TRANSNATIONAL CORPORATIONS AS A KEY DOMINANT TO INCREASE THE DEGREE OF UKRAINE’S INVOLVEMENT IN THE GLOBALIZATION PROCESS

Abstract

This article highlights the issues of Transnational Corporations and their impact on State Authorities, analyzes and summarizes the basic concepts of the activities of TNC. Thus, the author realized the goal, which is to study the activities of TNC in the context of a significant factor in Ukraine’s entry into globalization processes.

In the study were used General Scientific and Special Methods: Scientific generalization and Systematization - to determine the characteristics of TNC; Comparative Analysis - for comparing some aspects of TNC activity abroad and in Ukraine; Systematic Analysis - to identify the positive or negative aspects of TNC influence on the Ukrainian Government; Logical Synthesis - to explain the results of the study.

An analysis of the activities of TNC has led to the finding that this is a legal, significant and important factor in the global economy. First of all, it represents the financial flows that determine the state of power in a particular country, the economy or the level of wealth.

The rationale for cautious stance on multinational corporations, monitoring their investments and directing their investments in priority areas has been proved.

At the same time, the possibility of monopolization by transnational structures of certain industries and the use of the dominant market position of TNC for purposes incompatible with national development goals should be prevented. Even if Ukraine wants to become a full-fledged entity of global economic activity and wants to participate not only in the markets for ferrous metallurgy or simple chemical products, it must create its own transnational structures, because without having a permanent presence in the markets for machinery and equipment abroad, you will not be able to export.

It has been researched that TNC make the countries where they work become provinces. The reason for this is that such countries appear to be clearly involved in only one production chain. Multinational corporations are not interested in the modernization of the whole country, in the development of the social sphere of the state, because it adds difficulties and costs for TNC. And now, for transnational corporations, Ukraine is only interested in cheap labor.

It is established that the problem of modern concepts of development is to get into the international market. And for this you need to have cheap goods. But a country with cheap natural resources, cheap labor in the context of globalization, risks becoming only a resource for more developed countries, without receiving any benefits from globalization.