1.2 Features of the international activities of firms in modern conditions

Qualitative changes in the organizational forms and methods of the international activities of firms are the result of changes that occur in manufacturing, where the dominant positions owned TNCs (transnational corporations). These changes reflect the fact that the problem of reproduction is increasingly becoming a problem in the market, and to implement production on an expanding basis, TNK deeper embedded in the sphere of international circulation by creating your own overseas network.

This entry means that the character and content of the international activities of firms undergo significant changes as international activities increasingly reflect the results of clustering and industrial ties between large TNCs as well as within them.

The purpose of the world market: strengthen the competitive position of the company by expanding sales base gain access to more profitable resources (material, financial, labor, information technology, etc.), extending the life cycle of products, reduce business risk, the benefits system division of labor and specialization [22, c .52].

Forms of doing business in the international market:

- Multinational companies (MNCs) / multinational banks (TNB);

- Multinational companies (MNCs);

- Joint ventures [17, c .35].

International business includes any business transactions that are carried out by two or more countries. Business relationships arise at the level of private and public organizations. Operations are carried out by private companies for profit. Government organizations do not always profit-oriented.

To achieve any of its international goals the company should establish forms of foreign trade operations and the external environment in which the company will operate. Environment influences the choice of means, defining business functions such as marketing, financial management, human resources. However, the company is conducting business activities at the international level, has almost no influence on the business environment in which it has to operate (see Table. 3).

Table 1.2.1 persons

Business operations and the factors influencing them

Business transactions	Influencing factors
Objectives:	Environmental Factors
Expansion of sales	Geographic
Acquisition of resources	History
Diversification	Political
Means to an end:	Legal
Operating:	Economic
Export and import of goods	Cultural
Exports and imports of services	Competitive environmental factors
Licensing	1.Skorost change the environment
Franchising	2.Number buyers
Management contract	3.Sostoyanie local and international competitors
Turnkey contract	4.Unikalnye ability of competitors
Direct and portfolio investment	5.Zatraty Move competitors
Functionality:
Production, personnel work, marketing, finance

Expansion of sales. Market limited number of individuals interested in the product, as well as their purchasing power. Number of interested people increases, if we consider this issue on an international scale. A higher level of sales means a higher level of profit. In fact, the profit per unit of output may increase as the market expansion.

International marketing is the main motive for the participation of firms in international business. Many major firms have half of their income from sales held abroad (IBM, NESTLE, Philips, SONY).

Acquisition of resources. Company manufacturers often look for the appropriate types of products and services, semi-finished, components and finished products to other countries. This is done to reduce costs. In other cases, foreign procurement has to buy unique products or conditions that are not available in their own country.

Diversification. Usually companies prefer to avoid large fluctuations in the level of their sales and profits and therefore carefully looking for the right foreign markets for sales and procurement. Some companies use the fact that economic cycles in the world are not the same when one country sales declines, it rises to another, which is in the process of economic recovery. Ultimately, finding a market for the purchase or sale of goods in different countries, the firm can reduce the costs of price fluctuations or shortages in a country [12, c .62].

Types of international business. Export and import of goods. Articles of merchandise exports are goods exported from the country, articles of merchandise imports are goods imported into the country. Export and import of goods - is "visible" operation. Exporting and importing products to most countries is the main source of income.

Importing or exporting is often the first foreign trade operation. This is explained by the fact that at the initial stage of involvement in international business transactions, these usually require minimum commitments and the lowest risk for the firm's resources. Firms can increase exports by downloading their excess capacity, which minimizes the need for additional investment. In addition, they can hire the services of resellers.

Export-import transactions and do not stop when they move on to other forms of international business. In this case, they continue or as a similar business in other markets, or as a supplement to the new types of business.

Exports and imports of services. International business covers many different types of services. This so-called "invisible" operation. Revenues from transport services and tourism can make a significant source of income for agents international air services, maritime transport companies, hotels. For example, the state of the economy in countries such as Greece and Norway, is largely dependent on revenue from foreign transportation of cargo on board their vessels. Bahamas from foreign tourism to receive more than on commodity exports.

By 'invisible' operations include banking operations, insurance, rent, lease, design work, management services. Design work is usually carried out in the framework of operations "turnkey", which involve the construction of contracted production facilities transferred to the customer after the operation to ensure they are fully ready to begin operation.

