| Transnational Corporations (TNCs) have a great influence on the world economy, with their output making up a tenth of the world GDP, trade volume one third of the world total. The total number of TNCs a nation has also reflects its international competency. Listed on top of biggest TNCs are those from the US, Japan, and European nations. The absolute influence and competitive edges of TNCs from advanced countries have posed a question for both economists and entrepreneurs to answer, whether it is viable for a developing country to develop its own multinationals. Some economists have proposed in theories that competitive edges can be found in specific industries under specific circumstances in developing nations. In a dynamic perspective, these edges, when properly utilized, can lead to industry upgrading, and in turn bring new competitive edges. The involved enterprises can be progressively internationalized in such a process. That is to say, in a developing nation's modernization process towards developed nation, it is viable and necessary for its enterprises to institute international operation, and as a result the enterprises will realize their internationalization in the process. In practice, the rapid growth of TNCs in newly developed Asian countries and regions has set a good example, verifying the viability of developing TNCs in developing countries. As a requisite and definite result of its own development, China will melt into world economy in an open economic environment. Its enterprises will inevitably take to international operation, with an aim to enhance the national competency and corporation growth.At present, few enterprises from Chinese mainland have been seen in international operation and global resource configuration. For those involved, their international business is mainly in trading, while manufacturing is few and international marketing worldwide is rare. The utilization of international capital is also not so often happened. This situation is extremely true among manufacturing enterprises. Most Chinese enterprises do not bear the traits that a TNC has in organization structure, operation strategy, business model, and management. Nonetheless, internationalization is a requisite and trend in modern socialized production and internationalized operation, as well as the requirement for a corporation on its way to TNC. Therefore, the government should adopt macro policies in favor of transnational development to promote Chinese enterprises' overseas operation. Meanwhile a progressive approach should be followed to reflect the reference to TNCs' history. Priority strategies for specific industries and regions also should be adopted to give preference to resource exploration businesses in the areas of petroleum, coal, and mineral ores, which will have a strategic influence on the nation's economy and security, as well as to traditional industries, home appliance industry and engineering contracting. FDI in the neighboring countries and developed nations should be encouraged aiming respectively to develop markets and upgrade industry.Based on the assumption that the same type of businesses should have common traits to form a developing model, foreign businesses of a same type have been analyzed and used as a reference for Chinese enterprises. On the other hand, the model that businesses have followed is strongly pertinent to the culture, history and reality of the mother country. For example, a typical model for industrial TNCs has been emerged in western countries, while another typical model for trading businesses has been emerged in Japan and Korea. As an oriental socialist country, with reference to successful foreign models though, China has to develop its own model based on its own competitive edge, international market demand, and location advantage to reflect its own tradition, culture and reality. Therefore, different models are analyzed for the transnational operation of industrial businesses, trading businesses and financial businesses. Internal and external factors and c... |
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