category: Business

internationalization and transnationalization - Important trends in the global economy

1. Trans-and internationalization

1.1 The process of internationalization: essence, the motives, methods, obstacles

international marketing is expanding rapidly. There has been significant growth in trade, foreign investment, increasing the exchange of information. Therefore, to understand the development of modern world economy needs a deeper study of the process internationalization of firms in international markets.

There are various definitions of the term "internationalization". Consider some of them:

Internationalization - the process all the more in-depth involvement in international operations.

Internationalization - is a sequential process, which turn is the result of mutual influence of two distinct, but closely related processes: the development of knowledge and involvement in the process foreign market.

Internationalization is the process of development strong economic linkages between countries (primarily on the basis international division of labor) and outputs the reproduction beyond national economy.

In this study, internationalization is seen as process yield firms to foreign markets and strengthen its position in these markets. The degree of internationalization of the firm depends on the influence of various external and internal factors. The external factors include: the objects of sales items external environment of the target markets, the method of conducting operations in foreign markets. To internal factors include the possibility of the firm: the motives internationalization, organizational structure, finance, personnel. Objects sales represent a proposal from the company's products and services foreign market. The company may offer a new product or service, the existing product or service without changes, additional services, know-how, technology, and their combinations.

There are various obstacles to the internationalization of the firm -- environmental factors of international marketing: the political, economic, legal, cultural characteristics of different countries, as well as geographical situation.

The main methods of internationalization include: exports and imports of goods and services, foreign direct investment, joint entrepreneurship, licensing, franchising, contract "under key, a management contract. Each method of entering foreign markets has its advantages and disadvantages. For explanation of internationalization include: expansion of sales, the acquisition of resources, diversification of supply sources and marketing. However, without an enabling environment for foreign markets the firm does not succeed. Ie incentives may come from the external environment company.

Among the factors stimulating the process of internationalization, you can include: a favorable public attitude to the first attempts to enter the foreign market due to national pride, competency staff of the company, encouraging employees of the firm.

between the degree of complexity of the market, choosing a strategy and method of the international market there is a relationship. The growth of international operations always requires a large financial outlay for maintenance activities. Size investment in business development in overseas markets is an indicator of the degree internationalization of the firm.

1.2 magnitude transnationalization

recently seen a steady increase in transnationalization - increasing the share of the international movement of capital, labor and other resources. Transnationalization become a multi-channel process.

sales undertaken by TNCs in 1993, amounted to 5.2 trillion. dollars, and in 1997 - about $ 7 trillion, equivalent to 114% of world exports and 22% of gross world product. And since the 80-ies on the growth volume of their sales by about 40% higher than world production and 30 - the world eksporta5. Regarding 100 largest corporations, the share of their foreign sales in total sales of more than 40%. Dimensions foreign American TNCs in the production of 4-fold higher than the country's exports, the British -- more than 2 times.

Since 80-ies progressed quickly process internationalization of capital for TNK through the securities market. However actual control over the corporation is usually reserved for the country origin. A notable phenomenon was the increase in the number of joint ventures, founders are either parent and affiliated companies or own affiliated companies, which raises interesting and diverse internal communications. In particular, approximately 46% of affiliated companies American TNCs own shares of other entities in the system. The proliferation of such practices is mainly due to functional needs. This ownership structure facilitates the use transfer pricing and other means of manipulation (for example, licenses, profits).

degree of internationalization of companies, like countries, can calculated by the ratio of external and domestic economic activity (investment, employment, production, sales, R & D). Thus, analysis of the dynamics relationship between FDI (foreign assets) and GDP shows that in general all industrialized powers, it has grown from 6% in 1980 to 11,5% - in 1995, from EU countries - from 6,3% to 14,6%, respectively (the highest rate fell to Britain - 27.4% in 1995), the United States - from 8,1% to 9,8%, while in Japan - from 1,8% to 6% [1] . More dimensions of the indicator for individual corporations. So, almost 2 / 3 capital of the Belgian, Dutch and Swiss TNCs sent for border. For companies Royal Dutch Shell and Philips, foreign investment accounted for 70% of the domestic American concern Exxon - 80%, IBM - 50%.

This applies not only investment but also foreign R & D activities. An exception to this trend is the scope use of labor, where growth was slower.

main form of internationalization of economic life long time has been international trade. At the current stage of world development of international economic relations, globalization has become the basis internationalization is not an exchange, and production. Under

transnationalization of production and capital in this case means:

new phenomena, qualitative changes occurring in the world economy, namely: an increase in the number and activity of transnational corporations (TNCs) and transnational banks (TNB);

new stage of internationalization of world economy differs from previous: changing the very nature of the involvement of countries and enterprises in the international division of labor, which is manifested in internationalization of scientific and technological progress and the production process, when the world market actually sets the standard for quality and Techno-economic performance of products produced as a parent company and its affiliates and subsidiaries;

form of internationalization of economic life, which resulted is the development of international production within TNCs, including at plants of the parent company, its affiliates and subsidiaries manufacture those products that are involved in international intra co;

new higher level of internationalization of production and capital when it comes to a new quality;

transnationalization process, inextricably linked with expansion of TNCs, the transformation of TNCs in the real subjects international market relations;

new forms of organization of economic life, which contribute to its internationalization.

In preparation of this work were used materials from the site studentu ?

[1] ?UNCTAD World Investment Report, 1997. Annex.


More NEWS:
{related-news}