The Research On Basic Influencing Factors Of Location In Multinational Corporations

With the rapid development of economy globalization and deepening of world economy integration, multinational corporations(MNCs) are becoming increasingly significant in the whole economy chain, which are leading the trend of international trade and investment. Meanwhile, in this complex economy environment, how to locate the subsidiaries for the MNCs and how to maxmize the profit in global area are becoming the focus of the economists'discussion and research.However, as two important factors which affect MNCs'locating choice, distance and space have been ignoring for a long time. Based on the Dixit-Stiglitz Model, economists like Krugman created New Economy Geography with the help of research results of new trade and growth theory since 1990s, which opened out before people as the forth wave of The Increasing Return to Scale Theory Revolution, and growed up fleetly because of its new conception and adventage. After the publication of Geography and Trade written by Krugman in 1991, New Economy Geography have been mature. In recent years, New Economy Geography are still paid close attention to both in economic and geographic domain. Meantime, the development of New Economy Geography have providing new theoretical frame and research approches for the MNCs'location subjects.Based on foreign and domestic research results, this dissertation attempts to try to analyze the influencing factors of MNCs'location subject using space and distance as the points of penetration from New Economy Geography's point of view, and try to make clear conclusions. Firstly, after the Theories Review and Literautre Review, this dissertation divides the theoretical analysis into three paratactic factor:Transportation, Increasing Return to Scale and External Economies, and elaborate the influence to the MNCs'location subject seperately. Secondly, the dissertation discusses further about the MNCs'location subject from New Economy Geography's point of view using empirical reseach of econometrics. Finally, the dissertation makes clear conclusions and puts forward policy and suggestions in order to assist the domesitc coporations to maximaze the profits and invest outward successfully.