Assessing the level of transnationalization of companies
Regarding the definition of the concept of "transnational company (corporation) and the criteria allowing to separate TNCs from other forms, disputes are still continuing. In different years and in different studies, various criteria were used and used, among them:
- the number of countries in which the company operates (according to different approaches, a minimum of two to six countries);
- a certain minimum number of countries in which the company's production facilities are located;
- a certain size that the company has reached;
- the minimum share of foreign operations in the company's revenues or sales (usually 25%);
- possession of not less than 25% of voters of shares in three or more countries is the minimum equity participation in foreign share capital that must provide the firm with control over the economic activities of a foreign enterprise and represent foreign direct investment;
- the multinational composition of the personnel of companies, the composition of its top management, etc.
Whereas the wording of the term "transnational corporation" affects the interests of many states, the last compromise option for determining TNCs in the United Nations is that TNCs are a company:
- Including units of production in two or more countries, regardless of the legal form and field of activity;
- operating within a decision-making system that allows for a coherent policy and implementation of a common strategy through one or more governance centers;
- in which individual units of production are linked through ownership or in some other way so that one or more of them can have a significant impact on the activities of others and, in particular, share knowledge, resources and responsibilities with others.>
Along with the above criteria, UN economic structures are beginning to increasingly use the aggregated indicators of the transnationalization of companies, in particular, the transnationalization index and the network distribution index.
The company's transnationalization index is calculated using the formula
where - the index of transnationalization; - foreign assets of the company; - the company's total assets; - the volume of sales of goods and services by foreign affiliates; - total sales of goods and services; - the foreign staff of the company; - the general staff of the company's employees.
Thus, this index is based on comparing the size of the economic activities of the company at home and abroad. Dynamics of the transnationalization index of the world's 100 largest non-financial corporations for 1991-2000. is shown in Fig. 16.2.
From the figure it follows that, despite the presence of certain fluctuations in the index (the minimum value was fixed in 1993 and the maximum in 1997), the average value of it usually exceeds the level of 50%. The change in the transnationalization index is primarily influenced by the activity of mergers and acquisitions of companies: TNCs, while absorbing a foreign enterprise, significantly increase their level of transnationalization.
Fig. 16.2. Dynamics of the transnationalization index of the world's 100 largest non-financial corporations
Analysis of the transnationalization indices of companies, taking into account their nationality, suggests that TNCs from smaller developed countries (for example, the Netherlands, Sweden, Finland) operate more abroad than in the home country of the parent company. as the size and limited capacity of national markets force them to look for new markets, unlike the transnational corporations of large states such as the US, Japan, Germany, for which the transnationalization index is not even of the middle one.The
Network Propagation Index (NSI), as well as the transnationalization index, gives an aggregated "internationality" functioning of companies. It is calculated as a percentage of the number of foreign countries in which TNCs carry out their activities (locates production, conducts economic activities, etc.) to the total number of countries in which the corporation could potentially operate.
Analysis of the index of NSI for 100 largest companies allows us to confirm the conclusion formulated earlier: countries that are small in area are more active than large states, master foreign markets.
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