Companies’ International Trend

The trend towards globalization is based on two factors: Trade barriers reduction and communication, information, and transportation technological changes.

As consequence of markets’ and production globalization; the foreign direct investment increased, exportations got more into the nations and competition pressures intensify in all economy branches.

One of the elements that show the globalization advance in the economies is the increase of multinational enterprises. Multinational enterprises were born as a consequence of the markets’ expansion process. A multinational enterprise is a company with productive activities in two or more countries.

As markets tend to globalization and every time more business activities go across national borders, it’s necessary the existence of institutions that handle, regulate and watch the worldwide market, and promote the establishment of multinational treaties that rule the businesses worldwide system.

The most important international institutions that have emerged for this purpose are:

World Trade Organization

International Monetary Fund

World Bank

United Nations Organization