TRANSNATIONAL CORPORATIONS IN SEARCH OF ATTRACTIVE INSTITUTIONAL CONDITIONS IN CONTEMPORARY GLOBAL ECONOMY

Abstract

        Transnational corporations (TNC) are important members of the global economy as they possess immense capital, productive, and technological potential, and involve a massive share of international economic relations. They are mainly responsible for the inflow of foreign direct investments and all their derivatives. Thanks to their power, TNCs are able to influence political decisions. When searching for locations for new investments, they choose places where they are met with the most favourable conditions. The 2007 financial crisis has significantly contributed to the reduction of international capital flow, effected mainly by TNCs. Such situation compelled various national economies to undertake actions which, on the one hand, ensured an attractive position for international investments, and, on the other hand, protected internal markets from speculative flows of capital.

        The aim of this study was to present the changes which occurred after the last financial crisis in FDI flows throughout the global economy, focusing particularly on the economy of the EU. The analysis of the dynamics and structure of FDI flows has been performed in the context of introduced institutional changes established in the European Union after 2007. In this paper to a large extent were used materials developed by UNCTAD. The considerations set out in the article show that in recent years, many countries have introduced favorable regulations for TNCs. These activities became an attempt to increase the investment attractiveness of the EU economies in times of reduced flows of foreign investment.