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THE MAIN DIRECTIONS OF IMPROVING THE

EFFICIENCY OF REGULATION OF TRANSNATIONAL BUSINESS IN MODERN CONDITIONS


Muslumat A. Allakhverdiyeva*

Abstract: Description of the main objectives of the study. The main purpose of
the study of the scientific article is a formulation of complex methods of effective
regulation of transnational business in the modern economy of Azerbaijan. To
the main directions to achieve the purposes is assigned: general regulation of
transnational business at the country level; regulation of transnational business
at the industry level (foreign trade); regulation at the transnational corporations level (SOCAR)
A brief description of the methodology. Developed a complex methods and methods of the study the effectiveness of the transnational business of the republic
on the following parameters: transnational business performance indicators at
the country level; transnational business performance indicators at the industry
level (foreign trade); grouped performance indicators at the transnational corporations level (SOCAR)1
Generalization of the most important research results and their significance.
These primarily include the following:
- Calculation of the indicators of the effective regulation of transnational business in the country, which were carried out on the basis of indices of competitiveness;
- Calculated indicators of effectiveness of regulation of transnational business
at the industry level, which were carried out on the basis of parameters of efficiency of export, import, export and import operations;
- defined indexes transnationalization and revealed the extent of their impact on
the effectiveness of regulation of transnational corporations.
Keywords: transnational business, effectiveness of regulation, effect and effectiveness of export, import, index of transnationalization.

1. Introduction
Formation of transnational business, though based on certain general
principles, in different countries, this process takes place in isolation, since the
* Azerbaijani state economic university, associate professor "Trade", Candidate of Economic
Sciences, associate professor (AZ1 138, to Mr. Buck of V. Aliyev St., 150, ph.;
allahverdiyeva_muslumat @mail.ru)
1 SOCAR -State oil company of the Azerbaijan

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specific features are taken into account in various areas, including socioeconomic, structural and organizational, national-ethnic aspects of the development of a State.
The above fully applies to research regulation of transnational business
in the Azerbaijan Republic, which is to be their separateness view in selecting
a clear methodology in studies of transnational business, which makes this area
particularly relevant and meaningful.
The relevance and context of the study. In the theoretical aspect, though
there are serious studies on the theory and methodology of regulation of transnational business of TNCs in the modern theory insufficiently investigated the
characteristics and problems of the functioning of transnational structures under the new conditions, in particular economic systems transformed. Polemic
is the problem of long-term stable sources of solving activity regulation of
transnational business in the global economy and the boundaries of their expansion. Particular typological group of forms, methods and ways of conducting transnational business form TNCs those countries that are dealing with the
problems of energy (oil and gas). The largest domestic TNCs are included in
the ratings of the largest non-financial TNCs worldwide. Therefore, the analysis of the current state of development of new areas of global and regional development of transnational business will allow Azerbaijan to take into account
the world experience in order to create public policies that contribute to the
support of the reforms, justified in the developed world. Problems of research,
hypothesis and validity of the work. In recent years, when the international
transnational business has become one of the most popular and dynamic components of the globalization process, especially the interest in it has increased.
Conducted by domestic and foreign scholars analysis of contemporary
processes of transnationalization says multifaceted nature of the functioning of
this type of business. That is why TNK become objects of research, not only in
economics, but in other areas. In this study, it appears necessary to define positions of Azerbaijan in transnational business, identify its role in the regulation
of international business.
Among Western scholars study the problems of transnational business,
including its regulation actively engaged in well-known scientists. In particular, the studies revealed that most of the scientists approach to the regulation of
multinational companies from the legal aspects of the problem. H. MacDougall, William Friedman believes multinational companies are subjects of the
international law (8). In the regulation of transnational business
O.V.Lokaychuk, S.V.Chernichenko, I.I.Lukaschuk opposes the transfer of the
powers of government to multinational companies and turning them into subjects of international law. (9) In his writings, the authors point to the fact that
charging taxes implementing social protection, competition policy the government carries out its direct functions and transnational only protect the interests of private capital. EV Anisimov point the importance of the management
of transnational business and justifies the need for a new World Organization
Investment Cooperation (2) .I.S.Krylov brings to the fore the political mechanisms of regulation of transnational business (3).

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A.A.Shamilov explores issues of international regulation of the offshore


business in the context of economic globalization (4). E.D.Yakunina in his
works assesses the catalytic role of the state in regulating transnational business (1). G.Kremer in turn, believes that economic integration provides for the
intervention of the state has its initial stages (8) connects the evolution of paradigms. T.B. Petrenko claims economic system formers with its transformation
(7). A.A.Alekseev in their research analyzes the prospects for the transnationalization of corporate structures and their main trends (5). Hu Zong Rong mainly explored the theoretical foundations of transnationalization (6). The basis of
regulation of transnational business is the basic characteristics of the process of
integrated interaction transnational corporations. However, any characteristics
of transnational corporations had their activity is largely determined by the
state where they work [22, c.211]. So known professor Hungarian Academy of
Sciences M.Shiman notes the following interrelated processes between the
government and transnational corporations (TNCs): the relationship between
the state and TNCs can be neutral, the nature of conflict and coordination; activities, composition and structure of multinational corporations must comply
with legal, regulatory and specific aspects of the countries where they operate;
TNCs to some extent form the competitiveness of the countries to develop a
competitive advantage in the global market [23, c. 37-38]. International corporations for each state are the representatives of the world economy and have
limited autonomy to different rules. In particular, they can develop a global
strategy and to create centers for the adoption of global solutions. But because
the state - the main political elements of the international system, all companies must act determined by them legal and institutional framework [24, c.59].
Currently, regulation of transnational business issues is studied by many scientists in the field of economics and law. For example, they include
S.V.Shagurina P.D.Shimko and which are detailed the whole process of regulating the activities of transnational business to what is now TNCs are not independent legal model [25, c.335]. However, in an increasingly interconnected
and interdependent world, and the dramatic increase of transnational corporations and other non-state actors in international relations, we can not at the
same time trying to ignore the real participation of non-state actors in international legal relations on the basis and within the framework of modern public
international law [26 , s.63-69]. The units of a large multinational corporation,
its manufacturing facilities and research laboratories associated with hundreds
of strands with each other and with other departments of corporations. As
noted by Peter Dicken, WANs differ versatility and polygamous. [28]
For the purposes of transnationalization in terms of the implementation
of national economic interests is necessary to divide the production of transnational businesses on the criterion of growth and reduce the effect regardless of
the country of operation. At the same time it is necessary to distinguish between the nature of the growth effect for the subsequent differentiation of
measures of state influence on TNCs.
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If the growth is related to the effect of a monopoly, it is necessary to restrict


