Activities Of Multinational Corporations Research Articles

The main mechanisms for the implementation of codes of corporate ethics in the activities of multinational corporations

The corporate code of ethics of a transnational corporation establishes a global standard for business ethics, serving as a corporation’s “calling card” and a self-regulatory mechanism that enhances the corporate identity. The reputational aspect of corporate codes of ethics aims to demonstrate the transparency of the corporation in the relevant industry market, thereby fostering a certain level of trust from of external stakeholders. This article addresses fundamental issues concerning the legal nature of corporate codes ethics. It analyses the main mechanisms and methods of implementing these codes in the daily business activities of corporations. Specifically, the following issues are examined: the position and role of codes within the framework of local regulatory acts, employees’ adherence to codes within the scope of labor discipline, incentivizing counterparties to adhere not only to contract terms but also to the code norms and incorporation of corporate codes of ethic into the compliance system. Throughout the exploration of these topics, the authors address the key challenges and trends in the adoption, application and adherence to corporate codes of ethics by corporations. The paper provides critical analysis of the role of corporate codes of ethics in regulating labor and contractual relations involving corporations, as well as within the compliance system. The research methodology is based on formal logic, comparative legal, dialectical, and system-structural methods.

The Factor of Multinational Companies in International Relations: The Case of the USA and China

In this study, the historical development of multinational corporations, which have held significant positions in both the global economy and international relations since their inception, is examined, along with the roles they have played in intergovernmental relations. The aim of the study is to reach a conclusion by conducting an analysis of the content found in the literature and examining the findings and data through a content analysis method. In parallel, this study attempts to reach its conclusions by examining the regional policies of the United States and China alongside the activities of multinational corporations in the region. Additionally, the study provides examples of the impact of multinational corporations on international relations by considering high-impact capacity actors such as Apple, Huawei, Boeing, Lockheed Martin, ZTE, and SMIC. Moreover, this study attempts to understand the positions of these actors in the struggle for hegemony by comparing them through the SWOT analysis method. Comprehensive research and findings indicate that multinational corporations still play a significant role in international relations today. These corporations serve not only as negotiation tools and sources of sanctions for nation-states but also play an active role in shaping the strategic and covert foreign policy decisions of states, contributing to their direction. Therefore, this study aims to understand how effective multinational corporations are in the world and in the context of international relations, where the United States and China stand in the struggle for hegemony, and the consequences they have on the political system.

Tax havens reexamined: The impact of global digital tax reforms on international taxation

This review delves into the evolving landscape of tax havens in the wake of comprehensive digital tax reforms. This study scrutinizes the implications of global efforts to address tax evasion and profit shifting, particularly in the context of the digital economy. With the proliferation of digital services and cross-border transactions, traditional tax frameworks have struggled to capture the economic activities of multinational corporations operating in cyberspace. Consequently, tax havens have emerged as facilitators of aggressive tax planning strategies, exacerbating global tax inequalities and eroding fiscal sovereignty. Against this backdrop, the study analyzes the efficacy and repercussions of recent digital tax reforms spearheaded by international organizations and individual nations. It examines the implementation challenges, compliance burdens, and potential loopholes associated with these reforms. Moreover, the research evaluates the impact of digital tax measures on the behavior of multinational enterprises, exploring their responses in terms of tax planning strategies and business models. Furthermore, the study investigates the broader implications of digital tax reforms on international taxation dynamics, including their influence on tax competition, investment flows, and economic development. Special attention is paid to the implications for developing countries, which often bear the brunt of revenue losses resulting from profit shifting to tax havens. By synthesizing empirical evidence, policy analysis, and theoretical insights, this study offers a comprehensive reevaluation of tax havens in the digital age. It sheds light on the complex interplay between technological advancements, regulatory frameworks, and global economic dynamics shaping contemporary tax landscapes.

