Font Size: a A A

The International Comparative Research Of Internationalization

Posted on:2006-04-22Degree:DoctorType:Dissertation
Country:ChinaCandidate:D C XuFull Text:PDF
GTID:1116360155454620Subject:World economy
Abstract/Summary:PDF Full Text Request
Internationalization refers to domestic companies' activities of production and management aiming at earning profits by direct investment and on the basis of building up branch system or the subsidiary companies aboard. Multinational Company is the future model of the multinational operating companies'deeply developing, and also is a necessary course and phase for domestic companies to be a Multinational Company (MNC). Since the beginning of the 60s of twenties century, many western researchers had a deeply and systematic research on the theories of Internationalization, and formed many internationalization theories which have different analysis perspectives and are from many different theoretical groups. These theories can be classified into the following main kinds. The fist theory is based on internationalization theory of International Trade. They are the Product Life Cycle Theory of Professor Ramond Vernon, Harward University, which combined American macroeconomic structure and products creation of the MNC to explain the reason and regional choices of American MNC's overseas direct investment. And Kiyoshi Kojima's Marginal Industry Expanding Theory, which believes that one country should start overseas direct investment from the industry that have already been or are to be in the comparative inferior position. The second theory is based on internationalization theory of Foreign Direct Investment. The representative theories include the Monopoly Advantage Theory raised by an American scholar, Stephen H. Hymer, which believe that the incomplete competence of market is the radical reason of MNC's international direct investment. And the Internalization Theory made by Professor Buckly, Leading University of England, this theory tries to explain the reason of foreign direct investment by analyzing the relation between market transaction system and internal transaction system of enterprises. And the Theory of International Production Compromise by Professor Dunning whose core thought is the transnational investment policy decision is affected by the advantages of property,internalization and region. The third theory is based on the representative internationalization theory of the developing countries and areas. Louis T. Wells, Professor of Harvard University, link the Technological Theory of Small-scale then, think enterprises of developing countries have production technology suitable for small-scale market's needs and obtain the competition advantage, and can fill in the market space; Sanjaya Lall, British economist, draws Technological Innovation and Industry Upgrading Theory to think that developing countries can form some unique advantages to carry on the foreign direct investment by the localization or locality of the imported technology; John Dunning's StageTheory of Foreign Direct Investment has announced that the positive correlation relation between the ratio change of a country's direct investments flowing in or out and the country's gross national product per capita through the method of pragmatic research. The fourth theory is the theory of internationalizaion based on the competition advantages. Comparing with their domestic enterprises,host country and the third county's enterprises on these terms, Internationalizaion Competence Advantage refers to MNC's advantages on produce,marketing,organization,technology(or R&D),management, etc. This advantage must have a course from forming to the study of transnational management to cumulating international experience. Oneenterprise with no advantages can form and develop its own advantage progressively by foreign directly investing,transnational management study and cumulating international experience. Besides the above-mentioned theories, different operators have different natural endowment, which make the concrete reasons of transnational management very complicated. This paper has compared the difference between the developed countries and developing countries emphatically. Generally speaking, resource seeking type, market seeking type, efficiency seeking type and strategic assets seeking type form four main reasons for transnational management of developed countries with representatives as the USA, Japan and Europe. Through comprehensive comparison among transnational management of developing countries like Brazil, South Korea, China Taiwan and petroleum exporting countries, this paper suggests that trade promoting type, cost-orient type, and resources seeking type, market seeking type, technology obtaining type and surplus capital seeking type form six main reasons for transnational management of developing countries. In addition, in order to expand development space, some non-mainstream reasons like joint venture founded under regional economic cooperation and evading political risk of home country and making use of foreign capital also have effect on that. From the perspective of practice, the course of enterprise transnational management is also the course of transferring its resources like capital,facilities,technology,brand,management capability and so on to different target countries by different way of investment in order to serve the strategy of transnational management. There are three main way of entry into foreign market for enterprise to choose. They are entry by trading,entry by contract and entry by investment. Nowadays, with the movement of international economy towards globalizationday by day, the function of governments in transnational management is more and more obvious, with its importance more and more outstanding too. The