| When modernized company developed into internationalization, Transnational company was born, it was the operation method to collocate resources reasonably and efficiently in the world to adjust to the complex production technology and international exchange. As the development of economic globalization, Transnational cooperation played a more and more important role in the world economy. And FDI (Foreign Direct Investment) is a fundamental and major means for a Multinaitonal Corporation(MNC) to expand its international market and exploit its internalized market in accordance with its global strategies. Traditionally, Transnational Cooperation inclined to invest directly to other market by the way of wholly-owned company, however, because of the limitation of concerned policy in host country and the considerations of TNC itself, joint venture was also the basic way of FDI. As we all know, joint ventures routed in different systems and cultures, the two parts has different background, so their objectives are inconsistent. In one side, Worrying about the loss of their key technology or their management experience, the TNC always dose not leave the other part to manage the company, In the other side, the company in host country desire to obtain the modern technology through cooperating with the foreign companies, as a result, conflicts appeared between the two parts, they all make great efforts to control the joint venture, and this became one of the most important part in the management of joint ventures.The article firstly made a conclusion about the theories about how to control joint ventures, and then built a model to analyze this subject. On this basis, the article researched two problems, firstly, which factors lead to the power to control the joint venture, secondly, how to control the joint venture. At last, the article predicted the trend of sino-joint ventures and put forward some suggestions and countermeasures for China government and the companies in our country. |
