Local Management Of Transnational Corporation And Development Of Regional Economic

Urged by interest and competition, more and more transnational corporations areimplementing local management stratagem since 21 century. Local management stratagem notonly can promote effectively transnational corporations' global management development, butalso can impulse host country to develop economy in a certain extent. Using theories andmethods concerns on economic geography, economics, and managing, the thesis analylizesthe concept and connotation, relative theories, cause, and regional function of transnationalcorporation local management. Then, the thesis systematically researches the influence oftransnational corporation local management on the host country on the view of economydevelopment. On the basis of the former study, this dissertation strives to formulate somemeasures so that the host country can accept the influence of transnational corporations' localmanagement strategy. At last, adopting quantity analysis and quality description methods, thethesis systematically analyzes the effects of international corporation local management toChangchun, and summarizes development countermeasure in the future of transnationalcorporations in Changchun. The thesis strives to enrich the theory of transnational corporationand develop the research scope of human geography. And the thesis also expects to contribethe development of transnational corporation local management to Changchun, as well as tothe developing country. This thesis consists of introduction, text and conclusion.The introduction mainly expounds the background, meaning, analysis methods and thefundamental structure of the study.There are four chapters in the text.Chapter One, the thesis reviews the theory of transnational corporation localmanagement. The local management of transnational corporation is that the transnationalcorporations utilize all kinds favorable resources of host country and adopt local civilization,custom, belief and tradition to produce, manage, and sell. In this way, the transnationalcorporation can reduce cost and advance the competing ability. At present, the localmanagement comprises raw material localization, manpower recourse localization, R&Dcenter localization, management localization and marketing localization. The global stratagemand local stratagem of transnational corporation are supple and promote each other. Thefactors that effect the local management of transnational corporation involve manpowerrecourse, industry foundation, technique level, market climate, and policy circumstance, andso on.Chapter Two mainly discusses the influence of local management of transnationalcorporation on regional economic development. Firstly, it can offset the gap of savings andforeign exchange of host country. Secondly, it can promote relevant industries developmentand industry upgrade. Thirdly, the local management of transnational corporation can impulsetechnology advancement in host country by technology transfer and spillover. Fourthly, it canadvance quantity and quality of employment. Fifthly, it has a sufficient significance toscale-up host country's foreign trade. Sixthly, the local management of transnationalcorporation also has some negative impacts on host country, such as snatching the market ofthe enterprise of host country, weakening the capability of host country's exploitation andmastery the most advanced technology, aggravating host country industry declination,inhibiting host country industry development, etc. So transnational corporation localmanagement is a "double-edged sword". How to face the contradiction is the host countryevitable impendent problem.Chapter three forms some measures to accept the influence of local management oftransnational corporation on the host country. First, the thesis figures that industrial clusterplays an important role in accepting the effect of local management of transnationalcorporation. Then put forward some approaches to cultivate and develop industrial cluster,such as extensively fetching in foreign enterprise to cultivate industrial cluster, introducingforeign mainstay corporation, establishing and consummateing product network of industrialcluster, etc. Next, the thesis proposes that technological simulation and innovation helps thehost country to absorb the transnational corporation's technology. Host country can carry outtechnology imitative innovation by importing advanced technology, studying the productionof transnational corporation, simulating transnational corporation management, etc. Then, thethesis believes that the more labour quality of host country, the easier the local managementof transnational corporation impact to exert. So, for the future the host country shouldstrengthen foundation education, augment education investment, consummate vocationaleducation system, establish inspirit mechanism to improve the quality of labour. Last,institution transplant can accelerate exertion of the impact of transnational corporation localmanagement, and the approaches the host country can take are forced transplant and causedtransplant.Chapter four is empirical study section. On the basis of analysis of the developmentstatus and condition of local management of transnational corporation in Changchun, thethesis analyzes the influence of transnational corporation local management on Changchuneconomy development by qualitative method, namely enhancing Changchun' economy,impulsing industry upgrade, heightening employment, enlarging foreign trade level. However,transnational corporation local management also has some negative inpact on Changchundevelopment, such as snatching the market share, aggravating industry structure declination,inhibiting technology innovation, etc. To promote transnational corporation local managementand to improve its contribution to Changchun' development, the paper points out that thegovernment of Changchun should take such countermeasure as cultivating and consummatingindustrial cluster, improving manpower quantity, enhancing technology development,consummating the institution of transnational corporation local management, etc.The last section summarizes the essential conclusion, main contribution and unsolvedproblem, at the same time the thesis points out the research direction in the future.