The role of transnational corporations in international economic relations

Tarasevych Nataliіa
PhD in Economics, Аssociate professor of the Department of Banking, Odessa National Economic University, Odessa, E-mail: nvt4364@gmail.com, ORCID ID: https://orcid.org/0000-0001-5194-4878

Cite this article:

Tarasevych N. (2022) The role of transnational corporations in international economic relations. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Rol transnacionalnih korporacij u mizhnarodnih ekonomichnih vidnosinah; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 8 (297), pp. 89-94.

Abstract

Purpose. The purpose of the article is to assess the role of transnational corporations in international economic relations in the context of globalization processes. Method. The system-analytical method was used; comparison method - to determine the causes and degree of impact of dynamic changes and deviations; grouping method - to systematize factual data; method of tabular display of analytical data - for displaying analytical information. Results. The nature and types of foreign direct investment are outlined as one of the most popular exit strategies of multinational companies. It is emphasized that investments can be both inorganic (acquisition of a business in a foreign country) and organic (expansion of an already existing business in the target market). It is noted that foreign direct investment covers two types of flows: investment in production, resources and services, as well as capital investment in infrastructure. An assessment of the economic indicators of global direct foreign investment in the world economy is given. found that international production tended to expand gradually over the study period. The actual data reflect an anticipatory trend in the growth of revenues from attracted global foreign direct investment compared to changes in the flows of attracted foreign direct investment. The dynamics of the inflow and outflow of direct foreign investments in international economic relations by country groups were studied. The dynamics of the main indicators of the internationalization of the world's largest multinational companies were analyzed. The priority directions in the further development of transnational corporations in international economic relations in the conditions of globalization processes are defined. Practical importance. The practical importance of the study is to determine the role of transnational corporations in international economic relations in the context of globalization processes.

Keywords

transnational corporation, foreign direct investment, globalization, international economic relations, foreign economic activity.

JEL classification: F010, F210, F230; DOI: 10.32680/2409-9260-2022-8-297-89-94

UD classification: 339.98

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