Activities of Transnational Corporations as a Determinant of the Development of «New Regionalism»: the ASEAN Experience

Abstract

The article is devoted to the analysis of the activity and influence of transnational corporations (TNC) as non-traditional actors of international relations on the development of «new regionalism» as a multilevel process. In the case of «new regionalism», the activity of TNC promotes the interdependence within the region, and foreign direct investment becomes the basis for the development of the region.

The authors concluded that Southeast Asia in the format of ASEAN has a positive experience of implementing the «new regionalism» under the influence of TNCs, which contribute to the determinism of global and regional cooperation. This tendency could be described by the following features.

Firstly, the development of a network of intra-regional cooperation TNC based in ASEAN member states, which is manifested in the creation of an appropriate conditions for bilateral and multilateral cooperation encouraged by governments. It was found that within ASEAN exist countries that have the most fragmented structure of TNCs and those that become the object of foreign direct investment. This contributes to the creation of an appropriate «open» investment climate within the organization.

Secondly, TNCs from other countries, which are expanding their network in ASEAN member states, are setting up joint ventures with existing companies in the region. It was revealed that ASEAN has created conditions for open access of TNCs to the regional market in the format of multivariate cooperation, implementation of free trade zones and attraction of foreign direct investment in the region. The activities of TNCs from Europe, USA, China, Japan and Republic of Korea confirmed such interdependence within ASEAN. Despite the lack of a free trade area between the EU and ASEAN as integration associations, European campaigns are active in Southeast Asia on a bilateral basis.

Thirdly, the implementation of joint projects between global TNCs in Southeast Asia, which is manifested in the transnationalization of international relations within ASEAN and openness to involve non-traditional actors.

It was found that the activities of TNCs in ASEAN may be negatively affected by the security situation in the region and competition from the United States and China, but the current level of integration in ASEAN and openness to doing business, guarantees the stability of multinational corporations and confirms the implementation of «new regionalism» in ASEAN.