the control measures, since the pursuit of profit in this case is not conducive to
the realization of national economic interests. [27]
All of the above scientists focuses on methods of administrative regulation of transnational business, however, has not yet developed the theoretical
and methodological bases of regulation of transnational business, as multinational corporations from the standpoint of a systematic and comprehensive
study.
Almost no publications in the field of development strategy of transnational corporations; choice of methods, tools and mechanisms to achieve the
competitiveness of TNCs; definition indicators of the transnational business
efficiency at the level of country, industry and multinationals.
The above confirms the relevance and importance of scientific problems
investigated.
Methodology and research methods
Defining tools currently exist a variety of methods and teaching techniques of research regulation of transnational business, including transnational
corporations.
As research tools to identify the competitiveness of multinational corporations in the transnational business, in practice we identified three main areas:
the company's competitiveness and Transnational Corporations, the competitiveness of the industry and the competitiveness of the country.
In our view, the selection and justification of methods and techniques of
research of transnational business should be carried out on the above three
areas.
This approach is the most integrated process of maintaining the institutional balance in the economic system [10, p. 240].
Procedure and step by step process. 2.1. Performance indicators transnational business at the country level. It is well known that socio-economic system of suspension regulate by certain elements, among which include state
regulation of the economy in general, the regulation of individual industries.
However, in the present circumstances the main source of restructuring the
multinational corporations. This conclusion follows from the fact that this form
of organization of production, not only helps to minimize production costs and
distribution costs, and transaction costs. The aggravation of the contradictions
of the market economic system and their resolution should be linked directly to
the activities of TNCs. The scale of the economic power and political influences of TNCs allow to allocate them as an essential element of the market
economy country 2.1.1.System National Accounts (SNA)
The most important objectives of multilateral comparisons include the
following: assessment of levels of economic development and welfare of nations; identification and comparison of the performance of national economies;
analysis of the financial capacity of countries;

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policy development and the amount of aid developed to developing countries;


analysis of the market situation; International comparisons of price levels;
study of the international economic integration; the development of economic
models of development.
The index measures the ability of increasing the competitiveness of the
economy to achieve sustainable growth in the medium term. [11]
Let us consider in more detail the quantitative definition of transnational
competitiveness.
Metods of assessment of economic competitiveness
The most complete and well-known method of assessing the competitiveness of the economy is the technique of the "European Forum for Management Development." Development of the theory of international competitive advantage of M. Porter, who created the concept of "competitive rhombus" and the stages of development of competitive advantages, promoted a qualitative leap in the method of calculating the level of international competitiveness. Currently, modern methods of calculation of national competitiveness, used by the "International Forum on the development of management"
based on the theory of "competitive rhombus" and the methods used by
"World Economic Forum" - on the stages of development of the theory of
competitive advantage. [12]
The main aim of this technique is the study of the relationship between
the national competitive environment in which the state plays a key role, and
the process of wealth creation that falls on enterprises and individuals. IMF
focuses only on the four last competitive factors that determine the state of the
National competitive environment and the ability of enterprises to create
wealth and the basis of which can be seen the theory of "competitive diamond
pattern."
The main complexity of the analysis and the application of research methodology of national competitiveness (WEF), is its constant changes and revisions. Changes in the method of calculating the period Existing-Tense WEF
touched many, if not all of the components that make up the composite index
of competitiveness. These changes affect the number of countries (which
changes almost every year), the number of indicators and methods of their calculation, the number and content of the survey items. But what is more important in terms of comparability of results, sometimes radically change the structure of the calculation of the composite index, and has repeatedly created new
indices based on new metrics. All this has led to the inability to compare results over a long period of time, and, therefore, to fully appreciate the analytical and predictive capabilities techniques used by this organization. In recent
years, method of framing integrated index, called the "Global Competitiveness
Index" carried out research in the field of integrated development index, called
the "Global Competitiveness Index". However, the method of its calculation
quite different:

