Svynarenko A., Kirakosyan A.

Oles Honchar Dnipropetrovsk National University


Development of the modern system of economic relations is influenced by accelerated globalization. The main strength of this process is the transnational corporations (TNCs). They are a powerful part of the corporate business, operating in an international scale and play a leading role in the global economy.

Actively influencing international economic relations, transnational corporations are forming new relationships, alter their shape. Under the influence of globalization and integration of world economy TNCs conquer new markets and seek to further expand economic power.

The development of international production and distribution of foreign direct investment are the basis for intensive development of TNCs in the world economy. Entering any country to the TNCs makes it possible to create complex new opportunities to attract resources and entering foreign markets.

Transnational corporations play an important role in the system of global governance, which includes their economic activities, cooperation with domestic and foreign govern­ments, the growing importance of international organizations, environmental and social conditions in the areas where they operate.

TNCs are important economic agents that affect the course of our lives, as well as the way of solving social problems. They depend on the conditions created by govern­ments and international organizations, which form the legal framework for their operation, protect property and investments, establish rules for the regulation of environ­mental protection, labor relations, social security, and to establish conditions of global trade [1].

The influence of transnational corporations in the global economy, regardless of their level of development increases. Foreign direct investment is an important mechanism through which savings are transferred from advanced industrialized countries to developing countries. Typically, because developing countries have low savings rate.

Foreign direct investment is now considered to be a panacea for poverty reduction and accelerated development, but the reality is more complex. While a few countries have benefited significantly in terms of economic growth, employment generation and poverty reduction because of foreign investment, for the great majority it has made little or no difference at all. Foreign investment has been concentrated in a handful of countries with more advanced economies, large markets and mining resources. Smaller countries, even if they get all the policies right, have failed to attract significant amounts of investment.

The most attractive countries for investment: United States, Germany, Canada, China, Russia, Brazil. The first is the availability of high-quality workforce occupy the US, Germany, UK, France, India. Cheapest labor force have countries such as China, India, Vietnam, Indonesia, Thailand [2].

TNCs – is an important tool for the transfer of technology and management experience to industrial countries. Most countries that host affiliate TNCs in its territory, in favor of their activities and even compete for foreign direct investment. Extensive experience managing large firms enables staff TNCs organize production and coordination more effectively than leaders of the host country.

Thus, last decade transnational corporations get a lot of attention. Today there is no significant process in the global economy that has occurred without the participation of corporations. TNCs turned into power, creating the present and the future of the world. Therefore, they are actively involved in the global political process in different countries.

The list of references:

1. Romeo Ionescu, Raducan Oprea Multination corporations and the global economy [Web resource]. – Режим доступу:

2. World Investment Report 2012 [Web resource]. – Режим доступу: