BUSINESS GLOBALIZATION: TRANSNATIONAL CORPORATIONS AND GLOBAL COMPETITION

The purpose of this paper is to introduce business globalization and the main globalization factors which, under the current stage, are transnational corporations. Globalization is the result of the pressure put by companies which, in turn, are under the close “magnifier” of all the involved factors (the so-called “stakeholders”). The market and the determining forces are not influenced by a political attitude nowadays marking globalization, but rather the political decisions have followed the course of economic evolutions, a trend that has always been provided by multinational corporations. In order to successfully follow up their activity, companies initiate new businesses, selling or deleting from their portfolio businesses or divisions with a decreasing tendency. Also, companies give up old rules and structures adopting new decision-making processes, control systems and mental patterns. Corporations must learn to become dynamic just like the market, if they wish to maintain, on the long run, a superior rate of income.