Within Multinational Companies Trade On China's Economic Influence And Countermeasures Research

With the development of economic integration, international trade of transnational corporations plays a more and more significant role in the worldwide trade. At the same time, their internal trade has being imposing profound effect on the host countries, the invested countries and even the whole world economy due to their huge scales and proper ways. Recently, more attention has been paid to internal trade by institutions and countries all over the world. The member countries involved have strengthened the control of transnational corporations and their internal trade through the relevant rules and policies within WTO multilateral frame and systems of regional economy.With the entry into WTO, China will inevitably embroil itself in the tide of economic globalization. China has revised its foreign investment laws and established new relevant policies to adapt to WTO. What's more , many world famous multinational corporations begin to reconsider the position of China in their strategy and take China into account in their global operation network in order to meet their global strategic need, Meanwhile, there is a gradual increase in the scale of internal trade among overseas-funded enterprises, which gives rise to profound influence on many economic fields in China such as foreign trade, international relations, technology import and national economic benefits.By reference to available literatures about internal trade inside transnational corporations, it was P. J. Buckley and M. Casson who firstly elaborated the motivation of transnational operation on the basis of transaction cost theory in 1976.By contrast, the following western scholars mainly carried out the same research from the perspective of motivation of FDI and strategic management. In view of surprising amount deficits of multinational corporations, domestic scholars began to study internal trade in early 1990s and principally focused on price-transfer. Thus, this paper initially investigates the impacts of multinational corporations on China's economy, especially negative effects on processing trade, technology import, international relations, etc, and puts forward relevant countermeasures.Based on the cognition of the facts and theories mentioned above, the theme of...