Research On The Intra-firm Trade Of Multinational Enterprises

Intra-Firm Trade of Multinational Enterprises (MNEs) embodies the influences made from FDI and international production and operation of MNEs to nations and global economy. Reason and condition analysis of Intra-Firm Trade is an important consideration to connect international trade with FDI theoretically and a basic breakthrough point to know world trade and global industrial structure.This paper has three main targets. Firstly, reason of Intra-Firm Trade was studied micro-economically. Secondly, constraint condition of Intra-Firm Trade way and scale were made by mathematic and statistic deduction .Thirdly, the determinants of unilateral and bilateral Intra-Firm Trade were studied by empirical examine.This paper made logic conclusions and deductions on the reasons of Intra-Firm Trade from Transaction Cost Economics point of view and empirically explained how MNEs can use FDI and their motivation and conditions to make exterior market interiorized and why MNEs can develop Intra-Firm Trade and why MNEs have motives to make Intra-Firm Trade by make Intra-Firm Trade practical function analysis.Benefits and constraint of Intra-Firm Trade was studied by quantitative analysis. Operation constraint conditions which MNEs use different Intra-Firm Trade ways have been deducted, namely, microeconomic partial equilibrium and general equilibrium condition such as firm's production quantity, trade scale, internal production cost, external trade cost, sales price , firm's income( markup revenue or profit) when export, horizontal integration production and vertical Integration production were implemented. How market size, transportation cost, tariff, export drawback, export subsidy, production cost and national endowment of resources impact different multinationals operation was analyzed. It is focused on cost and production quantity of intermediate...