growth of one country's MNC must make fast reaction to international market competition, hit out voluntarily and seize the international market on the basis of collecting and analyzing the international market information and holding market chance. In this course, the government can depend on its own advantage, on one hand offering the good system norm and policy support at home, and offering good investment environment and information service for national enterprise through the diplomatic means on the other hand. From the perspective of the relationship between market and government, government's macro-control on enterprise's micro-behavior has the general characteristics, and including the macro-strategy,service function and the system of management. But to different countries and developing phrase, it also has the special characteristics. This paper focuses on developed country government's function in enterprise's transnational management. The research method is drawing the conclusion of government behavior's general characteristics and way according to its special characteristics. Meanwhile, having a comparative research on the concrete conditions of different countries on the basis of special characteristics. With the constant development of the international economy, the countries all over the world follow globalization strategy, it is the idea that every country tries to rely on one's own advantage and carry on transnational management with the minimum cost. Not only there are developed countries in the MNC's home country, but also there are developing country and socialist state, which have changed the situation that it is that a developed state company unifies the whole country at first. The international direct investment is no longer presented too one-way, but two-wayor more. No matter developed country or developing country, with the economic development and improvement of the opening, enterprises move towards the international market one after another and start the business of internationalized production and management. Since the seventies of the 20th century, developing countries'and regional process of industrialization accelerated, a lot of country or area develop into new developing industrialized economy, for instance Singapore, Korea, Hong Kong , Brazil , Mexico , Peru , Argentina ,etc. developing some trans-corporations gradually, even developing into the big trans-corporation. With the constant development of globalization, trade investment liberalization, and various countries'economic liberalization degree rises, the mutual direct investment between the developed countries, between developing countries, between developed country and developing country, has already been the trend of the times. As for developed countries, in the face of the constant innovation of the foreign investment way and the pluralistic world market of the contents and means of investments abroad day by day of the means, they must seek actively the globalization management strategy suitable to them to make them keep favorable status and keep the vitality and continuous development. And for developing country and area , should learn to imitate , when in the face of the numerous and complicated international political situation and economic situation even more, also make the accurate judgments to choose the most suitable for national development transnational management strategy and economic development path. Obviously, the government's role is very important in this course. Through the research on the transnational management of developed countries, developing countries, the target is finding finally the beneficial experience and enlightenment to Chinese enterprises to carry on transnational management. This textstudies the transnational management state of China finally. China encourages enterprises to carry on the trans-nation "Go-Out policy", experiences a long term from the beginning of our reform and opening-up to putting forward in the nineties of the 20th century, then to final proposition in the "16th National Congress of Communist Party of China " by 2002. The implement of the "Go-Out" policy is a necessary course for China to grasp initiative, realize national economy's sustainable development among the competition in economic globalization. It is also an inevitable process of promoting the economic internationalization, developing open economy. It is the urgent need of promoting national economic restructuring; it is an important action of fostering the Chinese MNC and the need for China's "Peaceful Rising ". As the subject of "walking out ", enterprises should proceed from realistic state, adopt the pluralistic development. At present, because China is in status of state of being middling generally in the international division, it is not still the big country of capital export, so besides direct investment externally, external labor service, external co-development of resource and agriculture, and the cooperation in the field of service trade,etc. is and will be an important form of " walking out " at present and in the future. Equally, China specific position in international division determine the transnational management of two of different nature will coexist: advantageous type relying mainly on the developed country, studying type relying mainly on the developing countries. To those different specific way of " walking out ", there will be different national choice too. At present, China should further perfect the service system of " walking out ", create a good external environment for " walking out " , deepen the management system reform of " walking out ", explore the new field and new way of " walking out " in order to accelerate implementing of the " walking out "...
Keywords/Search Tags:Internationalization
PDF Full Text Request
Related items