Transnational corporations and their characteristics

The transnational sector of the modern world economy currently consists of 103.8 thousand parent (parent) companies and 892.1 thousand foreign affiliated enterprises controlled by them, dispersed throughout the world. For comparison: by the beginning of the 90s, there were about 35 thousand TNCs and just over 150 thousand foreign enterprises dependent on them in the world. Over the past twenty years, the number of parent TNCs has increased by 2.8 times, and the number of their foreign branches - by 4.5 times.

The data presented indicate that over two decades there has been a significant increase in the number of foreign affiliated enterprises compared to the increase in the number of parent companies. At the same time, the growth dynamics of TNC branches is noticeably higher than the growth rate of parent companies. If in 1992 there were on average 5.4 foreign subsidiaries per TNC, then in 2003 (the peak of the quantitative development of foreign branches) there were 15. In 2013, there were an average of 8 branches per TNC in the world.

The scale of activity of TNCs in the modern world economy is indicated by their following indicators. The total sales volume of foreign branches and subsidiaries of TNCs in 2013 approached the mark of 33 trillion. dollars. According to UNCTAD (United Nations Conference on Trade and Development) estimates, the total added value of all TNCs in 2013 amounted to 16 trillion. dollars, which is more than a quarter of the world's gross product. In 2013, foreign affiliates accounted for more than one-tenth of global gross product and a third of global exports. Of 19.1 trillion. dollars of total foreign direct investment (FDI) accumulated by 2013, the overwhelming majority is under the control of TNCs. In particular, TNCs from developed countries (80% of all TNCs in the world) accounted for about 70% of global FDI inflows in 2013.

It is the largest TNCs that are the main structural element national economies most developed countries of the world. World markets, constantly in the process of redistribution and redistribution of spheres of influence, have long been firmly occupied by leading TNCs with enormous financial, production, technological and other resources. Given the obvious desire of large corporations for mergers and acquisitions, it can be assumed that in the near future the emergence of transnational super corporations is likely, which can seriously compete with the largest national economies.

It becomes obvious that the actions of large TNCs, in their nature and forms of manifestation in international politics and the world economy, are in many ways beginning to coincide with the activities of national states. Such a thesis should not be considered as their identification, but at least it allows us to talk about some analogy and identity of their actions. There is even an opinion among foreign researchers that in the future the largest TNCs will become the only dominant force in the global economy, replacing national state entities as its main subjects.

In the context of the above, it seems very interesting to compare the current scale of activity of the world's largest TNCs and the economies of national-state entities. As for the largest TNCs, according to the methodology developed by UNCTAD experts, the total sales volumes can be reduced, using estimation coefficients, to an indicator of the amount of gross added value of products produced by the corporation. This approach takes into account factors such as employee salaries, pre-tax income, and overhead and depreciation expenses. In this case, for a correct comparison, GDP indicators calculated at purchasing power parity should be used. The application of this methodology allows us to obtain an estimated ratio of economic potential between national states and TNCs (Table 2.6).

multinational corporation globalization economic

Table 2.6 Ranking of the 100 largest economic structures by GDP and gross value added, calculated according to PPP, 2013, billion dollars

The results of the study show that out of the hundred largest economic structures in the world, 89 are national economies, and 11 are non-financial TNCs3. Comparative analysis The data presented in the table allows us to assert that even the largest corporation cannot yet compete in its economic potential with the leading developed countries of the world. Indeed, the first 73 places in this ranking are occupied exclusively by national economies. And only in 74th place is the largest (in the context of the calculated value added indicator at purchasing power parity) TNC - Exxon Mobil. This American oil and gas corporation is inferior to the economy of Sri Lanka, but superior to the economy of Tunisia. The world's largest oil and gas TNC Royal Dutch/Shell (78th place) lags behind Tunisia, Bulgaria, Sudan, but is ahead of Azerbaijan, Libya, the Dominican Republic, Ethiopia and Uzbekistan. The added value of the Japanese TNC Toyota Motor Corporation (84th place), operating in the automotive industry, exceeds the GDP of Croatia, Myanmar, Oman, Serbia, Guatemala, Kenya and Ghana. Yielding to these countries, the American corporation Wal-Mart Stores Inc. is ahead of the Republic of Yemen, and the British oil and gas corporation BP, inferior to it, is superior to Lebanon and Tanzania. The two largest oil and gas TNCs - the American Chevron Corporation and the Italian EniSpA - occupy 97th and 99th places, ahead of Lithuania and Slovenia, respectively, while the German automobile corporations Volkswagen Group, Siemens AG and the American oil corporation Conoco Phillips are ahead of Costa Rica. Uruguay closes the calculated ranking of the 100 largest economic structures (Table 2.6).

