Problems and prospects of TNC activity

Anna Maksymenko


Introduction. Transnational corporations are one of the most important and most dominant phenomena of the modern world economy, which make qualitatively new changes in the international economic space. The process of concentration in some sectors is rapidly gaining momentum; R&D increases, production, marketing chain and service networks change. New forms of specialization, institutionalization of transnational institutions, creation of global flows and processes in real time, including a new understanding of the structure and changes in the comparative advantages of countries and territories; all this changes the general view of global economic development. The growth in the number of multinational companies and their activities is also reflected in changes in the sectoral structure and related changes in the geographical structure of TNCs.

The purpose of the article is to identify the problems of TNCs and assess the prospects for economic transformation.

Method. In solving problems, general scientific and special methods were used: generalization, analysis and synthesis, system approach, graphical analysis.

Results. The paper presents a comprehensive description of the dominant trends in the international activities of TNCs. The assessment of the geographical structure of the world's most powerful TNCs proves the leadership of the United States among most countries, but each year their role decreases and China's influence grows. Assessing the global change in the contours of the international activities of TNCs, it is proved that TNCs by their nature, driving forces, vector orientation and development mechanism at all stages of world economic progress clearly crystallize systemic financial imbalances. It has been proven that the cessation of commercial activity in the context of the Coronavirus pandemic (Covid-19) will have a negative impact on the world economy. According to the data, the physical closure of enterprises, production enterprises and construction sites caused immediate delays in the implementation of investment projects. Mergers and acquisitions were similarly affected, which in the first half of 2020 generally decreased by 50-70%. However, not all companies are negatively affected by the pandemic. The biggest e-commerce players have experienced growth due to the growth of online shopping.


transnational corporations; foreign direct investment; globalization; the world economy

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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