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National Interests: Priorities and Security
 

The conflict of national and corporate interests and the offshoring process in global and Russian economies

Vol. 12, Iss. 6, JUNE 2016

PDF  Article PDF Version

Received: 24 February 2016

Received in revised form: 9 March 2016

Accepted: 16 May 2016

Available online: 28 June 2016

Subject Heading: INTERNATIONAL ECONOMIC RELATIONS

JEL Classification: F10, R12

Pages: 137-145

Puzakova E.P. Rostov State University of Economics, Rostov-on-Don, Russian Federation
e-puzakova@rambler.ru

Shepel' T.S. Rostov State University of Economics, Rostov-on-Don, Russian Federation
tasiwka@gmail.com

Importance The intensive offshoring process in the global economy, on the one hand, provides great opportunities for businesses seeking to maximize their profit, and, on the other hand, brings huge detriment to many national economies and their development, as they are especially susceptible to outflow of non-transparent capital. This issue grows very relevant for the scientific community.
Objectives The research constitutes a comprehensive and systems analysis of the conflict of national and corporate interests and its forms during offshoring of global and Russian economies. We identify the specifics of national companies' involvement into the global offshoring process, and evaluate implications of such participation for those countries, who contribute to the process as a whole and Russia, in particular.
Methods The research relies upon methods of structural and functional analysis and synthesis, comparative, historical and logic analysis, moving from abstraction to specific conclusions.
Results The article shows that profit-making, as the main corporate pursuit, contravenes the main interest of the contributing State, i.e. growth in the national wealth and welfare. Non-transparent shifting of capital, goods, services in the offshore schemes undermines fundamentals of progressive development in global economy, making its development cyclical.
Conclusions and Relevance The presented theoretical analysis can be used by governmental authorities to activate international cooperation in deoffshoring of global economy and find new tools to counter offshoring of national economies.

Keywords: global economy, national interests, offshoring, offshore company

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