A comparative analysis of the dynamics of changes in sales volumes of the world's largest TNCs, GDP indicators of individual countries of the world, carried out during the study, suggests that over time, corporations will occupy higher places in such a ranking. To be fair, we note that this moment TNCs, no matter how giants they may be, are still far from the national economies that occupy the first places in the above ranking. For example, the total added value of all TNCs in 2013 amounted to 16 trillion. dollars, which is not comparable to the GDP volumes of the world's two leading national economies - the USA and China (20.5 trillion dollars). It is enough to compare the leading country of the United States, whose GDP at purchasing power parity in 2013 reached 14 trillion. 526.6 billion dollars, and the leading corporation - Exxon Mobil, whose added value according to PPP is estimated at 104.5 billion dollars, that is, the ratio is 139: 1. The calculations and subsequent analysis of the ratios of the volumes of added value of the Exxon Mobil corporation with the GDP/PPP of individual countries confirm the expressed opinion that the scale of TNC activities is not yet comparable with the scale of the leading economies of the world. The analysis shows that the GDP at purchasing power parity of 67 national economies exceeds the GVA/PPP of the leading corporation in this indicator, Exxon Mobil. These include 9 countries with transit economies (Russia, Poland, Ukraine, the Czech Republic, Romania, Kazakhstan, Hungary, Belarus and Slovakia), which in terms of GDP at purchasing power parity exceed the American TNC ExxonMobil in terms of added value calculated at parity by purchasing power. At the same time, the added value at purchasing power parity of this corporation exceeds the GDP values ​​of 22 countries included in this rating, including 5 transit economies. It is noteworthy that among the countries whose GDP is smaller than the TNC Exxon Mobil is Slovenia, which, in terms of gross national income per capita (and not in terms of membership in the European Union), belongs to the group of developed countries (Table 2.6).

Concluding the comparative analysis of national economies and the largest TNCs, it is important to note that their gross value added is taken into account by statistics in the GDP of the countries where they are based. Therefore, it would be logical to reduce the volume of GDP of home countries by the amount of gross added value of TNCs, taking into account purchasing power parity. However, it is extremely difficult to do this, since it is not known for certain which countries’ GDP includes what share of added value.

Despite the noticeable lag in the scale of activity of the largest TNCs from the most developed countries of the world, it has long been known that the former are technologically more developed and mobile, economically efficient, and financially successful. As a result, the world's largest TNCs are becoming more powerful and influential organizational structures of the global economy. It is characteristic that the activities of TNCs, which are aimed primarily at obtaining high profits, often go beyond the usual understanding of people traditionally structured according to political, legal and national-state criteria.

The foregoing allows us to assume that the possible emergence of qualitatively new subjects of international economic relations, not constrained by any geographical boundaries, can radically change the state of affairs not only in the global economy, but also in the political sphere.

TOPIC 11. TNC AS A FACTOR OF WORLD DEVELOPMENT

Criteria for determining the degree of transnationality of a company

Modern characteristics activities of the world's largest companies

1. TNCs in the world economy: evolution, essence, types

TNK is a complex corporate structure that operates in two or more countries around the world and has its headquarters in one or more countries.

According to the World Investment Report (2001), prepared by the United Nations Conference on Trade and Development (UNCTAD), which traditionally studies the activities of TNCs, there are 63 thousand transnational corporations in the world with 800 thousand foreign divisions.

