Russian companies foreign market entry mode choice based on transaction cost theory

Aim. To substantiate the possibilities of applying the theory of transaction costs as a scientific and methodological basis for determining the form and method of entry of Russian companies into foreign markets.

Methodology. The theoretical basis of the study was provided by scientific works of Russian and foreign scientists, devoted to both economic theory in general and the institutional direction of economic science in particular. The following scientific methods were applied during the research: bibliographic analysis, system analysis, as well as methods of deduction and induction, comparison and analogy.

Results. The scientific article presents the key characteristics of the theory of transaction costs, gives a brief description of the peculiarities of foreign economic activity of Russian companies, presents the tools of the theory of transaction costs in the interests of determining the most effective forms of foreign economic expansion. The authors conclude that in the light of the dominance of raw material companies in the Russian economy, which are characterized by vertical integration, the application of the theory of transaction costs is seen as particularly relevant.

Research implications. The material presented in the article expands and complements the theory of transaction costs in relation to foreign economic activity of Russian enterprises.

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