with the purpose to gain
fame.
In Book of Genesis 11, 7: „Come, let Us go down and there
confuse their language, so that they will not understand one another's
speech.” This is the third place where the Holy Trinity is mentioned.
The fact that plural is used, has determined the Holy fathers to see
intervention of Holy Trinity in the Tower of Babel.
When building this tower, people wanted to have a chance to
recover the lost paradise, without God’s help. As in the unfortunate
attempt of Adam and Eve, who want to become like God, yet not by
sharing Him, this seems to be a new attempt to surpass the mean
condition of humanity, which is a sick ambition. The Babel Tower
appears as people’s choice to live their condition and to say no, even to
God. With this construction, people refuse to share” real life”. The
failure of this project reflects the fallen human nature, unable to reach
their objective, as people do not surpass their conditions, unless they
achieve God’s existence. The fame that people claim refers to “name”.
An essential aspect is ignored, that is the real name is not obtained
autonomous, but with God’s help.
For all religious systems in Antiquity, the conviction that Babylon
was a sacred place, the centre of the world and Gods’ house was
common. The idea of a holy town, where people felt they connected to
the divine force, the source of everything that exists and moves will
remain important in all three monotheist religions1. Herodotus, a traveler
in the entire world and the historian of antiquity, a witness of the secret
presence of religion and rituals in numerous countries mentions how
Babylon was the primary source of all idolatry systems. Bunsen says that
the Egyptian religious system came from Asia and from „Babel primitive
empire”. In his work, Nineveh and its Remains, Layard declares that we
have the proof of sacred and profane history that says that idolatry has its
origins in Babylonia – the oldest religious system2. These historians were
1 Armstrong K., Istoria lui Dumnezeu, Ed. Nemira, 2009, p. 31.

2http://books.google.ro/books?hl=ro&lr=&id=5NFPAAAAcAAJ&oi=fnd&pg=PA1&
dq=austen+layard+nineveh+and+its+remains&ots=zdAxZPFtsz&sig=WpeT1fpp8Az
KzKaFzJ26KXn30uY&redir_esc=y#v=onepage&q=austen%20layard%20nineve.
Layard, Austen Henry. Nineveh and its remains: with an account of a visit to the
Chaldean Christians of Kurdistan, and the Yezidis, or devil-worshipers; and an
inquiry into the manners and arts of the ancient Assyrians. D. Appleton and Co., 1856.
232
quoted by Hislop3. When Rome became a global empire it assimilated in

its system the gods and religions of all different pagan countries it had
conquered4. Due to the fact that Babylon was the source of paganism of
these countries, we can understand the fact that early religion of pagan
Rome was similar to Babylon developed under different forms and
different names in the regions where it arrived.
The tower that was supposed to reach the sky has an allusion to
Babylonian religion where the temple could have the form of a pyramid
with stairs, ziggurat. After describing the end of conflict between gods,
the creation of the world and human kind, the Babylonian epopee of
creation, Enuma eliş, tells how Anunnaki gods build for the great god
Marduk the Babylon, after they make bricks for a year. The construction
in the middle of the Babylon, called Esagila, representing the temple of
Marduk, resembles the tower of Babel: „They raised the peak of Esagila
reaching the height of Apsu/ They built a tower high as Apsu”5. In height
and centrality, the temple and the ziggurat become the world axis, the
navel of earth, the place where gods rest, where the sacred and the
profane communicate. But for the Old Testament, the Babylon and its
temples become symbols of decay. If in Akkadian the name means
“God’s gate” (bab ilu), in Hebrew, the name means „confusion”,
„mixture” (balal).
If, initially, people were structurally good, because they had inside
the Holy Spirit that made their being saint, once sin planted its deep
roots, the human being pushed away consciously the Holy Spirit
through his sins. Saint Pavel says that our body is a „Temple of the
Holy Spirit” (Corinthian 6, 18). Thus, He lives only in those with clean
bodies and souls. But, most of the times, people sin, that is why the
Holy Spirit left those who are “only body”.
J. Zizioulas states that „Outride the communion with God, a person
loses its uniqueness it becomes a common being, a „thing” without
absolute „identity”, “without name, without face”6. Thus, divine blessing
given to Noah’s son is disregarded in Book of Genesis 9, 26. In Hebrew,
Sem means exactly „name” (şem), which means that real name is not
obtained autonomous but through God. Avraham’s call from Book of
Genesis 12 suggests how to get a name. God promises that a great people
will come of him, with a great name, where all people will be blessed: „I
3 Hislop, The Two Babylons, p.12, http://ldolphin.org/PDFs/The_Two_Babylons-

