The Revelation Of Intra-firm Trade To Chinese Enterprises Internationalization

Intra-firm trade is an important method of transnational corporations(TNCs) in international trade. With the development of TNCs, intra-firm trade is changing in the form and content constantly. The theory is also improving continually. As the global economy continues to progress, carrying out in-depth research and analysis to the intra-firm trade has its necessity in both theoretical and practical significance. Particularly the rapid development of China's economic asks to foster a group of TNCs belonging to China. Study of intra-firm trade has an important guiding significance to the internationalization of Chinese enterprises.This thesis contains three parts:the preface, the main body and conclusion. Details about research background, contents and the methodology are included in the preface. Then the main conclusion of this thesis is that Chinese enterprises can still develop into TNCs via intra-firm trade, even though Chinese enterprises have weak foundation and the experience is not rich enough. The main body of this thesis includes four parts:The initial part is a summarize of intra-firm trade. It is mainly about the motivation of intra-firm trade, development, status and trends of intra-firm trade. First, the development of intra-firm trade and status are analyzed briefly. Then, the essential motivation of intra-firm trade is the incomplete market. Also,the trends of intra-firm trade is related. The continuous development of TNCs and the internationalization of developing countries led to intra-firm trade progresses both in the form and content. And because many countries have been aware of the impact of intra-firm trade, they all take measures to deal with it, making the intra-firm trade more subtle.In the second part, some researches have been done about two main factors which affect the intra-firm trade. First, the relationship between intra-firm trade and foreign direct investment(FDI) is listed. It is shown that FDI can expand and improve the global network of TNCs and promote the operating global integration of TNCs. That means FDI can bring a variety of favorable conditions for the development of intra-firm trade. Then, I state the price of intra-firm trade, that is, intra-firm trade conducted on the application of the transfer price analysis of reality. Prices can be divided into clean price and transfer price. When carrying out trade within TNCs make more use of transfer pricing, the formulation and function of transfer prices have been carefully analyzed.The third part is the revelation of intra-firm trade to Chinese enterprises internationalization. China's economy is developing rapidly, which needs cultivate a number of TNCs belonging to China. International business enterprises face many difficulties and risks and intra-firm trade take great part in international trade, so carrying out in-depth research and analysis to the intra-firm trade has practical significance to Chinese enterprises. This section starts from the present situation of the internationalization of Chinese enterprises, which analyzes the necessity and possibility of China's TNCs using intra-firm trade. And then I point out some problems give some advices when we using intra-firm trade: 1. Enlarge FDI to establish the corporate network. 2. Develop technical orientation enterprises to enhance the international competitiveness of Chinese enterprises. 3. Taking flexible path of internationalization. 4. Develop strategic alliances to enter the international market. We can use intra-firm trade help Chinese enterprises"going global".