MULTINATIONAL COMPANIES UNDER THE GLOBALIZATION CONTEXT

The main reasons that compel companies to internationalize their assets refer to obtaining both the highest possible profits against the lowest costs, and also an increased profitability. This being the context, the transnational companies shall become the globalization process main motor, since they operate within a global – type economy that relates to: global production, global capital, global market, respectively. The later ones can be achieved by means of capitalizing those opportunities that other countries provide with cheaper material and human resources, by way of penetrating on markets that are advantageous from the export point of view. Given such a context, the principle criteria, that the multinational companies take into consideration while they are being under the development process of their domain of activity at the global level, by setting up new branches in other geographical areas, refer to the interference of factors such as the free circulation of labour and commodities.