TRANSNATIONAL CORPORATIONS AS A PHENOMENON OF GLOBALIZATION: REASONS FOR FORMATION AND INSTITUTIONAL CHARACTERISTICS

Madina Muradasilova
Tashkent State University of Economics, Faculty of Finance,
2nd-year Master’s student in the field of “Public and International Finance,”
Tashkent, Uzbekistan. Email: muradasilovamadina@gmail.com
ORCID: 0009-0001-8562-0174
JEL classification: O32 M38
Abstract: This article is devoted to a comprehensive study of transnational corporations (TNCs) as one of the fundamental elements of the modern global economic system. TNCs are examined not only as participants in international markets, but also as active agents of transformation within the global economy. They contribute to the formation of new economic linkages, the redistribution of resources, and the deepening of globalization processes. The paper analyzes the key prerequisites and factors behind the emergence and development of TNCs, including their drive to reduce production costs, expand markets, access raw materials, and optimize taxation strategies. Special attention is given to the institutional characteristics of TNCs, such as their management structure, the distribution of functions between headquarters and foreign affiliates, and their strategic approaches to adaptation across various jurisdictions. The study presents a classification of TNCs according to several criteria, including scale of activity, sectoral affiliation, forms of ownership, and degree of international integration. The article also examines the potential risks and benefits associated with the presence of transnational corporations in host countries — ranging from economic growth and technology transfer to the risks of monopolization, the weakening of national sovereignty, and the intensification of social and environmental pressures.
Keywords: transnational corporations, globalization, international production, investment, diversification, international integration, TNCs.