Prospects for the Development of Globalization Processes under the Influence of the Driving Forces of TNCs

Abstract

Purpose. The purpose of the article is to analyze the prospects for the development of globalization processes in the context of the dominance of transnational corporations (TNCs) in the global market. The article aims to examine the potential benefits of foreign direct investment and technological development driven by TNCs, while also addressing the challenges that economic globalization may pose, particularly for countries with varying levels of economic development. It highlights the vulnerabilities of developing economies to external factors, such as global market fluctuations and geopolitical events, and emphasizes the need for these countries to develop tailored strategies for economic growth, including the modernization of regulatory frameworks to manage the influence of TNCs. Methods. The article uses forecasting analysis to predict the future development of globalization processes driven by transnational corporations (TNCs), focusing on how foreign direct investment and technological advancements will shape economies in the coming years. This method helps estimate the potential risks and opportunities that countries, especially those with lower levels of economic development, may face due to the growing influence of TNCs. Additionally, comparative analysis is employed to contrast the economic impacts of globalization across countries with different levels of development, emphasizing how vulnerability to external factors, such as global market fluctuations and geopolitical events, varies depending on a country's economic resilience and openness to international financial flows. Results. The results of the article indicate that the processes of economic globalization, driven by the dominance of transnational corporations (TNCs), present both opportunities and challenges for countries with varying levels of economic development. While TNCs bring benefits such as foreign direct investment and technological advancement, they also increase the vulnerability of developing economies to external factors, such as global market fluctuations and geopolitical events. Moreover, the penetration of TNCs into domestic markets may displace national enterprises, leading to increased economic inequality. To mitigate these challenges, the article emphasizes the need for low-income countries to develop tailored economic strategies and modernize their regulatory frameworks to manage the influence of TNCs and ensure sustainable growth. Conclusions. The article highlights both the opportunities and challenges of economic globalization driven by transnational corporations (TNCs), particularly through foreign direct investment and technological development. While globalization can boost economic growth, it also increases the vulnerability of developing economies to external factors, such as global market fluctuations and geopolitical events. Furthermore, the dominance of TNCs can displace national businesses, exacerbating economic inequality. To address these issues, the article stresses the need for low-income countries to develop tailored economic strategies, including modernizing their regulatory frameworks to manage the influence of TNCs.