Greenfield investment and job creation in Ghana: a sectorial analysis and geopolitical implications of Chinese investments

Multinational investment has attracted mixed reactions from scholars and policymakers concerning their role and impact on job creation in host countries, particularly in developing economies. Using Ghana as a case study, this paper examines the impact of Greenfield investment on job creation. Proponents of multinational corporations (MNCs) argue that foreign direct investment (FDI) leads to economic growth, creates technological spillover, increases exports, and creates jobs, among other benefits. This has encouraged developing economies to adopt developmental strategies around MNC activities. Although most researchers have analyzed the impact of FDI on job creation, the unanswered question is: Does greenfield investment in Ghana lead to significant job creation in the formal sector? Extant literature considers FDI monolithic, without adequately differentiating between Green and Brownfield investments. Using granular data from the FDI Markets, this research paper fills this gap by empirically analyzing the Greenfield investment by 386 multinational companies in Ghana from 2003 to September 2020. Over the specified year range, these companies engaged in 500 projects across Ghana. Adopting the ordinary least square analysis (OLS), the study demonstrates that Greenfield investment has a statistically significant and positive impact on job creation in Ghana. Out of the 31 sectors, only the following sectors contribute significantly to job creation through Greenfield investment in Ghana: Consumer Products, Food & Beverage, Industrial Equipment, and Non-automotive transport OEM. This paper contributes to a better understanding of how government investment in fixed assets (GCF) such as roads, railways, and industrial buildings in the local economy should be managed efficiently so as not to spur inflation, which correlates negatively with jobs. Finally, this paper analyzes Chinese investments in Ghana, comparing them with U.S. investments, and examining their broader geopolitical implications, which highlights the importance of aligning foreign investments with national development strategies and adhering to international norms and standards.

Local firms spillovers from multinationals’ exports in Switzerland

This paper aims to examine how local firms can learn from the export activities of large multinational corporations (MNCs). Arguing that MNCs’ export activities could act as catalysts for local firms, allowing them to start exporting or intensify their export volume, we hypothesize that the size and extent of export spillovers depend on the linkage between local firms and MNCs, the geographical distance between them in the home country, and the foreign export market destination in terms of psychic distance from the home market. Using Swiss manufacturing firm-level data, we found support to this learning by exporting effect through which local firms benefit from the presence of MNCs’ exporter counterparts and the export activities of their upstream MNCs’ suppliers, with particular effects of the nature and the physical location of destinations. From these findings, several important academic and practical implications are exhibited and discussed

Multinationals’ value chain configuration for product diversification in emerging markets: Western firms in China

PurposeThis study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.Design/methodology/approachThe authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.FindingsThe results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.Originality/valueThis study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs’ product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms’ managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.

Servitization of Manufacturing Industry Export Enterprises, Multinational Corporation GVC Activities and Pollution Reduction in China

Abstract This paper measures manufacturing service input at the micro level of export enterprises to investigate the pollution reduction effects of manufacturing servitization and examines the mechanism from the perspective of GVC activities of multinational corporations. The study finds that (1) servitization generally reduces the pollution emission intensity of export enterprises, and this effect is widespread among enterprises of various ownership types, pollution-intensive and nonpollution-intensive enterprises, and enterprises in the eastern and western regions; (2) there is a "U-shaped" nonlinear effect of servitization on the pollution reduction of export enterprises, indicating that in the initial stage of servitization, the increase in service elements in manufacturing will lead to an increase in enterprise emissions, and only when the servitization degree reaches a certain threshold will a significant pollution reduction effect be observed; and (3) the "domestic-foreign" and "foreign-domestic" types of GVC activities characterizing the connections between multinational corporations and local enterprises have a moderating effect on the pollution reduction impact of servitization. This study has significant implications for promoting the green development of enterprises through manufacturing servitization in the context of GVCs. JEL classification numbers: F18, L60. Keywords: Manufacturing Servitization, Pollution Reduction, Inverted "U" Shape, Multinational Company GVC Activities.

Інноваційні механізми формування безумовного базового доходу

The article is devoted to the disclosure of the features of introducing unconditional basic income under the conditions of the spread of digitization and automation of all spheres of human activity. UBI can play a critical role in poverty alleviation by extending social protection to informal workers, promoting gender equality, stimulating the macro-economy during crises and redistributing dividends from natural wealth. It outlines a situation where the UBI appears to be a particularly appropriate approach to redistribute the gains from automation and globalization by creating an effective and transparent barrier against global instability and systemic risks, creating positive incentives and avoiding recurring risks of impoverishment. Attention is paid to the specifics of the relationship between IT companies and their employees, thanks to which the latter get the opportunity to purchase company shares under special conditions and at discounted prices, and a comparison of this approach with the position of Kuwaiti citizens in the context of the UBI is made. The role of the leading states, in particular the G7, which, with the help of special tax methods, are trying to regulate the activities of multinational corporations, while striving to ensure the so-called digital transition, is emphasized. With regard to Ukraine, the importance of balanced development of all sectors of the economy and ensuring economic growth after the abolition of benefits for the IT industry was emphasized. It is concluded that the implementation of stock option programs or benefits, similar to those that exist in Kuwait for citizens of the state, will help to overcome poverty, conserve resources and reduce the impact of human activities on the natural environment, and therefore ensure the sustainable development of the country.