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it comes from the two indices of macro and micro-competitiveness, and is


based on an expanded list of indicators, which are the characteristics of 12 factors of competitiveness, the weight of which is determined by reference to the
stage of development of competitiveness. [12]
Performance indicators of the efficiency of transnational business at the
industry level. Industrial indicators of transnational business indicators are
based primarily on foreign trade.
In economic literature, these indicators are defined in terms of the international division of labor and international specialization of production when
calculating indicators, it is important to observe the following basic features
[14, p. 123-130].
- The principle of the fullest possible accounting of all components of the
costs and benefits. Part time cost accounting and results can distort conclusions
about the effectiveness of the sectoral assessment; the principle of comparison
with the base variant. You have to compare, including efficiency. For the base
case can be made the situation before making a decision, one of the variants of
the decision or the state of affairs in the market, competitor ; the principle of
reduction of costs and benefits in a comparable form. Comparable figures
should be comparable. The principle of reduction of costs and benefits occurring at different times to the same point in time. Compliance with this principle
- one of the most important provisions of the theory of effectiveness evaluation.
Practical calculation of performance will be largely dependent on the
type of operation on the foreign market, its objectives, conditions and other
features of the specific transaction.
Especial method of determining the efficiency of the industry on the international market, including:
-economic Export performance;
-economic Efficiency of import;
-economic Efficiency of export-import operations [14].
Performance indicators multinationals. Transnational corporations are
the major actors of the global economy, the process of establishing which
based on the profitability of TNCs.
Approaches index definition of transnationalization. Specific performance indicators is an index of the TNCs transnationalization . In 1974, the
UN set up an institution designed to coordinate the actions of corporations the Commission on Transnational Corporations. Its function is to develop recommendations for a "Code of Conduct for TNCs." Formed on the basis of
these recommendations, "Guidelines for Multinational Enterprises of the Organization for Economic Cooperation and Development", became the first international instrument in this area adopted in 1976, the governments of OECD
countries.

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The Commission has developed indicators, assessing the level of transnationalization of the corporation and its weight in the economy of the host countries. The indicator called transnationalization index - the average value of the
sum of three ratios: foreign assets to the value of their total cost; foreign sales
to total sales of the corporation; the ratio of the number of employees in foreign structural units to the total employment in TNCs [21].
Metod quantification of direct investment
The simplest way is to compare the absolute volume of direct investment
(P), or their share in the total volume of investments in this or that country on
the basis of the index received investments. However, it does not take into account the size of the recipient country, as well as other factors affecting the volume of incoming PII to: political and macroeconomic stability, the degree favored PII; competitiveness of the economy, the availability of natural and human resources.
In 2003, UN experts have developed a new index - the index of attracted
investments of UNCTAD, defined as the ratio of the country share in total
flows of PII to its share in the worldwide VVP [16].
Metod definition index investment potential incoming UN experts also
developed an index ranks countries on the potential of attracting investment the index of potential incoming investment, UNCTAD, based on structural
economic factors that change slowly, so jump in the level of the index only exist in developing countries .
Thus, we can conclude that the system of methods and teaching techniques of research of regulation of transnational business and multinational
corporations to include such performance indicators, which would include the
following parameters and indicators: transnational business performance indicators at the national level (the index of competitiveness); industry performance indicators transnational business (indexes of foreign trade, including
import, export, and import-export operations); performance indicators of
transnational corporations (transnationalization index).
mpirical results
In this section, we analyzed in three ways the state regulation of transnational business in Azerbaijan on the basis of the chosen method of analysis.
With the proposed method are tested and approved by the empirical results of
our offer. The studies allow you to group control system of transnational business in a particular country, in particular in the Republic of Azerbaijan.
This hypothesis is based on the results obtained based on empirical research in the following areas:

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- Microeconomic approach regulation of transnational business in the


country through the effective use and balance of the main macroeconomic indicators of the country;
- Sectoral approach of regulation of transnational business, research on
settlement terms foreign trade, and their rational use;
- Microeconomic approach control system, transnational corporations, in
particular, SOCAR, based on index numbers.
Determination of regulation of transnational business at the country level
General regulation of transnational business at the country level through
a system of national accounts. In this paper, as the main indicators of regulation of transnational business made such generalized, basic economic indicators of the country, as gross domestic product (including the private sector
GDP, the composition and structure of the GDP), a report of products and services, report economic transactions with the other world, the composition of
national income, balance of payments and the competitiveness index.
Let us consider in more detail the above-mentioned general indicators of
business regulation of the transnational level of the Azerbaijan Republic.
System of National Accounts (SNA) Refractive gross domestic product
of the republic is growing very rapidly .For the period from 2005 to 2013.
GDP increased from 12522.5 to 57708.2 million AZN million AZN or 4.6
times during the period from 2000 to 2013, respectively, to 4718.1 million
AZN 57708.2 million AZN up or 12.2 times. [19, p. 378]
More rapidly growing GDP in dollar terms. During the 2005-2013 biennium. GDP increased from 13.2387 billion. Dollars. US to 73.5605 billion.
Dollars. Dollars or 5.5 times, for 200-2013 years. respectively, 5.2728 billion.
dollars. US to 73.5605 billion. dollars. USA or 19.9 times. Naturally, an increase in per capita GDP: 2005-2013 gg. - From 1494.3 to 6207.3 manat manat
or 4.1 times; 2000-2013 years. - To 593.2 manat to 6207 manats, or 10.5 times;
in dollar terms, respectively - to 1579.8 dollars. US dollars up to 7912. United
States, or 5.0 times; 200-2013 gg. - to 662.9 dollars. US dollars to 7912.5.
United States, or 11.9 times.
It should be noted that the entire GDP for all these period was relatively
flat rate of the manat to the US dollar. (USD-1.0487AZN (due to data
25.10.2015)
Another important measure of regulation of transnational business in the
system of national accounts at the country level include accounts of goods and
services (reserves: total output of goods and services, intermediate consumption, taxes on production and imports, GDP, use: all consumer spending.

