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Competitive advantages of TNCs. The role of TNCs in the global economy. Positive and negative aspects of the activities of TNCs

The globalization of economic life, the liberalization of business conditions and the development of regional economic systems create new conditions for international corporations to carry out business activities in the world market. More and more domestic companies operate outside the domestic market. Experts include the largest energy, metallurgical and telecommunications companies among emerging Russian transnational corporations. In terms of the scale of operations in international markets and the accumulated experience in this area, they are inferior to TNCs from developed countries. Their activities are carried out in conditions of tough and dynamic competition. Domestic companies are faced with the problem of studying the conditions of the world market and methods for increasing the competitiveness of leading international corporations.

Since the 1990s the achievement of competitive advantages of TNCs is linked to the globalization of economic life. The modern world market is characterized by the blurring of boundaries between industries, reduction life cycle goods, a trend towards unification of demand, as well as increased attention to environmental issues.

For TNCs, the process of globalization of economic life provides an opportunity to diversify, specialize, take advantage of deregulation by making large investments in any markets, attracting various financial resources, reducing production costs by issuing standardized products and economies of scale, using closer business ties with other enterprises, banks to create entrepreneurial networks, etc. All this leads to an increase in the competitiveness of the corporation.

The competitive advantages of TNCs are laid at the stage of developing a corporate strategy, which in modern conditions is determined by the radical changes taking place in the global market environment, and is linked to the growth of market capitalization. On fig. Figure 1 presents the driving forces of globalization that affect the structure of an industry, sector or market that is of particular importance for the development of the strategy of a multinational corporation.

Today's conditions provide an opportunity for TNCs to develop global strategic approaches in many industries. It is during the formation of a common corporate strategy that all the advantages of the modern global market are taken into account.

The main factor in increasing the competitiveness of TNCs is the growth of its size due to:

■ making direct investments in new projects;

■mergers and acquisitions;

■implementation of strategic agreements;

■Using economies of scale.

At the heart of all the strategies of the largest TNCs are growth indicators, determined to a large extent by the global consolidation of industries, which is important condition development of competitive advantage and creation of shareholder value of the business.

The high level of consolidation of companies is confirmed by the following statistics.

In 2006, the top 6% of the largest publicly traded companies (with a capitalization of more than $10 billion) accounted for 68% of the total market capitalization. Significant consolidation is observed in the list of the first 500 largest companies in the world. In 2008, the top 30 companies (6% of 500) accounted for about 25% of total market capitalization, 23% of total profits and 20% of total sales. The average size of the 30 largest companies in the world by market capitalization exceeded $200 billion. Moreover, in the context of the globalization of the world market, the scale for the company begins to play a more important role than productivity, quality, time to market. Research conducted by A.T. Kearney showed that economies of scale are one of the main sources of competitive advantage in traditional strategies. S.J. Palmisano (Chairman of the Board of Directors, President and CEO of IBM) believes that in modern conditions the largest companies have become globally integrated companies, transnational groups of manufacturing, trading, financial and research firms. The new scale and high degree of business integration requires management to actively apply all possible means of managing it.

The growth and development of international business are caused by the action of interdependent factors leading to the globalization of production and marketing, ensuring the competitiveness and efficient functioning of TNCs. All these factors can be divided into three groups: economic, financial and organizational. The firm, as a rule, uses several methods at the same time.

Let us consider possible ways of obtaining competitive advantages of TNCs within the framework of economic factors (Table 1).

The competitiveness of TNCs in strategic plan is based on such basic economic conditions at the micro and macro levels as the resources and capabilities of the company itself, the level of competition in the industry, home countries and international factors. Managers must make strategic, investment and financial decisions at the international level, combining and taking into account the characteristics of the regions (local, local markets) in order to gain competitive advantages in a dynamically developing global market.

To ensure the competitive position of the company in the world market, it must first of all have competitive advantages in the national market. The company must occupy a strong position in the domestic market, skillfully use all its resources and capabilities. The competitiveness of the company in international markets also largely depends on the support and assistance from the state, which provides various benefits, loans, subsidies, and provides the necessary information about market conditions. In turn, transnational companies contribute to strengthening the national economy of their country by increasing labor productivity, creating jobs and increasing wages (compensation) for their employees.

To take advantage of globalization, a company first needs to know the degree of globalization of the industry in which it operates. Economist M. Porter classifies as global those industries that have a single field of competition around the world. In them, obtaining a competitive advantage is of particular importance in connection with the possibility of its worldwide use. It is in such industries that it is necessary to develop not just a competitive strategy, but a global one, i.e. form and implement a unified approach to the sale of products in many countries.

The main criteria for assessing the degree of globalization of the industry are:

■homogeneity of demand;

■use of the international division of labor;

■ economies of scale in production;

■competition on a global scale;

■high share of spending on research and development;

■presence of international alliances, mergers and acquisitions.

Thus, experts include the automotive industry, air transportation, computer production, telecommunications, oil production and processing, pharmaceutical and chemical industries as global industries. At the same time, the three largest companies carry out 80% of sales in the global industry, the rest account for only 20%. The use of differences in national markets (the cost of raw materials, labor, technology, capital, the system of state regulation of entrepreneurial activity) allows TNCs to carry out, on the one hand, the global growth of their business, reduce production costs, increase profits, and on the other hand, attract international resources for this. Prominent examples are the markets of China and India. Only for the period 2000-2003. the largest TNCs (European chemical producers, Japanese car manufacturers, American industrial conglomerates) have built more than 60,000 enterprises in China, most of which are oriented to global markets. All this ensures the stability of international integrated business structures in relation to the constantly changing external environment.

One of the most common corporate strategies in recent decades is the establishment of business partnerships between companies from different countries and the creation of integrated associations. For example, the main principle of the work of the American concern Ford in modern conditions is the impossibility for a large automobile company to carry out its activities without close cooperation with other leaders in the automotive industry.

Companies are increasingly forming strategic alliances, which have taken a special place among the various forms of cooperation between companies over the past 15 years. Since the mid 1990s. their number in the world annually increased by more than 25%. At the beginning of the XXI century. this trend has intensified. Today, each of the world's top 500 companies participates in an average of 60 strategic intercompany alliances. In table. Table 2 provides examples of the most prominent partnerships.

The conclusion of strategic alliances is usually accompanied by the acquisition of an ownership interest, when one of the companies buys a large enough block of shares in another company to conduct joint activities, or by the participants' cross-ownership of shares in the capital. Below in table. 3 shows the share of participation in the share capital of some TNCs.

In their financial activities (Table 4), TNCs use the features of the currency, tax and customs regulations of those countries where their subsidiaries operate. TNCs carry out currency maneuvering and take advantage of the conditions for the implementation of business transactions provided by different countries. Based on various financial conditions, TNCs seek to increase net cash flow and profitability. Moreover, special financial conditions allow TNCs to form their own domestic markets, which are characterized by intra-company trading using transfer pricing. Thus, in creating the conditions necessary for the effective functioning of TNCs, both they themselves and the states interested in the development of international business participate.

One of the results of the formation of the global financial market was the expansion of access to the international securities market for issuers of a wide range of countries. The development of the international stock market has led to the creation of objective conditions for the use of temporarily free capital. The predominant place in the world securities market in terms of directed volumes of capital began to be occupied by financial institutions. According to the OECD, for 1970-2000. the annual volume of direct investment in the top seven countries has grown by about 40 times, and portfolio investment by 150 times. Institutional investors view asset placements abroad as increasingly important direction activities that ensure the diversification of risks and optimization of the profitability of securities portfolios. A McKinsey Global Institute study shows that the assets of the main groups of investors in 2000 almost tripled and by the end of 2006 amounted to about $8.5 trillion (Fig. 2), which is equivalent to about 5% of global financial assets ($167 trillion) . The high degree of activity of these institutions, their focus on high profits stimulate the development of competition between companies for their funds. This leads large corporations to the need to choose a strategy of transparency and openness for shareholders and potential investors.

Institutional investors also spread their activity to countries with emerging markets, the conditions of activity in which often do not correspond to generally accepted world standards. In addition, numerous examples of serious violations in the corporate governance system revealed at the beginning of the first decade of the new century led to serious violations of the rights of shareholders and the bankruptcy of the largest companies. In modern conditions, numerous representatives of institutions financial infrastructure and the global business community pay special attention to the development of harmonized standards and rules of best practice in corporate governance.

Features of the activities of TNCs outside the home country encourage them to introduce their securities in foreign capital markets. The quotation of bonds and shares on foreign exchanges is not only representative. It serves as a tool to mobilize additional funds. Foreign firms also actively use the over-the-counter market, where their number, as a rule, exceeds the number of participants in the official market by three to four times.

Cross-country movement of securities has become an important source of merging of industrial enterprises and banks, a catalyst formation of the largest transnational companies. International transactions with securities play an increasingly important role in such aspects of TNC activities as financing, expanding the production base and distribution network, active participation in trade operations, their support, etc. This explains the importance that TNCs attach to representation in the main centers of international securities trading. International securities trading has been developing especially rapidly in the last 20 years.

At present, the situation has become typical when foreign holders hold fairly large blocks of shares in many companies from developed and developing countries. Thus, the process of mutual interweaving of ownership of securities takes place.

