Predicting Plausible Threats: Impact of Globalization Patterns on National Economies
Volume 9, Issue 2 (2019), pp. 585–594
Pub. online: 30 December 2019 Type: Article Open Access
30 December 2019
30 December 2019
Relevance: With the increase of permeability of borders, in the conditions of active political interaction between regions, it became regular to witness appearance of many transnational companies (TNC) and metacorporations differing in forms of management and organizational connections. Where in the case of transnational companies we can most often observe trade expansion with the pushing out of the competitors working on the local market, the pattern more characteristic of metacorporations is merger and acquisition (MAA) where the management of the holding (as a rule) signs contracts with local manufacturers increasing their production capacity at the expense of local productions and businesses. The aim of this paper is to track the dynamics of international business development in the conditions of globalization and find out which regions and spheres of business are currently considered the most preferable for foreign investment. The results gained can be used in planning of perspective outlet markets and in search of new collaboration objects. The novelty of this paper lies in the observed character of interdependence of national economies and redistribution of investment flows between regions. The conclusions were made, that foreign investment flows (FIF) significantly influence the development of business inside the country: businesses with foreign capital receive a number of benefits compared to local companies.