Alexander_Hislop.pdf.
4 Bailey, The Legacy of Rome, p.245, https://archive.org/details/legacyofrome00bail.
5 tăbliţa VI, în: ANET, ed. 3, 1969, p. 69.
6 Zizioulas I., Fiinţa eclesială, Ed. Bizantină, Bucureşti, 2007, pp. 37-44.
233
will make you into a great nation, and I will bless you; I will make your
name great, and you will be a blessing. I will bless those who bless you,
and whoever curses you I will curse; and all peoples on earth will be
blessed through you” (12, 2-3). Thus, Avraham heals the desert fame of
babel Tower, bringing God’s blessing to all kinds, and the Bible shows
how Avraham’s faith becomes the real link of spread peoples. God’s
relation to Avraham (Book of Genesis 15, 18) is the beginning of the
relationship, with divine initiative, between people and God, a
communion broken by people’s mistake and with devil’s help (Book of
Genesis 3, 6-10).
As Mircea Eliade7 shows, the religious man puts his model on a
trans-humane level that is revealed in myths. He does not become a man
unless he imitates Gods. Such an imitatio dei implies sometimes, for
primitives, a great responsibility. Saint Basil the Great is alleged to have
said: „Man has, once the Holy Spirit is inside him, the gift of foretelling,
of being an Apostol, an angel, although he is dust and ash”8. Saint
Gregory the Great claimed that anyone who really tries can get to all
heavenly gifts9.
Without an “opening” to transcendent, life becomes „chaos”,
meaningless. In most religions, Axis Mundi was the point of meeting
between 3 levels of existence: our world, the upper world (Heaven), the
lower world (inferno, return to primordial chaos). This vertical axis was
imagined either as a pole, as a stair (Jacob’s stairs), a mountain
(Olympus, Gerizim, Sinai, and Sion), a tree (the Tree of Life), liana etc.
Mesopotamians considered that Babylon was the link between Earth
and lower regions, as the town was built on „ Apsu’s gate” – a name
given to waters of chaos before creation. The same tradition is seen at
Jews. The rock of the temple in Jerusalem was placed over „ tehom’s
mouth” (the mouth of depth: = primordial waters, underground). In the
middle of the garden of Eden Axis Mundi was present – the relation
between Heaven and Earth – the tree of life which ensured immortality.
The river coming out of the garden divided in four parts.
Moving further, Jews become the chosen people to keep the true
worship. Inevitably, they took the same vision where the chosen people
is situated in the centre of the world. Thus, although Yahweh declares
repeatedly that earth belongs to Him, Jews consider certain areas more
7 Eliade, M., Sacrul şi profanul, Humanitas, 1995.

