Under The Conditions Of Economic Globalization, The Rationalization Of China's Manufacturing Industry Organization

In the half century since the founding of the People's Republic of China, especially since beginning of reform and opening, China has become a major industrial power; Manufacture industry has taken a giant step. But there are many problems in the developing of manufacture industry. It's necessary from a major manufacture country to a power manufacture country. This paper analyzes the problem of our manufacture industry in aspect of industrial organization, and advises the according policy.China manufacture industry got a history chance for developing, because of relative advantage and transition of world manufacture industry. It's a necessary condition improving china industrial organization structure (IOS), which has character of strategy. China manufacture industry presents over-competition market structure comparing with monopoly phenomenon in developed country, which offers a mythos to study rationalization of china industrial organization against the background of globalization. Competition is study subject of industrial organization, so studying competitive power under industrial organization is a reasonable choice, which is useful for us to establish analyzing model about competition.There is important argumentation in traditional industrial organization (TIO) those enterprises conduct influenced by market structure that influenced by industrial concentration ratio, product differential, and barriers to entry, which arrange major topic of industrial organization in compact theory frame. New industrial organization (NIO) emphasizes that market structure determined by the technology and demand, especially, studies enterprises strategy conduct based game theory. Paper analyses chaotic and unreasonable industrial organization of china manufacture industry by the means of demonstration, based TIO and NIO. Because every countries market contact and affect each other against the background of economic globalization, new problem of industrial organization would occur. Developing of international trade since 1970's provided new theory tool to research industrial organization under economic globalization. New trade theory inherited industrial organization theory analyzing imperfect competition market, explained inter-industrial trade phenomenon based scale-economy and product differential, which provided thought for studying industrial organization problem against background of economy globalization: firstly, industrial organization theory and new trade theory study same market in which enterprises product one kind of good; secondly, in theory frame, they have same hypothesis about scale-economy and product differential; thirdly, new trade theory have a important deduction--strategy trade policy, which is helpful for studying entry barrier.There is contradiction among scale-economy and monopoly. With development of economy globalization, these markets of each country will be integrated. The change of market scale will influence the market structure. Though many economists admire function of competition, market concentration ratio has an elevating trend in developed country, oligarch monopoly spread among world market. The contradiction of scale-economy and monopoly has changed, large-scale enterprise can move the lose of monopoly to world market, remain profit of monopoly; advantage of monopoly is a important condition of competition power in developed country.Reward increasing with enterprise scale is an objective law; the efficient of large-scale enterprise is more excellent than middle-scale and small-scale in china manufacture industry market performance. There is a positive correlativity among industrial concentration andenterprise market performance, which accord with conclusion of foreign industrial organization theory. The positive correlativity doesn't represent threat of monopoly but represent the deficiency of scale of economy in china manufacture industry. The over-competition and de-monopoly market structure has been limited condition for improving competition power of china manufactu...