Transnational Business as a Manifestation of the Integration of the Global Economy and a Driving Force of its Development

Svetlana S Morkovina,Nikolai G Sinyavsky,Nikolai G Sinyavsky,Vladimir V Chashchin,Alexandr S Natsubidze,Margarita S Irizepova

doi:10.5709/ce.1897-9254.218

Abstract

The purpose of this article is to determine the significance of transnational business in the development of the global economic system, to present perspectives on its further functioning and distribution in the global economy, and to develop recommendations for state regulation of entrepreneurship in developing countries for the purposes of attracting transnational business and stimulating the internationalization of domestic business. To achieve this purpose, the authors use statistical information combined with several methods: substantiation of mathematical expressions “by contradiction”, structural analysis, classical methods of analyzing economic effectiveness, comparative analysis, problem and SWOT-analysis, systemic analysis, modeling of the current state of (and perspectives on) the development of economic systems, and formalization. The authors reach the conclusion that transnational business is a manifestation and driving force of the development of the modern global economy and that maximization of the economic growth of the global economy in the long-term requires the creation of favorable conditions for further development of transnational business. Transnational business plays an important role in the development of the global economic system. Perspectives on the further functioning and distribution of transnational business in the global economy are connected to the development of integration processes and the realization of a free trade policy. To overcome threats to the development of transnational business, the authors of this study offer recommendations for state regulation of business in developing countries for the purpose of attracting transnational business and stimulating the internationalization of domestic business, and a special model is developed.

Highlights

IntroductionWhen transnational businesses appeared in developing countries, they established production facilities, which provided new jobs for the local population and stimulated local purchasing ability, the development of entrepreneurship, and economic growth
Transnational business emerged from the influence of integration processes that shaped the global www.ce.vizja.pl Vizja Press&ITVol.10 Issue 4 2016 311-322When transnational businesses appeared in developing countries, they established production facilities, which provided new jobs for the local population and stimulated local purchasing ability, the development of entrepreneurship, and economic growth
As a result of this research, the proposed hypothesis was proven, and it was substantiated that transnational business is a manifestation and driving force of the development of the modern global economy

Summary

Introduction

When transnational businesses appeared in developing countries, they established production facilities, which provided new jobs for the local population and stimulated local purchasing ability, the development of entrepreneurship, and economic growth. This reflects the ability of transnational business to stimulate development in countries that need it but cannot independently close the gap that exists between them and developed countries. During the modern stage of development of the global economy, transnational business became an inextricable part of the global economic system and one of its most important members, as it represents large business structures through which dialogue between the governments of various countries and business as a whole is conducted. The unique capability of transnational business to revive the economies of developing countries by activating business activities, combined with its inclination for solving global economic problems ( problems of disproportionate economic growth in the global economy) makes it one of the most notable players in international economic relations and one of the most promising mechanisms of improving the modern global economy

Objectives

Methods

Results

Conclusion