IN economic literature There are three groups of international companies:

1. TNK– companies with single-national capital and the nature of control over the activities of the entire corporation. TNCs carry out their business activities in other countries by organizing branches and subsidiaries there that have independent production and sales services, research centers, etc.

2. MNC(multinational) – trusts, concerns and others production associations, which are international firms not only in the scope of their activities, but also in the control over them. MNCs unite national companies of two or more countries, owned by their owners, on a production and scientific-technical basis.

3. International corporate unions, most often acting in the form of consortia - formed on a production, scientific, technical and commercial basis and are special associations of industrial, banking and other concerns created to solve major economic problems.

In fact, TNCs began their activities at the end of the 19th century and underwent significant evolution during this period.

First generation TNCs operated within the boundaries of existing colonial systems and were focused on the export of raw materials from the colonies (colonial raw materials TNCs).

Second generation TNCs became more active between the world wars and specialized in the production of weapons.

Third generation TNK actively developed new sales markets through the active use of scientific and technical progress (the creation of mass consumer products), as well as sources of raw materials, new areas of capital investment through the creation of integration associations.

In the 80s, the activities of TNCs led to the creation of prerequisites for the formation of an international space with a single market and information space, the international market for capital, labor and scientific and technical services. Global fourth-generation TNCs began to emerge. Their goal is to conquer not individual segments of the world market, but the main positions in the production and sale of products across the global economy.

Transnational corporations- These are international companies. They are international in nature: they own or control the production of products (or services) outside their home country, in different countries around the world, with branches there that operate in accordance with the global strategy developed by the parent company. Thus, the “international approach” of TNCs is determined by the role that foreign operations occupy in all aspects of the economic life of these companies.

"Multinationality" companies can also manifest themselves in the area of ​​property. Although the criterion of this “internationality”, as a rule, is not ownership of capital. Apart from a few multinational companies in terms of capital, in all the rest the core of ownership is based on the capital of one, and not different countries.

"Multinational" ownership, as a rule, manifests itself in a slightly different way: since the ownership of a company is represented by its shares, the shares of a transnational corporation must be circulated in many countries. This means that the shares of the parent and subsidiaries must be available for purchase in all countries where the multinational company operates.

Depending on the organization of activities abroad, all TNCs are divided into 3 types:

1. Horizontally integrated firms manage divisions located in different countries producing the same or similar products

2. Vertically integrated firms, operate units in a particular country that produce goods supplied to their units in other countries;

3. Separate TNCs– manage divisions located in different countries that are not vertically or horizontally integrated.

Main organizational forms of foreign branches:

- Subsidiary– an enterprise within the TNC system in the host country, in which the parent company has a decisive vote by virtue of owning more than half of the voting shares and will appoint the managers of this enterprise;

- Associated company- an enterprise within the TNC system in the host country, in which the parent company owns at least 10, but not more than 50% of the shares. The parent company does not control, but participates in the control of this enterprise.

- Branch- a type of foreign branch that is owned entirely by the parent company or is part of a joint venture of a TNC.

Based on the form of management of their branches, TNCs can be divided into 3 groups:

1. Ecocentric type– the parent company exercises strict management control over foreign branches, and the latter are managed by representatives of the country of the parent company.

2. Polycentric type– branches are granted significant rights and operate in a semi-autonomous mode.

3. Geocentric type– complete autonomy of branches, based on their self-financing.

Trade originated in ancient times. With the development of humanity, practically nothing has changed, except, of course, the market for goods and services itself. If earlier production was based on a certain territory, now the purchase of land from other countries for construction own factories and factories - a completely ordinary phenomenon. Not only European countries, but also the Russian Federation are doing this (and quite actively). Actually, we will talk about which country has the largest TNCs in the world.

What is a transnational corporation?

A TNK is initially a company with production branches in several countries. The role of such corporations in the process of globalization is undoubtedly enormous. TNCs can act not only as manufacturing companies, but also as telecommunications, insurance and audit companies. In addition, this includes transnational banks and pension funds.