Attracting resources from the global securities market is also of some importance due to the fact that TNCs often seek to circumvent rather stringent requirements when registering on the official exchanges of their countries (especially on the New York Stock Exchange). They use the quotation of securities on foreign exchanges as a certain alternative to over-the-counter turnover: it makes it possible to officially evaluate portfolios of securities at market value, to receive cash from the host country for securities in a short time.

Every fourth debt paper and every fifth share traded on the national financial market of a particular country belongs to foreign investors, which indicates a high degree of their integration into the global capital market. Almost all the largest TNCs have their offices on foreign stock exchanges.

In the regulation of integrated business structures, cross-shareholding plays a special role today. A noticeable phenomenon has been the growth in the number of joint ventures, the founders of which are either the parent and affiliated companies, or the affiliated companies themselves, which gives rise to diverse and rather complex internal relationships. In particular, approximately 46% of affiliated companies American TNCs own shares in other entities that are part of the system. The multinational ownership structure facilitates the use of transfer prices and other means of manipulating remittances.

The scale of the internationalization of the capital structure is evidenced by the active participation of firms in the activities of foreign stock exchanges. Already in the early 1980s. the number of such companies reached 236, by 1986 it had doubled. At the end of 2008, 3,046 foreign companies were listed on stock exchanges. The largest number is represented on the leading stock exchanges - London and New York: 22% and 14% of the total number of companies, respectively (Table 5). Moreover, the decrease in the volume of trade on the main stock exchanges during the current crisis did not introduce significant changes in the positions of foreign companies represented on various trading floors.

The integration of companies occurs not only through the withdrawal of securities to foreign markets, but also through the purchase and investment in the assets of companies, which became possible in the context of softening the access of foreign capital to national markets. Consider the organizational advantages of large TNCs (Table 6).

Over the past 15 years, the world markets have seen a sharp increase in the activity of mergers and acquisitions (Table 7), the conclusion of strategic alliances. All this leads to a change in the rules of competition and allows TNCs to achieve global leadership. Thus, the total amount of cross-border mergers and acquisitions has increased over the past 20 years by almost 10 times. Between 1997 and 2007, 51% of the total market value of M&A deals were so-called global deals with an average market value of over $3 billion.

Strengthening global competition causes the processes of cross-border mergers and acquisitions (cross-border mergers and acquisitions), the creation of strategic alliances, and makes it possible to attract capital in foreign markets. All this leads to the internationalization of the property rights of TNCs. For example, at present, more than 27% of the shares of one of the largest Japanese companies Toyota and about 24% of the Norwegian company Statoil are owned by foreign investors.

Since the late 1990s the share of foreigners in the ownership structure of the largest companies in Japan was only 4%, and in 2007 it was 28% (Fig. 3).

More than 60% of all transactions with securities of German companies in 2007 were carried out with the participation of foreign investors. The share of investments of American investors in foreign companies is increasing. A joint report by the Treasury Department and the US Federal Reserve on investing US money in foreign stocks noted that the largest investment is in the UK ($377 billion).

In second place is Japan, in third is Switzerland. Of the emerging markets, most US money was invested in Brazilian stocks (Table 8).

Such reports have been compiled since 1995. According to the data presented in them, there has been a steady increase in US investments in foreign shares, which amounted to $ 5253 billion in early 2008. At the same time, control over the corporation remains with the country of origin and the controlling stake belongs to entrepreneurs of one, and not different countries. However, the emergence in the company of a significant number of new shareholders from different countries interested in taking into account their interests necessitates new requirements for the corporate governance system, taking into account world standards. On fig. 4 presents the benefits of creating an effective corporate governance system for large corporations. In the context of the current global crisis and serious financial problems, these issues are becoming a priority.

The internationalization of the ownership structure allows the largest companies to change the location of the parent company and headquarters1, moving them outside their country. At the same time, importance is attached to:

■availability of financial, information centers and an extensive network of business services;

■opportunities for establishing business contacts;

■proximity to transport infrastructure;

■supply of highly qualified specialists.

The presence of these factors is typical for large urban areas of developed countries, mainly capitals. The reasons for changing the location of the corporate center may be different. In table. 9 are examples illustrating the above.

Most a prime example of all these tools is the pharmaceutical company Organon, based in the Netherlands. In 2002, it moved its headquarters to Roseland New Jersey to be closer to American consumers and American companies. In 2005, after a merger with the Dutch company Akzo Nobel NV, two headquarters were formed. In 2006, she liquidated the US headquarters, returning back to the Netherlands. In late 2007, Organon's headquarters moved back to the US in connection with a major deal with US-based Schering-Plough Corp. Of Kenilworth. Some companies are trying to create a global image by changing the name. For example, the British company British Petroleum Corp. became known as BP PLC after a merger in 1998 with the American Amoco Corp.

Thus, we can conclude that in the modern conditions of globalization, the concept of a company's nationality is increasingly losing its meaning. Big business for various reasons, but with the aim of greater recognition in the global market, more profit and higher capitalization, goes beyond national affiliation.

The processes considered above lead to the fact that the management systems of TNCs also undergo a significant evolution. In order to use all competitive advantages within the largest transnational corporations, a so-called integrated network structure is being created, which acts as a single innovative system that allows increasing the interaction of companies within the network and is simultaneously used in the fight against outsiders who are not members of the association. The classic vertical structure is gradually becoming a thing of the past. Now more and more global corporations with a developed horizontal structure are being created.

This form of organization and management has turned TNCs into the dominant subjects of the oligopolistic market. Many diversified corporations in modern conditions are characterized by a combination of their subsidiaries with vertical and horizontal integration. A typical example of such a corporation is the Swedish Nestle, which has 85% of its production abroad and is employed restaurant business, food production, cosmetics, wines, etc. With the help of diversification, TNCs not only reduce their risks, take into account the different levels of economic activity in different countries, but also use the main component of this process - the unequal degree of crisis hit different industries in different countries, which currently contributes to greater financial and economic stability of companies. The latest tools that determine the competitiveness of TNCs are innovation and adaptability. The intensification of innovation activity is aimed at increasing the return on the use of available resources.

S.J. Palmisano, Chairman of the Board of Directors, President and CEO of IBM, writes:

“The company's real innovation goes beyond developing new products. It concerns the service delivery process, the business process integration system, the management system, the transfer of knowledge and technology, and the development of policy in this area. At the same time, it is necessary to take into account the forms and methods of participation in these processes of enterprises, associations and the public, as well as the benefits they receive. Innovation and innovative activity are becoming key factors for the company's success in the global market and the main tools for conducting competition. high risks(economic, political, environmental) are an incentive for the development of new technologies, which makes it necessary for TNCs to allocate significant funds (up to 50% of their sales) for R&D. This allows you to develop effective strategies and have technological dominance in business. Companies that are strategically looking to be in a stronger position are investing even more in R&D. Special meaning innovation acquires in times of crisis. Leading TNCs do not reduce R&D costs even in difficult times. The importance of innovation in a crisis period is recognized by the management of the largest companies. For example, Masayuki Matsushita, vice-president of Matsushita Corporation, believes that the company is quite calm about not meeting the budget. However, at the same time, the company's managers do not reduce the cost of new developments, even with a negative result, since, according to management, this lays the strategic competitiveness of the business.

US companies dominate innovation in automotive, man-made materials, information technologies. Japanese companies in terms of R&D spending are slightly behind American companies (except for a few). European companies occupy leading positions in the medical and chemical industries. Companies from countries such as South Korea, Taiwan, Israel also demonstrate a high level. At present, Samsung, Logitech, LG Electronics, Hyundai are active participants in innovation and focus their efforts on R&D and low-cost innovation.

In addition, TNCs create their own research and development units both in the parent company's home country and in host countries. Moreover, in the last decade, there has been a steady trend in the location of R&D units in developing countries (Table 10). Thus, the number of research centers of foreign TNCs (Microsoft, Intel, Vodaphone, Unilever, etc.) in China increased from 4 in 1993 to 705 in 2005. The high degree of integration of scientific research and development around the world allows us to talk about the formation global network in this area.

In the process of creating innovations, TNCs actively interact with government agencies, small and medium-sized firms, as well as

organize cross-border strategic alliances. All this necessitates the formation of long-term strategies for the development of innovations not only in the developed, but also in completely new areas of activity. When creating an innovation, not only the TNC itself, but also the home country of its parent company acts as its owner, which necessitates effective state support and promotion of the use of existing competitive advantages of TNCs in accordance with the current requirements of globalization.

The innovative strategies of large TNCs often lead to industry leaders losing their competitive positions. The financial crisis led to a redistribution of influence in the world industry markets, the ruin or takeover of a number of TNCs that have financial and managerial problems. In 2009, the automotive concern General Motors, the petrochemical company Lyon-deMBasel and the telecommunications equipment manufacturer Nortel declared bankruptcy, while the mobile phone manufacturer Motorola was significantly outperformed by Samsung, Nokia, and Sony Ericsson. At the same time, TNCs are gaining strength in the energy sector, the production of non-ferrous and ferrous metals, and consumer durables. developed countries and BRIC TNCs (Brazil, Russia, India, China). In modern conditions, market conditions will be determined by large international companies characterized by high innovation, who have managed to use all the success factors to increase their competitiveness.

LITERATURE

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7. Minaev S. Investment for three seas // Power. - 2009. - No. 44 (847).

8. Nozdrev S.V. International securities market in the modern structure of financial markets // Management of corporate finance. - 2009. - No. 6.