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During the 2005-2013 biennium. the total output of goods and services
increased to 20252.33 million AZN 81061.5 million AZN or up 4.0 times; intermediate consumption - to 8676.3 million AZN 27043.6 million AZN or up
3.1 times; Taxes on production and imports - with 974.1 million AZN 3874.1
million AZN or up to 4.0 times; Subsidies on production - with 27.6 million
AZN to 184.0 million AZN or 6.7 times; GDP at market prices - to 12522.5
million AZN 57708.2 million AZN or up 4.6 times. (17)
During the study period, the actual final consumption expenditure increased from 6579.7 million AZN 30838.2 million AZN or up 4.7 times, including the actual final consumption expenditure - to 5931.6 million AZN to
26,934,600,000. manat or 4.5 times; accumulation of fixed assets - up to
5171.9 million AZN 14179.3 million AZN or 2.7 times; net exports of goods
and services - to 1257.3 million AZN 12611.6 million AZN, or to 10.1 times;
export - 7881.8 million AZN up to 28117.7 million AZN or 3.6 times; imported from 6624.5 million AZN 15506.1 million AZN, or to 2.3-fold, and
others.
Another indicator of regulation of transnational business at the country
level can be regarded as an account of economic transactions with the rest of
the world [18, c. 386] During 2005-2013. here changes were as follows:
a) the accounts of foreign trade of goods and services - -7,881.8 million
AZN and -29000.3 million AZN; imports of goods and services 6624.5 million
AZN and 138,443.8 million AZN; the trade balance - -1,257.3 million AZN
and -15,156.5 million AZN;
b) an account of the income received and current transfers from abroad:
Wages remain the world - 106.2 million AZN and 141.7 million AZN; cast
property income - 1641.5 million AZN 4115.0 million AZN, and; presented
current transfers - 134.6 million AZN 1573.6 million AZN, and; received salaries from the rest of the world - -254.3 -405.4 million AZN million AZN, and;
received income from the property - -65.1 -752.3 million AZN million AZN,
and; Current transfers received - 1156.2 million AZN and 1979600000. manats; current external balance - -850.6 million AZN and -12463.7 million
AZN;
c) an account of external capital transactions: the external current balance
- -850.6 mln.man. and -1246.7 mln.man .; received the remaining transfers - 66.4 -19.4 million AZN million AZN, and; issued by the main transfer - 27.6
million AZN and 9.6 million AZN;
d) loan from equity or net debt - to 373.7 million AZN 12473.3 million
AZN up.
An important indicator of national accounts for regulation of transnational business is considered the national income.

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During the 2005-2012 biennium. changes in the national income occurred as follows: human maturity - 2820.5 million AZN and 8961200000.
manats; taxes on production and import - 1071.2 million AZN and 3930.0 mln.
manat; subsidies - -27.6 -158.8 million AZN million AZN, and; total profit 8658.4 million AZN 42011.3 million AZN, and; GDP at market prices 12522.5 million AZN 54743.7 million AZN, and; receive wages with the rest
of the world - 254.3 million AZN and 405.4 million AZN; issued salary remains the world - -106.2 -141.7 million AZN million AZN, and; received income from the property - 65.1 million AZN and 752.3 million AZN; Devoted
to profit from property - -1,641.5 -4,115.0 million AZN million AZN, and;
remnants of primary total profit - 11094.2 million AZN 51644.7 million AZN,
and; use of fixed assets - 1244.3 million AZN 2566.2 million AZN, and; net
national income - 9849.9 million AZN and 497,078.5 million AZN; Current
transfers received - 1156.2 million AZN 1979.6 million AZN, and; issued by
the current transfers - -134.6 -1,573.6 million AZN million AZN, and; remaining at the disposal of the net income - 10871.5 million AZN 49484.5 million
AZN and. In the area of transnational business at the level of the country's
prominent place given to balance of payments. (18)
In the period from 2005 to 2013. the current account increased from
167,315 tys.dol. US to 1237836 thous. Dollars. US or 73.6 times; goods and
services - to 1329081 thous. dollars. US to 16431769 thousand. Dollars. US or
12.4 times; the trade balance - with 3299105 thousand. dollars. US to
20620777 thousand. Dollars. USA, or 6.2 times.
During this period the negative can be considered the following indicators: income - -1645637 thousand. Dollars. US and -4120587 thousand. Dollars. USA; Current transfers - - 48 371 thousand. dollars. The United States
and 49995 thousand. Dollars. USA; Financial current accounts and capital 565 980 thousand. dollars. US and -6501734 thousand. Dollars. USA. [19, s.
395].
Finally, the regulation of transnational business at the national level can
be carried out through international competitive ability of indexes. In particular, the competitive ability of indexes of individual countries makes it possible
to determine the socio-economic condition of the country to achieve economic
growth in the medium term.
The main groups of factors that determine the index include: main (existing state institutions, infrastructure, economy, health and education); increased
efficiency (productive efficiency of the market, innovation and modern communication technology and education); innovation (entrepreneurship, innovation). [20].
According to the 2013-2014 World Economic Forum, the top-rated performance are: Switzerland (5.67), Singapore (5.61), Finland (5.54), Germany
(5.51), the United States (5.48) Sweden (5.48), Hong Kong (5.47),

