Eurasian Economic Union and prospects of development of transnational corporations in the frame of the globalization

The purpose of this article is to study the processes of regional integration and its particular features in the frame of the Eurasian Economic Union formation and their impact on the development of transnational corporations in the region. The authors used the scientific and methodological basis including an integrated approach and economic, institutional and organizational methods, theoretical and methodological studies of domestic and foreign scientists. In order to achieve the defined aim of this research, the authors used the retrospective method and method of comparative analysis, studied the statistical data, including the reports of the United Nations Conference on Trade and Development and the World Bank’s ratings. The authors studied the historical background of the Eurasian Economic Union, analyzed the current economic situation in its Member States, and considered the experience of other regional alliances. According to the results of the research, the authors formulated the conclusions in the context of the most likely prospects for the development of transnational corporations in the frame of the integration of the Member States of the Eurasian Economic Union. In particular, the study of the experience of other regional associations presumes that the process of regional economic integration will have a positive impact on the dynamics of the attraction of foreign direct investment inflows in the region. In addition, regional integration will mitigate the problem of “limited” markets of the Member States of the Economic Union and, therefore, will help to increase the amount of investment resources in the manufacturing industry and services sector of the economy. The creation of the common energy markets in the framework of the new regional association would strengthen the resource-oriented domestic large-scale business and prepare the groundwork for the emergence of new transnational corporations, cooperating within the Eurasian Economic Union. The research results can be applied in theory as a basis for the further studies of regional economic integration in the frame of the Eurasian Economic Union. Besides this, the analytical results of the research are of practical importance because they can be used for the purpose of the further development of the Eurasian Economic Union and harmonization of legislation of the Member States. the transnational corporations and their companies are an essential part of the economies of its Member States. It is evident that the EAEU would influence the future development of these business processes. Firstly, the EAEU will most probably increase in general the amount of FDI inflows in the economies of its Member States because the regional integration usually is the factor which ensures economic stability. This fact is proved by the experience of other organizations of regional integration (European Union, MERCOSUR). Secondly, the EAEU might stimulate FDI inflows in the manufacturing industry and service sector of the economies of Russia, Kazakhstan, Kyrgyzstan, Belarus, and Armenia because the integration enlarges the common market. Thirdly, the establishment of the common markets within the EAEU might strengthen the resource-oriented large-scale companies originating from the Member States, mainly Russia and Kazakhstan and eventually form a groundwork for the creation of new transnational corporations in the frame of the EAEU. However, the implementation of the above-mentioned prospects depends on the legislative initiatives which will be taken by the EAEU Member States in order to ensure the continued effective functioning of the Union. The harmonization of legislation and development of the EAEU law compose a necessary basis for effective economic integration. In this part, it seems reasonable to be guided by the experience of the existing regional associations.