8 Filocalia, cap. “Calist și Ignatie Xanthopol”, vol. VIII, Ed. Institutului Biblic și de
Misiune al Bisericii Ortodoxe Române, București, 1077, pp. 220-221.
9 Cf. Kurz, L., Gregors des Grossen Lehre von den Engeln, Bader’sche
Verlagsbuhandlung, Rottenburg A.N., 1938, p. 119.
234
saint than others: Mountains such as Horeb, Sinai, Carmel, were places
that God offered Law, fire from sky and other manifestations of His
presence. Sion is considered „God’s mountain”, as Jerusalem was seen
as the new centre of the world. Betel, Mahanaim and any other place
where God presents Himself to a patriarch became a sacred place where
an altar was built. Later, true worship is possible only in the sanctuary
built upon divine model, which is seen in the Jerusalem Temple.
In New Testament, Jesus shows that true worship is „in spirit and
truth”: God is not in a certain place in our world, he is beyond and
everywhere, omnipresent.
Babilon becomes in the Bible an image of evil. Isaiah 13-14
contains prophecies against Babylon and announces its destruction: „
Babylon, the jewel of kingdoms, the pride and glory of the Babylonians,
will be overthrown by God like Sodom and Gomorrah. She will never be
inhabited or lived in through all generations; there no nomads will pitch
their tents, there no shepherds will rest their flocks. But desert creatures
will lie there, jackals will fill her houses; there the owls will dwell, and
there the wild goats will leap about. Hyenas will inhabit her strongholds,
jackals her luxurious palaces. Her time is at hand, and her days will not
be prolonged.” (13, 19-21). It is the symbol of evil and the king of
Babylon, called „Lucifer” („bright stare” in Bible) and „star of the
morning, son of the dawn” (14, 12), goes to hell (şeol), „Sheol, To the
recesses of the pit” (14, 15) because he thought to himself: „But you said
in your heart, 'I will ascend to heaven; I will raise my throne above the
stars of God, And I will sit on the mount of assembly In the recesses of the
north. 'I will ascend above the heights of the clouds; I will make myself
like the Most High” (14, 13-14). The holy Fathers identify the king of
Babylon who wanted to take God’s place with the help of the devil (cf.
Sf. Basil the Great, Commentary to Isaiah’s book, 88).
Maintaining the comparison with Eden perspective, where
paradise is an orchard (Genesis 2,15), Babel being built from bricks and
tar (Genesis 11, 3-4), reminds us of the Inferno.
The problem of Babel is present in the work of holy fathers who
compare Babel with the gathering from the fifth part: the tower is the
symbol of all languages mixed together, peron confusion, breach in a
dialogue with God and people; the fifth is the symbol of new dialogue
and personal communion with God. St. Basil the great interprets in a
personal manner Psalm 13610: „He observes that the Psalm does not
10 In Psalm 136 we see a surprising image. The Israelites exiled in Babylon are asked
to sing psalms of Sion (v. 3), but they refuse, as they cannot sing God’s song on a
235
protect the one who kills anyway the Babylonian child, but first want that
their new-born to be slaughtered, not letting them grow up, not letting them
become evil. Secondly,, the way they are killed, because the happy are
those who conquer and defeats in wisdom the birth of children in the mixed
mind, which is called Babylon (mix), and then they are crushed against a
rock. And the Rock is Jesus. The one who crushed evil against truth that is
the one who crushes Babylonian children against the rock. They are the
words that move the soul of the one who receives that, the child must be
well crushed against the rock.” (Commentary to Isaiah, 272).
The Hebrew term „qadhos” (saint), although expresses the idea of
distinct, does not mean that Yahweh remains separated from the world.
He reveals His sanctity to man, urging him to become a saint. In his
desire not to let man in the situation to be far away from Him God
Himself diminished the distance that separates Him from man, his
creation, first by revealing His sanctity and then by calling him to
sanctity and spiritualization. Thus, God shoed his sanctity to the world
by bringing it into existence, maintaining it in existence and taking care
that it achieves its final purpose. Because man cannot stand in front of
divine sanctity which is revealed ceaselessly and diversely in creation,
in the old books there is an idea that „God is adapting to man’s
weakness, in a way”. That is why, every time he reveals Himself to
man, to a whole community, He „does not live fully and definitively in
a human being”. When accepting to reveal Himself to the world, divine
sanctity looks like something that is out of this world (I Kings 2, 2), "I
am going the way of all the earth. Be strong, therefore, and show
yourself a man.” Thus it appeared as a cloud, or a pole of fire that led
the Israelites (Exodus 13, 21-22), or “the fire of the LORD fell and
consumed the burnt offering and the wood and the stones and the dust,
and licked up the water that was in the trench” (III Kings 18, 38).
Although frightening the spiritual experience of meeting God,
reveals to the believer the fact that He is a Person that can share
sanctity. Even if the cleanest of the mortals in front of God lose courage
and feel awkward like when meeting something of a different nature
than the profane world, they still have the desire to stay as long as
possible close to the divine presence. Obvious feelings of fear, but also
exaltation accompany saints’ religious experiences.
To show the tight relation that must exist between God and the
chosen people, God is also called in the Old Testament „Israel’s saint”.
foreign ground. Finally, the exiled ones are very cruel: „ a "Daughter of Babylon" of
the delight of "he who seizes your infants and dashes them against the rocks” (v. 8-9).
236
This name does not intend to illustrate the categoric distinction between
God, Saint by excellence, or „The one who is totally Another, in fronmt
of Gods of other nations who have nothing to do with its sanctity, His
greatness being unique and with no rivals”, for He is the only God.
God’s call in the Old Testament „Be saint for I your God am
saint” (Leviticus 11, 44; 19, 2; 20, 7, 26) shows us that ne after God’s
free decision, a special category of believers exists: it has infinite
perspectives to progress to goodness, for a closer resemblance to God
and a full image of the Creator. The whole period from the Old
Testament is dominated by the call to sanctity and ppurification.
When we use the word „saint” today, we usually refer to a state of
moral excellence. But the Hebrew term „qadhos” (kaddosh) had no
relation to morality, it meant „alterity” and it showed a radical
separation. God’s appearance on Mount Sinai underlined the huge gap
between man and divine world11.
In his work The Sacred, Rudolf Otto – the great theologist and
historian of religions – describes the frightening transcendental reality
experience as mysterium terribile et fascinans. The feeling is
frightening because it is shocking and fascinating as it transmits an
irresistible attraction. While tremendum represents „the rejecting
element of the lighted” (transformed into the saintly „anger of God” that
the Books talk about), fascinans is the element which attracts the
numinous, with traits of goodness, pity and love12.
Mircea Eliade synthesized Otto’s conception which designated all
these experiences with the term numinous (from Latin numen, „God”),
because the revelation of an aspect of divine power is determined. The
numinous is a sort of ganz andere, something special, which has
nothing human or cosmic, and gives man the feeling of unimportance,
as he is just a „being” or, as Avraham said when he addressed God, only
„dust and ash” (Book of Genesis 18, 27). The sacred manifests as a
completely different reality from “natural” realities. Language can only
reproduce naively the notions of tremendum, majestas, mysterium
fascinans, using terms from nature or from the profane spiritual life of
man. Yet, this analogic terminology comes from man’s incapacity to
express the ganz andere: language can only suggest what surpasses
man’s natural experience, with the help of terms taken from this
experience”13.
11 Armstrong K., op. cit., p. 66.

