Multinational Companies And Industrial Concentration,

Industrial agglomeration has now become an important economy phenomenon. For instance, Silicon Valley is famous as the home of high-tech companies, and 128 Highway in Boston gathers mini computer industry. There are other well-known agglomerations such as Medison Avenue's advertising industry in New York, office furniture in the West Michigan, California's entertainment industry and so on. All these agglomerations and the economic vitalities they burst out have attracted a lot of attention.Industrial agglomeration in China has entered a rapid developing period after mid-1990s. It will greatly influence our regional economy and industrial organizations. As a new form of industrial organization, industrial agglomeration can also improve regional competitiveness and promote regional economic development. To some extent, we can say that the development of industrial agglomeration is directly related to the potential and trends of China's economy.In the era of economic globalization, international direct investment, which makes multinational corporations (MCs) as the carriers, plays an important role in the world economic development. In recent decades, FDI in multinational corporations has become a driving force in the development of economic globalization. And the huge international production systems of multinational corporations have turned into the most important carrier of capital, technology and goods which are moving around the world.With the globalization of the world economy, multinational corporations have toured extensively all over the world, even in the industrial agglomeration of SME. In China, the rapid economic development attracts a large number of multinational corporations to invest and to set up factories. With the entry of transnational corporations, the SME agglomerations have been extremely impacted, even including the upgrade of core competitiveness of some leading industries. In view of this, transnational corporations are essential, theoretically and practically, to the research on the formation and development of industrial agglomeration. moreover, both the multinational corporations and industrial agglomeration issues can affect our policy on...