INTERNATIONAL PRODUCTION OF MULTINATIONAL ENTERPRISES

O Rogach

Abstract


The article analyzes the essence and scale of multinational enterprises (MNEs) international production. The questions of methodology and terminology of MNEs definition, evolution of views as well as the main approaches on this issue in the world and domestic economic literature are considered. It is argued that the concept of multinationality is a key attribute of modern international firms, the main feature of creating value process in their global chains and one of the most important competitive advantages of these firms over national companies. The development of the international production fragmentation theory and the terminology of global value chains is shown, as well as theoretical macroeconomic
Актуальні проблеми міжнародних відносин. Випуск 135. 2018. .
71
assessments of fragmentation and global value chains on the participating countries. Also paper shows the role of multinational firms in the world economy, modern tendencies of international production, dynamics of new annual foreign direct investments inflow and other indicators of the international production of multinational enterprises. It is argued that the reasons for a different trends of such indicators dynamics are the peculiarities of MNEs foreign affiliates financial mechanism after the global financial crisis and the development of network outsourcing mechanisms for the externalization of international production.
Key words: multinational enterprises, international production fragmentation, foreign direct investment, global value chains.


References


Hymer S. The International Operations of National Firms: A Study of Direct Investment / S. Hymer. – MIT Press, 1976. – 253 p.

American Business Abroad. Six Lectures on Direct Investment. Ch. P.Kindleberger – New Haven and London, Yale University Press.- 1969. – 210 p.

Vernon R. International Investment and International Trade in Product Cycle / R. Vernon // Quarterly Journal of Economics. – 1966. – Vol. 80.– № 2 – P. 190–207.

Vernon R. The Product Cycle Hypothesis in a New International Environment / R. Vernon // Oxford Bulletin of Economics and Statistics. – 1979. – Vol. 41. –№ 4. – P. 255–267.

UNCTAD. World Investment Report 2015: Reforming International Investment Governance– Geneva, New York: United Nations, 2015. – 218 p.

Buckley P. J. Internalization Thinking: From the Multinational Enterprise to the Global Factory / P. J. Buckley // International Business Review. – June, 2009. – Vol. 18. – № 3. – P. 224 – 235.

Grossman G. Trading Tasks: A Simple Theory of Offshoring / G. Grossman, E. Rossi-Hansberg // American Economic Review. – 2008. – Vol. 98. –№5. – P. 1978 – 1997.

Jones R. The role of services in production and international trade. / In: The Political Economy of International Trade: essays in Honor of Robert E Baldwin, / Jones, Ronald W. and Henryk Kierzkowski (1990) ed. Ronald W Jones and Anne O Krueger. 1990. –Basil Blackwell. – P. 31–48.

Porter M. Competitive Advantage: Creating and Sustaining Superior Performance. — New York: The Free Press, 1985 (2nd ed. — New York: Free Press, 1998. — 592 p.

Gereffi G. Global Value Chains and Sustainable Development / G. Gereffi // Chains for Change. Max Havellar Lectures. – 2009. – № 3. – P. 47–61.

Gereffi G. The governance of global value chains / Gereffi G., Humphrey J., Sturgeon T. J. // Review of International Political Economy. – February 2005. – Vol.12. – 1. – P. 78–104.

Antràs P. Offshoring in a knowledge economy / P. Antràs, L. Garicano, E. Rossi-Hansberg // Quarterly Journal of Economics. – 2006. – Vol. 121. – № 1. – P. 31 – 77.

Grossman G. Task trade between similar countries / G. Grossman, E. Rossi-Hansberg // Econometrica. – 2012. – Vol. 80. –№2. – P. 593 – 629.

Kohler W. Aspects of International Fragmentation / W. Kohler // Review of International Economics. – 2004. – № 12. – P. 793 – 816.

Egger H. The Distributional Effects of International Outsourcing in a 2×2 Model / H. Egger, J. Falkinger // North American Journal of Economics and Finance. – 2003. – № 14. – P. 189 – 206.

Baldwin R. Offshoring: General equilibrium effects on wages, production and trade / R. Baldwin, F. Robert-Nicoud // NBER Working Paper 12991. – 2007. – 24 p.

Sturgeon T. Measuring Global Value Chains: Intermediate Goods Trade and Structural Change in the World Economy / T. Sturgeon, O. Memedovic // UNIDO Working Paper. – Vienna, 2010. – 31 p.

