The Study Of The Intra-firm Trade Of MNEs In China And Its Negative Influences To Our Economy And The Countermeasures

The rapid development of multinational enterprises (MNEs) has become the focus of the world attention. Particularly, the large amount of intra-firm trade conducted among the subsidiaries of MNEs has provoked the extensive attention. According to the statistics of UNCTAD, one third of the international trade belongs to the intra-firm trade of MNEs, and about 80% payment of the technology transferring fee is completed among MNEs. In order to reduce the uncertainty of the external market, they try to find an internal organizational mechanism instead of the external market mechanism and this attributes to the rapid development of interior investment and interior trade.With the gradual opening to the outside since the 1990s, china has become the top country in absorbing foreign capital among the developing countries, and the arrival of many MNEs, of course, will produce a great quantity intra-firm trade. Due to the varieties of the methods of intra-firm trade and the enormous scale, it will exert great influences to host country and even the whole world economy. So it would have a realistic meaning to probe into the intra-firm trade of MNEs, to learn its negative effects to our economy and to put forward some policies and measures to evade these negative effects.Firstly from the large angle, the paper analyzes the mechanism that MNEs carry out intra-firm trade, including the theoretical foundations and price mechanism. In this chapter I make a study of its important mechanism -transferring price, which mainly bases on the manufacture's equilibrium theory, and analyzes the optimum model of the transferring price with the goal to have the best profit for the whole group. The third chapter begins to the research of intra-firm trade of MNEs in china, explaining the reason, form, scale and decisive factors of its intra-form trade. Among them, the paper focuses on the intra-firm trade scale of MNEs in china through the analysis of the theory and linear regression, and gets the conclusion that there is an amount of intra-firm trade of MNEs in china. And then, on the basis of the conclusion that the paper has proved, the fourth chapter analyzes the negative effects in different respect. Finally, to these negative effects, the paper puts forward some corresponding countermeasures and policies which I hope will help our country utilize MNEs more effectively.