9.Official website of Toyota. - http://www.toyota.com/.

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15 Daisuke Nogata, Konari Uchida, Hiroshi Moriyasu. Corporate Governance and Stock Price Performance During the Financial Crisis: Evidence from Japan Working Paper Series. - http://papers.ssrn.com/sol3/papers.cfm?abstractjd=1501723.

16 Dvorak P. (2007). Why multiple headquarters multiply. As firms expand globally, more feel the need to call more than one city home.” Wall Street Journal. N.Y., November 19.

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24.Weng Kun Liu (2009). «Advantage competition of inter-partner learning in international strategic alliance». Journal of Global Business, Vol. 3(2).

Dementieva Alla Gennadievna - MBA, Ph.D. PhD, Deputy Dean of the Faculty of International Business and Business Administration, Professor of the Department of Management and Marketing, MGIMO (U) MFA RF (Moscow)

Magazine MANAGEMENT TODAY ■ 03(57)2010

An analysis of the activities of TNCs and theories of foreign direct investment allows us to identify the following main sources of effective activity of TNCs (compared to purely national companies):

o using the advantages of owning natural resources, capital and knowledge, especially R&D results, over firms doing business in one country and satisfying their needs for foreign resources only through export-import transactions;
o the possibility of optimal location of their enterprises in different countries, taking into account the size of their domestic market, economic growth rates, labor costs and qualifications, prices and availability of other economic resources, infrastructure development, as well as political and legal factors, among which political stability is the most important;
o the possibility of accumulating capital within the entire system of TNCs, including borrowed funds in the countries where foreign branches are located, and applying it in the most favorable circumstances and places for the company;
o use for their own purposes the financial resources of the whole world;
o constant awareness of the conjuncture of commodity, currency and financial markets in different countries, which allows you to quickly transfer capital flows to those countries where there are conditions for obtaining maximum profit, and at the same time allocate financial resources with minimal risks (including risks from fluctuations in national currencies) ;
o rational organizational structure, which is under the close attention of the management of TNCs, is constantly being improved;
o creation of new jobs and higher wages compared to the national average;
o the possibility of making large investments in R&D. For 2003, the share of TNC investments in R&D in the USA is 12%, in France - 19%, and in the UK - 40%;
o experience in international management, including the optimal organization of production and sales, maintaining a high reputation of the company.

The sources of effective activity of this type are dynamic: they usually increase as the company's assets grow and its activities diversify. At the same time, the necessary conditions for the implementation of these sources are reliable and inexpensive communication of the parent company with foreign branches, a wide network of business contacts of the foreign branch with local firms of the host country, and skillful use of the opportunities provided by the legislation of this country.

At the same time, it is impossible not to see that TNCs indeed remain a source of a number of negative social consequences associated with the selfish motives of their activities. This is a general problem of the market economy and the big capital that dominates it. But it acquires particular soreness in the sphere of international economic relations. In an effort to capture markets abroad, TNCs do not disdain the suppression of national production. It is not uncommon for local enterprises to be bought up not for reorganization, but for the curtailment of production, especially in under- and medium-developed countries. Deriving high incomes by exploiting cheap labor and natural resources, large TNCs often prefer to invest their profits outside these countries. Transnational companies, including banking companies, receive enormous tribute through financial transactions in the world market.

To achieve their goals, TNCs also resort to intervention in political life, feed political figures, political groupings and regimes convenient for them, limiting the state independence of other countries.

All these are real phenomena, and they are unlikely to disappear on their own. It is required to create a system for regulating the activities of TNCs, norms and rules of the game that limit negative manifestations. The antimonopoly legislation of the countries where TNC centers are located and where their foreign activities are deployed has a positive impact on TNCs.

Department: Economics, finance and law

Discipline: International economic relations

Coursework by discipline

“International Economic Relations”

“Transnational corporations and their role in the global economy”

INTRODUCTION 3

Chapter 1. TRANSNATIONAL CORPORATIONS (TNCs) 5

1.1. Theoretical concepts of TNCs.. 5

1.2. Advantages and disadvantages of TNCs.. 7

Chapter 2. ACTIVITIES OF TNCs IN THE WORLD ECONOMY. ten

2.1. Sectoral structure of TNCs.. 10

2.2. Location of TNCs in the world. 13

2.3. Dynamics of TNK.. 15

2.4. Movement of capital through TNCs.. 18

Chapter 3. RUSSIA AND TNK.. 25

3.1. Foreign TNCs in Russia. 25

3.2. Russian TNCs.. 27

CONCLUSION. 32

REFERENCES.. 34

APPENDIX 1. 36

APPENDIX 2. 38

APPENDIX 3. 39

APPENDIX 4. 40

INTRODUCTION

The modern world economy is characterized by a rapidly ongoing process of transnationalization. Transnational corporations (TNCs) are the main driving force in this process. They are business associations consisting of a head (parent, parent) company and foreign branches. The parent company controls the activities of the enterprises included in the association by owning shares (participation) in their capital. In foreign affiliates of TNCs, the share of the parent company - a resident of another country - usually accounts for more than 10% of the shares or their equivalent.

At the turn of the XX-XXI centuries. there is an unprecedented scope of foreign economic activity (international economic transactions), in which TNCs are traders (merchants), investors, distributors modern technologies and stimulators of international labor migration. They largely determine the dynamics and structure, the level of competitiveness in the world market for goods and services, as well as the international movement of capital and the transfer of technology (knowledge). TNCs play a leading role in the internationalization of production, an increasingly widespread process of expanding and deepening production ties between enterprises in different countries.

In the scientific and journalistic literature, two traditions have developed in the assessment of transnational corporations. One of them focuses on the constructive role of TNCs in improving the efficiency of the modern economy and goes in line with positivist economic theory. The other is sharply critical, revealing, with an emphasis on the negative social aspects of the activities of large international corporations. It reflects the influence of stereotypes of the theory of imperialism of the last century and modern anti-globalism.

The topic of TNCs and their role in the world economy is discussed in many monographs on the problem of economic globalization, since the formation and growth of TNCs is the result of the internationalization of the economy and the development of the world market.

It seems to me that real experience and trends dictate the need to overcome one-sidedness and develop a more balanced approach to assessing the role of TNCs in modern socio-economic development. Such an approach includes the recognition that the transnationalization of capital is fundamentally a natural process that accelerates socio-economic development. It contributes to the spread of new technologies, forms of organization of production, management and marketing, involvement in the circulation and efficient use of labor and natural resources, reduction of transaction costs, thereby facilitating the implementation of major international projects. There is no alternative to the transnationalization of capital within a market economy. All countries, including Russia, are interested in expanding and improving the activities of TNCs.

The purpose of this course work is to analyze transnational corporations and their role in the global economy.

Objectives of the course work:

Give the concept of TNC;

· analyze the theoretical concepts of TNCs;

note the advantages and disadvantages of TNCs;

· to characterize the activities of TNCs in the world economy;

· consider the activities of TNCs in Russia.

Trends in world economic development reject the closedness and self-isolation of the national economy and lead to the development of modern, competitive companies, a clear example of which are TNCs.

Chapter 1. TRANSNATIONAL CORPORATIONS (TNCs)

1.1. Theoretical concepts of TNCs

Modern concepts of TNCs are based on the theory of the firm as an enterprise for organizing the production and marketing of goods and services. Most international companies started their activities by serving national markets. Then, using the comparative advantages of the home country and the competitive advantages of their company, they expanded the scope of their activities in international markets, exporting products abroad or making foreign investments with the aim of organizing production in host countries.

Noting main feature TNCs - the presence of foreign affiliates for the production and marketing of goods and services based on direct investment, researchers of transnational corporations have developed a number of models of foreign direct investment.

The American economist J. Galbraith substantiated the origin of TNCs with technological reasons. In his opinion, the organization of foreign branches of international companies is largely due to the need to sell and maintain complex modern products abroad that require a commodity and service distribution system (network) of enterprises in the host countries. This strategy allows TNCs to increase their share in the world market.

The model of monopolistic (unique) advantages was developed by the American S. Hymer, and later developed by Ch. P. Kindleberger and others. market, have extensive ties with the local administration and do not incur large transaction costs, i.e. transaction costs compared to a foreign investor. Monopoly advantages for a foreign firm may arise through the use of original products that are not produced by local firms; availability of perfect technology; "scale effect", which makes it possible to receive a large mass of profit; favorable state regulation for foreign investors in the host country, etc.

The product life cycle model was developed by the American economist R. Vernon on the basis of the company's growth theory. According to this model, any product goes through four stages of the life cycle: I - introduction to the market, II - sales growth, III - market saturation, IV - sales decline. The way out of a decline in sales in the domestic market is to export or establish production abroad, which will extend the life cycle of the product. At the same time, at the stages of growth and saturation of the market, production and marketing costs usually decrease, which makes it possible to reduce the price of the product and, consequently, increase the opportunities for expanding exports and increasing the volume of output abroad.

In most TNCs, they are large enterprises of an oligopolistic or monopoly type with diversified, horizontal or vertical integration of production, they control the manufacture and marketing of products and the provision of services both in the home country and outside it. Using the idea of R. Coase that inside a large corporation between its divisions there is a special internal market regulated by the management of the corporation, the English economists P. Buckley, M. Casson, J. McManus and others created an internalization model, according to which a significant part of international economic transactions is actually intercompany transactions between divisions of large economic complexes. All elements of the international structure of the corporation function as a single, coordinated mechanism in accordance with the global strategy of the parent company, aimed at achieving the main goal of the TNC's activity - making a profit from the operation of the complex of enterprises as a whole, and not each of its links.