The budget that some of the world's largest multinationals have is so large that it exceeds financial condition some countries. For example, the net annual profit of General Electric Corporation is just over $13 billion, which is almost 34 times more than the annual budget of Andorra with a population of 85.4 thousand people or slightly less than the GDP of Iceland for 2015. Corporations also play a large role in science; TNCs account for about 80% of the financial supply of research and development work and approximately the same number of registered patents.

why internationality?

The first option represents the desire of TNCs to create a single leadership center. It must be located in the country to which the corporation belongs. Other branches operate only with the permission of the parent company.

The second option allows you to make your own decisions. Leadership centers are created in each branch. Subsidiaries, as a rule, are sufficiently independent from other branches of the corporation.

Sources of effective activity of transnational corporations

A comparative description of the world's largest TNCs, the practical benefits of which are undeniable, suggests the following: the use of raw materials from other countries, as well as its financial capabilities, makes it possible to expand, capture or retain the sales market. Besides, efficient operation due to the proximity of foreign consumers. Awareness about the conduct of research tests, as well as about their results, has a very good effect on the development of transnational corporations.

In addition to these principles Comparative characteristics The largest TNCs in the world make it clear that operating in several countries at the same time helps to strengthen competitiveness and improve relations with partner countries.

Statistics on the value of foreign assets

The main areas of activity of current corporations are electronics, automotive manufacturing, oil production and refining. The world's largest multinationals often invest in companies with the goal of sustainability in the global market. In the list of largest foreign assets, the first places are given to the following corporations:

• General Electric. Country - USA, occupation - electronics. The share of foreign assets is 30%.
• Royal Dutch Shell. Country - Netherlands - Great Britain, type of activity - oil industry. The share of foreign assets is 66%.
• "Ford". Country - USA, type of activity - automotive industry. The share of foreign assets is 30%.

In addition to the listed companies, there are many more TNCs that use this development method to achieve sustainability.

List of corporations

An important indicator of a company's success in the international market is the amount of sales realized in other countries. The largest TNCs in the world, the list of which is presented below, was analyzed precisely according to this principle. Also, in addition to the type of activity and the country of ownership, the items also include corporate revenue:

1. Walmart (sector retail, USA) - 482,130.
2. State Grid Corporation of China (electric power industry, China) - 329,601.
3. China National Petroleum (oil and gas sector, China) - 299,271.
4. Sinopec Groupe (petrochemical industry, China) - 294,344.
5. Royal Dutch Shell (oil and gas sector, Netherlands - UK) - 272,156.

Not all TNCs are listed here. But as of 2016, these are the companies that make up the top five.

TNK in Russia

Since the end of the 19th century, Russia has been trying to join the activities of transnational corporations around the world. But the constant slowdown due to revolutions and political reshuffles did not allow this process to be carried out fully. It is for this reason that until now, the services and products of foreign companies prevail in the country. Only relatively recently did Russia begin to create its own, which are very similar to TNCs.

The comparative characteristics of the world's largest TNCs were only supplemented with a Russian representative at the end of the 20th century, namely: in 1996, the rating published by the Financial Times presented the Gazprom company.

At the moment, the development of Russian corporations is slower than that of other countries. For more successful advancement in the global market, Russia needs to combine efforts to improve its own financial and industrial groups together with friendly states.

multinational corporation bank

ü Modern transnational corporations provide big influence on the world economy as a whole. In one word, this influence is “stimulating” and “facilitating”:

ü TNCs stimulate scientific and technical progress, since within their framework it is carried out most of research work, new technological developments appear;

ü TNCs stimulate the trend of globalization of the world economy, involving host countries in international economic relations. Largely thanks to them, there is a gradual “dissolution” of national economies in a single world economy, as a result of which a global economy is spontaneously created by purely economic means, without the use of violence;

ü TNCs stimulate the development of global production. Being the world's largest investors, they are constantly increasing production capacity, creating new types of products and jobs in host countries, stimulating the development of production in them, and therefore the world economy as a whole;

ü TNCs contribute to the optimal allocation of resources and location of production;

ü TNCs contribute to expanding the boundaries of the international division of labor and international cooperation.

