THE IMPORTANCE OF COSTS IN FRANCHISING BUSINESS
THE IMPORTANCE OF COSTS IN FRANCHISING BUSINESS

Summary/Abstract: At the beginning of the new millennium, humankind is concerned with the material and spiritual future of the Earth and with the significant changes of world economy by its globalization trends that are leading to gathering power of great international enterprises and to unprecedented competition among various economic systems on world markets. The structural and competition challenge places different entrepreneurial forms and systems on the same world market level, such way the great business trusts having broad networks and subsidiaries, federative and cooperative unions, companies belonging to other organization systems, including numerous SME’s. The economic and social environment is continuously changing and transforming itself, and suits the current context which means a painful adjustment that shows the loss of comparative advantages having high importance to some communities. The economic dimension of globalization undoubtedly has great importance since it is one of the causes and moving forces of globalization processes in all activity fields; it has become a fashionable notion that has been used in an inflationary way in political, journalist or scientific debates for some time and it is regarded on one hand as a ”threat” and on the other as an ”opportunity”. A part of the economic chain in the globalization process is the franchising system which reaches high levels in the foreign activities related to the fields of distribution and services and it has encountered appreciation and openness on the Romanian market from those who want to launch business.

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