Commission fees for management services are usually the result of pre-signed management contracts or service agreements reached under which one firm to another firm provides management personnel for general guidance or specific management functions [17, c .47].

Licensing. At the conclusion of the license agreement firm (licensor) grants the right to intangible property to another firm (the licensee) for a specified period, usually a licensee pays royalties to the licensor for it. There are five categories of intangible assets: a) patents; the invention; b) copyright; c) trademarks, trade names; g) franchise, license contracts; d) the methods of the program.

Typically, the licensor shall provide information and assistance, and the licensee - effectively to use the law and pay the licensor a certain amount.

Why licensor sells the license, and, for example, creates a production capacity abroad? First of all, the sales may not be so large as to pay off the creation of overseas production facilities and distribution system. In addition, there is a risk that during the deployment of the competitors will improve production technology, resulting in a firm will lose the advantage. Firm already operating abroad may have the capacity of production and sales of products with lower cost and shorter duration of the preparatory period. Large firms can pass on to other technologies that they do not represent interest.

Licensing may be output in the presence of trade restrictions or limitations on the acquisition of property by foreigners in the country-licensee. License buyers are small and medium-sized companies that can not spend as much on research and development activities. Conditions and amount of payments under license agreements are in a very wide range.

The main factors determining the magnitude of payment: market restrictions (including export), the exclusive license, restrictions on production volume, quality requirements, conditions of return subsidies tie, duration of the agreement, the novelty of the technology, the patent term, state licensing regulations (refer to the licensor and licensee), the level of competition in the market that interests of the licensee, the level of competition among suppliers of such technologies, political and business risk in the country of the licensee.

When selling licenses raises the question of privacy. The value of many technologies is reduced if they have become widely known and available. Traditionally condition secrecy licensee confidential information is included in the license agreement. In addition, some licensors retains ownership of the production of specific components, so that the licensee did not get a complete picture of the technology or the ability to produce an exact copy of the product [19, c .66].

At the time of transfer of technology to a foreign firm may be old or new completely outdated or even used in the home country. Many companies transfer technology immediately upon completion or even before the final completion of the development, so that new products appear almost simultaneously in several markets. On the one hand, the new technology can be more expensive for the licensee, because it has a longer period of possible use. On the other hand, the newest technology, especially not yet passed the final stage of development, can be cheaper because of the uncertainty of its market value.

In developed countries, the franchise has long been firmly established in the field of real estate business. For example, in the U.S. there are 34 franchised network realtor. Through them committed about 45% of transactions in the property market. Major players of the American real estate market realtor pitched a global network of tens of thousands of offices under their signs scattered around the world.

Realtor franchising rapidly developing in Europe, here in franchise agency committed 30% of the transactions on housing. Here in Russia, by contrast, can not be called until the franchise the most popular destination market development in real estate.

Franchising, which is actually a special form of licensing is another widespread internationalization strategy sewage systems business. Franchising (franchising) the franchisor provides pain above rights to have control over the activities of the franchisee, and COVER is stronger support from the franchisor franchisee than in the case of cooperation between the licensor and the licensee.

Currently between national franchise is one of the most rapidly developing forms of international business. Franchise agreement providing it possible independent entrepreneur or company to do business under the name of another entrepreneur or a company (franchise pa) in exchange for remuneration. Franchisor offers its franchisees brand, technology and product with good reputation necks, as well as providing support services such as the organization of an advertising campaign, training, pre-redundancy of places (in the hotel business) and develop programs to ensure the quality of goods or services .

The success of international franchising is most likely can may be provided under certain conditions of doing business in left the market. First, franchising can be an effective way of penetration into foreign markets if the franchisor failed to finish smiling success in the domestic market due to the uniqueness of its product, as well as the benefits of its methods of work. Secondly, franchising can give good results if the factors that led the company's success in the domestic market, can be transferred to foreign markets. Third, the use of international franchising as a way of penetration can be justified if the franchisor has made ​​significant strides in Veda of a franchise business in the domestic market [22, c .84].

As in the case of license agreements, franchise agreements under the detail set out in formal contracts that specify typical for boron contract terms.

First, in most cases the franchisor from the franchisee receives a fixed fee plus royalties for the right to use a trade name, trademark, formulas and technologies franchisor.

