Multinational Strategic Evolution And Measures On China's Industrial Competitiveness

The multinational corporation (MNC) is not merely an aggregate of resources ora carrier of international investment and international trade, and it is still the importantsubject of international competition. The MNC can cut both ways to strengthen theirindustry competitiveness not only for the host country but also for the base country,the strategy developing of MNC must exert a deep influence on them. As adeveloping country, it will be a long-term task in the economic development of ourcountry to strengthen industry competitiveness. As our country mix in theglobalization of economy quicker and quicker, our enhancing of industrycompetitiveness will depend on the international direct investment more and more.Absorbing foreign direct investment and carrying on direct investment overseas bothinfluence the industry competitiveness of our country.We absorb even more direct investment than carry on outside, and china is amain host country of the direct investment. This illustrates our country is a passivecompetitor of international direct investment. The MNC has been going through fromindependent subsidiary and simple integration to compound integration during1960~1970s, from pluralistic development to concentrating on core business whileoutsourcing during 1980~1990s, from life-and-death competition to cooperativecompetition since 1990s.This indicates the MNC should not only monopolize theadvantages, but also accumulate the advantages; not only accumulate the advantagesinside, but also accumulate the advantages outside. But the essence of MNC is topursue the monopoly profits. No matter accumulate inside or outside, MNC should doit's best to strengthen advantages, but accumulating inside is the base of advantages.The strategy developing of MNC has a deep impact on industry competitivenessof our country. In a whole, the externality of MNC is favorable for us to enhance ourindustry competitiveness, however the integration is unfavorable. Concentrating oncore business while outsourcing attempts to strengthen the control on industry whileutilizing natural endowment of resources in our country, R&D alliance, as a mainform of cooperative competition, is to obtain innovative resources from our country.Even though R&D alliance sometimes has sure function on our enterprises intechnology, but perhaps there is "trap" in R&D alliance. With the trend of accelerantdevelopment of technology and heavy control on our technology by MNC, it is...