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the Netherlands (5.42), Japan (5.40), the UK (5.37), Norway (5.33), Taiwan (5.29), Qatar (5.24), Canada (5.20), Denmark (5.18), Austria (5.15), Belgium (5.13), New Zealand (5.11), the UAE (5.11). Azerbaijan occupies the 39
position.
Components of the index figures increasing the competitiveness of individual countries in detail offered us.
Components of the index figures increasing the competitiveness of individual countries in detail offered us.
According to this indicator in the top ten countries with a higher rating
index include: Singapore (5.9), Hong Kong (5.5), the Netherlands (5.3), New
Zealand (5.2), Finland (5.2), UK (5.2), Switzerland (5.2), Chile (5.1), Sweden
(5.1), Germany (5.1).
Azerbaijan occupies the 77 position with an index rating of 3.9.
The next group of indices includes the available market sub index and internal market indices.
By the first measure of ratings indices were as follows: Chile (5.5), Singapore (5.5), Malta (5.3), Peru (5.0), Libya (4.8), El Salvador (4.7), Nicaragua
(4.7), and Costa Rica (4.7. Azerbaijan occupies the 66 positions (3.6), and
Germany - 75 (3.4).
Calculation of the effective regulation of transnational business at the industry level (foreign trade)
Studies have shown that regulation of transnational business at branch
level are mainly related to foreign trade, including export-import operations.
Of particular importance in the regulation of transnational business acquires a
transnational corporation SOCAR (State oil Company of the Azerbaijan Republic), since a significant proportion of the foreign trade turnover of the republic falls in energy and their components.
In order to identify the parameters of regulation of transnational business
at the industry level, we propose the following sequence of research:
- Systematic analysis of the dynamics of foreign trade, including exports
and imports;
- Research and analysis of foreign trade turnover by types of operations;
- Examination and diagnosis of the external trade classification standards
of international trade;
- Determination of the export quota of the republic;
- Determination of the import quota of the republic;
- Determination of the quota of foreign country;
- Determination of the share of exports in total exports of the Republic;
- Determination of the export quota in the production industry of the
country;
- Determination of structural specialization of industries;
- Determination of the coefficient of relative export specialization of the
industry.
We carry out research on the above sequence.
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System analysis of the dynamics of foreign trade turnover of the republic


was held on the basis of customs data. During the 2005-2013 biennium. foreign trade turnover increased from 8558.4 mln. US to 34,687.9 mln. US and
4.0 times, and for the period from 2010 to 2013. - 1.2 times; imports, respectively, over the same period - from 4211.2 mln. US to 10,712.5 mln. US and
2.5 times and 1.6 times. More rapidly developing exports, whose growth over
this period amounted to 4347.2 mln. US to 23,975.4 mln. US and 5.5 times.
Significant progress was made in terms of balance of trade, whose
growth amounted to 136.0 mln. US to 13,262.9 mln. US or 97.5 times.
The regulation of transnational business is largely dependent on changes
in the structure of foreign trade according to the classification; meet the standards of international trade.
Above we have shown the absolute key performance indicators of regulation of transnational business at the industry level, which give a general idea
of the degree of regulation of this sector as a whole.
More specific studies regulation of transnational business processes at
the industry level includes a number of relative indicators, which include foreign trade quotas, export quotas, import quotas, as well as indicators of economic benefit and efficiency.
Determination of export quotas. Our calculations to determine the export
quota in the country have shown that over the 2005-2013 bienniums. They varied in different ways (see. Table. number 4). As can be seen, the highest rate
of export quota accounted for 2008 (97.7%) and the smallest - in the 2007
(18.3%). In other years during the analyzed period, the export quota of the Republic ranged from 30.4% to 40.7%, which is consistent with international
norms.
Table number 4
Determination of export quotas million USD [13,18].
Years

Estimated
quota

2005
2006
2007
2008
2009
2010
2011
2012
2013

The export quo- The volume of Gross


domestic
ta, Ie%
exports,
product, GDP
32,8
4347,2
13238,7
30,4
6372,2
20983,0
18,3
6058,2
33050,3
97,7
47756,0
98852,5
33,2
14701,4
44297,0
40,7
21560,2
52909,3
40,3
26570,9
65951,6
34,3
23908,0
69683,9
32,6
23975,4
73560,5

Consequently, for the successful management of transnational business


on export performance should be guided by the export quota from 30% to
40%.

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Determination of the import quota. Results of calculation of the import


quota of the republic have shown that for the 2005-2013 bienniums. they
formed in different ways (see. Table. number 5). The highest rates of import
quota accounted for 2005 (31.8%) and 2006 (25.1%). From 2007 to 2013. import quota ranged from 12.5% to 17.3%. World practice shows that if the import quota does not exceed 20%, this country has everything it is possible to
provide themselves with the necessary goods and products.
Therefore, the main objective of regulation of transnational business for
imports should be reduced to ensure that not exceeded import quota of more
than 20%. To date, the country has been successful in regulating transnational
business imports.
Table number 5
Determination of the import quota million USD [13,18,19].
Years

Estimated quota

2005
2006
2007
2008
2009
2010
2011
2012
2013

The
export
quota, Ii,%
31,8
25,1
17,3
14,7
13,8
12,5
14,8
13,8
14,6

The volume
of exports i
4211,2
5266,7
5713,5
7170,0
6123,1
6600,6
9756,0
9652,9
10712,5

Gross domestic
product, GDP
13238,7
20983,0
33050,3
48852,5
44297,0
52909,3
65951,6
69683,9
73560,5

Determination of foreign quota The results are, by definition, foreign quota of the republic are presented in Table 6. data indicate that the highest
rates of foreign trade quota during the study period accounted for 2008
(112.4%), and the remaining years of the oscillation was 35 1% to 65%.
By international standards the optimal quota of foreign trade should
reach up to 60-70%. Therefore, it is necessary to increase the effectiveness of
regulation of foreign trade quota of the republic that the oscillation is in the
range from 60% to 70%.
Table number 6
Determination of foreign quota million USD [13,18,19].2
Years Design formula.

