Regulations On Transnational Investment Monopoly In Developing Country

This thesis aims at discussing the impact brought to local economy by direct investment from multinational enterprises.Internationally there is not yet any international anti-monopoly law or international competition law in place;and there is no such international organization like international anti-monopoly bureau or international competition bureau as the main monitoring authority.Therefore,the necessity to establish international anti-trust law and international anti-monopoly bureau has become the topic of this thesis.In the light of the development of global economy,it is also an appropriate time to evaluate the impact brought to local economy by direct investment from multinational enterprises.Accession to the World Trade Organization('WTO') does not only bring opportunities and challenges to enterprises in developing countries, under the idea of global economy,developing countries in the world are also facing the competitions,mergers and acquisitions from international investors from outside.Based on the schedules to open local industries formulated by the WTO,it is inevitable for multinational enterprises to enter local market through the mechanism of merger and acquisition on the one hand.On the other hand,to monopolization of the local market by multinational enterprises through these merger and acquisition activities will also emerge.The question of how do developing countries adopt non-intervening market policies while at the same time protect domestic market,increase productivity,facilitate technological advancement,increase competitiveness,better distribute resources is a question from economic perspective;however,from a legal point of view, it is necessary to pass or formulate laws to monitor the merger activities by these multinational enterprise which lead to monopolization and overuse of the market.Enterprises in the market are facing the ever changing competitive environment that they must change themselves in order to adapt to new changes in market,they must increase productivity,effectively utilize resources so as to increase their competitiveness in the international arena. These enterprises can make new distribution of resources;develop overseas market through overseas investments such as cross-boarder merger and acquisition.Merger of corporations is one way for enterprises to develop their market,and nowadays merger and acquisition activities have already exceeded the boundaries of border and has become a way of cross border investment,among which the merger happened in 90s of 20th Century between the German company Daimler-Benz and American company Chrysler LLC was one of the well-known,it marks the starting of another new multinational corporation merger tide and global economy,and it also implies that the merger activities among multinational corporations will be getting more and more severe.This type of multinational merger activities cause countries to consider the question of market monopolization.International anti-trust law is an independent legal subject developed on the domestic anti-trust laws of different countries,and it is used to regulate and coordinate economy management ability of countries.As said previously,under global economy,competition is no longer limited to the domestic market of a country,the activity of each body in the market will to certain extent have direct or indirect influence to the international competition order for that international anti-monopoly law regulate the market competition through the domestic laws of each individual country,so domestic anti-trust laws does not only act in regulating domestic competition relations,they also coordinate overseas competition relations.On the issue of multinational investment,merger and acquisition,anti-monopoly laws have the following understandings.First,a merger is a combination of two corporations in which only one corporation survives;second,it is through the acquisition of shares of the target company to achieve the control over the corporation,and it is through the change of share right to achieve the control over the merged corporation;third,two or more corporations reserve their respective independent legal personality,and through agreements,cooperation to form the relationship of control and being controlled,this formed the market based on the Cartel economy form.In economy,Oligopoly means a minority of enterprises in the market, their business focus on products with similar or different qualities,the productivity and sale of their products have occupied a large market share. These corporations are mutually dependent on each other,and it will be different for each individual of them to enter or exit the market easily;and the competitions among them are not only price competition but also non-price competition.The discussion of monopoly is on the basis of a single corporation,while the research of oligopoly is on the basis of a few number of corporations,it can be the activities of a group consisting of two to five small corporations.Therefore,in the research of this topic,I will discuss the cause for international monopoly,and the impact brought to local countries by the direct investments from multinational enterprises. To research on the behaviour of oligopoly,I'll conduct my discussion by using a combination of monopoly economy theory and law.Lastly, propose my suggestions in establishing international anti-trust laws.On the issue of solving the problem of monopoly,first,we shall discuss the relationship between economic development and monopoly polices.Second,we shall discuss what methods we shall use to evaluate the monopoly activities of corporations in the market and determine the basis of investors' monopoly over the market,and in the process of merger and acquisition,how do we determine the basis of market monopoly based on the share of merger and is this the only way? Third,international community has already proposed anti-monopoly law, we can make reference to European Anti-competition law,through case laws and mechanism,e.g.how to judge the monopoly behavious of corporations in the market,how to determine the corporation's leading position in the market,to monopolize the market through merger and acquisition of other corporations;besides,we can also make reference to law of other countries such as Fair Trading Act of the U.K.,the Competition Act of the U.K.,the Guidelines of merger in the U.S., Antitrust Act of the U.S.,the Guidelines of European Anti-trust laws, Guidelines on merger in European Union,and the Trade-Related Anti-Trust Measures("TRAMs"),the Trade Related Investment Measures ("TRIMs") and etc.Furthermore,whether we should establish an international anti-trust authority,an organization such as the WTO;how to establish such an authority,what is the role of this authority? And also the question of who the will monitor this authority,how large is the power to be given to this authority,and whether to give judgment to countries which violate such an international anti-monopoly law.We know that apart from continuously carrying out the promise of WTO by each WTO member country after their respective accession to the WTO,another meaning of WTO is the global economy/unification of global economy,in the process of this emergence of unification of global economy, international monopolization activities also emerge,what impact this international monopolization activities would bring to global economic development especially that of developing countries will be also discussed at last.