THE ROLE OF EUROPEAN PHARMACEUTICAL TNCS IN THE CREATION OF THE EU SINGLE MARKET
The research was conducted on the basis of studying the impact of the European pharmaceutical multinationals on the creation of the EU pharmaceutical single market. Awaring of the growing costs for research and development, trying to keep its monopoly, TNCs resort to geographical expansion of the productive capital. Nowadays, to take advantage of the integration process, TNCs are forced to create strategic alliances and dealt with mergers and acquisitions.
The European Union is a typical example of integration and global internationalization of economic activity. The above-mentioned reasons with the EU facilitation for the creation of the EU single market and an effective conditions for the process of cross-border mergers and acquisitions have become an impulse for the growth of corporate integration within the EU. In addition, the processes of mergers and acquisitions have several advantages, including obtaining synergic effect, economies of scale, saving time, ownership of strategic assets of the other companies, increased market power, diversification of risks, increased financial opportunities. Thus, the major players in the EU pharmaceutical market are the largest European pharmaceutical multinationals, which were created through agreements of mergers and acquisitions. And it should be noted, they further integrate the European pharmaceutical market through investments in strategic alliances and mergers and acquisitions. Often mergers or acquisitions are made on the basis of prior long-term relationships between firms in the form of strategic alliances.
Thus, we can conclude that the participation of TNCs in the process of mergers and acquisitions and strategic alliances not only grows the economic power of TNCs, but also promotes interpenetration of the economies. Therefore, it should be noted that cross-border cooperation contributes to the integration process, and, as it has been analyzed on the example of the European pharmaceutical industry, creates a single regional market of the industry.
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Keywords: transnational corporation (TNC), integration, pharmaceutical industry, mergers and acquisitions, strategic alliance, synergistic effect |
CORPORATE FINANCE
Tronenko Natalia
postgraduate SHEI «Kyiv National Economic University named after Vadym Hetman»
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