TRENDS IN THE TRANSFORMATION OF INTERNATIONAL BUSINESS UNDER THE INFLUENCE OF GLOBALIZATION

Keywords: international business, trends, transformation, globalization, transnationalization, digitalization, reshoring

Abstract

The evolution of the world economy in the direction of increasing globalization trends is creating transformational changes in the functioning of international business. The scale of business operations is growing rapidly, their nature is changing, there is a transformation of world production and international trade, including as a result of the spread of the COVID-19 pandemic. This necessitates the study of processes that characterize current trends in the transformation of international business, which determines the purpose of the article. To solve the tasks in the article used special and general research methods: economic-statistical and comparative analysis – to identify current trends in international business, diagnostics and dynamics of certain aspects of the functioning of international business entities; diagnostics of the state and dynamics of certain aspects of the functioning of international business entities; system analysis – to study the relationships between economic processes and phenomena; causal relationship, abstract-logical – in generalizing the results and formulating the conclusions of the study. As a result of research it is established that the most significant transformational tendencies reflecting modern realities of functioning of the international business are: strengthening the role of large international corporations in international production; increasing the share of enterprises that involve digital technologies in business operations; intensification of reshoring processes; increasing the innovation activity of international companies. Strengthening of processes of transnationalization of small and medium business is revealed; increasing the share of companies that use networking in order to acquire the status of global companies. The dynamics of digitalization processes of international business is considered. The most important direction in the development of digitalization of international business is the transformation of business processes based on e-commerce technologies. Among the main trends are the strengthening of the processes of return of multinational companies of their production activities from other countries to the home country of the parent company. The dynamics of growth of investments in R&D of the largest international companies is analyzed and the tendency to increase them is revealed. The practical significance of the study is to identify the most significant trends in the transformation of international business caused by the pandemic, which makes it possible to develop a further strategy for its operation, taking into account globalization trends.

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Published
2021-09-28
How to Cite
Smolii, L., Osipova, A., & Kostiuk, V. (2021). TRENDS IN THE TRANSFORMATION OF INTERNATIONAL BUSINESS UNDER THE INFLUENCE OF GLOBALIZATION. Economy and Society, (31). https://doi.org/10.32782/2524-0072/2021-31-6
Section
INTERNATIONAL ECONOMIC RELATIONS