The export
quota, Iv,%

2005
2006
2007

65,0
55,5
35,6

197

The volume of
exports, +
and
8558,4
11638,9
11771,7

Gross domestic product,GDP


13238,7
20983,0
33050,3

2008
2009
2010
2011
2012
2013

112,4
47,0
52,8
55,1
48,2
47,1

54926,0
20824,5
27960,8
36326,9
33560,9
34687,9

48852,5
44297,0
52909,3
65951,6
69683,9
73560,5

An important indicator of the relative regulation of transnational business


is in export share of industry exports in total exports, the results of which are
shown in Table 7. As an export industry have been taken data on exports of
energy fuels and lubricating oils with chemical products and without taking
them into account.
The calculation results showed that the share of exports of energy fuels
and lubricating oils without chemical products for the years 2009-2013. ranged
from 92.72% to 94.42%, and with the even higher - from 93.40% to 95.34%.
In our opinion, the above data the share of energy fuels and lubricants in
the total value of exports is very high, which could eventually lead the country
in a strong dependence on energy.
Therefore, it is necessary to carry out an effective policy regulation of
transnational business, regardless of the oil and gas factor, i.e., to develop nonoil sector of the economy.
Table number 7
Determination of the share of industry exports in total exports mln. US
[13,18,19].
Years
Design
The share of exports in The volume of export The total
formula
total exports, K%
industries 1
volume
Excluding With con- Excluding
With con- of export
value,
the chemi- sidering
household
sidering
cal.
goods
goods
2009
92,78
93,40
13639,5
13729,7
14701,5
2010
94,15
94,76
20110,1
20240,3
21360,2
2011
94,42
95,34
25089,3
25331,7
26570,9
2012
93,10
94,10
22259,2
22498,8
23908,0
2013
92,72
93,45
22229,8
22405,2
23975,4
Determination of the export quota in manufacturing industry
It should be noted that in recent years the Government is effectively to
the development and regulation of the non-oil sector of the country. This is
evidenced by the data obtained in terms of the export quota in manufacturing
industry (see. Table number 8). as an example again taken these energy fuels
and lubricating oils with and without chemical products.
Table number 8
Determination of the export quota in manufacturing industry mln. dol.
United States (According rate of manat to the US dollar) [13,18,19].

198

Years

2009
2010
2011
2012
2013

Design
mula

for- The export quota in the


production sector, I1,%
Excluding
With
chemical
consigoods
dering
63,94
64,40
89,56
90,13
90,70
91,58
81,97
82,85
84,05
90,65

The volume of export


industries
Excluding
With
chemical
consigoods
dering
13639,5
13729,7
20110,1
20240,3
25089,3
25331,7
22259,2
22498,8
22229,8
23975,4

The
volume
of
industrial
production, PP
21332,2
22455,3
27660,7
27154,3
26447,4

Menko N.G. method was applied (Menko N.G., 1999, pp 306-307).


As can be seen, on this indicator for the years 2009-2013. fluctuation of
export quotas in the production of industry amounted to 63% to 90%, significantly lower than the share of industry exports in total exports (92% - 95%).
However, this is the initial stage of the effective management of export
quotas on energy. I think in the near future this figure will range from 60% to
70%.
Indicators of regulation transport business at branch level include structural factor of specialization of industries, estimates are given in Table number
9
Table number 9
Determination of structural specialization industries% [13,18,19].
Y
Design
Factor
The
ToThe
Total
ears
formula
structure of volume of tal
ex- volume of production
specializaexport
ports,
production of P
tion, Is
industries
industry,
o
Ro
2
1,000
92,7
93,4
63,94
64,40
009
8
0
2
0,999
94,1
94,7
89,56
90,13
010
5
6
2
1,000
94,4
95,3
90,70
91,58
011
2
4
2
1,000
93,1
94,1
81,97
82,85
012
0
0
2
1,070
92,7
93,4
84,05
90,65
013
2
5
As can be seen, for the period from 2009 to 2013 the coefficient of structural specialization industries remained almost unchanged (0,999 - 1,070),
which indicates that there should be a deeper policy transnational regulation of
business in foreign trade, to effectively develop all industries, those along with
mining activities expand manufacturing.
199

And finally, the final measure of regulation of transnational business can


be regarded as the coefficient of relative export specialization sector, estimates
of which are given in the table number 10
Table number 10
Determination of relative export industry specialization [13,18,19].

Years

2009
2010
2011
2012
2013

Design
formula

Ratio of
The
relative export share of exspecialization
ports
of
sector, Io
goods in the
country, U1%
2,796
93,40
2,654
94,76
2,502
95,34
2,400
94,10
2,330
93,45

The
share
of
world
exports
of
goods, V2%
33,40
35,70
38,10
39,20
40,10

According to the data of 2009-2013. the coefficient of relative export


specialization sector ranged from 2,330 to 2,796, ie there is a tendency to reduce them.
In our opinion, the tendency to reduce this factor will contribute to the
process of converging to international standards.
3.3. The index of transnationalization and its impact on the effectiveness
of regulation of transnational corporations
The regulation of transnational corporations, including SOCAR, is carried by many parameters. They can be general, indirect and direct nature.
In our view, the classification of the regulatory process transnational corporations should include a systematic approach, the parameters which may affect its effectiveness.
The paper proposed the following classification of regulation transnational corporations through the following set of parameters:
a) parameters of profit and loss of TNCs:
- Calculation of parameters that minimizes the volume of production
profits;
- Calculation of parameters that minimizes the loss in output;
b) the effect parameters and efficiency of TNCs:
- Determination of the economic impact of exports SOCAR .; (SOCAR State oil Company of the Azerbaijan Republic)
- Determination of the index of economic efficiency of export SOCAR;
- Determination of the economic effect of imports SOCAR;
- Determination of the index of economic efficiency of imports SOCAR;

200

- Determination of the economic effects of export-import activity SOCAR;


- Determination of the index of economic efficiency of export-import activity SOCAR.
c) the parameters of index numbers of TNCs:
- An index of transnationalization of TNCs;
- An index of incoming attracted TNC investment;
- An index of potential investments.
It should be emphasized that despite the variety of the above parameters
regulation of transnational corporations on a global scale is considered to be an
important indicator of transnationalization index TNCs.
However, in our view, a systematic approach to the study of the process
of regulation of TNCs to apply all of the above parameters, the study of which
will be given below.
3.3.1. Minimization profit in output in SOCAR. We begin with the study
of calculation parameters, minimizing gains in output in SOCAR. (see. Fig. 2).