But, nevertheless, the development and increase in the number of transnational companies affects not only the world economy as a whole, but also the development of individual countries. International companies for each specific state are representatives of the world economy and must have autonomy limited by relevant rules, operating within certain legal and institutional frameworks.

Transnational companies are considered the main positive factors in shaping the competitiveness of countries and implementing them competitive advantages on international markets. Thus, the prosperity of the country largely depends on the success of the TNCs operating on its territory (which is good for General Motors, good for America).

Receiving countries from investment inflows win on many aspects. Firstly, the widespread attraction of foreign capital helps to reduce unemployment in the country and increase state budget revenues. With the organization of production in the country of those products that were previously imported, there is no need to import them. Companies that produce products that are competitive on the world market and are primarily export-oriented contribute significantly to strengthening the country’s foreign trade position.

Secondly, the benefits of TNCs in the host country are also observed in qualitative components. The activities of TNCs force the administration of local companies to make adjustments to technological process, the established practice of industrial relations, allocate more funds for training and retraining of workers, pay more attention to product quality, its design, consumer properties. Most often, foreign investment is driven by the introduction of new technologies, the release of new types of products, a new style management, using the best from foreign business practices.

Since transnationalization increases both the average profit and the reliability of its receipt, holders of TNC shares can count on high and stable income. Workers serving at TNC enterprises take advantage of the formation of a global labor market, moving from country to country and without fear of being left without work.

TNCs themselves, when choosing places to create subsidiaries, proceed from an analysis of production costs, which are often lower in developing countries; Products are sold where there is higher demand for them - mainly in developed countries. That is why, for example, residents of modern Germany buy equipment from the German company “Bosh”, which was not produced in Germany, but in South Korea. Also, when choosing countries for creating foreign branches, TNCs evaluate the local market in terms of its capacity, availability of resources, location, etc. Moreover, TNCs take into account the political stability in the country, the legal conditions of foreign investment, the taxation system, the nature of trade policy, the degree of infrastructure development, the protection of intellectual property, government regulation of the economy, the cheapness of labor and the level of its qualifications, the stability of the national currency and other aspects.

Transnational corporations create their branches and sell their products in many countries around the world. For example, the share of enterprises controlled by foreign capital in the total volume of production in Australia, Belgium, Ireland, Canada exceeds 33%, in leading Western European countries it is 21-28%, in the USA over 10% is produced by enterprises controlled by foreign capital. industrial products.

Foreign capital in the form of direct investment plays an even greater role in the economies of developing countries. In them, companies with foreign participation account for about 40% of industrial production, and in a number of countries it predominates.

Transnational corporations have been criticized a lot: for the fact that they exploit the economies of developing countries, impose on them policies that are not beneficial to them, transfer the most harmful production there, for the fact that they harm their own country by transferring production to other countries of the world and thereby depriving residents of their country jobs.

The interests of transnational corporations and the countries in which they are based usually coincide. Transnational corporations allow recipient countries to gain access to the resources of other countries. In addition, products manufactured abroad will not be subject to duties by the state where these products were produced.

What is the modern economic power of TNCs? As part of the analysis of the activities of modern TNCs, it is advisable to pay attention to some expert assessments. TNCs have their own elite - super-large firms that compete with many states in production, in budget, and in the number of “subjects”.

The American magazine Forbes, in its annual ranking of the world's 2000 largest companies, uses four main indicators as the basis for the ranking: market capitalization, assets, sales and profits. That is why its rating differs significantly from numerous analogues that compare companies based on a single indicator. In this regard, the list of the 20 largest corporations in the world according to Forbes as of May 2014 is as follows (Table 1).

This year the rating covered 63 countries, which is three less than last year. The majority of companies are US-owned, with 543 participants, which is 19 more companies than last year. Japan (251 members) again had the second highest number of members on the list, despite the loss of seven members. China has 136 participants and ranks third. This

This is the first year since the first list in 2004 that China has not increased the number of companies. There are also eleven countries with only one firm on the list, including New Zealand, the Czech Republic and Vietnam.

