THE INFLUENCE OF TNC’S ON THE GLOBALIZATION OF MARKETS: OPPORTUNITIES AND CHALLENGES FOR LOCAL DEVELOPMENT

Abstract

Introduction. This article provides an in-depth analysis of the impact of TNCs on global economic development, focusing on their role in capital investment and the advancement of technology. TNCs facilitate the global integration of national economies through FDI, potentially stimulating economic growth, especially in developing countries. However, the concentration of economic power in a few TNCs can lead to market monopolization and the displacement of local enterprises. Purpose. The article highlights examples of the concentration of economic power, illustrating how these corporations dominate markets, sometimes at the expense of local retailers and small online stores. Methods. A detailed analysis of specific examples of the influence of TNCs on the local economy was carried out, including both positive and negative aspects of this influence. The conducted SWOT analysis helped to determine the key factors that should be taken into account when formulating development strategies and regulating the activities of TNCs to ensure balanced local development. Results. The findings reveal that TNCs play a pivotal role in accelerating the globalization of markets, contributing to economic growth in developing countries through job creation and technological diffusion. However, the research also uncovers significant challenges, such as the displacement of local industries and increased dependence on foreign capital, which can undermine long-term sustainable development. Conclusion. While TNCs undeniably facilitate market globalization and offer numerous opportunities for local development, their influence is not uniformly positive. The study concludes that a balanced approach, involving strategic regulation and fostering of local enterprises, is essential to harnessing the benefits of TNC-induced globalization while mitigating its adverse effects. It's worth to implement measures that encourage responsible corporate practices and promote economic diversification to ensure inclusive growth and development. This abstract summarizes the comprehensive exploration of TNCs' impact on global market dynamics and local development, highlighting the need for nuanced policy interventions to navigate the complexities of globalization.