The Effects of ESG Performance on the Relationship between Tax Risk and Cost of Capital: An Empirical Analysis of Korean Multinational Corporations

Purpose - Using a sample of Korean multinational corporations, we examine whether the relationship between tax risk and the implied cost of capital discriminates between the environmental, social, and corporate governance (ESG) of highly rated firms.
 Design/methodology - Firms with high tax risks have an increased uncertainty of future cash flows. Therefore, as the volatility of future cash flow increases, information asymmetry and the required return increases. Highly rated ESG firms can reduce information asymmetry, thereby weakening the positive relationship between tax risk and cost of capital. We employ the standard deviation of the cash effective tax rate as proxy of tax risk. We utilize the ESG rating data of the Korea Corporate Governance Service (KCGS). We use a PEG model, MPEG model, and GM model to measure the implied cost of capital.
 Findings - We find a positive association between the implied cost of capital and tax risk. The positive relationship between tax risk and the implied cost of capital weakens in highly rated ESG firms. Highly rated ESG firms prefer a stable tax position to invest after-tax cash flows into sustainable management. Therefore, the negative effects of tax risk on cost of capital can be reduced.
 Originality/value - This study provides empirical evidence that ESG activities can mitigate the negative impact of tax risk on the cost of capital for Korean multinational corporations. In a business environment where ESG activities are more important, the empirical results that ESG activities can reduce the corporate risk of Korean FDI companies are expected to provide implications for the ESG activities of multinational corporations.

Multinational corporations in the economies of developing countries: global trends and domestic realities

The role of multinational corporations in the economy of developing countries is a very important topic for research, as they have a significant impact on the development of industry, trade and other areas of the economy of these countries. Access to markets, lower production costs, and experience in local markets are just some of the advantages that multinational corporations use when they engage in international trade. They are setting up manufacturing facilities in different countries to take advantage of these benefits. First of all, MNCs can create new jobs in developing countries, which can have a positive effect on reducing unemployment and raising the standard of living of local residents. In addition, corporations can make a significant contribution to the development of infrastructure and technology in these countries, which can also stimulate the development of other sectors of the economy. However, some critics point to the negative impact of MNCs on developing countries. One of the most common criteria is that MNCs can exploit the local workforce, working with low wages and poor working conditions, which violates workers' rights and lowers their social status. In addition, MNCs can have a monopolistic influence on the market, reducing competition and influencing the prices of goods and services. The article is devoted to the determination of global trends in the activities of multinational corporations, focusing on such aspects as international trade and foreign direct investment. It is justified that multinational corporations are becoming more and more active in conducting international trade, locating production and serving markets in different countries. For developing countries, attracting foreign investment is a key component of economic prosperity and their integration into global value chains. Therefore, although transnational corporations can have a positive impact on the economy of developing countries, it is necessary to pay attention to their actions and influence on the social and economic development of these countries, which is what led to the study of this issue. The theoretical and methodological basis of the research was the work of domestic and foreign scientists. The results were obtained due to the application of a system of methods: the method of logical analysis made it possible to develop the logic of the research; deductions – to identify individual factors affecting the activity of MNCs; generalization and synthesis – to determine global trends in the functioning of MNCs in developing countries. The graphic method made it possible to visualize the obtained research results.

