transnational companies. The largest transnational companies in the Russian Federation

In the English-language literature on international economics, the terms "multinational firms" (multinational firms - MNF) and "multinational corporations" (multinational corporation - MNC) are often used to refer to international business organizations, which are used as synonyms.

Criteria and types of TNCs.

There are the following main quality signs of TNCs:

- implementation features: the company sells a significant part of its products abroad, thereby exerting a significant impact on the world market;

- features of production location: some of its subsidiaries and branches are located in foreign countries;

- Features of property rights: the owners of this company are residents (citizens) of various countries.

It is enough for a firm to have at least one of the listed signs to fall into the category of transnational corporations. Some large companies have all three of these attributes at the same time.

The first sign is considered the most important. The absolute leader in this criterion is now the Swiss company Nestle, which exports more than 98% of its products. With regard to the internationalization of production and ownership, these two signs may be missing.

In the modern world, the line between transnational and ordinary corporations is rather arbitrary, since as the globalization of the economy develops, internationalization of sales markets, production, and property takes place. Because researchers use different quantitative criteria separation of TNCs, in the scientific literature there are very different data on the number of TNCs (at the beginning of the 2000s - from 40 thousand to 65 thousand) and the scale of their activities.

United Nations

originally, since the 1960s, included among the TNCs firms with an annual turnover of more than $ 100 million and with branches in at least six countries. Later, less stringent criteria were applied. Now the UN considers transnational corporations that have the following formal features:

– they have production cells in at least two countries;

- they pursue a coordinated economic policy under centralized leadership;

- its production cells actively interact with each other - exchange resources and responsibilities.

Among Russian economists, it is customary to divide all TNCs according to the criterion of nationality into two subgroups:

1) actually transnational corporations - national firms, whose activity "splashes" beyond the borders of the country where their headquarters is located;

2) multinational firms - associations of national business organizations of different states.

The vast majority of modern TNCs have a clear national "core", i.e. belong to the first type. There are quite a few multinational firms, usually two Anglo-Dutch firms are cited as an example - the oil refinery concern Royal Dutch Shell and the chemical concern Unilever.

According to the scale of activity, all TNCs are divided into large and small. A conditional criterion is the size of the annual turnover: for example, in the 1980s, only those with an annual turnover of more than $ 1 billion were classified as large TNCs. If small TNCs have an average of 3-4 foreign branches, then for large TNCs their number is measured tens and even hundreds.

As a special kind of TNCs, transnational banks (TNBs) are engaged in lending to businesses and organizing cash settlements on an international scale.

Development of TNCs.

The first prototypes of transnational corporations appeared as early as the 16th and 17th centuries, when the colonial development of the New World began. Thus, among the founders of the British East India Company, which was formed in 1600 to "develop" the wealth of India and operated until 1858, were not only English merchants, but also Dutch merchants and German bankers. Up to the 20th c. such colonial companies were engaged almost exclusively in trade, but not in the organization of production, and therefore did not play a decisive role in the capitalist economy. They are considered only the forerunners of "real" TNCs, which appeared at the end of the 19th century, when free competition was replaced by the active development of large monopoly firms, which began to carry out a massive export of capital.

There are three main stages in the development of TNCs.

On the first stage At the beginning of the 20th century, TNCs invested primarily in the raw materials industries of economically underdeveloped foreign countries, and also created purchasing and marketing divisions there. Establishing high-tech industrial production abroad was then unprofitable. On the one hand, the host countries lacked the necessary qualifications and the technology had not yet reached a high degree of automation. On the other hand, one had to reckon with the possible negative impact of new production facilities on the ability to maintain an efficient level of capacity utilization at the firm's "home" enterprises. The subjects of transnationalization during this period were usually associations of firms from different countries (international cartels), which divided sales markets, pursued an agreed pricing policy, etc.

Rice. DYNAMICS IN THE NUMBER OF TNCs AND THEIR FOREIGN BRANCHES(according to the UN)

Source: Vladimirova I.G. Study of the level of transnationalization of companies.// Management in Russia and abroad. 2001, No. 6.

Second phase The evolution of TNCs, since the middle of the 20th century, is associated with the strengthening of the role of foreign production units, not only in developing, but also in developed countries. Foreign production branches began to specialize mainly in the production of the same products that were previously produced in the “native” country for TNCs. Gradually, the branches of TNCs are more and more reoriented to serve local demand and local markets. If earlier international cartels operated in the arena of the world economy, now national firms are emerging that are large enough to pursue an independent foreign economic strategy. It was in the 1960s that the term "transnational corporations" itself appeared.

The rapid growth in the number and importance of TNCs since the 1960s has been largely influenced by the scientific and technological revolution. The introduction of new technologies and the simplification of production operations, when it became possible to use even low-skilled and semi-literate personnel, created opportunities for the spatial separation of individual technological processes. The development of transport and information communications contributed to the realization of these opportunities. It became possible to break up the production process painlessly and place individual technological processes in those countries where national factors of production are cheaper. The spatial decentralization of production began to develop on a planetary scale with the concentration of its management.

On the present stage, Since the end of the 20th century, the main feature of the development of TNCs has been the creation of production networks and the implementation of a global scale. Statistics show (fig.) that the growth in the number of foreign affiliates of TNCs is much faster than the growth in the number of TNCs themselves. Analysis of production costs, which are often lower in developing countries, plays a major role in choosing where to set up subsidiaries; products are sold where there is a higher demand for them, mainly in developed countries. That is why, for example, residents of modern Germany buy equipment from the German company Bosch, which, however, was not made in Germany at all, but in South Korea.

The flow of investment by transnational corporations has increased, but has become increasingly concentrated in the richest regions of the world. If back in the 1970s about 25% of foreign direct investment went to developing countries, by the end of the 1980s their share had fallen below 20%.

The scale of modern TNCs.

TNCs connected world trade with international production. They operate through their subsidiaries and branches in dozens of countries around the world according to a single scientific, production and financial strategy formed in their "brain trusts", they have a huge scientific, industrial and market potential, which ensures high dynamism of development.

As of the beginning of 2004, there were 64,000 TNCs operating in the world, controlling 830,000 foreign affiliates. For comparison: in 1939 there were only about 30 TNCs, in 1970 - 7 thousand, in 1976 - 11 thousand (with 86 thousand branches).

