The Value Net In Multinational Corporations And Its Value Units

According to the UNCTAD (united nations conference on trade and development), there are about 77,000 parent companies and over 77,000 abroad subsidiary companies. In 2005, these subsidiaries abroad hired 62 million workers, earned 4 trillion dollars with over 4 trillion export dollars in it. The international direct investment which takes the multinational corporation as the main body creases rapidly. The international corporations expand and grow at a speed which is quite unprecedented. In order to face the highly complicate global competitive situation of the new age, the international corporations need to surmount a lot of difficulties and barriers such as distance, language, time zone, convention and tariff when they coordinate their efforts and resources. Many international corporations especially giant company begin to try new business models and adjust the structure of organizations. The traditional hierarchy model changes into net model gradually. The value net is generated and developed with the changes.This article has six chapters. I try to deeply analyze connotation, feature and cause of the value net in the international corporations, analyze effects and influence of the international corporations, and dissect the competitive advantage source of the value net in it. Base on the analysis, I preliminary investigate how to establish and preserve the main units of the value net in the international corporations. In my opinion, the value net is an effectual weapon to help firm to adapt mounting competitive pressure, globalization and harsh private demand from customers. It helps company to reduce exchange cost and solve customer problems, rather than simply sell products; it also helps company to turn more efficient and foster core competitiveness; it is agile and maneuverable to adapt high-speed change of environment. The value net in the international corporations is combined with three parts: value-realize unit, value-produce unit and the international corporation itself. Have excellent value units will help the international corporation success.