12 Otto, R., Sacrul, Ed. Dacia, Cluj-Napoca, 2002, p. 168.
13 Eliade, M., op. cit, pp. 11-12.
237
In order for God to reveal Himself as absolute being, man must

make an exercise of profound humbleness, to exercise the conscience of
his own unimportance: „When man is poor and and humble, God
become everything in all”14.
As C. Yannaras underlines, „what is individual, egocentric,
interested, represents for Church a way of survival of mortal physical
entity –it is sin (failure and existential failure), death. What is
transcendence of the self, a refusal of the self, totally giving up the ego,
love, is life, triumph of life over death. Even if knowledge disappears, if
languages disappear, even if prophecies will not become true, love will
never disappear (Corinteni1, 13, 8)”.15
The man of our times is an image of the Babel Tower. Thus, this
tower is not only an historical building, but it dwells in every person
who loves himself. Spiritually speaking, Babel represents an interior
reality of the fallen world. Every person builds inside his soul a Babel
tower and consumes all resources in order to gain a famous name. The
chance of humanity is to gain the Holy Spirit, thus the confusion
provoked by the Babel Tower is healed and takes to the communion of
gathering in the same place, or as St. Basil the Great interprets it, it
provokes the crushing of „Babylonian” thoughts of man against the
Jesus-Rock.
References
Armstrong K., Istoria lui Dumnezeu, Ed. Nemira, 2009.
Bailey, C., The Legacy of Rome, The Clarendon Press, Oxford, 1923
Eliade, M., Sacrul şi profanul, Ed. Humanitas, Bucureşti, 1995
Hislop, A., The Two Babylons - or the Papal Worship proved to be Worship
of Nimrod and his Wife, 1916
Nellas, P., Omul animal îndumnezeit, Ed. Deisis, Sibiu, 1994.
Yannaras, C., Contra religiei, Ed. Anastasia, 2011.
Zizioulas I., Fiinţa eclesială, Ed. Bizantină, Bucureşti, 2007.
NOTE ON THE AUTHOR

