CONFRONTING IN THE GLOBAL ECONOMY AND THE IMPLICATIONS TRANSNATIONAL CORPORATIONS IN THE CONTEXT OF THE NEW ECONOMY

Globalization is a fact that should be assumed and analyzed carefully, drawing conclusions from the performance of those who have a lot to gain from it, identifying its shortages and anticipating the potential ways to avoid or revise its negative effects. The aim of the present paper is to emphasize that the new economy's growth has a strong impact both upon the nature of business and upon all the fields in economic and social life. The rapid pace of changes brought about by globalization generates new, great opportunities for those able to find the appropriate answers in the new circumstances, and it also exposes those unable to adapt to new, serious risks. It is. increasingly clear that corporations' survival in the new economic context nowadays is subject to their ability of entirely reorienting both in terms of their own domestic organization and in relation with the environment they operate in. The main goal of the research herein aims at highlighting the fact that transnationals are fundamental to competition's globalization. Transnational outcomes have placed global competition within national markets so that many companies are forced to generate outcomes at the international level of efficiency or get out of business. Transnational corporations have evolved over the last decades as they have internationally used their competitive advantages. These advantages ensue from scale economies, better management techniques and/or world sales networks.