Secondly, the franchisee usually agrees to follow the requirements of franchising regarding compliance with the specified plan of business operations and forms of financial statements. At the same time franchisors allow some degree of flexibility to the franchisee had the opportunity to adapt the company's product-franchisor to local customs and tastes of local consumers.

Finally, the franchisor provides franchisees almost always help in opening new outlets, to provide it with his experience organizing and advertising company with a positive image of products of the company among consumers. Moreover, in most cases, the franchisor has the possibility to enter completely lucrative contracts with suppliers.

Two years ago, Russia came with her ​​deductible Spanish company ComprarCasa . But she was not going to engage in Russian real estate. Company ComprarCasa - one of the biggest leaders in the Spanish market of residential and commercial real estate. In its structure - more than a thousand offices, offering over 50 thousand houses anywhere in Spain. Spanish realtor offers local entrepreneurs and companies to participate in a prospective business transaction purchase Spanish property, opening an office ComprarCasa Rus franchisee in your city. Selection of franchisees ComprarCasa Rus runs on a competitive basis. ComprarCasa Rus introduces partners with the business model of the company, provides access to a database of real estate in Spain, provides a comprehensive customer service in Spain [26, c .46].

Regularly conducted training of regional companies. The franchisor also has partner offices advertising support at the national level in the media and on the corporate website.

Among the variety of organizational forms of international business in Russia can be divided into three groups:

- organizational forms of international business with fixing their legal status in the home country, ie with the creation of legal entities (enterprises with foreign investment);

- organizational forms of international business with fixing their tax status, but without creating legal entities (branches and representative offices of foreign legal entities);

- organizational forms of international business, based on a contractual relationship (without creating legal entities and consolidation of tax status) [21, c .42].

Considering the first group forms, it should be noted that they can be created through the establishment of a new company in accordance with Russian legislation (either alone or with a local partner), or through the acquisition of a substantial stake in the Russian company already operating or total absorption of this company, including in the privatization process.

From the first group of the forms of international business is an enterprise with foreign investment, we can distinguish two groups of companies:

- Enterprise, 100% owned by the foreign investor;

- enterprises with participation of foreign investment (joint ventures).

In addition, the organizational forms of the international business with fixing their legal status can be created in the form of a subsidiary, associate or fully independent company.

Crucial to the choice of organizational form of international business by fixing it legal status are the main reasons for its implementation, among which the most affected by the following:

- establishment abroad of their own infrastructure of modern international business (depots, undermining, transport companies, banks, insurance companies, etc.), that is, goods and service providing network primarily for sales of goods and services produced in the exporting country;

- Organization of production of goods and services abroad due to the fact that imports of certain goods or services to a foreign country is impossible or difficult due to various restrictions (tariffs, quotas) or because of the nature of these goods and services in particular, such as often happens in service industries, where often the only way to sell a service to the customer - to make it a service in place;

- Organization of production of goods and services abroad if this production at the site is more cheap, effective way to maintain current overseas market, for example, because of the savings in transportation costs, the availability of scarce material resources, low labor costs (high labor intensity ) or when the country is the cheapest place of production of goods and services for their supply on the world market, including the markets of the country of origin of the investment;

- Organization of production of goods and services abroad due to the fact that for some products, especially technically complex, it is important after-sales service, consulting and other services that require the constant presence of the manufacturer on the market. In this case, its own production in a foreign country is often more profitable than business there only sales company, and even more profitable than selling through intermediaries [25, c .52].

Multinational company - is a multinational organization with businesses in different countries, each of remains relatively independent.

Joint venture (JV) - an enterprise, corporation or other association formed by two or more businesses and individuals who have combined their efforts to create long-term profitable business [20, c .35].

Establishment of a joint company is always based on the agreement, which defines the rights and responsibilities in relation to each other and to third parties. Joint ventures can be created as soon as the national companies and foreign. Given that in this article refers to the forms of the international business, under the joint venture company will be understood with equity participation of foreign capital, ie international joint venture.

The notion of an international joint venture is used to designate enterprises (companies) that are jointly owned by two or more owners (businesses and individuals), based on the mixed ownership of different countries. It is this type of business, were the most common in Russia in the early 90s. And in those years often met terminological errors. Many believed that the joint venture - is the legal form of the business. But the joint venture - it is only a reflection of the essence of international business operations, and the legal form may be any (limited liability company, corporation, etc.).