What is the modern economic power of TNCs? Their role in the modern world economy is assessed using the following indicators:

- TNCs control approximately 2/3 of world trade;

- they account for about 1/2 of world industrial production;

– about 10% of all employees in non-agricultural production work at TNC enterprises (almost 60% of them work in parent companies, 40% in subsidiaries);

- TNCs control approximately 4/5 of all patents, licenses and know-how in the world.

Just as TNCs are the elite of business, TNCs have their own elite - super-large firms that compete with many states in terms of production, budget, and the number of "subjects". The top 100 TNCs (less than 0.2% of their total number) control 12% of the total foreign assets and 16% of the total foreign sales.

There are two most famous ratings of the largest companies on the planet: Fortune magazine ranks non-financial companies by the amount of profit received in a year, and the Financial Times newspaper ranks all companies (including financial ones) by asset value. Analyzing the composition of the group of the largest TNCs in the world and its changes over the past decades (Table 1–6), one can trace how the dominant industries and regions have changed.

10 largest TNCs in the world in terms of foreign assets in 1999

Table 1. 10 LARGEST TNCs IN THE WORLD BY VOLUME OF FOREIGN ASSETS IN 1999
Companies	Rank by volume of foreign assets	Foreign assets, % of all company assets	Foreign sales, % of total sales	Foreign personnel, % of the total personnel of the company
General Electric (USA)	1	34,8	29,3	46,1
ExxonMobil Corporation (USA)	2	68,8	71,8	63,4
Royal Dutch/Shell Group (Great Britain, Netherlands)	3	60,3	50,8	57,8
General Motors (USA)	4	24,9	26,3	40,8
Ford Motor Company (USA)	5	25,0	30,8	52,5
Toyota Motor Corporation (Japan)	6	36,3	50,1	6,3
DaimlerChrysler AG (Germany)	7	31,7	81,1	48,3
Total Fina SA (France)	8	63,2	79,8	67,9
IBM (USA)	9	51,1	57,5	52,6
British Petroleum (UK)	10	74,7	69,1	77,3
Source: Vladimirova I.G. // Management in Russia and abroad. No. 6. 2001 (Calculated from: World Investment Report 2001: Promoting Linkages, United Nations (UNCTAD), New York and Geneva, 2001.)

10 largest TNCs in the world by their market value

Table 2. 10 LARGEST TNCs IN THE WORLD BY THEIR MARKET VALUE(according to Financial Times)
Place in 2004	Place in 2003	Companies	The country	Market capitalization, mln USD	Sector
1	2	General Electric	USA	299 336,4	Industrial conglomerate
2	1	Microsoft	USA	271 910,9	Software and Services
3	3	Exxon Mobil	USA	263 940,3	Oil and gas
4	5	Pfizer	USA	261 615,6	Pharmaceuticals and Biotechnology
5	6	Citigroup	USA	259 190,8	Banks
6	4	Wal-Mart Stores	USA	258 887,9	Retail
7	11	American International Group	USA	183 696,1	Insurance
8	15	Intel	USA	179 996,0	Computers, IT equipment
9	9	British Petroleum	Britannia	174 648,3	Oil and gas
10	23	HSBC	Britannia	163 573,8	Banks
Source: FT-500 (http://www.vedomosti.ru:8000/ft500/2004/global500.html).

Initially, the largest industry group of TNCs were raw materials companies. The oil crisis of 1973 led to a sharp increase in the role of oil transnational corporations, but already in the 1980s, with the weakening of the "oil hunger", their influence decreased, the automotive and electrical transnational corporations acquired the greatest importance. With the development of scientific and technological revolution, firms from the high-tech service sector began to break out to the fore - such as the American corporation Microsoft, the world monopolist in the production of software, or the American electronic trading company Wal-Mart Stores Inc..

Industry affiliation of the largest 50 TNCs in the world

Table 3. INDUSTRY PARTICULARS OF THE WORLD'S LARGEST 50 TNCs(according to Fortune magazine)
years	Oil industry laziness	Car- structure	Electro- Technics	Chemical industry laziness	Steel industry laziness
1959	12	3	6	4	4
1969	12	8	9	5	3
1979	20	11	7	5	3
1989	9	11	11	5	2

Industry affiliation of the 100 largest non-financial companies in the world

Table 4. INDUSTRY PARTICULARS OF THE 100 LARGEST NON-FINANCIAL COMPANIES IN THE WORLD
Industry	Number of companies
Industry	1990	1995	1999
Manufacture of electrical and electronic equipment, computers	14	18	18
Automotive industry	13	14	14
Oil industry (exploration and refining), mining	13	14	13
Manufacture of food, beverages and tobacco products	9	12	10
Chemical industry	12	11	7
pharmaceutical industry	6	6	7
Diversified Companies	2	2	6
Trade	7	5	4
Telecommunication industry	2	5	3
Metallurgy	6	2	1
Construction	4	3	2
Mass media	2	2	2
Other industries	10	6	13
Source: Vladimirova I.G. Study of the level of transnationalization of companies// Management in Russia and abroad. No. 6. 2001 (Based on: World Investment Report 2001: Promoting Linkages, United Nations (UNCTAD), New York and Geneva, 2001.)

Nationality of the largest 50 TNCs in the world in 1959-1989

Table 5. NATIONALITY OF THE LARGEST 50 TNCs IN THE WORLD IN 1959–1989(according to Fortune)
years	USA	Western European countries	Japan	Developing countries
1959	44	6	0	0
1969	37	12	1	0
1979	22	20	6	2
1989	17	21	10	2
Compiled by: Bergesen A., Fernandez R. Who Has the Most Fortune 500 Firms? // Journal of World-Systems Research. 1995 Vol. 1. No. 12 (http://jwsr.ucr.edu/archive/vol1/v1_nc.php).

The composition of TNCs becomes over time more and more international in their origin. Among the ten largest firms in the world, American firms absolutely predominate (Tables 1, 2). But if you look at the composition of the more numerous groups of the world's largest TNCs (Tables 5, 6), then here the American leadership is much less pronounced. According to Fortune magazine, the evolution has been from the absolute dominance of US firms in the 1950s to the dominance of Western European firms since the 1980s. This trend is also noticeable in the composition of all TNCs: in 1970, more than half of the world's TNCs were from two countries, America and Great Britain; now, of all TNCs, America, Japan, Germany and Switzerland combined account for only about half. The number and importance of TNCs from developing countries is growing (especially from Asian "dragons" such as Taiwan, South Korea, China). It is expected that in the coming years the share of firms from the newly industrialized countries of the third world and from countries with economies in transition will continue to increase among TNCs.

