INTERNATIONAL INVESTING OF MULTINATIONAL COMPANIES UNDER THE CHALLENGES OF DEVELOPMENT OF DIGITAL ECONOMY

Abstract

This article is devoted to the study of the impact of the digital economy on the investment activities of multinational companies. It is revealed that the spread and introduction of digital technologies simultaneously stimulates development, but also creates a gap in the symbiotic interaction of ICT and international production. The main factors, tendencies and segments of digital economy development are revealed. It is discovered that two following tendencies might led to the structural transformation of the world economic system: transformation of data into digital intelligence, emergence of the data value chain and monetization of data. The influence of digital economy on the transformation of business models of companies is studied. It is shown that aggressive implementation of digital technologies transforms business models, develops new products and services, creates new business processes, generates more utility, and introduces a new management culture. Three main groups of digital multinational companies have been identified and analyzed – among them are ICT MNCs, digital MNCs and others from non-digital industries but which implement digital technologies and services. Author summarizes the challenges for the future development of international investment activities of TNCs withing the accelerated development of the digital economy and identifies initiatives for the transformation and development of their investmenting in the digital economy. Despite the rapid internationalization of the digital economy, its global sread, the required response to changes in investment policies of countries, as well their impact on the regulation of international investment activities, especially of digital TNCs, are still quite weak and untimely. The mutual influence of the development of digitalization and investment initiatives from the standpoint of different entities of the economic system is revealed. It is clear that investment policies and regulations designed for physical investments need to be reviewed in the light of the emergence and development of new digital business models of MNCs.