An important feature of the joint venture is the joint property of partners on the final product. On this basis differ from the joint venture company to institutionalize other international business operations. This feature forms the basis of calculations and determines the order between the partners.

Joint ventures are the only possible form of joint ownership of the means of production and, therefore, in fact, focused on mutual interest and mutual desire partners for effective and long-term cooperation. Any other international business transactions, whether import-export contracts, cooperative agreements, rental equipment abroad or trade licenses, franchise, focused on specific validity periods, sometimes close in time to the time of the agreement.

Creating a joint venture related to the solution of many problems of standardization and certification of production, logistics, the circumvention of many countries to export restrictions.

Under the transnational corporation is understood a large association using in their business activities and international approach involves the formation and development of international supply, trading and financial complex with a single center of decision-making in the home country and branches, representative offices and subsidiaries in other countries. TNK feature is the combination of centralized management with a certain degree of autonomy and its member countries are in different legal entities and divisions (branches, representative offices, subsidiaries) [25, c .36].

To ascribe to transnational corporations typically use the following criteria:

- Number of countries in which the Corporation operates (at least five);

- The number of countries where production capacity corporations (at least three);

- Leading positions in key markets;

- The share of foreign operations in income or sales corporations (not less than a quarter);

- International composition of staff and senior management of the corporation.

At the moment decided to allocate the following types of entities transnational economy - transnational corporations:

horizontally integrated corporation with companies which produce most of the products. For example, the production of cars in the U.S. or enterprise network «Fast Food».

vertically integrated corporations uniting under one owner and under common control in the most important areas of production of the final product. In particular, in the oil industry production of crude oil is often carried out in one country, refining - in another, and the sale of finished petroleum products - in third countries.

diversified multinational corporations, which include national enterprises with vertical and horizontal integration. A typical example of this type of corporation is a Swedish corporation Nestle, which has 95% of its production abroad and busy restaurant business, food production, sales of cosmetics, wines, etc. [29, c .43]

TNK hallmark of our day is the international nature of their activities, but not so much in the country of origin of capital, as in the district of its activities. The crucial question is not so much from what enters the capital, as he rushes to where operates, where any profit. The overwhelming majority of modern multinationals is only a single national isolation, not multinational capital.

On the organizational structure of multinational corporations usually are diversified corporations. Parent company serves the operational headquarters of the corporation. On the basis of extensive specialization and cooperation it provides technical and economic policies and control over the activities of foreign companies and branches.

International Corporation has the following main features:

she is an active participant in the development of the world economy, the international division of labor;

it is characterized by the relative independence of the movement of capital from the processes taking place within national boundaries;

it is objectively regulates global economic relations, exercising their operations in order to extract high profits.

One of the main features of the transnational economy is the export of capital, which in turn acts as one of the main forms of internationalization of capital national corporations. As the export of capital entities are transformed into a set of corporations operating in different countries. The internationalization of production of surplus value represents a significant form of manifestation of the internationalization of capital international corporation.

For today's global economy is characterized by a rapid process of transnationalization. In this process, the driving force act TNCs. They represent business associations, consisting of parent (parent, parent) companies and foreign affiliates. Parent company controls the activity of members of the Association of enterprises by ownership of shares (participation) in their capital. In foreign affiliates of TNCs on the share of the parent company accounts for over 10% of shares or their equivalent.

For major industrialized countries is foreign operation determines the nature of their TNCs foreign economic relations. So, up to 40% of the value of the property 100 TNCs (including financial) is outside their home country. If we compare the amount of foreign (international) production TNCs with the volume of their exports, purified from intra-firm trade, at the end of 2005. this ratio for the U.S., Japan and Germany, respectively, was: 4.1:1; 2.6:1; 1,5:3.

In 2000. an average of 45% of total sales accounted for by exports TNCs. TNK covering 90% of world trade in wheat, corn, wood, tobacco, jute and iron ore, 85% - copper and bauxite, 80% - and the tea tin, 75% - natural rubber and crude oil.