Christina Andreea Miţariu is a lecturer at the Faculty of Management in
Tourism and Commerce Timisoara Dimitrie Cantemir Christian University. She
holds a PhD. in Philology. She has published numerous books and articles.
14 Ibidem, p. 30.
15 Yannaras, C., Contra religiei, Ed. Anastasia, 2011, p. 57.
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QUAESTUS MULTIDISCIPLINARY RESEARCH JOURNAL

NO. 7/ June 2015 JOZSEF GAL,

The QUAESTUS journal is published by the

FACULTY OF MANAGEMENT IN TOURISM AND COMMERCE

Quaestus Multidisciplinary Research Journal is indexed in

ISSN-L 2285 – 424X

Tiraj: 100 exemplare

THE ROLE OF HUMAN CAPITAL DEVELOPMENT IN INCREASE

CURRENT DEMOGRAPHIC AND URBAN PROBLEMS IN

THE SOCIAL-ECONOMIC IMPACTS OF A NEW PLANT

THE ECONOMY OF TATABÁNYA, A MIGRATION

SELECTION OF CANDIDATES IN THE PROCESS OF

BUSINESS SIMULATION OF TOURISM COMPANIES

EVALUATING COMMERCIAL PERFORMANCE

BUSINESS INTERNATIONALISATION AND THE CHOICE

THE GROWING IMPORTANCE OF SOCIAL MEDIA

ACCOUNTING AND FINANCE ................................................... 99

ACCOUNTING AND TAX LEGISLATION ISSUES

INTERNAL FINANCIAL ACCOUNTING

CONSIDERATIONS REGARDING PERISHABLE ITEMS ............ 132

DETERMINATION OF THE OPTIMUM PRODUCTIONS

STATISTICAL YEARBOOK OF ROMANIA, A PUBLIC GOOD ... 157

EXTRAORDINARY FINANCIAL RESOURCES – TRENDS .......... 164

OPPORTUNITIES FOR PREVENTION AND FIGHTING

LEGISLATION IN TOURISM ..................................................... 183

THE PRE-CONTRACTUAL PHASE AND THE NEGOTIATIONS

LEGISLATIVE PROPOSALS ON SPECIALIZATION

THE MARKET LAND LIBERALISATION

SOCIAL AND EDUCATIONAL ENVIRONMENT ............ 213

DO WE REALLY UNDERSTAND ANGLICISMS USED

BABEL TOWER – AN INDICATION OF HUMAN

CORPORATE SOCIAL RESPONSIBILITY POLICY

Dina Maria Luţ

Abstract: In today's business world, the concept of Corporate Social

which will be necessary for future generations. Stopping environmental

responsibility that implies obtaining concrete competitive on a market

Environmental dimension (D1) referring to the impact of

Internal dimension referring to the Human Resources

2.2. Results and discussions

Table 1. General Score Obtained for Evaluated Dimensions

D1. Environmental dimension 2.90

The averages obtained for each criterion describing each of the

The general score for CSR - Environmental dimension is 2.90

If we calculate a general score of the HRM dimension, as a simple

using the environmental standards and also the active participation of

WCED (World Commission on Environment and Development) (1987), Our

THE ROLE OF HUMAN CAPITAL DEVELOPMENT

Dina Maria Luţ, Florea Vlad

Abstract: Tourism is a truly global economic activity one which takes

Nearly 260 million jobs worldwide are supported by tourism

focuses on improving competitiveness by creating a statutory framework

2. HUMAN CAPITAL CONCEPT IN THE CONTEXT OF

impact of knowledge occur quantitative, qualitative and structural

At the organizational level, human capital development is

3. HUMAN CAPITAL DEVELOPMENT CONTRIBUTION TO

In the tourism enterprises the human resources development is a

reduction of amateur management which characterizes the small

order to maintain (or reach) competitiveness in Romanian enterprises, in

European Councils (Stockholm - 2001, Barcelona - 2002 Brussels - 2003,

Failte Ireland. (2005). A human resource development strategy for Irish

Florea Vlad is Associate prof. at the Faculty of Management in Tourism and

CURRENT DEMOGRAPHIC AND URBAN

Abstract: The administrative units in Dobrudzha in Bulgarian part of

METHODS AND DATA