Multinational Local Embedding Process Mechanism

It has been a big issue for developing countries and regions over Multinational Corporation(MNC)'s local embeddedness, on which the success of such developing economies' folio wing-up strategy by utilizing FDI is largely depending. Unfortunately, there often occurs an opposite situation — "footloose", which raises great concern both for host countries, scholars, and other parties concerned. "Footloose" is usually used to describe such phenomena as MNCs' little linkages whih the local, very likely to relocate, and limited spillover locally, etc, which runs opposite to local embeddedness. Therefore, one might doudt that, under today's trend towards globalization, whether MNCs would really embed themselves locally; if the answer is yes, then what factors will affect the process of MNCs' local embeddeness.In reality, there are two important characteristics of MNC's local embeddeness behavior: Firstly, MNC does not embed automatically, the process of which is full of conflicts among different parties' goals, namely non-automatic. Secondly, rather than selfdeterminant, the behavior of local embeddedness is affected and constraind by various social, institutional and cultural factors from the host regions, namely non-selfdeterminant. Therefore, in order to understand local embeddedness and solve the problem of conflicting goals, it is better to view this issue from both perspectives of MNC and the local party, and see it as the dynamic bargaining outcome of various forces in multi-dimentions. Theoretically, scholars from different backgrounds have provided various explainations on MNC's local embeddeness, among which the local-global approach, the global-local approach and the MMC behavior approach are the most representative. Although various approachs provide certern insights on local embeddedness, each one captures only one side of the problem. So it is reasonable and greatly necessary to combine the above different views. Concerned with the obove background of both realistic and theoretical sides, we take process of MNC's local embeddedness as the central subject of this dissertation, and adopt an integrated and dynamic oriented methodology.With the central subject, four principle research foci of this dissertation are: (1) How to difine the concept and internal path of local embeddedness dynamically? (2) What factors will affect the process of MNCs local embeddedness, and under what forces efficient equilibrium could be reached? (3) Under what circumstances it might turn out to be inefficient equilibrium outcome? And how dicision making behaviors will be when MNCs are facing the pressure to relocate? (4) How to empirically study the above theory and hypotheses?During our research, questionnaires were used as the main research instruments...