Causes of TNK.

The reasons for the emergence of transnational corporations are very diverse, but all of them, to one degree or another, are related to the advantages of using planning elements in comparison with a “pure” market. Since “big business” replaces spontaneous self-development with intra-company planning, TNCs turn out to be a kind of “planned economies”, consciously using the advantages of the international division of labor.

Transnational corporations have a number of undeniable advantages over conventional firms:

- opportunities raise efficiency and strengthening competitiveness , which are common to all large industrial firms that integrate supply, manufacturing, research, distribution and marketing enterprises into their structure;

- mobilization of “intangible assets” associated with economic culture (production experience, management skills), which become possible to use not only where they are formed, but also transferred to other countries (by, for example, introducing American principles of personal responsibility in branches operating under the entire planet of US firms);

- additional upgrade options efficiency and strengthening competitiveness through access to the resources of foreign countries (use of cheaper or more skilled labor, raw materials, research and development potential, production capacity and financial resources of the host country);

- proximity to consumers of products of a foreign branch of the company and the possibility of obtaining information about the prospects of markets and the competitive potential of firms in the host country . Branches of transnational corporations receive important advantages over host country firms as a result of using the scientific, technical and managerial potential of the parent company and its branches;

- the ability to take advantage of the features of the state, in particular, tax policy in different countries, the difference in exchange rates, etc.;

– the ability to extend the life cycle of their technologies and products , transferring them as they become obsolete to foreign branches and concentrating the efforts and resources of departments in the parent country on the development of new technologies and products;

- the ability to overcome various kinds of protectionist barriers to entry into the market of a particular country by replacing the export of goods with the export of capital (i.e., creating foreign branches);

- the ability of a large firm to reduce the risks of production activities by dispersing its production between different countries of the world.

An important role in stimulating the development of TNCs is played by the state, regardless of whether it wants to help “its own” entrepreneurs or interfere with “strangers”. First, governments encourage the activities of "their" TNCs on the world stage, provide them with markets and opportunities for foreign investment through the conclusion of various political, economic and trade unions and international treaties. Secondly, the incentive for foreign direct investment is created by national tariff barriers created to protect "their" business from foreign competitors. Thus, in the 1960s, a large flow of investment from the United States to Europe was generated by high tariffs imposed by the European Economic Community. In an effort to overcome this barrier, instead of exporting finished products, American transnational corporations created "own" production in the EEC countries, bypassing their tariffs. In the 1960s and 1970s, the “automobile wars” between the United States and Japan developed in a similar way. Attempts by the Americans to fence themselves off from cheap Japanese small cars with customs duties and direct administrative restrictions on imports led to the fact that Japanese automotive transnational corporations created their branches in America. As a result, American-assembled Japanese cars began to be widely sold not only in the United States itself, but also in those countries that, following America, introduced a ban on the import of Japanese cars (South Korea, Israel).

The objective requirements of economic globalization lead to the fact that almost any truly large national firm is forced to join the world economy, thereby turning into a transnational one. Therefore, the lists of the largest companies can also be considered as lists of the leading TNCs.

Positive results of TNK activity.

TNCs are increasingly becoming a determining factor for deciding the fate of a country in the international system of economic relations, as well as for the development of this system itself.

Host countries benefit from inflows of investment in many ways.

Widespread attraction of foreign capital contributes to the reduction of unemployment in the country, the growth of 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 mainly export-oriented contribute to the strengthening of the country's foreign trade position.

The advantages that foreign firms bring with them are not limited to quantitative indicators. The quality component is also important. The activities of TNCs force the administration of local companies to make adjustments to the technological process, the established practice of industrial relations, to allocate more funds for the training and retraining of workers, to pay more attention to product quality, its design, and consumer properties. Most often, behind foreign investment is the introduction of new technologies, the release of new types of products, a new management style, and the use of the best practices of foreign business.

Realizing the benefits of host countries from the activities of TNCs, international organizations directly offer developing countries to attract TNCs to carry out technical modernization, and the governments of these countries, in turn, are actively fighting to attract TNCs to their economies, competing with each other. An example is the experience of the American company General Motors, which chose where to build a large plant for the production of cars and spare parts - in the Philippines or in Thailand. According to experts, Thailand had an advantage, as the automotive market is better developed here. However, the Philippines won, offering General Motors a number of benefits, including tax and customs, stimulating the construction of a plant in this country.

The countries from which international firms export capital also benefit greatly from the activities of TNCs.

Since transnationalization increases both average profits and the reliability of their receipt, the shareholders of TNCs can expect high and stable returns. Highly skilled workers employed by TNCs are benefiting from the formation of a global labor market, moving from country to country and not being afraid to be out of work.

Most importantly, as a result of the activities of TNCs, institutions are imported - those “rules of the game” (norms of labor and antimonopoly legislation, principles of taxation, contracting practices, etc.) that have been formed in developed countries. TNCs objectively increase the influence of capital-exporting countries on capital-importing countries. For example, German firms in the 1990s subjugated almost all Czech business, as a result of which, according to some experts, Germany established much more effective control over the Czech economy than in 1938–1944, when Czechoslovakia was captured by Nazi Germany. Similarly, the economies of Mexico and many other Latin American countries are controlled by American capital.

The active production, investment and trading activities of TNCs allow them to perform two functions that are of great importance for the entire world economy:

– promotion of economic integration;

– international regulation of production and distribution of products.

TNCs promote economic integration by creating sustainable economic ties between different countries. Largely due 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.

TNCs play a very important role in the development of the socialization of production and in the development of planning principles. When in the 19th century Communists and socialists began campaigning against market anarchy, for centralized management of the economy, they pinned their hopes on the activation of state regulation. However, already at the beginning of the 20th century. it became obvious that not only national governments, but also international firms are becoming subjects of centralized management. “It is important to emphasize,” write modern Russian economists A. Movsesyan and S. Ognivtsev, “that the laws of the free market do not work within TNCs, where internal prices are set, determined by corporations. If we recall the size of TNCs, it turns out that only a quarter of the world economy operates in a free market, and three-quarters - in a kind of "planned" system. "This socialization of production creates the preconditions for a transition to centralized regulation of the world economy in the interests of all mankind, to create a "social world economy".

However, the centralized regulation of the world economy carried out by TNCs also gives rise to many acute problems.

Negative results of TNC activity.

It should be noted that, along with the positive aspects of the functioning of TNCs in the world economy, there is also their negative impact on the economy of both the countries where they operate and those countries where they are based.