Role of supplies and services from local companies to their foreign affiliates also high in exports of these countries. In the second half of the 2000s. to such intra-firm trade accounted for 14 to 20% of U.S. exports, 23-29% - in Japan and 24-28% - Germany.

Over the past two decades, every year, about half of U.S. exports go to the U.S. and foreign multinationals in the UK, this proportion reaches 80% in Singapore - 90% [30, c .31].

At the turn of the XX - XXI centuries. observed the extraordinary growth of foreign trade, in which TNCs are traders, investors, distributors of modern technologies, stimulate international labor migration. TNCs play a leading role in the internationalization of production, in the process of expanding and deepening productive ties between enterprises in different countries. The main form of TNC expansion is the export of capital. International migration has accelerated the process of long-term capital interpenetration and intertwining of financial capital has strengthened the power of TNCs. The increasing role of foreign investment as an important and necessary means to ensure the reproduction process is a consequence of the acceleration of the objective process of socialization of the productive forces on an international scale. Thanks to the international production, based on the export of capital, TNCs provide significant revenues themselves even in the acute crisis in the global economy. In the first half of 2006 growth of foreign direct investment leading capital export countries continued to significantly exceed the rate of economic growth and the pace of global trade.

As already mentioned above, the state plays an important role in the formation of national international corporations, meetings and consultations between the leaders of developed countries to support and stimulate questions TNK prominently. This practice is widespread, especially in the relations between the two countries "Big Seven" (USA, Japan, England, France, Germany, Italy and Canada) [33, c .22].

The main factor that reflects the effectiveness of the activities of TNCs, is the international production of goods and services. It represents the output of the parent companies of TNCs and their foreign affiliates on the basis of the internationalization of production. By the end of 2005. international production of goods and services reached 7% of global GDP.

Almost all the major TNCs ethnicity belong to the "triad" - the three economic centers: U.S., EU and Japan. In recent years, actively develop its activities in the global market multinationals newly industrialized countries. Sectored structure of TNK wide enough. 60% of international companies engaged in production (primarily they specialize in electronics, automotive, chemical and pharmaceutical industries), 37% - in the service sector and 3% - in mining and agriculture.

There is clearly a trend of increasing investment in services and technology-intensive production. Simultaneously decreasing share in the mining, agriculture and resource-intensive production.

According to the American magazine «Fortune», the main role of the 500 largest TNCs play four sets of electronics, petroleum refining, chemicals and automotive. Very characteristic regional and sectoral focus of TNCs. As a rule, they are investing in the manufacturing industry and the relatively newly industrialized and developing countries. In this case there is competition for investment capital of recipients. For the poorest countries, policies different - TNK consider it appropriate to carry out there investment in the mining industry, but mostly they are increasing commodity exports. In this case unfolds fierce competition between TNCs promote their products on the local markets [28, c .52].

Today multinationals are not only of the support on which is based the economy of developed economy, but also turned into a major multinational groups, including its structure in many overseas branches of production, research, and re-supply side constraints, are increasingly active on international arena, becoming the main force of the world economy.

TNCs are increasingly determining factor in deciding the fate of a country in the international system of economic relations. Active production, investment, business activities of TNCs allows them to perform the function of the international regulation of the production and distribution of products. According to UN experts TNK promote economic integration in the world.

The UNCTAD report on transnational corporations, UN experts concluded that TNK invade areas that have traditionally been considered an area of ​​public interest. However, we are talking about going to the full integration of the world economy under the leadership of the TNC. In fact, the activities of TNCs leads to integration, internationalization only within those limits and boundaries that are defined yield maximum profits.

The host country as a whole benefits from inward investment. Workers and suppliers serving the new businesses, along with local authorities, receiving taxes, win more than lose competing local investors. Broad involvement of foreign capital using TNK helps reduce unemployment in the country. With the organization of production in the country of those products that were previously imported, there is no need to import them. Companies that produce globally competitive products and focused mainly on exports, largely contribute to the strengthening of foreign trade position of the country.

Benefits that are subject to legal foreign firms are not limited quantitative indicators. Seems important and qualitative component. TNCs administration forcing local companies to make adjustments to the process, the current practice of industrial relations, to spend more on training and retraining of workers, pay more attention to product quality, design, consumer properties. Most often for foreign investments worth introduction of new technologies, new kinds of products, new style of management, the use of all the best practices of foreign business.