Publication:

Impact of Transition Countries Trading Policies on Transnational

Transnational companies The same corporations (TNCs) play an important role in today's World globalization. Their business, production and management are represented in various countries around the world and operate in accordance with their laws. TNC has its head office in one country but branches and subsidiaries in different countries. Their main purpose is to supply goods and services to the world market at the lowest possible price. Thus, it seeks to select the most favorable place (country) where it will receive the highest possible taxation. The budget of some transnational companies far exceeds the budgets of many countries. Their activities have a particular impact on the economic development of the country in which they operate, increasing the economic situation, which naturally improves the level of welfare of the population. Accordingly, transitional countries are trying to maximize their trade policies to attract similar international companies to the domestic market, largely by changing their tax regulations or removing taxes altogether. Implementing such a trade policy significantly encourages transnational companies to invest FDI in countries of this type.