It is necessary to note the following main negative features of the impact of transnational corporations on the economy of host countries, which pose a threat to their national security:

- the possibility of imposing unpromising directions in the international system of division of labor on companies in the host country, the danger of the host country turning into a dumping ground for obsolete and environmentally hazardous technologies;

- the capture by foreign firms of the most developed and promising segments of industrial production and research structures of the host country, the displacement of national business;

– increasing risks in the development of investment and production processes;

– reduction of state budget revenues due to the use of internal (transfer) prices by TNCs.

Many national governments (especially in third world countries) are interested in increasing the economic independence of their country and in stimulating domestic business. To do this, they want to either change the country's current industry specialization in the world economy, or at least increase its share of the profits of TNCs. International corporations, with enormous financial power, can fight attacks on their profits by organizing forceful pressure on host countries, bribing local politicians, and even financing plots against objectionable governments. American TNCs were most often accused of self-serving political activity. Thus, the American Fruit corporation, together with the US State Department (and sometimes without the US State Department!) overthrew the governments of some Latin American "banana republics" in the 1950s and 1960s and established "their own" regimes there, and the ITT company financed in 1972– 1973 conspiracy against the rightful president of Chile Salvador Allende. However, after the scandalous revelations of TNC interference in the internal affairs of some countries, such methods began to be considered by both the world community and the business elite as “rude” and unethical.

The transnationalization of activities reduces economic risks for corporations, but increases them for host countries. The fact is that transnational corporations can quite easily move their capital between countries, leaving a country experiencing economic difficulties and leaving for more prosperous ones. Naturally, under these conditions, the situation in the country from which TNCs are sharply withdrawing their capital becomes even more difficult, since disinvestment (mass withdrawal of capital) leads to unemployment and other negative phenomena.

The extremely wary attitude of developing countries towards TNCs led in the 1950s-1970s to the nationalization of their enterprises under the slogans of fighting "imperialism" for economic freedom. However, then the benefits from dealing with TNCs began to be seen as exceeding the possible losses. One of the manifestations of the change in policy was the reduction in the second half of the 1970s of the number of nationalization operations carried out in developing countries: if in 1974 68 branches of TNCs were nationalized, and in 1975-1983, then in 1977-1979 an average of 16 nationalizations per year took place. . In the 1980s, further improvement in relations between TNCs and developing countries generally put an end to "anti-imperialist" nationalizations.

In the 1970s and 1980s, attempts were made at the UN level to develop a code of conduct for transnational corporations that would put their actions within certain limits. These attempts met with resistance from TNCs, and in 1992 negotiations to develop a code of conduct for transnational corporations were terminated. However, in 2002, 36 largest TNCs nevertheless signed a statement on "corporate citizenship", containing recognition of the need for social responsibility of business. But this voluntary statement so far remains more of a declaration of intent than a set of specific commitments.

The policy of developing countries in relation to TNCs is aimed at the maximum possible coordination of the inflow of foreign capital with the solution of priority economic problems. That is why, in their policy towards TNCs, developing countries combine restrictive and incentive measures, seek and, as a rule, find the necessary parity between their own goals and the interests of TNCs.

Host countries tend to believe that the profits made by transnational corporations are excessively high. When they receive taxes from TNCs, they are convinced that they could receive much more if multinational corporations did not declare their profits in low-tax countries. The same opinion about TNCs as negligent taxpayers is often shared by the tax authorities of the "mother countries". The fact is that a significant share of international trade (about 30%) consists of intra-company flows of transnational corporations, and the sale of goods and services from one division of a TNC to another is often carried out not at world prices, but at conditional intra-company transfer prices. These prices can be deliberately lowered or inflated in order, for example, to divert profits from countries with high taxes and transfer them to countries with liberal taxation.

In addition to tax losses, countries that export capital, with the development of TNCs, lose control over the activities of big business. TNCs often put their interests above the interests of their country, and in crisis situations, TNCs easily “change face”. So, during the Second World War, a number of German firms created TNCs, whose headquarters were based in neutral countries. Thanks to this, fascist Germany received components for its torpedoes from Brazil, sugar from Cuba (which was under the control of the United States at war with Germany!).

If national governments are under the control of their citizens, and supranational organizations are under the control of their co-founders, then the leaders of transnational business are not elected by anyone and are not accountable to anyone. For the sake of profit, international oligarchs can cause serious damage to the economies of even highly developed countries, while evading any responsibility.

The most common misconception about the consequences of the activities of transnational corporations is the opinion that, as a result of the international operations of transnational corporations, some countries necessarily benefit, while others suffer losses. In real life, other outcomes are possible: both sides can win or lose. The balance of benefits and losses from the activities of TNCs ( cm. Tab. 7) largely depends on the control over their activities by governments, public and supranational organizations.

Consequences of the activities of TNCs

Table 7. CONSEQUENCES OF TNC ACTIVITIES
	For the host country	For a country exporting capital	For the entire world economy
Positive Consequences	obtaining additional resources (capital, technology, managerial experience, skilled labor); growth in production and employment; stimulation of competition; receipt of additional tax revenues by the state budget.	unification of economic "rules of the game" (import of institutions), growth of influence on other countries; income growth.	1) stimulation of globalization, the growth of the unity of the world economy; 2) global planning - creating the preconditions for a "social world economy"
Negative consequences	external control over the choice of the country's specialization in the world economy; displacement of national business from the most attractive areas; growing instability of the national economy; tax evasion by big business.	reduced state control; tax evasion by big business.	the emergence of powerful centers of economic power, acting in private interests, which may not coincide with universal

Development of Russian international companies and financial and industrial groups.

Already in Soviet times, domestic international firms existed. An example of a Russian TNC with a “Soviet past” is Ingosstrakh with its subsidiaries and associates and branches in the USA, the Netherlands, Great Britain, France, Germany, Austria, and also a number of CIS countries. Most Russian international corporations, however, were formed already in the 1990s, after the collapse of the USSR.

Privatization in Russia was accompanied by the emergence of sufficiently powerful organizational and economic structures of a new type (state, mixed and private corporations, concerns, financial and industrial groups) capable of successfully operating in the domestic and foreign markets, such as Gazprom, for example. Gazprom controls 34% of the world's proven natural gas reserves and provides almost a fifth of all Western European demand for this raw material. This semi-state concern (about 40% of its shares are state-owned), earning 6-7 billion dollars a year, remains the largest source of hard currency in post-Soviet Russia. He wholly owns about 60 subsidiaries, he participates in the authorized capital of almost 100 more Russian and foreign companies.