In the tenth annual ranking, the largest company in the world this year was the Chinese bank ICBC and took first place for the first time. Another Chinese bank, China Construction Bank, moves up 11 places to No. 2 on the list. JPMorgan Chase, the world's largest company in 2011, slips down 3rd place due to a slight decline in sales. Also moving down this year is conglomerate GE, No. 4. Rounding out the top five largest companies last year was Exxon Mobil.

Apple (No. 15) is still the most valuable company in the world. There are 162 newcomers to this year's Global 2000 list. Banks still dominate the list (469 companies). The next largest industries are oil and gas (124 firms), materials (122 firms), and insurance (109 firms).

The Global 2000 breaks its list into four regions: Asia Pacific (715 firms), followed by Europe, the Middle East and Africa (606 firms), the United States (543 firms), and South America(143 firms). American companies are the dominant of all regions.

CONCLUSION

The development of transnational corporations is a natural process of evolutionary changes in the global economy. Today they have become a full-fledged and significant subject of international economic relations and are a necessary link in the process of increasing global labor productivity and raising the standard of living of people all over the planet.

For all its enormous influence on the economy, TNCs in last years concentrate their activities in the banking sector, oil and gas production, industry, insurance industry.

However, like any other process, the development of transnational corporations has both positive and negative sides. Therefore, each country that hosts TNCs on its territory must first assess all the possible advantages and disadvantages of the influence of transnational capital on its economic and political system in order to maximize the degree to which the national interests of the state and its citizens are ensured.

The ultimate goal of transnational corporations is to appropriate profits. To achieve this goal, they have many advantages over other participants in international economic relations, thanks to which TNCs are the leading organizational structure in the world market and control a significant part of international trade.

The political and economic importance of transnational corporations is so great that in the foreseeable future they will remain one of the important factors increasing the impact of industrialized countries on many regions of the world. The financial crisis led to a global decline in GDP, a decrease in global trade volumes, a decrease in consumer demand, a significant decrease in the level of consumer confidence in banking systems and, as a result, to a revision of their positions and strategies by transnational corporations.

BIBLIOGRAPHY

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3. Mikhailushkin, A.I. Economics of a transnational company: textbook. manual for universities. / A.I. Mikhailushkin, P.D. Shimko. – M.: Higher. school, 2005. – 335 p.

4. Cherchenko, N.V. International economics / N.V. Cherchenko, N.I. Sukhanov, A.N. Leonovich; under general ed. N.V. Cherchenko. – Minsk: RIVSH, 2009. – 162 p.

5. Gordeev, V.V. World economy and problems of globalization / V.V. Gordeev. – M.: Higher school, 2008. – 407 p.

6. Tsypin, I.S. World economy / I.S. Tsypin, V.R. Vesnin. – M.: TK Velby, Prospekt, 2009. – 248 p.

7. Chebotarev, N.F. World economy / N.F. Chebotarev. – M.: Dashkov and K, 2007. – 332 p.

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In the age of globalization, the boundaries between countries have become much more blurred. And businessmen took advantage of this, fully aware that they could scatter their enterprise across many regions, thus saving part of the funds that they would have spent on paying for some factors of production in one territory.

This is exactly how transnational corporations appeared, the list of which is only growing every day. What are they and how do they differ from ordinary companies?

The basis of TNK

It is worth noting that TNC (this is how a transnational corporation is abbreviated) is the last stage of international cooperation legal entities. Until then, the enterprise can remain a partnership open type or a limited liability company.

Another option is to create cartels - participants jointly regulate production volumes and the process of hiring workers.

The third method of international cooperation is syndicates, which imply coordinated actions in the purchase of raw materials and the sale of goods (from the total purchase of oil, one company can produce gasoline, and another rubber).

The fourth option of cooperation is a concern where only management is common financial activities, while the individuals themselves are constantly engaged in different types of activities (one branch of the company is engaged in sewing sportswear, and the other - military uniforms).

