Open AccessMNE’s THEORY AND GLOBAL VALUE CHAINS
Author(s) -
Oleksandr Rogach
Publication year - 2019
Publication title -
aktualʹnì problemi mìžnarodnih vìdnosin
Language(s) - English
Resource type - Journals
eISSN - 2663-8959
pISSN - 2308-6912
DOI - 10.17721/apmv.2018.138.0.153-162
Subject(s) - multinational corporation , internationalization , industrial organization , economic geography , fragmentation (computing) , global value chain , production (economics) , business , globalization , internalization theory , international business , context (archaeology) , offshoring , value (mathematics) , international trade , economics , computer science , marketing , management , comparative advantage , microeconomics , market economy , geography , archaeology , finance , operating system , outsourcing , machine learning
This article analyzes a multinational enterprise (MNE) theories from the first pioneering papers of S. Hymer and the modern approaches to studying these institutions. A special focus is placed on the one of the research schools that studied the fragmentation of international production and the global value chain (GVCs) creation. In this context, various theoretical approaches to the study of modern global MNE networks are considered, the theory of trade in tasks and the macroeconomic approach to the evaluation of fragmentation effects.The paper argues that the concepts of MNEs international production and GVCs are interlinked, although not equal. Sometimes they are used as synonyms, but they characterize the contemporary process of internationalization from different perspectives. It shows the various types of organization of global value chains, such as the horizontal and vertical integration of production. Within such networking systems of multinational enterprises there are complex hierarchical relationships between individual participants and links. Technological slicing of production into separate fragments requires MNE to use not only own equity- controlled affiliates, but also the offshore production of partner firms.