Multinational corporations and domestic company’s development: Evidence from Nigeria

This research study looks at assessing, and reviewing how multinational corporations spurred up economic development, particularly in Nigeria to an extent. Multinational Corporations (MNCs) involves having operations in more than one Nation with its head office at their home country. They are subject to changes in international exchange rates, tariffs, duties, and restrictions on trade. Majority of the successful ones’ targets production points where labour is cheaper, with affordable transportation so as to deliver to their markets. The research used scholarly journals, articles, and textbooks to review the activities of MNCs in Nigeria’s economic development, as it relates to growth, technology transfers and policy issues. Based on the literature, the research discovered that multinational corporations have contributed to the Nigeria’s economic development, which varies. Meanwhile, the technology internalization as well as transfers is still a mirage. Although, some MNCs still engage in unethical business practices that soils their name, and their image of Nigeria. This research study recommends other things including that representatives of all stakeholders-employees, customers, society, government should be appointed as members of the Board of Directors of various corporations, to ensure direct representation, and as well as participation in the decision-making process. More so, polycentric model of staff selection should be imposed by government on these MNCs which will be stated under the terms of agreement with all the multinational corporations operating within Nigeria. This will improve skill acquisition as well as adequate transfer of technology.

OPERATIONALIZING THE THEORY OF ENVIRONMENTAL EXTERNALITIES TO ASSESS SOCIO-ECOLOGICAL SUSTAINABILITY AND SURVIVAL OF COASTAL COMMUNITIES IN NIGERIA

This paper operationalizes the theory of environmental externalities to assess socio-ecological sustainability and the survival of coastal communities in Nigeria. It argues that petroleum exploitation activities of Multinational Oil Corporations (MNOCs)in the coastal and marine areas of the Niger Delta in Nigeria produce negative environmental externalities and impose them on the environment at the expense of the survival of the coastal communities as third parties. The paper adopts the library research technique for data collection, while the analyses were conducted in the realm of the theory of environmental externalities. In the end, the paper identifies the theory of environmental externalities as a veritable tool for demystifying the costs and benefits of petroleum exploitation in Nigeria. In the realm of the theory also, the paper was able to underscore the fact that the negative environmental externalities, which are outcomes of the petroleum exploitation activities in the coastal and marine areas of the Niger Delta in Nigeria to a large extent, negatively impact socio-ecological sustainability and the survival of coastal communities in the region. Consequently, the paper concludes that the negative spill-over effects of petroleum exploitation on the coastal and marine environment undermine socio-ecological sustainability and risk the survival of the coastal communities in the Niger Delta of Nigeria. Therefore, it recommends that the MNOCs, and the Federal Government of Nigeria (FGN), which are the benefiting parties of the petroleum industry in the country should be more liable and adequately, compensate the coastal communities for the spill-over effects of the petroleum exploitation activities in the region. In addition, vital ecological regions should be identified and mapped out as protected areas (PAs) to avoid overexploitation on one hand, and on the other hand, to conserve the natural ecosystem resources the coastal communities depend on for survival in Nigeria..

The role of local news in constructing media legitimacy: how news media frames the sociopolitical efforts of multinational corporations in host countries

PurposeFor corporate communications, it is crucial to know how news media outlets report and frame the sociopolitical activities of multinational corporations (MNCs), including their corporate diplomacy, that affect perceptions of their legitimacy. Therefore, this study aims to identify how local news media frame corporate diplomacy in a host country and, in turn, benefit the media legitimacy of MNCs.Design/methodology/approachTo identify media frames in the host country, a quantitative content analysis involving factor and cluster analyses of 385 articles published in newspapers in the United Arab Emirates from 2014 to 2019 addressing the corporate diplomacy of large European MNCs operating in the country was conducted.FindingsThis study identified three media frames, two of which establish moral and pragmatic media legitimacy. Results suggest that media legitimacy grows when news media emphasise institutional relationships between MNCs and local, established organisations and corporate diplomacy's benefits for society.Practical implicationsFindings provide insights into how corporate communications can contribute to legitimacy building by emphasising corporations' relationships with institutional actors in host countries and the benefits of corporate activities for local communities.Originality/valueTo the best of the authors’ knowledge, this study was the first in corporate communications to empirically investigate news media's role in corporate diplomacy and how media frames contribute to the media legitimacy of MNCs at the moral, pragmatic, regulative and cognitive levels.

