INVESTING AND PRODUCTION-FINANCIAL ACTIVITIES OF TNCS’ IN THE CONDITIONS OF GLOBALIZATION

Journal Title: Baltic Journal of Economic Studies - Year 2017, Vol 3, Issue 4

Abstract

The purpose of the work is an exposure of modern tendencies of investment policy of TNC. Research of degree of a particular branch engaged in globalization processes. Mathematical, analytical and abstract-logical methods allowed analysing a dynamics, tendencies, and priorities of the direct foreign investment, carried out by TNCs. Methodology. The methodological base of the research is Ukrainian scientific works and foreign scientists and leading specialists, statistical and analytical materials of international organizations. Research results testify that there is no any direct dependence between of a particular branch interests in bringing in of DFI and real tendencies of their bringing in. It is analysed, in what industries of the economy of Ukraine direct foreign investments bring the most considerable contribution in the process of investing in the fixed assets. For estimation, the indexes of correlation of DFI in industry and investments in the fixed assets (FDI/FСI) are used. Practical implication. It is possible to draw a conclusion that without bringing foreign capital into the Ukrainian economy it is sufficiently difficult to attain high values of the economy growing and development. Taking into account a difficult economic and promissory situation, the best for a country are private direct foreign investments, the main source of which are multinational corporations. The possibility of activation of the attraction of foreign direct investments to Ukraine is fully real, given the fact that as a result of economic and political changes, here is created a more favourable situation, than before reforms for the introduction in its economy of great foreign economic entities. At the same time, own large economic structures were formed in Ukraine: business concerns, consortia, associations, integrated associations, financial-industrial groups (FIG). Value/originality. It is impossible not to mark that Ukraine lags behind in carrying out market reforms from the countries of Central and East Europe (CEE), from China. However, tendencies, which showed up in aforementioned countries, in relation to attraction and use of foreign direct investments, also come to light in Ukraine. Foremost, it concerns the creation of favourable investment climate, the presence and degree of favourableness of which characterize the state of the economy of host country overall and also is the indicator of the efficiency of market reforms.

Authors and Affiliations

Kateryna Zhylenko

Keywords

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  • EP ID EP635098
  • DOI 10.30525/2256-0742/2017-3-4-74-81
  • Views 127
  • Downloads 0

How To Cite

Kateryna Zhylenko (2017). INVESTING AND PRODUCTION-FINANCIAL ACTIVITIES OF TNCS’ IN THE CONDITIONS OF GLOBALIZATION. Baltic Journal of Economic Studies, 3(4), 74-81. https://www.europub.co.uk/articles/-A-635098