The influence of institutional and cultural factors on compensation practices around the world
The globalization of economies, a process which is clearly leaving its mark on today’s world, has led to many changes such as the disappearance of trade barriers, the interdependence of economies, greater mobility of people and the progressive homogenization of culture. These factors, together with the increase in international competition, have modified the way in which organizations are managed. The main consequence has been the rise of the international company. Transnational businesses came onto the scene in the 1950s, when there was an intensification of international exchange and a subsequent increase in the number of firms selling their products on new markets and setting up filial companies abroad.