Fig. 2. Calculation of profit minimizing production volume SOCAR


(Figure 2 is based on a database of SOCAR in 2014.)
As can be seen from Fig. 2, in general, SOCAR is a form of transnational
corporations that make a profit. Graphical part of the picture appears as a maximum area of profit equal to the difference between price and average total
costs. Hence, graphical area figure is profit SOCAR.
Then we calculated the parameters, minimizing the loss in output (see.
Figure 3.).

201

Fig. 3. Calculation of minimizing the loss of output (SOCAR)


(Figure 3 is based on a database of SOCAR in 2014)
Fig. 3. The zone is represented losses (graphical part of the figure),
where SOCAR should reduce output.
Therefore, SOCAR very effectively regulates transnational your business
using the best indicators of profitability and efficiency.
Further study on a group of b and define indicators of economic benefits and cost-effectiveness of export of SOCAR (see. Table. Number 11).
In calculating the economic benefits of export options have been used in
manat equivalent deductions Monetary Fund, the manat revenues from compulsory sale and the full costs of TNCs for export.
Calculations show that for 2012-2013, only. economic impact SOCAR
increased from 11,208.0 to 33,772.0 million AZN million AZN, or almost 3
times.
3.3.2. Determination of indicator of economic benefit exports SOCAR
However, the rate of economic impact is mainly characterized by overall
activities of transnational corporations, related to sales and costs.
Table number 11
Determination of the economic impact of exports SOCAR mln. manat
[13,18,19]

202

Years

Design formula

The economic
effect of export E

Manat equivalent payments


to the IMF, Ek

2012

11208,0

476

2013

33772,0

444

Local curThe
rency revenues
total cost of
from compulthe enterprise
sory sale, V
for export, Z
13877
3145,0
35163

2835,0

3.3.3. Determination of the economic efficiency of export SOCAR to


identify the true state of affairs in multinational corporations use the economic
indicator of export performance, the results of which are presented in table
number 12
Table number 12
Determination of the economic efficiency of export SOCAR (see. P. 14),
mln. Manat
Years Design formula
2012
2013

F
4,5637
12,5598

476
444

V
13877
35163

Z
3145,0
2835,0

Calculations show that the cost-effectiveness of export of SOCAR in


2012-2013 gg. increased from 4.5637 to 12.5598 million AZN million AZN or
2.7 times.
Next, define the indicator of economic benefit imports SOCAR, which
consists of parameters such as total cost of priority products and purchase price
on the product (see. Table. Number 13).
Table number 13
Determination of the economic effect of imports SOCAR, mln. manat
Years

2012
2013

Design formula The economic


impact of imports, i
2958,0
2579,0

The total cost of priori- The purchase


ty products, Z
price for the
products, CP
3145,0
187,0
2835,0
256,0

The results showed that for the years 2012-2013. Economic effect of
SOCAR imports decreased from 2958.0 mln. US to 2579.0 mln. USA.
The decline in the economic effect of imports to a certain extent affected
the index of economic efficiency SOCAR (see. Table. Number 14).
Table number 14
203

Determination of the economic efficiency of imports SOCAR, mln. Manat


Years Design formula
iP
Z
CP
2012
16,818
3145,0
187,0
2013
11,074
2835,0
256,0
During 2012-2013, economic efficiency of SOCAR imports decreased
from 16.818 mln. US to 11,074 ppm. USA.
It was also of interest to determine the index of economic benefit from
export-import activities SOCAR, the results of which are grouped in the table
number 15
Table number 15
Determination of the economic effect of the export-import activity SOCAR, mln. USD. US [13,18,19].
Years Design formula

2012
2013

The economic effect of The total ecothe export-import activi- nomic impact
ties, ie
of exports e
14,166,0
11208,0
36351,0
33772,0

The total economic impact on imports, i


2958,0
2579,0

As can be seen, for the 2012-2013 biennium. measure the economic effects of import-export operations SOCAR increased from 14,166.0 mln. US to
36,351.0 mln. USA.
Next, we calculated the integral index of efficiency of export-import activity of SOCAR (see. Table. Number 16).
Table number 16
Determination of the integral index of economic efficiency of exportimport activity SOCAR (see. P. 13), mln. USD. USA.
Years

2012
2013

Design formula

Integral performance indi- i


cator ie
4,2497
14160,0
11,7603
36351,0

The total cost


for exports,
Z1
3145,0
2835,0

Full import
costs, Z2
187,0
256,0

Results showed that in the 2012-2013 years integral indicator of economic efficiency of export-import operations SOCAR increased from 4.2497 ppm.
US to 11.7603 mln. USA.
Another indicator is the calculated index ii SOCAR, the results of which
are grouped in the table number 17
204

Table number 17
Determination of the index of transnationalization SOCAR, million
AZN.
Years
2012
2013