The vast majority of domestic TNCs belong to the primary industries, especially to the oil and oil and gas ( cm. tab. eight). There are also international Russian corporations that are not associated with the export of raw materials - AvtoVAZ, Eye Microsurgery, etc.

Although Russian business is very young, many domestic firms have already entered the lists of the world's leading TNCs. Thus, the rating of the 500 largest companies in the world 2003 compiled by the Financial Times newspaper included such Russian companies as RAO Gazprom, LUKoil and RAO UES of Russia. In the list of the 100 largest military-industrial corporations in the world, compiled in 2003 by the American weekly Defense News, there are two Russian associations - the MALO military-industrial complex (32nd place) and JSC Sukhoi Design Bureau (64th place).

The largest companies in Russia

Table 8. LARGEST COMPANIES IN RUSSIA, 1999
Companies	Industries	Sales volume, million rubles	Number of employees, thousand people


RAO "UES of Russia"	electric power industry	218802,1	697,8
Gazprom"	oil, oil and gas	171295,0	278,4
Oil company "Lukoil"	oil, oil and gas	81660,0	102,0
Bashkir Fuel Company	oil, oil and gas	33081,8	104,8
"Sidanco" (Siberian Far East Oil Company)	oil, oil and gas	31361,8	80,0
Oil company "Surgutneftegaz"	oil, oil and gas	30568,0	77,4
AvtoVAZ	mechanical engineering	26255,2	110,3
RAO Norilsk Nickel	non-ferrous metallurgy	25107,1	115,0
Oil company "Yukos"	oil, oil and gas	24274,4	93,7
Oil company "Sibneft"	oil, oil and gas	20390,9	47,0

A large firm that has foreign assets and has a strong influence on any area of the economy on an international scale.

Qualitative features of TNCs:

1) Features of implementation: the company sells a significant part of its products abroad, thereby exerting a significant impact on the world market;

2) Features of production location: some of its subsidiaries and branches are located in foreign countries;

3) Features of property rights: the owners of this firm are residents of different countries.

It is enough for a firm to have at least one of the listed signs to fall into the category of transnational corporations. Some large companies have all three attributes at the same time.

TNCs are divided according to the criterion of nationality into two groups:

1) actually transnational corporations - national firms whose activities "splash out" beyond the borders of the country where their headquarters is located.

2) multinational firms - associations of national business organizations of different states.

According to the scale of activity, all TNCs are divided into large and small. The conditional criterion is the size of the annual turnover.

As a special kind of TNCs, transnational baths are distinguished, which are engaged in lending to businesses and money settlement organizations on an international scale.

There are three main stages in the development of TNCs:

At the first stage, at the beginning of the 20th century, TNCs invested primarily in foreign industries of economically underdeveloped foreign countries, and also created purchasing and marketing divisions there

Second phase The evolution of TNCs, from the middle of the 20th century, is associated with the strengthening of the role of foreign production units, not only in developing, but also in developed countries.

The rapid growth of TNCs since the 1960s has been influenced by the scientific and technological revolution. The introduction of new technologies and the simplification of production operations, when it became possible to use even low-skilled and semi-literate personnel, created opportunities for the spatial separation of individual technological processes. The production process has become possible to painlessly split up and place individual technological processes in those countries where national factors of production are cheaper. The spatial decentralization of production began to develop on a planetary scale with the concentration of its management.

At the present, third stage, since the end of the 20th century, the main feature of the development of TNCs is the creation of production networks and the implementation of a global scale. Analysis of production costs, which are often lower in developing countries, plays a major role in choosing where to set up subsidiaries; products are sold where there is a higher demand for them - mainly in developed countries.

The scale of modern TNCs.

Causes of TNCs.

Negative results of TNC activity:

1. The possibility of imposing unpromising directions in the international system of division of labor on companies in the host country, the danger of turning the host country into a place for gathering obsolete and environmentally hazardous technologies;

2. Costs by foreign firms of the most developed and promising segments of industrial production and research structures of the host country, ousting national business;

3. Increasing risks in the development of investment and production processes;

4. Reduction of state budget revenues due to the use of internal (transfer) prices by TNCs.

5. Transnationalization of activities reduces economic risks for corporations, but increases them for host countries.

6. The activities of strong TNCs, whose economic power exceeds the potential of many states, are qualitatively changing the very system of managing the world economy. If in the middle of the 20th century. the main regulators of the world economic order were the governments of strong powers, then by the end of the 20th century. a kind of "triarchy" has developed: in addition to national governments, superfirms - TNCs and supranational organizations (such as the World Bank for Reconstruction and Development, the International Monetary Fund, etc.) influence world economic relations

7. For the sake of profit, international oligarchs can cause serious damage to the economy of even highly developed countries, while avoiding any responsibility.

Table 1. Consequences of the activities of TNCs

	For the host country	For a country exporting capital	For the entire world economy
Positive Consequences	Obtaining additional resources (capital, technology, managerial experience, skilled labor); growth in production and employment; stimulation of competition; receipt of additional tax revenues by the state budget.	Unification of economic "rules of the game" (import of institutions), growth of influence on other countries; income growth.	1) stimulation of globalization, the growth of the unity of the world economy; 2) global planning - creating the preconditions for a "social world economy"
Negative consequences	External control over the choice of the country's specialization in the world economy; displacement of national business from the most attractive areas; growing instability of the national economy; big business tax evasion.	Decreased state control; tax evasion by big business.	The emergence of powerful centers of economic power, acting in private interests, which may not coincide with the universal

Development of Russian international companies and financial and industrial groups.

An example of a Russian TNC with a “Soviet past” is Ingosstrakh with its subsidiaries and associates and branches in the USA, the Netherlands, Great Britain, France, Germany, Austria, and also a number of CIS countries. Most Russian international corporations, however, were formed already in the 1990s, after the collapse of the USSR.

Gazprom controls 34% of the world's proven natural gas reserves and provides almost a fifth of all Western European demand for this raw material. This semi-state concern (about 40% of its shares are state-owned), earning 6-7 billion dollars a year, remains the largest source of hard currency in post-Soviet Russia. If both international and Russian corporations not associated with the export of raw materials - AvtoVAZ, Eye Microsurgery, JSC Sukhoi OBK (64th place), etc.