De Backer K. Mapping Global Value Chains / Causes and Consequences of Globalization: Final WIOD Conference / K. De Backer, S. Miroudot // Working paper. –

Actual problems of international relations. Release 135. 2018

Groningen, 2012. – 19 p. [Електронний ресурс]. – Режим доступу: http://www.wiod.org/conferences/groningen/Paper_DeBacker_Miroudot.pdf

World Investment Report 2013: Global value Chains: Investment and Trade for Development. – Geneva and New York: United Nations, 2013. – 235 p.

World Investment Report 2018: Investment and New Industrial Policies. – Geneva and New York: United Nations, 2018. – 193 p.

World Investment Report 2017: Investment and the Digital Economy. – Geneva and New York: United Nations, 2017. – 238 p.

References

Hymer S. The International Operations of National Firms: A Study of Direct Investment / S. Hymer. – MIT Press, 1976. – 253 p.

American Business Abroad. Six Lectures on Direct Investment. Ch. P.Kindleberger – New Haven and London, Yale University Press.- 1969. – 210 p

Vernon R. International Investment and International Trade in Product Cycle / R. Vernon // Quarterly Journal of Economics. – 1966. – Vol. 80.– № 2 – P. 190–207.

Vernon R. The Product Cycle Hypothesis in a New International Environment / R. Vernon // Oxford Bulletin of Economics and Statistics. – 1979. – Vol. 41. –№ 4. – P. 255–267.

UNCTAD. World Investment Report 2015: Reforming International Investment Governance– Geneva, New York: United Nations, 2015. – 218 p.

Buckley P. J. Internalization Thinking: From the Multinational Enterprise to the Global Factory / P. J. Buckley // International Business Review. – June, 2009. – Vol. 18. – № 3. – P. 224 – 235.

Grossman G. Trading Tasks: A Simple Theory of Offshoring / G. Grossman, E. Rossi-Hansberg // American Economic Review. – 2008. – Vol. 98. –№5. – P. 1978 – 1997.

Jones R. The role of services in production and international trade. / In: The Political Economy of International Trade: essays in Honor of Robert E Baldwin, / Jones, Ronald W. and Henryk Kierzkowski (1990) ed. Ronald W Jones and Anne O Krueger. 1990. –Basil Blackwell. – P. 31–48.

Porter M. Competitive Advantage: Creating and Sustaining Superior Performance. — New York: The Free Press, 1985 (2nd ed. — New York: Free Press, 1998. — 592 p.

Gereffi G. Global Value Chains and Sustainable Development / G. Gereffi // Chains for Change. Max Havellar Lectures. – 2009. – № 3. – P. 47–61.

Gereffi G. The governance of global value chains / Gereffi G., Humphrey J., Sturgeon T. J. // Review of International Political Economy. – February 2005. – Vol.12. – 1. – P. 78–104.

Antràs P. Offshoring in a knowledge economy / P. Antràs, L. Garicano, E. Rossi-Hansberg // Quarterly Journal of Economics. – 2006. – Vol. 121. – № 1. – P. 31 – 77.

Grossman G. Task trade between similar countries / G. Grossman, E. Rossi-Hansberg // Econometrica. – 2012. – Vol. 80. –№2. – P. 593 – 629.

Kohler W. Aspects of International Fragmentation / W. Kohler // Review of International Economics. – 2004. – № 12. – P. 793 – 816.

Egger H. The Distributional Effects of International Outsourcing in a 2×2 Model / H. Egger, J. Falkinger // North American Journal of Economics and Finance. – 2003. – № 14. – P. 189 – 206.

Baldwin R. Offshoring: General equilibrium effects on wages, production and trade / R. Baldwin, F. Robert-Nicoud // NBER Working Paper 12991. – 2007. – 24 p.

Sturgeon T. Measuring Global Value Chains: Intermediate Goods Trade and Structural Change in the World Economy / T. Sturgeon, O. Memedovic // UNIDO Working Paper. – Vienna, 2010. – 31 p.

Актуальні проблеми міжнародних відносин. Випуск 135. 2018. .

De Backer K. Mapping Global Value Chains / Causes and Consequences of Globalization: Final WIOD Conference / K. De Backer, S. Miroudot // Working paper. – Groningen, 2012. – 19 p. [Електронний ресурс]. – Режим доступу: http://www.wiod.org/conferences/groningen/Paper_DeBacker_Miroudot.pdf

World Investment Report 2013: Global value Chains: Investment and Trade for Development. – Geneva and New York: United Nations, 2013. – 235 p.

World Investment Report 2018: Investment and New Industrial Policies. – Geneva and New York: United Nations, 2018. – 193 p.

World Investment Report 2017: Investment and the Digital Economy. – Geneva and New York: United Nations, 2017. – 238 p.




DOI: http://dx.doi.org/10.17721/apmv.2018.135.0.70-81

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