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Alfred Nobel University,
Dnipropetrovsk
MULTINATIONAL CORPORATIONS AS A
DRIVING FORCE IN GLOBAL
ECONOMIC PROCESSES
Kateryna Rymska
IE-11
Outline
Multinational corporations as an
international economic phenomenon.
2. Analysis of advantages and
disadvantages of MNCs.
3. Ukraine’s potential for attracting
MNCs.
1.
BRITISH EAST INDIA COMPANY
CHEVROLET
A multinational corporation
(MNC) is an
international corporation that is
registered in more than one country or
that has operations in more than one
country.
ADVANTAGES
-Transfer of technology , capital and entrepreneurship;
-Increase of the investment level and thus the income and
employment in the host country;
-Greater availability of products for local consumers;
-Help in equalizing cost of production factors around the
world;
-Providing efficient means of integrating economics.
Advantages to home countries:
-Acquisition of raw materials from abroad , which is cheaper;
-Technology and management expertise acquired from competing in
global markets;
-Export of components and finished goods for assembly or
distribution in foreign markets;
-Inflow of income from overseas profits , royalties and management
contracts;
DISADVANTAGES

Trade restrictions imposed at the

government-level;



Taxes or tariffs imposed on
acquiring monopoly;

Designing technology for MNC's for
imports from other countries;
worldwide profit maximization, not
Limited quantities (quotas) of
for the social welfare or development
imports;
of economy;
Effective management of a
globally dispersed organization;

Destroying competition and
Slowdown in the growth of
employment in home countries;

Possible fast depletion of some of
the non renewable natural resources
in the host country.
Current and projected share of new
multinationals
DESTINATION COUNTRIES OF NEW RUSSIAN
MULTINATIONALS
Ukraine’s potential for attracting
MNCs.
Direct international investments into
the national economy make a little
amount of money despite significant
potential of Ukraine. At this stage the
separate international multinational
corporations have decided to develop
business in Ukraine.
CONCLUSION
Nowadays driving forces of
innovation processes are
multinational companies that
continue to increase
investment in research and
innovation, even in conditions
of the global financial and
economic crisis.
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