| Transnational corporations (TNCs) are the major impelling force to the globalization of economy. There are more than 60,000 transnational corporations in the world, whose total production value accounts for about 25% of the world total production value. These corporations control more than 65% of the international trade value as well as 80% of the world technological development and transfer. Transnational corporations have attracted wide attention from governments, enterprises and academic world in every country. In the competition of overall power, transnational corporations are not merely the main force in scrambling for the world market but also show directly the competitive capacities of a nation.By the combination of theory and practice, in both micro and macro ways, the author is to illustrate systematically competition and competitive strategies, to explain the features of the internationalized value chains of the transnational corporations, to analyze the competitive advantages and strategies by starting with value chains. Then the author is to analyze the theoretical foundations for the development of Chinese transnational corporations as well as to put forth the possible competitive strategies for China to choose from.I. Competitive Theory and Theories of Competitive StrategiesCompetition belongs to historical category, related to commodity production and marketing economy. Since Adam Smith, economists have been establishing competitive theories. According to Smith, to increase national wealth, the best policy is to grant absolute freedom to individuals in their economic activities. John Mill carried forward Smith's theory, thinking that trading freedom must be assured; that competition might probably not be the best conceived stimulation, but that it is a necessary stimulation up to now; that nobody can predict at what point progress will not depend on competition.Marx classified competitions into historical category and disclosed for the first time the economic relations under the mask of competitive phenomena. He analyzed the historical status and developing trend of competitions with great insight and foresight more than just took it as an economic phenomenon. According to Marx, competition is a fighting process of technology, economy and society, undertaken by capitalists pursuing and realizing the most profits. As far as productivity is concerned, competitions have led to technological innovations and organizational reforms so the labor efficiency is correspondingly raised. As for production relations, competitions are basic approaches for individual capitalist gaining surplus values and monopoly profits and for the whole capitalist class carving up and possessing surplus values. From the historical trend, the enhanced competitions are to cause capitals accumulated and productions centralized, so as to lead capitalism from free competition to monopoly stage. Yet, instead of wiping out competitions, monopoly has intensified competitions, as a result of which of fundamental conflicts of the capital society have become sharper accordingly.In 1930s, the theory of monopoly competitions was advanced by some economists, the revisions of the theory of traditional free competitions. The significance of the new theory does not lie in its own special and profound connotation but lies in the fact that the emergence of this theory led to great changes in the traditional approach. Under the condition of marketing economy, the whole operating activities of the inherent law of commodity economy, that is, the law of value, are accomplished in the process of competitions. Marketing competitions are the inevitable outcome of the inherent contradictions in goods production. First, the formation of magnitude of value won't be isolated from the market competitions. Second, the realization of value won't be separated from the market competition. Third, law of value can exert its regulatory function only through market competitions.From the superficial aspect, competitions seem occur among...
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