The trust companies that are closest in their characteristics to TNCs merge one of the areas of production, having common sales and finances in it (for example, joint production of aircraft engines and the constant production of instruments for aircraft by one side and passenger seats by the other). After the enterprise has experienced at least several similar cooperations, it can expand to the scale of a multinational corporation.

What is a TNC?

Before moving on to specific data, it is worth understanding what multinational corporations are. List of them distinctive features is very long, but the main one is the presence of company capital in several countries around the world.

Despite the fact that enterprises of this scale are not located entirely in the territory of a certain country, they are still forced to obey the laws of the state where a specific branch of the corporation operates.

In addition, even state-owned enterprises can become part of a TNC, and the agreements that result in such cooperation can be both intergovernmental and private, between investors from different countries.

Variable ratings

Given the volatility of the market, it is very difficult to talk about any stable rating in which transnational corporations fall. The 2016 list differs in many positions from the 2015 list of leading companies, and the situation may change, although not globally, in 2017.

Of course, there are certain companies that, due to their fame and status, large market share, numerous trade and economic relations, can boast of a stable position in the list of the largest, but there are very few of them.

Stability in change

But despite the instability of the market, it is possible to identify certain features that unite the largest transnational corporations in the world. List 2016 and more early years necessarily included:

• American companies: a third of them are in the top hundred;
• Japanese enterprises: the number of such international companies in this country is constantly growing, for example, in five years in the nineties, 8 new TNCs emerged in the Land of the Rising Sun;
• European companies: The Old World focuses on knowledge-intensive industries, actively working with pharmaceuticals and chemistry.

It is especially worth noting that greatest number TNCs are concentrated specifically in the chemical and pharmaceutical industries.

general information

US transnational corporations lead the global ranking of the most active and influential companies. The list contains in subsequent positions such countries as China, Japan, India, Germany, Russia, Great Britain, Brazil, France and Italy. In order to understand the scale of the power of TNCs, it should be said that their total value in 2013 was four times greater than global GDP.

The budget of some companies exceeds the budget of entire countries: for example, the sales volume of the world famous General Motors in the nineties exceeded the GDP of the Scandinavian countries, Saudi Arabia and Indonesia; Japanese Toyota earned twice as much money as the GDP of Morocco, Singapore and Egypt.

Of course, today the situation has changed a little: some of the regions have significantly increased their economic power, but at the same time, even now TNCs continue to exceed the GDP of developing countries with their capital.

Rating of TNCs by market value

But it's time to appreciate the true extent of power that multinational companies wield. The list of the largest companies by market value included (according to places):

• Apple (USA).
• Exxon Mobile (oil business, USA).
• Microsoft (USA).
• IMB (USA).
• Wall-Mart Store (the world's largest retail chain, USA).
• Chevron (energy, USA).
• General Electric (production of locomotives, power plants, gas turbines, aircraft engines, medical equipment, lighting equipment, USA).
• Google (USA).
• Berkshire Hathaway (investment and insurance, USA).
• AT&T Inc (telecommunications, AT&Inc).

An interesting fact is that Apple has remained in the lead for several years in a row, while the next positions are constantly changing. For example, since 2014, General Electric was able to rise from ninth to seventh place, Samsung was, in principle, ousted from this ranking.

As already mentioned, at the moment the leading TNCs in the world are American - this is clearly evident from the rating.

Rating by level of foreign assets

But we can also look at transnational corporations from the other side. The list of the world's largest companies by level of foreign assets (that is, the share of foreign countries in the company's capital) is as follows:

• General Electric (energy, USA).
• Vodafone Group Plc (telecommunications, UK).
• Royal Dutch/Shell Group (oil and gas sector, Netherlands/UK).
• British Petroleum Company Plc (oil and gas sector, UK).
• ExxonMobil (oil and gas sector, USA).
• Toyota Motor Corporation (automotive industry, Japan).
• Total (oil and gas sector, France).
• Electricite De France (housing and communal services, France).
• Ford Motor Company (automotive industry, USA).
• E.ON AG (housing and communal services, Germany).

