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.