Transnational companies are economic associations of firms based on a single title of ownership owned by a parent company that controls the foreign assets of related companies through the ownership of a certain part of their capital. Depending on the amount of capital owned by the parent company, as well as the legal status and degree of subordination, firms that are in the sphere of influence of the parent company are classified into: branches, subsidiaries (subsidized) companies, associated (affiliated) companies and joint ventures.

Parent company registered as a legal entity and is the parent company of TNK. As an organizational and economic center, the parent company develops general directions and specific goals for the functioning and development of the entire transnational company; determines the means, forms and methods of achieving these goals; monitors the implementation of its installations and makes adjustments to them; controls the financial activities of all divisions through the preparation of a consolidated balance sheet provided to the shareholders of the TNC.

Control by the parent company over the activities of all divisions of the transnational company as a whole is carried out along scientific, technical, production, technological and other lines. Its means and methods largely depend on the form of organization of the parent company, which can be operational production or holding.

Parent operational and production company itself is engaged in economic activities, and in this case, centralized management covers all aspects of the production process, from the development of new products to its implementation.

Parent holding company itself is not engaged in production activities, but only concentrates controlling stakes in production companies that have legal and economic independence, but are financially subordinate to the holding. It manages within the framework of a transnational company mainly by methods of financial impact, setting for each division the main financial indicators: the amount of profit, production costs, the amount and methods of transferring dividends, methods of transferring profits, etc.

Branch A multinational company has no legal independence and therefore cannot conduct business on its own behalf: it acts on behalf of the parent company and, as a rule, has the same name. The responsibilities of the foreign manufacturing subsidiary most often include the production of those types of products in which the parent company is interested, and their sale in those markets that it determines.

Affiliated companies unlike branches, they are legally independent: transactions are concluded and financial records are maintained separately from the parent company, which does not bear any responsibility for the obligations of the subsidiary. At the same time, the parent company always exercises the necessary control over the activities of its subsidiaries, the possibility of which is ensured by the ownership of controlling stakes in its subsidiaries. This control consists not only in the supervision and coordination of business activities, but also in determining the composition of the board, as well as the appointment of directors, who, in turn, are obliged to follow the instructions of the parent company and report to it. When creating a subsidiary, the parent company determines in advance its production specialization, as well as responsibilities in relation to sales, maintenance of products sold, market research, etc.

Subsidiaries may own controlling stakes in other companies - "grandchildren" in relation to the parent, etc.

Associated companies are legally and economically independent and are not under the control of any other companies, since they do not own controlling stakes in their shares. Being, however, interested in the business of specific transnational companies, they create together with them the most complex multi-stage complexes of interconnected (associated) companies. Associates are controlled by the parent company of the TNK, usually through a system of contractual relationships.

joint venture in the practice of international business is called a firm with the participation of one or more foreign partner investors. If the transnational company at the same time correctly chooses a local partner, the joint venture becomes, as practice shows, a fairly viable structure. Here are some obvious benefits of working with such a partner:

– a local partner knows and understands buyers, traditions, social relations of a particular country better (it would take TNCs years to study all this!);
– the local partner can provide competent management not only at the top, but also at the middle level;
- if the host country requires foreign firms to share ownership with local firms or investors, 100% foreign ownership becomes simply unrealistic, and the joint venture becomes the only possible form of international business;
– contacts and reputation of local partners increase access to the capital market of the host country;
– the local partner may have the right technology for the environment, which is likely to be used worldwide;
- the public image of the company can increase sales opportunities if the purpose of the investment is to serve the local market.

Despite such an impressive list of advantages, joint ventures are not as popular as subsidiaries, which are 100% owned by TNCs, because TNCs are afraid of the intervention of a local partner in specific areas of the company's critical decisions.

According to the nature of the relationship between the parent company and its foreign subsidiaries, all transnational companies (corporations) can be divided into three types: ethnocentric, polycentric, or regiocentric, geocentric.

Ethnocentric type characterized by a consistent orientation of the top management of TNCs to the priority of the parent (base) company.

With the ethnocentric type, foreign markets remain for the corporation primarily a continuation of the domestic market of the home country of the parent company. In this case, TNCs create branches abroad mainly to secure reliable supplies of cheap raw materials or to provide foreign markets. This type of TNC is characterized by the adoption of managerial decisions mainly in the parent company, preference for compatriots in foreign branches. Thus, the hallmarks of this type of corporation are the high centralization of decision-making and strong control over the activities of foreign affiliates by the parent company. In Russia, by the way, the accumulated experience of relations between parent companies and foreign affiliates refers mainly to the type of TNC under consideration.

Polycentric, or regiocentric, type characterized by an increase in the importance of the external market, when the external market often becomes an even more important sector of TNC activity than the domestic market. Such TNCs have larger and more diverse foreign affiliates, they do not sell the products of the parent company so much as they produce it locally in accordance with the needs of their markets. Foreign branches are dominated by local managers, the branches themselves are autonomous. This type of TNC is characterized by a fairly high level of decentralization of management functions, delegation of authority to subsidiaries.

With a regiocentric approach, TNCs no longer focus on the markets of individual countries, but on the markets of regions, for example, on the whole of Western Europe, and not on France or Great Britain. Although foreign affiliates in this case are located in individual countries, they are oriented towards the entire region. Distinctive features of TNCs of this type are:

– focusing primarily on foreign markets;
– presence of multinational equity capital;
– the existence of a multinational leadership center;
- staffing the administration of foreign branches with personnel who know local conditions.

This type of TNC is especially popular in integration economic groupings and therefore may be of interest to those Russian TNCs that intend to stake on the CIS market.

For the most mature type of TNC - geocentric (global) corporations - a geocentric approach to the relationship between the parent company and its branches is characteristic. These TNCs are like a decentralized federation of regional branches. The parent company sees itself here not as the center of the TNC, but only as one of its parts. The arena of geocentric TNC activity is the whole world. Only a company whose senior management personnel adheres to a geocentric position can be called global. At this stage in the development of TNCs, transnational corporations of the chemical, electrical, electronic, oil refining, automotive, information, banking and some other industries are closest to the global ones.

Comparative characteristics of the above types of TNCs are presented in Table. 17.2.

