Dynamics and positioning strategies of multinational corporations in modern international production

Abstract

The subject of the study is the dynamics of the development of the scale of the presence of transnational corporations (TNCs) in the foreign market, which have changed significantly at the present stage. This is partly due to the complexity of corporate structures and ownership structures, the specifics of their control over their foreign divisions. At the same time, the scaling of TNCs is also determined by the fragmentation of international production networks, their increasing role in global value chains of holding and financial companies operating in offshore investment centers. These aspects significantly affect the strategies of foreign direct investment of TNCs, the nature and dynamics of foreign direct investment (FDI), the concentration of income from these investments in offshore jurisdictions. The main conclusions of the study are the conclusion that the development of GCC has led to a significant fragmentation of international production, which has become a key strategic direction for the development of TNCs in recent years. At the same time, it is customary to distinguish between vertical and horizontal TNCs in the placement of international production. Vertical TNCs are characterized by the placement of production links in the least expensive countries, and such TNCs have become particularly important within the framework of the GCC system, which provides for a reduction in transaction costs of international production and coordination costs. Horizontal TNCs emerged earlier and preceded the formation of vertical TNCs, focusing on the market, bringing production closer to the consumer and, thus, reducing trade costs. It is noted that vertical TNCs have increasingly resorted to concluding contracts with independent partners abroad on the basis of licensing, franchising and contract production strategies. The final, most preferred variant of TNCs, which developed in the 1990s, were TNCs in the form of international production networks operating within the framework of the GCC.