The Global Trade Regime Of The Early 21st Century

In modern world, the economy of the chief conductors of trans-nationalization processes are large production marketing associations — multinational corporations, which have a great influence on the process of world economic communications at the beginning of the 21st century. In parallel and together with them, transnational banks (TNB) that make a transnational banking system, a financial support of large international business, work. According to Ravenhill (2014), â€Å"the global trade regime of the early 21st century is based on three components: trade, national regulations and international agreements†. In the international business, various advantages of many business transactions and the external economic operations in which legal†¦show more content†¦The new directions and instruments of development of the international business are boldly shown. The international business is understood as such business activity, the primary coverage of which is the international economic relations in world economy. The international business can be divided into some main segments conditionally; global business, international (multilateral) business, foreign business in the host country and business abroad. According to Epping (2009), â€Å"The long-tail theory of commerce describes the ability of online businesses to use low distribution and inventory costs to make a profit out of selling small volumes of hard-to-find items to many customers.† At the beginning of the 21st century, in the world there are more than 70,000 multinational corporations and 850,000 their branches. The parent companies are located mainly in the developed countries (50,200), the bigger number of branches are the share of developing countries (495,000). About a half of the world industrial production and over 73% of foreign trade are the share of multinational corporations. They control about 80% of patents and licenses for inventions, new technologies and know-how. Under control of multinational corporations, there are separate commodity markets: 90% of the world market of wheat, coffee, corn, forest products, tobacco, jute and iron ore, 85% — the market of copper and bauxites, 80% —