Also, via expanding globally (i.e. the development of multinational companies) , the size of the market greatly increases. For example, if 1 out of 6 UK citizens are interested in an X product, it is obvious that respectively, more citizens in the world’s market will be interested in the same product. Therefore, becoming “multinational” not only contributes in the augment of the firms’ profits and gives exposure to more markets but also adds more costumers to the company’s potential database. Moreover, expanding a company’s market, helps increase the world’s GDP, something that constitutes a crucial factor in the outcome of the world’s economy.

Furthermore, as the market is becoming more global-especially through internet- it is a case of “multinational to survive”. More specifically, various companies use the Internet, the greatest innovation of our times, in order to advertise and sell their products. In that way, competition for small companies/firms increases by a high rate, putting companies that use the Internet in advanced position compared that tend to not use it.

Hence, the amount of companies that use the Internet in order to sell their products rapidly increases, making the market global, interconnecting several countries’ market and leading to the boost of multinational corporations.

Moreover, another important factor for firms to develop into multinational companies is cheap labour and cheaper raw materials in several countries abroad. These two factors have a great impact on a company’s profits since they reduce unit costs and hence increase the final profit. Theref