MULTINATIONAL COMPANIES UNDER THE GLOBALIZATION CONTEXT

Alexandru Ionescu () and Nicoleta Rossela Dumitru ()
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Alexandru Ionescu: Romanian American University, Bucharest
Nicoleta Rossela Dumitru: Romanian American University, Bucharest

Romanian Economic Business Review, 2012, vol. 7, issue 1, 86-95

Abstract: 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.

Keywords: multinational companies; globalization; world – wide community; international exchanges (search for similar items in EconPapers)
Date: 2012
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