THE INFLUENCE OF TNCS ON THE FORMATION OF A COMPETITIVE ENVIRONMENT OF COUNTRIES
Abstract
A characteristic feature of the current stage of development of the world economic system is the rapid development of the transnational sector, TNCs are also a product of the system of international economic relations, which today are developing rapidly and themselves represent a powerful mechanism for influencing them.
Actively influencing international economic relations, TNCs form a system of fundamentally new relations, modify their existing forms. Modern TNCs, their specific management, economic activity, organizational forms are of scientific interest to a number of researchers.
The behavior of TNCs is constantly changing, their impact on new economic world economic processes is ambiguous, so there is a need for in-depth study of such organizational structures at the present stage of the world economy, as well as defining strategic directions of TNCs in the context of increasing competitiveness.
The current competitive environment is dynamic, due primarily to the rapid pace of globalization, uneven socio-economic development of countries, and as a result there is fierce competition between businesses, regions and countries. Obviously, the main goal of each country's government in the first place is a high standard of living, and the main tool to achieve this goal is the country's constant economic growth, through continuous improvement of national business efficiency, increasing foreign economic activity, and increasing the competitiveness of the national economy.
Characteristic features of the current state of the world economy are large-scale operations conducted by TNCs, which are manifested in the constant growth of foreign branches and parent companies. In recent years, the growth rate of global gross investment has halved, in contrast to FDI.
FDI creates joint ventures and entire strategic alliances, and the characteristic feature of such entities is the merger of several small companies that will be able to compete with key market leaders. The main tools for increasing the competitive relations of TNCs in modern conditions are large-scale FDI and financing of innovative technologies and R&D. Competitive advantages of TNCs in the world market are the accumulation of financial resources, innovation and technological developments that are introduced into manufacturing enterprises, resulting in constant updating of products and a wide range of services, as well as the accumulation of significant labor potential.