Many of the models described above are characterized by a one-sided and narrow view of the complex problem of transnational corporations. The English economist J. Dunning developed an eclectic model that absorbed from other models what has been tested by real practice. According to this model, a firm starts producing goods and services abroad under the condition that three conditions are met: 1) the presence of competitive (monopolistic) advantages over other firms in the host country (owner specific advantages); 2) conditions in the host country facilitate the organization of the production of goods and services there instead of their export (advantages of internationalization of production); 3) the ability to use productive resources in the host country more efficiently than at home (advantages of location).

1.2. Advantages and disadvantages of TNCs

An analysis of the activities of TNCs and theories of foreign direct investment allows us to identify the following main sources of effective activity of TNCs (compared to purely national companies):

Using the advantages of owning (or accessing) natural resources, capital and knowledge, especially R&D results, over firms doing business in one country and satisfying their needs for foreign resources only through export-import transactions;

The possibility of optimal location of their enterprises in different countries, taking into account the size of their domestic market, economic growth rates, the price and qualification of the labor force, the prices and availability of other economic resources, the development of infrastructure, as well as political and legal factors, among which political stability is the most important;

The possibility of accumulating capital within the entire system of TNCs, including borrowed funds in the countries where foreign branches are located, and applying it in the most favorable circumstances and places for the company;

Using the financial resources of the whole world for their own purposes.

Constant awareness of the conjuncture of commodity, currency and financial markets in different countries, which allows you to quickly transfer capital flows to those countries where there are conditions for obtaining maximum profit, and at the same time distribute financial resources with minimal risks (including risks from fluctuations in national currencies);

The rational organizational structure, which is under the close attention of the management of TNCs, is constantly being improved;

Creation of new jobs and ensuring a higher level of wages compared to the average level in the country;

Opportunity to make large investments in R&D. For 2003, the share of TNC investments in R&D in the USA is 12%, in France - 19%, and in the UK - 40%;

Experience in international management, including the optimal organization of production and sales, maintaining a high reputation of the company. The sources of effective activity of this type are dynamic: they usually increase as the company's assets grow and its activities diversify. At the same time, the necessary conditions for the implementation of these sources are reliable and inexpensive communication of the parent company with foreign branches, a wide network of business contacts of the foreign branch with local firms of the host country, and skillful use of the opportunities provided by the legislation of this country.

To achieve their goals, TNCs also resort to interference in political life, fuel political figures, political groups and regimes that are convenient for them, limiting the state independence of other countries.

Chapter 2. TNC ACTIVITIES IN THE WORLD ECONOMY

2.1. Industry structure of TNCs

The indicators in the table below characterize the industrial and sectoral specialization of 100 global TNCs.

Table 1. Industry specialization of 100 global TNCs: 1996 and 1997, number of industries, average transnationality index (TI)

			Absolute growth	Relative growth	2002 average index
Chemical products and pharmaceuticals	22	23	1	4%	70,2
Electronics/ electrical equipment	19	21	2	10%	60,7
Cars	15	16	1	6,25%	43,3
Oil, oil refining, mining	12	13	1	8,3%	50,2
Food	9	8	-1	11,1%	77,0
Miscellaneous goods	4	3	-1	-22%	43,6
Telecommunications	5	5	-	-	41,9
Trade	3	3	-	-	38,3
mechanical engineering	2	1	-1	-50%	36,0
Metallurgy	3	2	-1	-33,3%	3,2
Construction	2	1	-1	-50%	69,9
The medicine	1	2	1	50%	80,1
Other	3	2	-1	-33,3%	55,9
Total	100	100	2	1,67%	60,5

According to UNTCAD, by the end of the 20th century. approximately 280,000 branches and 45,000 TNCs operated in the world economy. Capital invested abroad amounted to more than 3.2 trillion. dollars.

Today, about 9/10 of the cumulative amount of foreign entrepreneurial investment, 4/5 of patents and licenses for the latest technology and more than 1/3 of world production is controlled by TNCs.

The liquid assets of TNCs are more than twice the total foreign exchange reserves of developed countries and monetary organizations. The functioning of TNCs provides employment for approximately 75 million people.

At the same time, more than 9/10 of all TNCs are based in developed countries, about 8% - in developing countries and less than 1% - in countries with a transitional type of economy.

Of the 20 largest TNCs in the world's leading industries - automotive, electronics, oil refining - 6 are based in the United States, 3 each in the UK, Japan and Germany, 2 each in France, Switzerland, and the Netherlands.

For example, according to OECD research, recent times the participation of TNCs in the economic life of states has intensified. For example, in industrial production, the share of TNCs in 2001 was 12%, and by 2002 it was 13% compared to the total share of other industries.

The largest share of TNCs is in the production of chemical goods and pharmaceuticals (22% in 2001 and 23% in 2002), as well as in the development of electrical engineering and electrical equipment (19% in 2001, 21% in 2002). This is due to a significant level of profitability of TNCs in this sector of the economy, the presence of a constant demand for products manufactured by these sectors of the economy.

The increase in the number of TNCs by 1% is explained by the fact that a stable business structure has already been established in these industries, leading companies have been identified, and significant barriers have been set for new companies to enter the industry. The growth in the number of companies is mainly due to the separation of the main companies, the separation of subsidiaries and the formation of a network of branches various countries peace.

The share of the automotive industry, oil production and metallurgy is growing. Their share increased in 2002 by 1% compared to the previous year.

However, there is a decrease in the share of TNCs in such industries as: engineering, food, production of other goods, metallurgy and construction.

The decline in the share of TNCs in the above sectors of the economy is explained by the merger of various TNCs into large associations and unions.

The share of TNCs in trade and telecommunications has remained unchanged since 2001.

According to "FinancialTimes" experts, in the ranking of the most prestigious companies in the world, "General Electric" and "Microsoft" respectively got the first and second places. Among the first 12 of the 50 companies included in the rating, 5 are in the information technology sector ("Microsoft", "IBM", "Dell", "Hewlett Packard", "Intel"), 1 company in the field of electrical engineering ("General Electric") , 2 companies from the food industry ("Coca-cola", "Nestle"), 2 companies from the automotive industry ("Daimler-Chrysler", "Toyota").

This list also includes 1 company from the industry retail("Wal-Mart").

According to the data presented, it can be concluded that TNCs are most interested in high-tech industries, as well as in chemical and pharmaceutical production.

TNCs have not received distribution in the sectors of metallurgy, construction, trade and medicine.

American researchers P. Kouhi and J. Aronson believe that in the world economy there is a further complication of the system of relations between TNCs in the form of the formation of international corporate alliances, the purpose of which is to promote new technologies to the markets and further introduce TNCs into various sectors of the economy.

2.2. Location of TNCs in the world

The overall scale of international production, the geographical distribution of its segments can be determined by the number of enterprises and their location in certain regions of the world and countries.

Table indicators (Table 2 Appendix 1) give an idea of the country concentration of TNCs and their affiliates.

1. The largest number (out of about 60 thousand) is concentrated in developed countries - in Western Europe, the USA and Japan (more than 80%). It is curious that the largest part of them is incorporated in Denmark - 9.3 thousand, while in Germany - 7.5 thousand, in France - a little more than 2 thousand. The number of their branches, however, clarifies these figures: in Germany there are more than 11.4 thousand, in France - about 9.4 thousand, etc., i.e. we are talking only about the incorporation (registration) of the head office of TNCs in one country or another, but their branches with factories and hired labor operate mainly in other countries with preferable conditions. A large concentration of TNCs is noted in Switzerland (more than 4.5 thousand and 5.7 thousand of their branches), as well as in Norway (900 and 3 thousand, respectively). Against the backdrop of the scale of the US economy, an insignificant number of TNCs officially operate here - about 3.4 with more than 18.7 thousand branches, in Japan - 4.3 thousand TNCs with 3.3 thousand branches. From the point of view of the presence of foreign TNCs, traditionally Canada's economy stands out: more than 4,500 TNCs operate here. In South Africa, 140 TNCs account for more than 2.1 thousand of their branches; in Australia for 596 TNCs - 2.5 thousand branches.

"FinancialTimes" conducted research on the level of transnationality index of the world's leading international corporations. The research data are presented in Table 2.

Thus, the highest index of transnationality in 2000 was recorded in the Swiss company "Nestle SA" and was equal to 94.2%.

The second place in terms of transnationality is occupied by the USA with the company "ExxonCorporation" (75.9%).

A high level of transnationality is also observed in the UK.

2. The concentration of the branch network of TNCs in Latin America is high: for 2.6 thousand TNCs - 26.6 thousand branches; their largest number is in Mexico (8.4 thousand), Brazil (8 thousand), Colombia (4.5 thousand), Chile (3.2 thousand), Peru (1.2 thousand).

3. There are more than 6 thousand TNCs in Asian countries; the largest number of them operate in the Republic of Korea - 4.5 thousand TNCs and 5.1 thousand of their branches; in the Philippines - almost 15 thousand branches of TNCs; in Singapore - more than 18 thousand branches of TNCs; in Hong Kong - 500 TNCs and more than 5 thousand of their branches; in China - 380 TNCs and 145 thousand of their branches; in Taiwan - more than 5.7 thousand branches of TNCs, etc.