Positioning Prem Sikka’s academic activism in the third space

PurposeThis paper applies Bhabha’s concept of the third space to frame an understanding of Prem Sikka’s use of digital media to bridge the academic–activist binary. In doing this, the paper makes two contributions. First, it conceptualises Sikka’s engagement, and second, through the lens of the third space, it analyses it to establish whether, in the era of the neoliberal corporatised university, public intervention has the potential to generate new perspectives and new knowledge.Design/methodology/approachSikka’s articles and blogs for the period 20 February 2002 to 15 April 2020 were analysed using Leximancer, a textual analysis software programme that displays the output visually. A discriminant analysis was used to identify where each year of the study is situated in the overall semantic analysis. Netnography, the examination of archived published texts, was then used to analyse the responses by members of the public, academics, accountants and auditors, tax experts, policy makers and regulators to Sikka’s digital media engagement.FindingsAs a third space practitioner, Sikka has overcome some of the shortcomings associated with academic research to challenge the activities of professional accounting firms, regulatory bodies and multinational corporations. Through extending the boundaries of accounting and accountability, he has facilitated new radical alliances aiming to create a just and equitable society. The paper also finds that by opening up a third space of engagement, academic activists’ work can play an essential part in social transformation and emancipatory change framed in terms of social justice and equity.Originality/valueThis is one of the few papers to provide an in-depth examination of the activities of an accounting activist over twenty years.

Empirical evidence of the relationship between terrorism and firm financial performance in Nigeria

PurposeThis paper investigates the relationship between terrorism and firm financial performance in Nigeria. The country has become one of the riskiest countries in Sub-Saharan Africa due to the intensity of recent terror attacks. Also, there is a growing focus on the importance of firms, given firms' economic contribution towards growth, employment and economic and industrial transformation. However, no study has tried establishing a relationship between terrorism and firm financial performance. Therefore, providing empirical proof of this relationship is the primary purpose and motivation of this paper.Design/methodology/approachData from the World Bank Enterprise Survey (WBES) and the Global Terrorism Database (GTD) were used for this study. The baseline analysis was estimated using the pooled ordinary least squares regression technique. For robustness checks, the fixed effects technique was used to control for heterogeneity across the authors' sample of firms and unobserved factors that are time-invariant, while the IV technique was employed to control for any potential endogeneity.FindingsThe results obtained from the regression analysis were robust to different econometric estimations and approaches. Terrorism was found to have a consistent and significant negative impact on firm financial performance. Furthermore, the marginal effect of terrorism on firm performance was more substantial when state-level terrorism data were used.Originality/valueStudies often focus on the impact of political instability (which is a measure subjectively based on perception) on foreign direct investment or on the activities of multinational corporations. The authors' research is new in supplying evidence of the relationship between terrorism (an objective measure) and the financial performance of manufacturing firms in Nigeria. Methodologically, this study also employed spatially distributed incidents of terrorism within the country. This is because incidents of terrorism are often spatially distributed within a country (i.e. province or state). This will provide new evidence of the effects of within-country variations of terrorism on firm financial performance.

Eco-Drama, Multinational Corporations, and Climate Change in Nigeria

Abstract Oil explorations by multinational corporations in Nigeria have grave consequences on the ecosystem. Gas flaring, oil spillage, and other forms of land and water pollution seriously degrade the natural environment as well as displace Nigerians from their homes and traditional occupations. Pollution has caused increased flooding, erosion, and dearth of both food and fishes, leading to poverty and hidden hunger, among other problems. More destructive is the reactionary disposition of the Nigerian state to climate change and ecological disasters. Beside the provision of make-shift structures and relief materials to flood victims, there are hardly any proactive efforts on the ground to check the activities of multinational corporations operating in the country. Greg Mbajiorgu’s eco-drama Wake Up Everyone (2011) depicts the challenges of the climate crisis in contemporary Nigeria. A close reading and critical analysis of the play, which is a microcosm of the country, illuminates the ways these challenges affect Nigerians and the need for action. Apart from displacing individuals from their homes, flooding takes a heavy toll on the agricultural sector, as most crops and livestock production systems in Nigeria are not yet fully technology-based and are, therefore, susceptible to environmental degradation. As a result, the flooding of farms and plantations, damaging crops and seedlings, leads to a corresponding degree of food scarcity/insecurity and indeed inflation in the cost of farm produce. This paper concludes that conscious efforts suggested in the play should be made to forestall multinational corporations from further pillaging the environment, and that government functionaries saddled with the task of forging active measures to stem the effects of climate change in the country should rise to their responsibilities.