Design formula

Yt
S1
0,363 14031
0,395 15099

S
P1
21866 1393
23046 1651

P
3282
3270

1
1585
1571

Legend: Yt - the index of transnationalization; S1 - the value of foreign


assets; S - value of the total assets; P1 - sales abroad; P - total sales; 1 - staff
TNCs abroad; - total staff of the corporation.
As can be seen, for the 2012-2013 biennium.
ARDNSH transnationalization index increased from 0.363 to 0.395.
Importance has attracted incoming index definition SOCAR Investment
results are presented in Table 17. The results raised the index included SOCAR Investment for 2012-2013 decreased from 0.961 to 0.861.
Table number 18
Determination of the index attracted investments included SOCAR, million AZN.
Years Design formula
2012

Zi
1,643

Z1
438

Z2
392

Z3
420

2013

3,500

546

392

436

Comment:
Legend: Zi - an index of potential investments; Z1- value of the variable
in the country; Z2- minimum variable SOCAR; Z3 - the maximum value of the
variable SOCAR
4. Discussion. In the first direction, i.e. Regulatory transnational business
at the country level, based on a study of macroeconomic indicators can be certain abnormalities associated with external factors (increase or decrease in foreign exchange rates, the fall in oil prices, etc.).
In the second direction most consistent results on regulation of transnational business may be obtained at the branch level, as regulation of foreign
trade is mainly concentrated in the hands of the state.
Relatively reliable results on regulation of transnational business may be
obtained at the microeconomic level, i.e. at TNK, as the system is much more
flexible and subject to various transformations.

205

66234
61088

5. Conclusion
5.1. Determination of control transnational business at the level of the
country gave the following conclusion.
- Basic macroeconomic indicators of the country for the 2005-2013 bienniums increased significantly (GDP - to 12522.5 million AZN to 57708 million AZN or 13238.7 mln. us to 73,560.5 mln. us, per capita GDP - to 1494.3
manat to 6207, 3 manat or 1579.8 dollars US dollars up to 7912. US, the share
of private sector GDP - from 77.8% to 82.5%; the composition of GDP: production - to 8307.2 million AZN to 36,588,200,000. AZN services - to 3141.3
million AZN 17429.7 million AZN up;
- System of National Accounts: total output - to 20252.3 million AZN
81061.5 million AZN up; intermediate consumption - to 8676.3 million AZN
27043.6 million AZN up; Taxes on production and imports - with 974.1 million AZN 3874.1 million AZN up; final consumption expenditure - to 6579.7
million AZN 30838.2 million AZN up;
- Accounts with economic transactions with the rest of the world (as of
2012) - almost all respects these accounts there are negative indicators;
- Positive changes in all aspects of the national income;
- The balance of payments - current operating account - to 163.3 million
AZN 12317.8 million AZN up; revenues - with -1,645.6 -4,120.6 million AZN
million AZN up;
- Low levels of the index of competitiveness of the country: the growing
global competitiveness index - Rank 39; outstripping the rating indices - Rank
77; market and non-market indexes - 66 grade and 95 grade, etc.
5.2.Raschet performance regulation transnational business at the industry level (Foreign Trade) gave the following conclusion:
- For the 2005-2013 biennium. the growth of foreign trade turnover increased from 8558.6 mln. US to 34,687.9 mln. The United States, including
imports - to 4211.2 mln. US to 10,712.5 mln. USA; export - to 4347.2 mln. US
to 23,975.4 mln. USA; the balance - with 136.0 million USD to 13,262.9 mln.
USA.
- Changes in the export quota - from 32.8% to 32.6%; import quota from 31.8% to 14.6%; foreign quota - from 65.0% to 47.1%;
- Change in the share of industry exports (energy fuel, oils and chemical
products for 2009-2013. From 93,40% to 9345%;
- The change in the export quota in manufacturing sector during the analyzed period from 64.40% to 90.65%;
- The structural change in the coefficient of specialization of industries
from 0,999 to 1,070;
- Fluctuation coefficient of relative export specialization of industries from 2,330 to 2,796.
206

We believe that effective management of the results of foreign trade of the republic will enhance the effectiveness of transnational business at the industry
level.
5.3. Defining indexes transnational SOCAR and its impact on the efficiency of regulation of transnational corporations gave the following conclusion:
- Calculations minimizing gains and losses in output SOCAR over tighten towards profitability;
- For the 2012-2013 biennium. Determination of the economic benefits
and cost-effectiveness of their exports show an increase, respectively, with
11208.0 million AZN 33772.0 million AZN up with 4.5637 million AZN to
12.5598 million AZN;
- For the 2012-2013 biennium. Determination of the economic benefits
and cost-effectiveness imports also showed their growth, respectively, 2958.0
mln. US to 2579.0 mln. The United States and the decline from 16.818 mln.
US to 11,074 ppm. USA;
- For the 2012-2013 biennium. Determination of the economic benefits
and cost-effectiveness of the export-import operations indicate their increase
according to 14,166.0 mln. US to 36,351.0 mln. US and 4.2497 ppm. US to
11.7603 mln. USA;
- During the study period the index of transnational SOCAR increased
from 0.363 to 0.395; Index attracted incoming investments decreased from
0.961 to 0.861; Index of potential investments increased from 1,643 to 3,500.
Therefore, the above positive results SOCAR give grounds to assume
control of the effectiveness of the transnational corporations.

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All of the tablets were made by the author.

Pic 1. calculation parameters, minimizing gains in output in SOCAR3

Pic. 2. Calculation of the parameters, minimizing the loss in output of


SOCAR 4
3
4

Pic. 1 was composed based on the data base of SOCAR in 2013.


Pic. 2 was composed based on the data base of SOCAR in 2014.

209

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