4. In Eastern Europe, TNCs clearly give preference to the Czech Republic, there are 660 TNCs with more than 71.3 thousand branches (out of 850 TNCs operating in the region and 174 thousand of their branches). In the second place in the late 90s was Poland (58 TNCs and 35.8 thousand branches), in third place - Hungary (28.7 thousand branches of TNCs). In Russia there are about 7.8 thousand branches of TNCs, a little less in Ukraine. .

2.3. TNC dynamics

As F. Gubaidullina notes, the rapid growth of the scale of the network of TNC enterprises in the world is confirmed by the following data. If after the Second World War they created about 100 foreign branches a year, now almost a thousand times more. In total, there are more than 800 thousand foreign branches in the world, which are owned by 63 thousand parent companies. At the same time, 270 thousand branches are located in developed countries, 360 thousand - in developing countries and 170 thousand - in countries with economies in transition. .

As can be seen from the data in Table 3. (Appendix 2), the number of emerging corporations is growing rapidly, and if during the 90s the number of parent companies increased by about 1.7 times, then the network of foreign branches over the same period increased by 4.7 times. But the community of TNCs, the field of their activity, is growing not so much due to the emergence of new members, but as a result of the strengthening of the power of existing corporations. Transnational corporations and banks have become the main structure-forming factor in the world economy. Due to the fact that TNCs create their branches around the world, the interdependence of countries has sharply increased and crisis situations can be "exported" from one national economy to another along the technological chains of companies.

Research centers are established by transnational corporations in many countries where there are qualified personnel and other necessary conditions for this. In total, more than 100 such centers have been created, including such companies as Microsoft, Motorola, GM, GE, JVC, Samsung, IBM, Intel, DuPont, P&G, Ericson, Nokia, Panasonic, Mitsubishi, AT&T, Siemens. In other words, transnational corporations use the national personnel of other countries to strengthen their competitive advantages.

Most of the parent companies of TNCs (79%) are located in industrialized countries, and since the main movement of foreign direct investment (FDI) occurs between the parent company and its branches, respectively, these countries are exporters of direct investment. But recently, a new phenomenon has been noted in world practice - the export of capital in the form of direct investment from developing countries. The exporters are mainly new industrial countries - NIS (Hong Kong, Singapore, Taiwan, South Korea, Argentina, Brazil, Malaysia).

The list of the world's 100 largest TNCs is unstable and is subject to change every year for various reasons. In the mid-90s, the European Community accounted for 40 of the 100 largest transnational corporations in the world, including the UK 13, France - 12, Germany - 6, Switzerland - 6; Sweden - 4. Most of the largest TNCs had the United States - 27, Japan accounted for 14 companies.

The list of the largest transnational companies in the mid-1990s included the following firms: Royal Dutch/Shell (Great Britain/Netherlands), Exxon (USA), IBM (USA), General Motors (USA), Hitachi (Japan), Matsushita (Japan), Nestle (Switzerland), Ford (USA), Alcatel (France), General Electric (USA), Philips (Netherlands), Mobile Oil (USA), Asea Brown Boveri (Switzerland), Alfakiten (France), Volkswagen (Germany), Toyota (Japan), Siemens (Germany), " Daimler Benz (Germany), British Petroleum (Great Britain), Unilever (Great Britain/Netherlands). .

Of the total number of large South Korean firms, about 20 monopolies can be classified as transnational corporations, primarily Hyundai, Samsung, Daewoo, Lucky Goldstar, Sangkyong, Ssangyeng, Korea Explosive, Hanjin "," Kia "," Hyesong "," Dusan "," Colon "," Hanwa "," Lote "," Hanil "," Geumho "," Dalim "," Dong-A-Construction ". 11 leading South Korean " chaebol" are included in the list of 500 largest companies in the world, including 4 in the first hundred.

Economic rapprochement and interaction of countries at the regional and interstate levels contribute to the widespread development and spread of TNCs.

At the micro level, the process of formation of TNCs occurs through the interaction of individual firms in neighboring countries on the basis of the formation of various economic relations between them, including the creation of branches abroad.

At the interstate level, the spread of TNCs occurs on the basis of the formation of economic associations of states and the harmonization of national policies of various countries.

A significant increase in the share of TNCs is explained by the following reasons:

there is a distribution of risks among the participants of TNCs when investing in large projects;

the risks of doing business are reduced when several companies are merged into TNCs;

TNCs receive significant competitive advantages compared to other companies;

there is the possibility of a significant reduction in the level of costs of TNCs by reducing transaction costs;

the possibility of choosing the optimal taxation regime for TNCs. This opportunity is realized in the case when a subsidiary or branch of a TNC is located in a country other than the parent company. The parent company of a TNK has the right to choose in which country it will be more convenient for it to pay taxes for a subsidiary.

Thus, there are objective reasons that contribute to the globalization of the economy, the formation of large regional integration structures covering all sectors and branches of the world economy.

2.4. Movement of capital through TNCs

The interdependence of national economies is manifested not only in the field of exports and imports of goods and services, but also (to a growing extent) in the field of production, as evidenced by the rapid increase in capital exports. The volume of productive capital exported abroad in the form of FDI increased from $51 billion in 1945 to $1.6 trillion. dollars in 1997. The export of financial capital is the main source of creation of the so-called "international goods", i.e. products sold by foreign affiliates of transnational corporations.

An important form of transnationalization of national economies in the field of production is intercompany cooperation, when individual legally independent enterprises from different countries establish close cooperation in the field of industry, technology and detail specialization.

The export of capital, which already at the time of its inception sought to win a monopoly position in the extractive industries of backward countries and to use the relative excess of capital abroad in order to achieve the greatest profit, after the Second World War received new incentives and took on new forms. This is evidenced by the diagram below of the movement of investment flows in 1960-1998. (Fig. 1. Appendix 3).

Economic factors are also strong incentives for the export of capital. Industrialized countries tend to move to developing countries (and countries with economies in transition) such production facilities that lead to a significant degree of environmental pollution.

The construction of production facilities abroad makes it possible to circumvent the system of external economic protection of the country and firmly take root in the structure of the market and production of this country. This creates a much more stable and solid base for capturing foreign markets than exports of goods, which are easier to regulate through customs and other restrictions. Not least the export of capital is due to the high level of productive forces, further development which in modern conditions requires a higher concentration of resources and capital, deeper linkage and use scientific and technological achievements both nationally and international levels. By coordinating the flow of individual capital, it is possible to overcome its shortage in different parts of the world market economy. And this, in turn, creates a wider scope for the development of productive forces, although they are not fully realized, and unevenly increase continental-regional disproportions.

One of the most significant factors, along with the profit motive, was the accelerating rate of economic growth of the world economy, which has been accelerating since the 1960s. The accelerated pace of economic growth put pressure on the dynamics of domestic savings resources, the lack of which was manifested in pressure on the import of capital from other countries. After the Second World War in some economically developed countries for a long time there was a shortage of financial resources, mitigated by foreign sources that came to them. This shortage was the reason that the countries most affected by the war (Germany, Italy, Japan, etc.) later began to export capital. AT post-war years, until the mid-1950s, the United States was practically the only exporter of capital. Only in the second half of the 1950s did the export of capital become a noticeable growth factor in other industrialized countries, and then some of the oil-producing states of the Persian Gulf joined them. Pressure on the export of capital is also exerted by developing countries seeking to obtain external sources of accumulation and thus accelerate their economic growth rates. At the same time, the transfer of part of production capacities abroad through direct investment was motivated by the desire of economically developed countries to gain control over regions with strategic raw materials, but on their own economic base, drawing these countries into the global system of the world market.

In addition to the general desire to use the benefits of the international division of labor through the expansion of capital beyond the territorial boundaries of states, the capital investor needs to evaluate certain properties (advantages) of the export of capital in order to realize this expansionist aspiration. These properties are:

The size and scope of the corporation;

The size of the mastered (and potential) market, the number of branches of the corporation;

technological leadership;

Advantages in the qualification of management personnel and workforce;

Advantages in the organization of management, advertising;

Provision with raw materials;

Export orientation of the industry;

Import orientation of the national economy;

The conditions of the region (country) that allow realizing all these advantages of the corporation.

The properties (reasons, circumstances, factors) that determine the external investment activity of large corporations often coincide, which contributes to their cross-investment, generating a "resonating" effect in addition to direct results. The advantages of large corporations, such as in management (management), marketing, advertising, qualifications of managerial personnel, etc., are not constant, especially monopoly, they quickly become massive. Yes, and any corporation has its own cycle of development with phases of the highest rise and fall, when only the professional art of top managers with difficulty saves it from collapse. But the thing is that when some corporations are at the zenith of prosperity, others are in crisis, and the movement of the economy as a whole has a relatively equilibrium character, also supported by a relative equilibrium in the field of investment, including foreign ones.

The movement of direct and foreign investment since 1980 is illustrated graphically (Figure 2 Appendix 4).

The figure shows changes in seven curves illustrating capital flows: a) European Union, b) USA; c) Africa; d) Western Asia, e) Central and Eastern Europe, f) Latin America and the Caribbean, g) East and Southeast Asia.

