Dominants of business activity globalization processes

Abstract

From the perspective of globalization, the newest dominants of transnationalism of business (diversification of the country structure of transnational asset with depersonification of ownership, dimensional and cluster vertical integration of transnational business entities, formation of new regional centres of accumulation of global investment asset, transition of the world economy to the sixth technological paradigm with its systemic digitization) are identified and their economic nature by a group of ruling in the global economic system dominant trends that determine the structural transformations of transnational business activity both at the level of basic and superstructure relations with its reorientation to qualitatively new technological, innovation, informational, financial, production and management platforms is explored. It is substantiated that the global stage of transnationalism of business activity has led to the formation of a qualitatively new matrix of the ratio of the two main production resources – asset and labour – which is manifested in the increasing asymmetry between the national and social nature of the expanses on the reproduction of the transnational labour power and the international private monopoly nature of appropriation of the results of its work. Global vectors of domination in corporate strategies of asset and production monopolization of mergers and acquisitions as the most effective form of concentration and centralization of MNCs` asset, as well as strengthening of their global competitive leadership in the relevant segments of the world market are revealed. The main instruments for provision of MNCs` global competitive leadership of the leading countries of the world under the conditions of formation of a multipolar world order format – increase of financially reliable consumer and investment demand in the parent companies' countries, mechanisms of "soft power" and economic diplomacy towards hosting countries, widespread use of outsourcing and offshore business activity mechanisms, non-competitive status of the dollar and the euro as key reserve currencies and asset accumulation currencies, bringing to the breaking point of the system of monopolistic exploitation of global resources through artificial growth of global demand and overconsumption of material, financial and intellectual resources are specified. The scientific hypothesis concerning the acquisition of global level of socialization of production by transnational business activity substantiated by the objective, non-convertible and ongoing process of its development, which is manifested in deepening of intra-corporate division of labour power, strengthening of interconnection and interdependence of economically, functionally and geographically separated subdivisions of MNCs, which, * This article was translated from its original in Ukrainian. 1 Zhylenko Kateryna Mykolayivna — PhD, Associate Professor, Deputy Head of the Department of Travel Business and Hospitality, Oles Honchar Dnipro National University, Associate Professor at the Department of Travel Business and Hospitality. Sphere of scientific interest: globalization of business activity, internationalization of international business, economic integration, global management of tourism business, international digitalization of business activity. E-mail: zhilenkok@ukr.net Meshko Nataliya Petrivna — Doctor of Economics, Professor, Deputy Head of the Department of Marketing and International Management, Oles Honchar Dnipro National University, Professor at the Department of Marketing and International Management. Sphere of scientific interest: international innovative activity, global digital economy, international investment activity, global management. E-mail: nmeshko@ukr.net IEP, No 31, (2019) pp. 43–81 © Kateryna Zhylenko, Nataliya Meshko, 2019 «All rights reserved» ISSN 1811-9832/2019/No 2 (31) 44 ISSN 1811-9832. INTERNATIONAL ECONOMIC POLICY. 2019. No 2 (31) operating under a single technological plan, adhering to the same rhythm of production and quantitative and qualitative characteristics of products, form a kind of global production organism of the creation of transnational management holdings by delegation of production and management functions to the subsidiaries of MNCs, as well as by the extension of corporate-wide boundaries of joint control and systematic financial and economic activity are specified. The forms of manifestation of global socialization are identified.