The Research On The Effect Of Multinational Corporation's Divestment From China And Set Up An Early Warning System

The globalization of the economy offers a free environment to the international capital flows.Along with the development of Multinational Corporation's(MNC) business,the divestment of Multinational Corporation is increased,and negative influences on the host country are gradually apparent.In our country,we have got a great progress in using FDI, but the divestment also brings many negative effects in the employment,international trade,balance of payments and industry development fields.This article focuses on the risk of MNC's divestment as viewed from our country and set up an early warning system to monitor the divestment tendency.It systematically analysis the divestment's phenomena and find the root courses,based on large numbers of the divestment case and the subsistent theories including domestic and oversea.By induction and deduction,the article discusses the effect factor of divestment to the host country.Although the MNC can decide to divest from our country,our government can do something to stop it.After analyzing the function and signification of government monitoring and early warning,the author designs the framework of government monitoring and early warning,explores the method of early warning.