Here the situation is slightly different from the ranking of the richest companies: the geography is much broader, and the areas of interest are different.

Russian TNCs

But do transnational corporations exist in Russia? The list of domestic companies of this scale is not very large, because in Eastern Europe TNCs are just beginning to develop, but even here there are already pioneers.

It is worth noting that Soviet enterprises, the branches of which were scattered throughout Soviet Union, were something like modern TNCs, so some of them, maintaining their previous level, easily became transnational companies. Among the most famous such companies today:

• "Ingosstrakh" (finance).
• Aeroflot (air travel).
• Gazprom (oil and gas sector).
• Lukoil (fuel sector).
• "Alrosa" (mining sector, diamond mining).

According to experts, Russian oil and gas companies have the greatest potential, which, due to their availability of resources, can easily compete with world leaders in this industry, selling them raw materials and allowing them to extract resources from their own wells. It is worth noting that many global TNCs have their branches on the territory of the Russian Federation.

Fuel TNCs

According to Russian experts, the most promising ones are fuel transnational corporations. List of leaders in this field:

• Exxon Mobil (USA).
• PetroChina (China).
• Petrobras (Brazil).
• Royal Dutch Shell (UK).
• Chevron (USA).
• Gazprom (Russia).
• Total (France).
• BP (UK).
• ConocoPhillips (USA).
• CN00C (Hong Kong).

Presence among the world's largest TNCs Russian company definitely increases the likelihood of other corporations moving to this level, such as Transneft, for example, which is already one of the richest companies in the world, although it has not yet reached the international level.

Difficulties of TNCs

But is everything so smooth with TNCs? Yes, expanding their target markets allows them to receive maximum profit from the sales of their products, but at the same time, isn’t such dispersion their weakness? What challenges do multinational companies face?

The list of these obstacles is huge, ranging from constant competition with local manufacturers who know their market much better, to political games, due to which a product, seemingly already adapted for a certain country, cannot reach store shelves.

TNCs in new markets are faced with a lack of local specialists (lack of suitable qualifications among potential personnel), as well as with their high requirements for wages with performance equal to other regions.

No one has canceled the policy of the state, which can oblige a transnational company to pay huge taxes on profits or ban some kind of production in a particular region: representatives of TNCs coming to Russia, for example, note that due to bureaucracy, the opening of branches is delayed for many years. month.

Thus, even the mighty of the world However, in the form of TNCs, in this case, they have certain problems; one should not think that their power opens all the doors for them.

Development prospects

Well, what development prospects do the world's transnational corporations have? The list of their spheres of influence, as has already been mentioned many times, is truly enormous. About half of industrial production, almost 70% of trade, almost 85% of inventions and 90% of foreign investments depend on them.

Trade in raw materials belongs to TNCs: under their authority is the purchase and sale of wheat (90%), coffee (90%), corn (90%), tobacco (90%), iron ore (90%), copper (85%), bauxite ( 85%) and bananas (80%).

In addition, in America, more than half of export-related operations are controlled by TNCs; in the UK, the number of such operations is 80%; in Singapore, which was basically built on money foreign investors, - 90%. 30% of world trade is directly or indirectly related to the activities of TNCs.

And in the future, with the development of globalization, the power of transnational corporations will only increase.

Despite all sorts of difficulties, they are not going to give up on expanding into new territories, and there are still a lot of markets where not all possible space belongs to TNC products.

Therefore, the only thing that now remains for the majority of states targeted by TNCs is either to assist them, receiving a certain profit from the arrival of a new entrepreneur in the country, or to defend themselves by introducing a policy of protectionism, thereby possibly causing discontent among citizens who will be forced to purchase the products of transnational companies. corporations in other markets.

Conclusion

It is impossible to deny the enormous role of transnational corporations in the global market. The list of spheres of their influence, projects in which they take part, and markets available to them is truly enormous..

But still, it is impossible to say unequivocally that the future belongs to them - the competition from the national manufacturer is too strong. Yes, a modern economy without TNCs will not exist in the form in which it exists today, but at the same time it will not completely succumb to them.