Published in «Journal of International Economic Affairs»2 / 2019
DOI: 10.18334/eo.9.2.40690

The condition and tendencies of development of foreign transnational corporations

Dronova Olga Borisovna, Polzunov Altai State Technical University, Russia

Kozlova Zhanna Mikhaylovna, Polzunov Altai State Technical University, Russia

Состояние и тенденции развития зарубежных транснациональных корпораций - View in Russian

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Abstract:
The article shows the dynamics of international trade and GDP, based on the slowdown in the growth of international flows of goods and capital. The analysis of the activities of foreign financial and non-financial transnational corporations (TNCs) in the light of trends in the development of nationalization and state capitalism is conducted. Industry analysis of TNCs from the TOP 100 revealed a decrease in the share of mining and processing industries in developed countries, an increase in the share of the financial sector in developing countries and the general trend of business expansion in the automotive and technological industries.
The article discusses the authors' positions on the concept of deindustrialization, which is understood as the penetration of new technologies in the basic spheres of society. On the basis of statistical data, the author draws conclusions about the impact of protectionism on international activities in developed and developing countries, the growth of production costs and the decline in productivity in industrial sectors. The author analyzes the changes in the structure of international influence of developed and developing countries, the weakening of the dominant role in the international financial institutions of the first and the consolidation of national conglomerates in the latter.
The author draws conclusions about the slowdown of globalization processes, gives examples of the movement of manufacturing and assembly industries in the country with the headquarters of TNCs and reduce the overall profitability of foreign branches. The author confirms the conclusion of Kondratiev V. that these processes reduce the value chains built by TNCs, and the only way out of TNCs is to cooperate with technological companies that increase sales and profits, which contribute to business integration through Internet platforms and form the era of digitalization.

Keywords:

de-industrialization, foreign direct investment, globalization, nationalization, transnational corporations

JEL-Classification: F01, F21, F23

Citation:
Dronova O.B., Kozlova Zh.M. (2019). The condition and tendencies of development of foreign transnational corporations [Sostoyanie i tendentsii razvitiya zarubezhnyh transnatsionalnyh korporatsiy]. Journal of International Economic Affairs, 9(2). (in Russian). – doi: 10.18334/eo.9.2.40690.


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