Analysis of the application of tax control over transfer pricing

This article discusses the issue related to the application of tax control in the field of transfer pricing. The author considered the key provisions related to the concept of transfer pricing, the history of the emergence of this phenomenon and its application at present in Russia. An important place in this article is occupied by the analysis of the activities of multinational corporations. The author described the mechanism of corporate governance of a multinational corporation, described the main subtleties related to both direct management and taxation issues. The author justified the importance of considering multinational corporations as one of the most important categories of taxation. In addition, this paper examines the main provisions issued with the assistance of the Organization for Economic Cooperation and Development, examines the specifics of the application of these provisions in several aspects, among which corporate governance and transfer pricing are highlighted. The author was upset by different groups of risks that may arise in the context of the transfer pricing process. In addition, this article highlights the features of the application of the Guidelines of the Organization for Economic Cooperation and Development in Russia. Based on this, a comparative analysis was carried out between those provisions that are used in Russia without any changes, and those that were changed in specific conditions. In the final part of the work, the author described the mechanism of interaction between the transfer pricing process and the existing principles of the Organization for Economic Cooperation and Development, and also considered the existing difficulties that hinder the improvement of the existing system.

Protection for the Rights and Interests of Local Communities Adversely Affected by Multinational Energy Companies’ Activities

Foreign investments of Multinational Corporations (MNCs) bring several advantages for the host states where they operate. In the case of foreign investment in the energy sector, the business activities of MNCs have an impact on social and environmental issues that adversely affect the right and interests of the local communities. In terms of addressing such problems, some binding and non-binding international legal instruments were established and adopted by states and international organizations/bodies. This article discusses the sufficiency of the protection provided by international law for the local communities adversely affected by MNCs in the energy sector especially with regards to human rights, environmental, and anti-corruption matters. This article argues that protection of the rights and interests of local communities from the activities of MNCs are developed through an international legal framework, both general and bilateral treaties, as well as the national law of host States.

Developing Tendencies of Foreign Direct Investments

The formation process of foreign direct investment theories began in the second half of the twentieth century, it was period that the importance of foreign direct investment (FDI) in international capital movement increased, and this period was characterized by the rapid growth of multinational enterprises, which, in turn, is a major source of FDI. Scientific and technological progress has become the basis for decisions of transnational companies to invest capital in to different parts of the world and to coordinate and control its many branches from one country. During this period scientists actively began to develop theories and mathematical models of foreign direct investments, which meant studying the genesis of FDI, as well as analyzing their impact on the economy of both the host and the issuer countries. The analysis of foreign direct investment theories is closely related to the study of the activities of multinational corporations. Among them are some paradigms containing interesting discoveries that view the foreign direct investment as a contributing factor for the economic growth of the host country and its industrial development. In this article, the author consider the key theories and models of foreign direct investment: 1. The Product Life Cycle Theory, which is developed by Vernon; 2. Transnational companies and monopolistic computation theory, which is developed by Hymer; 3. Generalized theory of economic development, which is developed by Akamatsu; 4.The competitive advantage of nation’s theory, which is developed by Porter; 5.The eclectic paradigm and country's investment development theory, which is developed by Dunning; 6.Differential model of capital distribution between countries by Leontiev. The theories and models provide a basic range of motives of investors' behavior in the world market. It also makes it possible to analyze what impact foreign direct investment has on the economy of the recipient country and what forecast the recipient country's economy will have. Keywords: Globalization, Foreign Direct Investment, Economic Growth, Multinational Corporations, Analysis of Basic Theories and models;

Significance of Intellectual Property Rights in the Era of Global Value Chain: A Case Study of Apple

After emerging out of the extensive outsourcing activities of multinational corporations, the virtual factory model is now playing a prominent role in globalization. Using Apple as a case study, this paper explores the concept of a virtual manufacturer. As multinational corporations extensively use intellectual property in emerging markets, they are also concerned about the infringement of intellectual property rights. This study examines this problem that has become increasingly relevant in the context of the protection of intellectual property rights in global value chains and trade. An international index is used to demonstrate that rights to intellectual property are typically excellent in industrialized countries and adequate in the majority of developing countries. The trade dispute between the US and China has received considerable attention here.