The greatest dynamism of FDI (according to the diagram) is noted (the sum of "inflow-outflow") in the three main most developed centers: a) European Union, b) USA, c) Far Eastern region (Japanese center). Note that in 1989-1991. there was a period of decline (stabilization) in the flow of investment in the United States, but since 1992 the volume of foreign investment in the United States and the outflow of American capital to different regions of the world has been continuously increasing. The intensification of crisis phenomena not only in the regions of developing countries and the CIS, including in Russian Federation, as well as in Europe and Japan, as events after 1992-1993 show, leads to one denominator: increased investment flow from these countries (weakened by crises) to the United States.

THK are the main exporters of US productive capital: they account for over 90% of these exports in the form of foreign direct investment (FDI). For 1998-2000 The United States made such investments abroad in the amount of 412.8 billion dollars. At the same time: 1) in 2000, the volume of their FDI reached 142.6 billion dollars, while in 1986-1991. the average annual export of capital was less than 30 billion; 2) FDI growth rates significantly outpaced those of US GDP and merchandise exports.

In 2001, the volume of US capital exported abroad decreased by more than 27% and amounted to $103.7 billion, which was mainly due to the deteriorating economic situation in developed countries and a decrease in the volume of cross-border mergers and acquisitions carried out by US corporations. In 2002, exported direct investments increased, reaching the level of $119.7 billion. In the coming years, according to authoritative experts, the volume of capital exported from the country will grow, and American corporations will further strengthen their positions as the largest foreign investors.

On the basis of foreign direct investment, global production is being formed, connecting the American economy with the economies of other countries by much closer ties than trade. The network of international production, deployed through FDI, constituted a kind of economic space, called in the scientific literature "the second economy of the United States." The latter occupies a special place in the world economy, significantly surpassing in its production, scientific, technical and financial potentials similar spheres of economic activity of other capital-exporting countries and concentrating over 20% of the production capacities of the United States. Already in 1999, more than 8.9 million workers and employees worked at 22,000 foreign enterprises controlled by American capital, which accounted for about a third of the entire workforce employed at enterprises owned by American TNCs. Assets of foreign enterprises of American companies reached 4.6 trillion. dollars, the volume of goods and services created by them exceeded 650 billion, and their income amounted to 199 billion dollars. These enterprises are characterized by a high level of scientific, information, technological and organizational equipment.

In 2002, US direct investment in Ireland exceeded similar investments in Italy, and in Spain - investments in the economy of Austria and Denmark combined. A significant portion of U.S. direct investment (about 31%) has been in manufacturing.

The United States is showing considerable interest in APEC, established in 1989 and uniting 21 states, which account for 50% of world production and more than 40% of world trade. In an effort to strengthen and expand its position in this most dynamically developing region of the world (despite the financial crisis of 1997-1998), as well as to push out competitors, primarily Asian ones, the United States is actively using the gradual elimination of customs barriers and obstacles to the movement of capital, expanding the volume of direct investment. In 2002, $446 billion of investment was concentrated in the region, or 29.4% of all US foreign direct investment against 24% in 1990.

The expansion of global production has also changed the approach of corporations to countries with preferential taxation, low income taxes and freedom of its transfer, that is, the approach to offshore centers and tax havens. In the 1990s, they sharply stepped up their activities there, creating dozens of branches and significantly increasing the scale of investment. Thus, in 2002 only three of them (Panama, Bermuda and the Caribbean) concentrated $118.1 billion, or 25.9% of US direct investment in developing countries. In particular, on Bermuda by this year, US$31 billion in direct investment had been invested, or 6.5 times more than in Switzerland. About 20 billion dollars were concentrated in the financial sector of Panama, or four times more than in the same sector of the German economy.

Thus, the restructuring of the international business of corporations has already led to a change in a number of previous directions in strategy and tactics, to changes in the mechanism of their international investment activity. At the same time, new trends naturally arose in the export of productive capital from the United States.

Over the past decades, US industrial corporations have been the largest exporters of capital. 500 TNCs account for the bulk of the export of foreign direct investment.

Chapter 3. RUSSIA AND TNK

3.1. Foreign TNCs in Russia

Transnational corporations, which act as the driving force behind foreign direct investment, still play a modest role in the Russian economy. In 1997, these investments accounted for about 5% of the total investment in the Russian economy. A particularly sharp difference in the volume of attracted foreign direct investment is observed between Russia and the countries that most widely use the capital investments of foreign firms to develop their economies. If in 1997 the inflow of foreign direct investment into Russia was estimated at about $6 billion, then in China the same figure was $45 billion, reaching 17% of all investment in the Chinese economy.

The activities of foreign TNCs in Russia are geographically distributed extremely unevenly. The main number of international companies is concentrated primarily in regions with a highly developed infrastructure - Moscow, St. Petersburg. A relatively small number of enterprises with foreign capital are located in industrially developed regions - Moscow, Leningrad, Nizhny Novgorod, as well as in regions with a predominance of export-oriented mining - the Tyumen and Magadan regions, Primorsky Krai.

In the late 90s. a number of regions actively began to pursue a policy of attracting foreign investors, providing them with additional tax benefits. For example, the administration of the Novgorod region decided, with the approval of the regional legislative assembly, to exempt foreign investors from all types of regional and local taxes until the project is fully paid off and the agreed time frame. As a result of such activities, by the end of the 90s. about 50% of all industrial products produced in the Novgorod region were produced with the participation of foreign capital.

Transnational corporations in the Russian market operate according to their traditional geographic strategy. In particular, Western European TNCs place their capital mainly in Moscow and the North-West region of Russia, while American and Japanese companies are expanding their activities in the central regions, the Urals, Siberia and Primorye.

American and Japanese TNCs show the greatest interest in Russian extractive enterprises of the fuel and energy complex. An example of fruitful cooperation in oil production in Russia is the Russian-American enterprise Polar Lights at the Ardalinskoye field in the Timan-Pechora oil and gas region. It was created by the American TNC Conoco and the Russian exploration company Arkhangelskgeologia. It is estimated that about 1 billion dollars will be transferred to the budget of the Russian Federation in the form of taxes during the operation of the "Polar Lights" at the Ardalinskoye field.

The first foreign company to obtain a license to develop oil fields under the Sakhalin-2 project on the basis of a production sharing agreement was the international corporation Sakhalin Energy, the largest shareholders of which are the American TNCs Marathon, Mac Dermott and Japanese TNCs. Mitsui and Mitsubishi. Capital investments at the project development stage are estimated at 10 billion dollars, the payback period is 7-8 years; the total value of the extracted products will be about 40 billion dollars.

In recent years, the food industry has competed with the fuel and energy complex in terms of attractiveness for foreign TNCs. For example, Nestle (Switzerland), the largest corporation in the food industry, uses in its strategy in the Russian market an accelerated purchase of controlling stakes in confectionery factories that are in a difficult financial situation. In 1995, it acquired a controlling stake in the Samara confectionery factory "Russia" and invested about $ 40 million in its technical re-equipment. In 1996, the Nestle corporation bought another controlling stake in the same place, in Samara, from the factory "Confectioner", and in 1998, expanding the geographical direction of its activities, - at the factories "Altai" (Barnaul) and "Kamskaya" (Perm).

Some TNCs in the food industry are taking a different path. Instead of buying up the shares of existing enterprises and their radical reconstruction, they are building new ones equipped with last word confectionery technology. Having carefully studied the peculiarities of demand in the Russian market, these companies, along with their traditional products, begin to produce products that meet the tastes of Russians, made according to Russian recipes and with Russian names. This is what the English company Cadbury Schweppes Group did, having built in 1996-1997. in the city of Chudovo (Novgorod region) a confectionery factory for the production, along with its traditional products - milk chocolate bars - slab dark chocolate "Novgorod" and "Rostov".

3.2. Russian TNCs

In Russia, TNCs are still in the stage of formation and strengthening of their positions. True, a small number of companies similar to modern transnational corporations were formed back in the Soviet Union. These are Ingosstrakh, Aeroflot and many foreign economic associations. Thus, modern Ingosstrakh with its subsidiaries and associates in the USA, the Netherlands, Great Britain, France, Finland, Germany, Austria, Bulgaria, Turkey and a number of former Soviet republics is a Russian TNC in the financial sector. It is actively expanding its partnerships with Russian and foreign enterprises, creating together with them a transnational insurance group. Some of the largest companies in Russia, such as Gazprom, Lukoil, Alrosa, and others, have also become transnational.

The most powerful Russian TNCs operate in the fuel and energy complex. An example is the gigantic organizational and economic structure of RAO "Gazprom" - a 100% monopoly in gas production and export, controlling 34% of the world's proven natural gas reserves and providing about 20% of Western European demand for this raw material. Gazprom is Russia's largest source of convertible currency, exporting $6 billion to $7 billion worth of gas annually. The company's activities extend far beyond national borders. Gazprom has companies with participation in 12 countries that buy Russian gas. Germany has become the main center of Gazprom's foreign investment activity. The value of the German market lies in the fact that all major trans-European gas transport flows pass through this country: from Norway, Russia, Holland. Gazprom, through a joint venture with a subsidiary of the BASF concern, controls 12% of sales on the German gas market. Gazprom's strategy includes active participation in privatization processes in the Czech Republic, Slovakia, Hungary, Austria, Lithuania and Estonia.