Table 17.2. Comparative characteristics of types of TNCs

Comparison criterion		TNK type
		ethnocentric	polycentric (or regiocentric)		geocentric
International Business Orientation		Absolute growth of the parent company, foreign affiliates are created, as a rule, only to ensure supply or sales	Consolidation of companies from a number of countries on a production or scientific and technical basis. Greater degree of independence in conducting operations in each of the countries. Branches are large and carry out a variety of activities, including production		Integration of activities carried out in different countries. For example, parts of the same product may be produced in different countries. The parent company sees itself not as a center, but as one of the constituent parts of the corporation
Attitude to foreign market		Foreign markets are considered only as an extension of the parent company's home market	Foreign markets are often viewed as a more important sector of TNC activity compared to the domestic market.		The arena of activity is the whole world
The level of centralization of managerial decision-making		High centralization of management decision-making at the level of the parent company	Decentralization of individual management functions. Delegation of powers to subsidiaries. Management decisions are made on the basis of close coordination between the parent company and branches		High decentralization of decision-making with close coordination between the parent company and branches
Control over the activities of foreign branches		Strong parent company control			Branches are usually autonomous
HR policy of the company	Preference is given to compatriots in foreign branches. Employees of the home country of the TNC are assigned to all possible posts abroad		Foreign affiliates are dominated by local managers. Host country cadres are appointed to key positions	The best workers from all countries are appointed to any post
Organizational structure	Complex organizational structure of the parent company, simple for foreign affiliates		Organizational structure with a high level of independence of branches	Very complex organizational structure with autonomous branches
Information flows	Large volume of orders to branches		Little flow of information in and out of the parent company, little flow between branches	Significant information flows in and out of the parent company and between all branches

Naturally, the boundaries between the considered types of international companies are very mobile, which implies the possibility of their transformation. The most common are: national corporation, transnational corporation, multinational corporation and global (geocentric) corporation.

A corporation in the United States is called a joint-stock company, and since most modern TNCs arose as a result of the international expansion of American companies, this term entered their name.

Transnational corporation(Multinational corporation) is a company that has production facilities in several countries, as well as the percentage of assets in foreign branches of which is more than 25-30%. Allocate the home country of the transnational corporation, as well as the host countries. The first is the state in which the central office is located, or the so-called headquarters of the corporation. The second are the states where the assets of the TNC (transnational corporation) are located.

History of TNK development

It is generally accepted that the prototype of modern multinational companies is the Knights Templar, which was founded in 1118. After all, in 1135 he began his own banking business, which covered more than one state. The first truly transnational company was the British East India Company. Its foundation dates back to 1600 and is associated with Queen Elizabeth I. By her decree, the company was granted monopoly rights to trade in India. It was managed by the governor and the board of directors. As a result, the commercial corporation was eventually endowed with military and government functions, which made it possible to play a decisive role in the colonization not only of India, but also of other eastern states. She had her own troops, who conducted full-fledged military operations with the aim of capturing other countries. The TNC lost its enormous powers only in 1858, when all its administrative powers were transferred to the British crown. As a result, in 1874 the British East India Company was liquidated.

Another integral link in the history of the development of TNCs is the Dutch East India Company. It was established in 1602 and became a monopoly in trade with Ceylon, China, Japan and Indonesia. The main contribution to history was that this corporation was a joint-stock company, which was an innovation all over the world. It offered its members shared responsibility and shared profit sharing. Initially, until 1644, dividends were paid in imported goods, and after that in kind. TNC ceased to exist in 1798.

Subsequently, TNCs appeared all over the world and became a very common type of business organization.

Skyscrapers in Manhattan, New York - one of the symbols of TNK

TNC classification

There are three main types of transnational corporations:

with horizontal integration;
with vertical integration;
separate.

The first type is a company whose divisions are located in different countries and produce the same type or identical products, and the headquarters manages them. The second type has subdivisions that manufacture a certain group of goods, which is subsequently supplied to subdivisions of the same TNC in other states. In this case, the overall management is also carried out by the headquarters. In the case of separate corporations, their subsidiaries located in different states are not connected either horizontally or vertically.

Any type of transnational corporation has a great influence in the region of presence, as it has close ties with society, politicians' lobby, as well as large financial resources. TNCs are active participants in scientific and technological progress. This is confirmed by the fact that more than 80% of patent registrations are associated with TNCs. They cover more than 70% of all world trade, as well as 50% of all production. Interestingly, about half of all trading takes place not at prices set by market phenomena, but under the influence of the parent company. Such prices are called transfer prices.
Society and TNCs

The attitude of society towards transnational companies is ambiguous. Of course, there is a lot of benefit from their activities in the form of the above-mentioned scientific research, as well as other positive factors. However, the activities of such corporations also cause numerous protests from public organizations. The main ones are anti-globalists who argue that by monopolizing the national markets of countries, TNCs, in fact, destroy the sovereignty of states. Representatives of these movements call the actions of TNCs an economic war directed against the population. It is worth noting that many countries have special antitrust laws that restrict the activities and expansion of TNCs.

In addition to anti-globalists, representatives of environmental communities also oppose the spread of TNCs. In their opinion, due to the huge production potential of transnational companies, they may well provoke local environmental disasters in some countries or regions. Therefore, the state must invest huge amounts of money in ensuring the environmental safety of these regions, which is very inefficient. That is why now many production facilities are being moved to third world countries.

Major multinational corporations

Finally, we note the main and most famous TNCs in the world. The first and infamous for its environmental disasters is the oil producing and refining company British Petroleum. It specializes in oil production in various parts of the world, including environmentally friendly Alaska and the Arctic. In addition to petroleum products, the corporation produces washing powders, animal care products and various detergents.

Another infamous TNC notorious for litigation with customers is McDonald's, a chain of fast food restaurants. It is difficult to imagine a country in which there would be no restaurants of this brand.

Procter & Gamble headquarters in Cincinnati, photographed in 2005

Nestle is one of the world leaders in the production of coffee, breakfast cereals, etc. In addition, the corporation owns the trademark of the cosmetics manufacturer L'Oreal.

Another well-known transnational company is the manufacturer of cosmetics, household chemicals, personal care products - Procter & Gamble. We have all heard such brands as Ariel, Wash & Go, Camay, Pampers, etc.
Results

As you can see, transnational corporations have become an integral attribute of the modern world, not only in economic terms, but also in political, public and social terms. They have a very strong impact on all spheres of life, and not always in a positive perspective.

The world economy today cannot exist without globalization. Countries cooperate today, and their economies are so closely intertwined that, firstly, they cannot exist on their own, and secondly, it has made it possible for institutions such as transnational corporations to emerge.

