The role of transnational companies in process of integration

Abstract

The main charasteristic of the European economy over the past few decades was the increase of integration process between countries, which was often called process of globalization. This has occurred in two directions: through trade of goods and services, as well as international mobility of capital, and through production or creating new value added within international production system of transnational companies. Activities of transnational companies - as traders, investors, bearers of technology transfer and causers of mobility of people - have the very qualitative impact on European economy, within the wider process of globalization. Transition countries, especially those from Central Europe, attracted the significant inflow of foreign direct investments, so it is useful to discuss about the impact of FDI on transformation process of these countries from central-planned to market oriented economies. For that reason, the purpose of this article is to show what is the role of transnational corporations in restructuring transition economies and changing their export's structures, so it can be possible to use some solutions and experiences in the domestic economy.

Keywords

• restructuring of economy
• direct foreign investments
• transnational companies
• export expansion and diversification of transition economies