The successful activity of the Russian gas giant in the world markets shows that a powerful corporation can achieve significant success in a market economy. Several dozen large transnational corporations would undoubtedly strengthen Russia's position in the world economy. Thus, in the oil industry, the leader is Russia's largest oil company, Lukoil, in which 45% of the shares belong to the state. At the enterprises of this company, vertical integration of production has been adopted: part of the produced oil is processed into gasoline, diesel fuel, fuel oil, lubricating oils, petroleum coke and aviation kerosene. Joint ventures and joint-stock companies with the participation of LUKoil have been formed in the Czech Republic, Ireland, Israel, Argentina, Cyprus, as well as in Azerbaijan, Belarus, Georgia, Ukraine, and Lithuania. In 1998, Lukoil and the American corporation Conoco signed a memorandum on the joint development of oil fields in the Russian Timan-Pechora oil and gas region.

The Russian TNCs in the extractive industry include the joint-stock company Alrosa. In 1992, she won a tender to develop the Katoka diamond deposit in Angola, ahead of the South African concern De Beers and a number of other Western companies. Together with the Angolan state company Endiama and the Brazilian Odebrecht Mining Service, it participated in the construction of a mining and processing plant with a capacity of 1.6 million tons of ore per year. The first stage of the plant in Katok was put into operation in the fall of 1997. In 1998, the Alrosa company began developing diamond deposits in another African country- Namibia.

Nowadays, financial and industrial groups (FIGs) are becoming the basis for the creation of Russian TNCs. In any country, large corporations are the basis scientific and technological progress and accelerated economic development.

Financial and industrial groups uniting legal entities under the jurisdiction of the CIS member states are registered as transnational FIGs (TFPGs).

Many TFIGs were formed by merging banks with industrial enterprises that did not have the funds to finance investment projects. The rapid growth of bank capital allows the most powerful banks to create holdings - banking empires, in terms of their characteristics corresponding to TNCs. An example is the TFIG "Interros", which has developed around ONEXIMbank. Within this holding company, there are three main areas of activity: financial, industrial and media. The structures of the Interros group employ about 400,000 people. The result of its activities is estimated at about 4% of Russian GDP and about 7% of exports.

In recent years, integration activity has noticeably increased in the metallurgical complex of Russia and the CIS member countries. At the same time, transnational corporations may become one of the most important components of the integration interaction of the Commonwealth countries in the field of metallurgy. They are created to counter foreign TNCs on world markets. In this regard, the example of the global aluminum market is indicative, where seven to eight transnational companies integrated according to the vertical technological principle control more than 70% of the world's aluminum production. In this aspect, the transnational company Siberian Aluminum, founded in 1996, with an authorized capital of 5 billion rubles, undoubtedly deserves attention. It includes metallurgical plants and financial institutions from Russia, CIS member countries and far abroad: Zalogbank (the largest share of the authorized capital - 22.5%), Bratsk, Sayan (Russia) and Pavlodar (Kazakhstan) aluminum smelters, an English company " Trans World Aluminum", Samara Metallurgical Company "Sameko", Ural Cryolite Plant and Chelyabinsk Electrode Plant. .

This vertically integrated structure was created to form the domestic market for both primary aluminum and final products, optimize financial flows and reduce production costs in order to remain competitive in the global market. In 1998, TFPG "Siberian Aluminum" reached an agreement on a strategic partnership (alliance) with the American TNC "Reynolde" to strengthen its position in the world aluminum market.

Following the example of foreign auto giants, the largest Russian car-building plants - GAZ and VAZ - are beginning to create assembly plants in some importing countries, acquiring the features of transnational corporations. Thus, using lower duties on the import of components compared to duties on the import of finished cars, the Gorky Automobile Plant organized a Russian-Ukrainian joint venture KremenchugavtoGAZ, which is supposed to assemble light trucks GAZ-3302 - Gazelle. AvtoVAZ organized the assembly of Euro-Lada cars (VAZ-2109) in Finland on the basis of an agreement with the Valmet company. The "Valmet" plants, where cars of the world famous firms "Opel", "Saab", "General Motors" are assembled, are considered one of the most technologically flexible productions in Europe.

One can hope that on the difficult path of the country's integration into the world economy, Russian international companies will play the role of catalysts for overcoming the internal economic crisis and implementing reforms in the foreign economic sphere.

CONCLUSION

Transnational corporations at the end of the 20th century. largely determine the structure of the world market and the level of competitiveness of goods and services on it, as well as the international movement of capital and technology transfer.

In most TNCs, they are large firms of an oligopolistic or monopoly type with a diversified integration of production and marketing of goods and services on the world market. All elements of their multinational structure function as a single coordinated mechanism in accordance with the strategy of the parent company. They view the world as a single market and decide to enter it with new products or services, regardless of state borders.

Modern theoretical concepts of TNCs are based on the theory of the firm as an enterprise for organizing the production and marketing of goods and services. Special attention in the concepts of TNCs, it is given to models of entrepreneurial investment, which primarily include models of monopolistic advantages, product life cycle, internalization, and an eclectic model.

The main sources of effective activity of TNCs are the use of advantages in the ownership of (or access to) natural resources, capital and especially R&D results; the possibility of optimal location of their enterprises in different countries, taking into account the volume of their domestic market, economic growth rates, prices and qualifications of the labor force, the cost and availability of other economic resources, the development of infrastructure, as well as political and legal factors, among which political stability is the most important; the possibility of capital accumulation within the entire network of TNCs; use for their own purposes the financial resources of the whole world; constant awareness of the conjuncture of commodity, currency and financial markets in different countries; rational organizational structure of TNCs; international management experience.

The main motive for foreign direct investment by TNCs in Russia and other countries with economies in transition is the expansion of sales markets. For the time being, foreign TNCs concentrate their activities in Russia in regions with a highly developed infrastructure - Moscow, St. Petersburg, Moscow, Leningrad, Nizhny Novgorod regions, as well as in regions with a predominance of the extractive industry - in the Tyumen and Magadan regions, Primorsky Krai. Production and provision of services in Russia have been deployed mainly by foreign TNCs specializing in the fuel and energy complex, trade, food industry, public catering, various services, and to a lesser extent - in the manufacturing industry, including the automotive industry.

The basis for the creation of Russian TNCs are financial and industrial groups formed by combining banks with industrial enterprises integrated according to the vertical technological principle.

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ATTACHMENT 1

Table 2. Number of parent corporations and foreign affiliates in regions and countries (1996-1998)

Parental		Foreign
Region, country	Year		(parent) companies in the country		Branches in the country
The developed countries	49 806		94 623
Western Europe	39 415		62 226
European Union	33 939		53373
Austria	1996		897		2362
Belgium	1997		988		1504
Denmark	1998		9356		2035s
Finland	1997		1963		1200
France	1996		2078		9351
Germany	1996		7569		11 445
Greece	1991		-		798
Ireland	1994		39		1040
Italy	1995		966		1630
Netherlands	1993		1608		2259
Portugal	1997		1350		5809
Spain	1998		857		7465
Sweden	1998		5183		3950
United Kingdom	1997		1085		2525
Other Western European countries	5476		8853
Iceland	1998		70		79
Norway	1997		900		3000
Switzerland	1995		4506		5774
Japan	1998		4334		3321
USA	1996		3382		18711
Other developed countries	2675		10 365
Australia	1998		596		2550
Canada	1997		1722		4562
New Zealand	1998		217		1106
South Africa	1997		140		2147
Developing countries	9246		238 906
Africa	43		429
Ethiopia	1998		-		21
Mali	1999		3		33
Seychelles	1998		-		30
Swaziland	1996		30		134
Zambia	1997		2		175
Zimbabwe	1998		8		36
Latin America and the Caribbean	2594		26 577
Bolivia	1996		-		257
Brazil	1998		1225		8050
Chile	1998		478		3173
Colombia	1998		877		4468
Salvador	1990		-		225
Guatemala	1985		-		287
Guyana	1998		4		56
Jamaica	1997		-		156
Mexico	1993		-		8420
Paraguay	1995		-		109
Peru	1997	10		1183
Trinidad and Tobago	1998	-		70
Uruguay	1997	-		123
South, East and Southeast Asia	6067		206148
Bangladesh	1997	143		288
China	1997	379		145 000
Hong Kong (China)	1998	500		5312
India	1995	187		1416
Indonesia	1995	313		3472
The Republic of Korea	1998	4488		5137
Malaysia	1998	-		3787
Mongolia	1998	-		1100
Pakistan	1993	57		758
Philippines	1995	-		14 802
Singapore	1995	-		18 154
Sri Lanka	1995	-		139
Taiwan (Province of China)	1990	-		5733
Thailand	1992	-		1050
Western Asia	449		1948
Oman	1995	92		351
Saudi Arabia	1989	-		1461
Turkey	1995	357		136
central Asia	9		1041
Kyrgyzstan	1997	9		I04l
pacific islands	84		2763
Fiji	1997	-		151
Papua New Guinea	1999	-		2342
Tonga	1998	84		270
Central and Eastern Europe	850		174 710
Albania	1998	-		1239
Armenia	1998	-		157
Belarus	1994	-		393
Bulgaria	1994	26		918
Croatia	1997	70		353
Czech	1999	660		71 385
Estonia	1999	__		3066
Hungary	1998	-		28 772
Lithuania	1998	16		1778
Poland	1998	58		35 840
Romania	1998
Assets of foreign affiliates of TNK	1888	5744	7091	21102
Sales volume of foreign affiliates	2465	5467	5933	15680
Export volume of foreign affiliates	637	1166	1841	3572
Number of employees in foreign branches, million people	17.5	23.7	30.83	45.6
Share of foreign affiliates of TNK,%
in world exports	31.8	34.0	37.0	54.8
in global production	5.2	6.3	4.9	10.3