In contact with

Basic concepts

A corporation is a legal entity that combines the investments of citizens, but at the same time it is self-governing and absolutely independent of anyone's views and conditions. This term is perceived by many as a synonym for a joint-stock company, since this is, today, the predominant form of organization, but this is not correct. This is still a separate structure, which has its own features and distinguishing features.

Important! The emergence of transnational corporations in modern society is due to the strong internationalization of the entire world economy, as well as increased globalization and regionalization.

Thanks to economic transnationalization, the activities of many countries were able to reach the global level in the form of certain business structures that began to interact around the world as part of their activities, but remained national in capital control. A transnational corporation, or TNC, is a firm that owns production units in several countries.

In other words, this is a structure whose business covers several countries and at the same time significantly affects them (its foreign assets must be above 30% in comparison with their total volume). At the same time, an organization receives a similar status only if it has branches in more than two states. You should know such concepts that characterize the activities of TNCs:

home state - the location of the headquarters;
host states - location of property;
transnationalization is the movement of capital from countries rich in it to those where there is a shortage of it, but at the same time there are other production factors.

In simple terms, it is an organization consisting of many branches, whose capital is distributed between the country of origin and foreign branches.

Important! The host states are completely independent established firms and develop their activities in the complex of the national economy.

The divisions have different statuses, depending on which they are called subsidiaries, affiliates or associations.

A TNC is a firm that owns production units in several countries.

Activity and structure

The main goal of TNCs is to expand their positions in the world market and maximization of own profit. The activity of a TNC depends on the area in which it operates: financial, manufacturing, logistics, import, etc. There is no specific area of activity in which all TNCs will work. And the structure of TNCs contributes to this:

home - children - grandchildren.

Due to their structure, they can cover a much larger area of the world market, thereby increasing their profits, and this is what makes such organizations unique. The structure of TNCs, its geographical location - all this allows the organization to be much higher than others, smaller and weaker companies in the market.

Evidence of this will be the analysis of TNCs by UN experts, who singled out an annual turnover of at least 300 million dollars as a separate sign of such companies. Practice shows that the average TNC provides services or goods in at least 6 countries, and the number of foreign employees employed in it is at least a quarter.

Types of TNCs and their divisions

There are different types of TNCs on the market:

horizontally integrated - manage those branches that are located in different countries, but are engaged in the production of the same goods;
vertically integrated - control the activities of those units, whose location is concentrated in one state. In doing so, they produce goods for export for foreign units;
separate - such companies manage divisions that are located in different countries, but are not united either vertically or horizontally.

There are also subdivisions of different status:

Branch - the main company creates them on the basis of its own funds, and a local businessman registers an open company as a national legal entity. This makes it possible to have a wide range of activities in the country and participate in its foreign economic relations. The main company manages the branch (important decisions, money management, etc.), but its national activities provide the headquarters with huge opportunities.
A subsidiary is a legal entity with a personal balance sheet. The parent and subsidiary firms enter into transactions that are in the interests of the company. And the profits from this enterprise are artificially concentrated at the headquarters. Thus solves the problem of equity and provided with the main company.
Associated companies are branches that a company creates abroad in relation to the parent company, which owns 10-50% of the associate's shares. This is much less than branches and subsidiaries, so the headquarters cannot have such huge control over the associate.

As can be seen from the provided list, the basis of corporatism lies in the system of participation.

Characteristic

When characterizing a company, it is worth paying special attention to its economic advantages:

Huge area of action, allowing:

use in the work natural and human resources, as well as the scientific and technical potential of various countries;
work in foreign state markets without paying customs duties;
have unlimited to work.

Differences in the economic situation of various host countries:

maneuver quickly, using cheap materials and labor;
earn higher incomes in countries with low taxes.

Exchange between different branches and countries allows:

have an advantage over competitors;
avoid tariff barriers when importing goods from other branches;
use of transfer prices – prices used in the exchange of goods.

Thus, the economic advantages of TNCs allow them to be more successful and make much more profit than conventional enterprises and industries.

Origins and major examples

TNCs have been on the world market for quite a long time. Their brief history can be listed:

1135 - The Knights Templar begins international banking, making it the first of its kind.
1600 - The British East India Company is formed, which had monopoly rights to trade in India.
1602 - the creation of the Dutch East India Company, which became a monopolist in the market with Ceylon, China and Indonesia. At the same time, the company was also a joint-stock company, the first in the world.
1939 - There are 300 corporations in the world.
1999 - 59.9 thousand TNCs in the world and 508.2 thousand branches.
2004 - more than 70 thousand and their 690 thousand branches in the world.

The importance of the production activities of corporations in the world economy is great and is increasing every year, which especially noticeable in science-intensive industries. Basically, these have their headquarters in developed countries, and the production is transferred to less developed countries, where it is much more profitable to hire workers and use resources.

In the world

The largest transnational corporations are a manifestation of the globalization trend, and there are several dozen of the largest in the world, which are valued by their market value:

Apple (technology, ).
Exxon Mobile (oil, USA).
Microsoft (technology, USA).
IMB (technology, USA).
Wall-Mart Store (retail, USA).
Chevron (energy, USA).
General Electric (technical, medical, energy production, USA).
Google (technology, USA).
Berkshire Hathaway (investment, USA).
AT&T Inc (telecommunications, USA).

Attention! For many years, Apple has not lost its leadership position in the list of the largest corporations in the world.

As you can see from the above list, American corporations are the largest in the world.

In Russia

Are there transnational corporations in Russia? Yes, but their list is much smaller, and the scale of their activities is not comparable with the same organizations in Central Europe. On the territory of the Russian Federation, this concept is just beginning to develop, although the previously existing plants and factories in the USSR, which were connected by strong relations with similar enterprises, but in another republic, were something similar. It is from them that the new corporations of this century have entered the modern Russian market today. Most large Russian corporations:

"Ingosstrakh" (finance).
Aeroflot (transport).
Gazprom (oil and gas industry).
Lukoil (fuel).
Alrosa (mining of diamonds and other resources).

The greatest potential lies in companies that operate in the oil and gas sector, because due to the security they can easily compete with the world leaders in the industry. Transnational corporations in Russia compete in the local market and with many other global TNCs, in particular American ones.

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Conclusion

Transnational corporations in the world economy play a huge role in shaping the global market and the creation of certain conditions there. The activities of TNCs affect many areas and projects, they have access to almost all markets in the world. But it is impossible to say unequivocally that they are the future, because there is too much competition from the national manufacturer.

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