Melnikov A.B., Snimshchikova I.V., Lazgiev M.M. Contradictions of TNCs’ Foreign Economic Expansion

http://dx.doi.org/10.15688/jvolsu3.2014.5.13

Melnikov Aleksandr Borisovich
Doctor of Economic Sciences, Professor,
Head of the Department of Economics and Foreign Economic Affairs,
Kuban State Agrarian University
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Kalinina St.,13, 350044 Krasnodar, Russian Federation
Snimshchikova Irina Viktorovna
Doctor of Economic Sciences, Professor,
Department of Institutional Economics and Investment Management,
Kuban State Agrarian University
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Kalinina St.,13, 350044 Krasnodar, Russian Federation
Lazgiev Mikhail Maisovich
Postgraduate Student, Department of Institutional Economics and Investment Management,
Kuban State Agrarian University
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Kalinina St., 13, 350044 Krasnodar, Russian Federation


Abstract. Some directions of the external economic expansion of multinational corporations in modern conditions of globalization, the contradictions generated by these conditions and the conflicts in the system of world economy are presented in the article. The global strategy of functioning of multinational corporation professes the principle of “double standards”. Multinational corporations, on the one hand, support liberalization and internationalization in scales of world reproduction, on the other hand – further redistribution of spheres of influence, and imposing the new world economic order. The functional role of modern multinational corporations is inconsistent. Though they stimulate the tendency of increasing the competitiveness, concentration of the capital and production, at the same time, the monopolization and institutional barriers created by multinational corporation and its structural divisions. Multinational corporations determine the competitive struggle, implement the sanitation mechanism and optimization of world economy. The diversification of multinational corporations’ activity promotes the generation of new requirements and the markets (information, innovations, technologies, services, etc.) where individual subjects and competitive forces are formed. It is caused by a progressive functional role of modern multinational corporations in the global economy. Massive penetration into the international business, external expansion of transnational monopolies stimulates economic growth in host countries, promotes specialization, division of labor, cooperation. At the same time, the monopolist form of these processes inevitably leads to numerous negative phenomena, a slow down and inconsistent development of production in the countries-recipients.

Key words: transnational corporations, foreign economic expansion, contradictions, TNCs’ functional role, global competition.

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Contradictions of TNCs’ Foreign Economic Expansion by Melnikov A.B., Snimshchikova I.V., Lazgiev M.M. is licensed under a Creative Commons Attribution 4.0 International License.

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