PLATFORM FIRMS IN INTERNATIONAL TRADE: ECONOMIC NATURE AND PECULIARITIES OF FUNCTIONING

Abstract

The purpose of this study is to analyze the economic nature of a platform firm and the specifics of its functioning in international trade. The main methods of researching this scientific problem are system analysis, integrated approach, search and problem methods, comparison and diagnostics. As a result of the study, it is proved that a platform-firm is a key stakeholder in modern international markets, which forms the market structure through a digital network (technological platform) and positive network effects. It has been determined that it differs from traditional intermediaries in the absence of tangible assets (e.g., shops, warehouses, bases), the formation of new values, such as databases, economies of scale, the use of price discrimination for different entities, etc. The emergence of platform firms in global commerce causes contradictions in the development of international commodity markets, and their study is of great practical importance. These contradictions were caused by the digitalization of the global economy, which turns information into a crucial resource, the growing number of virtual intermediaries, the lack of influence of tangible assets on the market value of a firm, and the spatial and geographical boundaries of the market are determined by the Internet. In this regard, the study of the essence, economic nature, peculiarities of formation, functioning and development trends of platform firms in international trade and the global economy is a rather topical issue. The article studies the economic nature and peculiarities of functioning of a platform firm in international trade. It has been determined that platform firms are characterized by positive network effects, increasing returns to scale, virtualization, price discrimination and independent groups of actors with different needs and interests. It is determined that the popularity of platform firms is explained by their convenience and scale. They provide entrepreneurs with a unique opportunity to enter the market without the need for significant investment in creating their own infrastructure. Platform firms offer a digital space and tools for sales, provide advertising and marketing support, and secure financial transactions. The article outlines the essence and features of a platform firm as a digital intermediary that allows buyers and sellers to interact in real time via the Internet and identifies the main advantages and disadvantages of trading on digital platforms. A set of terms used in defining and characterizing a platform firm is provided. The study found that international trade through platform firms (digital intermediaries, marketplaces) opens up great opportunities for businesses to enter the global market at minimal cost. Platforms such as Amazon, eBay, Etsy, Rakuten and Alphabet provide convenient tools for selling goods abroad, simplifying the processes of logistics, payment, and customer interaction. It is determined that thanks to platform firms, even small businesses can successfully compete in the international arena, attracting new customers and developing their activities in different countries. Marketplaces (digital intermediary platforms) help to establish cooperation between foreign customers and representatives of national businesses, to find and successfully implement new international contracts.