APPENDIX 3

Fig.1. Movement of investment capital (1960-1998)

APPENDIX 4

Fig.2. Investment flows in the main regions of the world, 1980-1998, billion dollars

Modern transnational corporations have a great influence on the world economy as a whole. In a word, this influence is "stimulation" and "facilitation":

TNCs stimulate scientific and technological progress, since most of the research work is carried out within their framework, new ones appear technological developments;

· TNCs stimulate the globalization trend of the world economy by involving host countries in international economic relations. Largely due to them, there is a gradual “dissolution” of national economies in a single world economy, as a result of which a global economy is spontaneously created by purely economic means, without the use of violence;

· TNCs stimulate the development of world production. As the world's largest investors, they are constantly increasing production capacity, creating new types of products and jobs in host countries, stimulating the development of production in them, and hence the world economy as a whole;

· TNCs contribute to the optimal distribution of resources and the location of production;

But, nevertheless, the development and increase in the number of transnational companies affects not only the world economy as a whole, but also the development of individual countries. International companies for each specific state are representatives of the world economy and must have autonomy limited by the relevant rules, operating within certain legal and institutional frameworks.

Transnational companies are considered the main factors in the formation of the competitiveness of countries and the realization of their competitive advantages in international markets. Thus, the country's prosperity largely depends on the success of TNCs operating on its territory (which is good for General Motors, good for America).

Host countries from investment inflows win on many aspects. First, the widespread attraction of foreign capital contributes to the reduction of unemployment in the country and the growth of state budget revenues. With the organization of production in the country of those products that were previously imported, there is no need to import them. Companies that produce products that are competitive on the world market and are mainly export-oriented contribute to the strengthening of the country's foreign trade position. Secondly, the advantages from TNCs in the host country are also observed in qualitative components. The activities of TNCs force the administration of local companies to make adjustments to the technological process, the established practice of industrial relations, to allocate more funds for the training and retraining of workers, to pay more attention to product quality, its design, and consumer properties. Most often, foreign investment is the introduction of new technologies, the release of new types of products, new style management, using the best practices of foreign business.

Since transnationalization increases both average profits and the reliability of their receipt, the shareholders of TNCs can expect high and stable returns. Workers employed by TNCs enjoy the benefits of the formation of a global labor market, moving from country to country and not being afraid to be out of work.

Most importantly, as a result of the activities of TNCs, institutions are imported - those “rules of the game” (norms of labor and antimonopoly legislation, principles of taxation, contracting practices, etc.) that have been formed in developed countries. TNCs objectively increase the influence of capital-exporting countries on capital-importing countries. For example, German firms in the 1990s subjugated almost all Czech business, with the result that, according to some experts, Germany established much more effective control over the Czech economy than in 1938-1944, when Czechoslovakia was captured by Nazi Germany. Similarly, the economies of Mexico and many other Latin American countries are controlled by American capital.

However, the centralized regulation of the world economy carried out by TNCs also gives rise to many acute Problems that primarily occur in developing and underdeveloped countries:

· fierce competition from TNCs to local companies;

· the possibility of imposing unpromising directions in the international system of the division of labor on companies in the host country, the danger of turning the host country into a dumping ground for obsolete and environmentally hazardous technologies;

· the capture by foreign firms of the most developed and promising segments of industrial production and research structures of the host country. Pushing aside national business and possible monopolization of local markets;

violation of the laws of the host country. Thus, by manipulating the policy of transfer prices, subsidiaries of TNCs bypass national laws, hiding tax revenues by transferring them from one country to another;

· Establishment of monopoly prices, dictatorship of conditions, infringing on the interests of developing countries;

Thus, each country hosting TNCs on its territory must take into account all the possible advantages and disadvantages of the influence of transnational capital on its economic and political system to maximize the extent to which the national interests of the state and its citizens are ensured. Currently, as a rule, host countries, both developed and developing, approve the activities of transnational corporations on their territory. Moreover, in the world there is competition between countries to attract foreign direct investment, during which transnational corporations receive tax rebates and other benefits.

The TNCs themselves, when choosing places for themselves to create subsidiaries, proceed from an analysis of production costs, which are often lower in developing countries; products are sold where there is a higher demand for them - mainly in developed countries. That is why, for example, the inhabitants of modern Germany buy the equipment of the German company "Bosh", produced not at all in Germany, but in South Korea. Also, when choosing countries for establishing foreign affiliates, TNCs evaluate the local market in terms of its capacity, availability of resources, location, etc. Moreover, TNCs take into account political stability in the country, the legal conditions for foreign investment, the taxation system, the nature of trade policy, the degree of infrastructure development, the protection of intellectual property, state regulation of the economy, the cheapness of labor and the level of its qualifications, the stability of the national currency and other aspects.

After analyzing all of the above, TNCs choose the most

their preferred countries. They take it there

a significant part of production, create branches and subsidiaries there, which allows TNCs to make the most efficient use of their resources, thereby realizing their competitive advantages.

I believe that the activities of transnational corporations cannot be assessed only from the worst side. TNCs contribute to the international division of labor, production and development of science and technology. Despite the fact that wages in the branches of the company are lower than in the home country, they are still often quite high for developing countries, and, in addition, such large companies provide certain social guarantees to their employees. Sometimes underdeveloped countries themselves open their markets to large international companies, realizing their advantages.

The ultimate goal of transnational corporations is the appropriation of profits. To achieve this goal, they have many advantages over other participants in international economic relations.

The first thing to mention here is that TNCs make up for the limitations of the domestic market at the expense of foreign countries. It's no secret that any market has its own capacity. And more than what they buy, you can not sell. Therefore, companies have to look for new marketing routes. And they often become the markets of foreign countries. But not everyone can access them. Can, for example, a small firm easily penetrate the international market and take its rightful place there? If she does not have any unique resource, then it will be very difficult for her to do this. The opposite situation is observed in the case of TNCs. As a rule, large companies have a well-known brand and products that are in demand among consumers (this is obvious, because otherwise the company simply would not survive in the competition). In addition, a large corporation has significant financial resources, which allows it to conduct market research before entering a new market. And thus, the company, entering the global business arena, focuses on a specific market segment that can provide the organization with the necessary sales volume and profit level.

This gives rise to the second advantage of TNCs - this is the relative ease of market penetration. The question arises: why is lightness relative? This point is related to the activities of the government of the host country. Some countries may pursue protectionist policies for their companies. It involves the adoption of measures to curb the process of penetration of foreign companies into the local market. However, in contrast to this, the same government can, by all possible means, provide significant assistance in the expansion of a particular corporation into foreign markets. Such a policy, for example, is pursued by the United States. The very same thesis about the ease of penetration of a company into a foreign market is associated with the achievement by the corporation of competitive advantages where it intends to or already conducts its activities.

Therefore, the third advantage can be called favorable conditions in the competitive struggle. As you know, competition can be price and non-price. Price competition means lowering the price until it provides the firm with a competitive advantage. Non-price competition means improving the quality of goods, carrying out advertising campaign and other activities related to the promotion of goods on the market.

If we talk about TNCs, then it is able to conduct both price and non-price competition. By what means is this achieved? First, TNCs save significant amounts of money on the scale of production, since it is well known that with an increase in production volumes, fixed costs per unit of output decrease. And, consequently, the cost of production is reduced. Which, in turn, allows the company to manipulate the price of its products to a wider extent than a firm with a small volume of production. This is the fourth economic advantage TNK. The possibility of conducting non-price competition is again associated with significant financial resources that are at the disposal of the organization. Hence the opportunity to invest more in R&D and marketing.

Another advantage of transnational corporations is that they use the resources of other countries. Anything can be such a resource: labor, minerals, production facilities.

In addition, when organizing production in a foreign country, the company bypasses customs barriers established by the state to reduce the flow of imported goods. However, the market in a given country may be so attractive that it would be unwise to miss it. But at the same time, direct export will be very expensive. Therefore, corporations seek to organize the production of certain goods directly on the territory of a foreign state. This allows you to reduce the cost of the final product by saving on transportation costs and payment of customs duties. Here is another economic advantage of TNCs.

The next positive moment in the activity of the TNC is that it is able to quickly move production resources between its branches to where they are used most efficiently. The meaning of such a movement is to reduce production costs and more rational use of one or another factor of production.

The Company seeks to concentrate its financial resources in those countries where the most flexible tax legislation in relation to income tax. Or she wants to get away from high customs duties. This is achieved precisely with the help of transfer prices. Thus, transfer prices are beneficial for corporations, as they allow them to avoid paying part of taxes and fees.

And, finally, the last advantage of TNCs that I would like to mention is its stability during crises. Here again, the decisive role is played by the scale of production, thanks to which the company can manipulate not only the price of products, but also the volume of its output. In addition, a large corporation can even afford to work with certain losses in the short term, which is unacceptable for a small company.

Thus, it is transnational corporations, due to the existence of the above economic ones, that are the leading organizational structure in the world market and control a significant part of international trade.