Research Of Entendable Capital And Its Effect

With the formation of globalization of world economy, the economic competition is more and more fierce between the countries, Competition between states is mainly among enterprises. If Enterprises want to be survival and development in market competition, It must be not only to emphasize and strengthen the marketing, human resources, institution building,corporate governance structure building, technology development and other aspects of the management,We must also seek to cultivate and improve the enterprise's core competitiveness , core capital will be formed based on the competitiveness of enterprises and be applied in market.Researching enterprise development cannot leave the most basic economic concept of Capital and its subsequent Extendable Capitalization. In classical economics, capital means loan interest and principal should correspond , It was originally produced in currency lending relationship .Capital is defined as any form of items which is stored and over consumption by Economists since currency represents any kind of goods. Adam Smith thought Capital limited to the aggregation of production methods , only through production can obtain new revenue in the whole society. Since then, capital,land and Labour paratacticly become the three essential factors of production. Another famous economist Ponti Barwick argues that capital is a kind of natural force stored by labor, it is a storage of Labour, hence realized interest. In recent years, due to the emerging concepts such as financial capital and the capital of technology concepts ceaselessly, capital concepts appeared different degree of extention in different economic domain. Some scholars think there exist social capital and organizational capital in the enterprise. Recent research shows that: in a perfect market economy, monetary capital, knowledge capital and consumer capital should co-exist. For long time, only monetary capital is an unique flower in our country market economy, plays a crucial role.But the owner of the knowledge capital and consumer capital have not be much accounted by people for long time, even in the state of be desalt, especially the owner of consumption capital, formed the adverse situation only rely on single monetary capital to develop economic in China. since the 1990s, people knew the importance of capital more and morethe research result indicates that: the knowledge capital can expand the function of existing monetary captial, it is necessary to open and utilization knowledge capital when rely solely on monetary capital to meet enterprise and the state's economic development needs, to Play great and special function. thus create more wealth for enterprise and national. The further development of market economy make people understand more profoundly that the consumer is the true master of market , is the ultimate decision power of market competition, and put forward a new notion of capital ,think that consumption capital is the power and resource of economic growth.This paper is divided into three sections.The first part is a preface.Introduced briefly question,research status and significance, etc.In the industrial economy era, enterprise and national mostly just solely rely on monetary capital to develop economy. However, with the advent of knowledge economy, developed economiccountries began to pay more attention to the gradual clear knowledge capital, and plays a role in the economy. Entering the 21st century, with the further research of economic theory and practice of economic development , the third form of capital, the consumption capital, begins to get people's attention. It can promote the the economic development of enterprise,national and regional along with monetary capital and knowledge capital . Therefore, the research of the capital extension and its function have important theoretical significance and practical significance for the economic development of enterprise and the national , this is the tenet of this study.The second part is the subject of articles, is divided into four chapters. Chapter 1:the theory and practice of foreign and domestic capital extension. Capital extension performed by accompanying the research of economic growth at the same time, also be needed by the economic theory research. From the early capital determinism theory that value the accumulated capital, it has experienced Solow' neo-classical economic growth theory, Schultz'human capital theory and Romer and Lucas's endogenous growth theory, these theories completed the preparation of capital extension.The knowledge capital is a milestone of the capital extension concept,the the latest capital extension is proposed by consumption capital theory.Chapter 2: meanings and its role in history of monetary capital.monetary has the function of medium of exchange, value standard, deferred payment standard, value storage and world currency , no matter how many times Commodity Exchange will not will make the medium value-added. But in capitalist society, because Labour became commodities, makes the currency is converted into capital. Monetary capital functions are buying labor and production material, preparing production conditions for the surplus value. monetary capital are the origin of all capital movement, the movement process is accompanied by the process of combination of labor and production material into reality producing process, and finally the circulation process that produce the value-added . the combination of product material and labor need monetary capital input, so prepaid monetary capital is the key point and promote the whole cycle. Social production promoting continuously need monetary capital.Chapter 3: arising and realistic effects of knowledge capital.This chapter is the key part in this paper. in the knowledge economy era, the enterprise as a unique body of knowledge, its members'knowledge and enterprise knowledge capacity, structure and innovation ability are the primary factors to meet the market demand, enterprise knowledge replaced work, factory buildings, equipment, raw materials and products in the industrial economic era, it has become the key production elements for enterprises to participate in the market competition ,maintain competition advantage ,promote the enterprise value. In this chapter, the article utilized the VAIC to carry on the quantitative analysis to the knowledge capital of enterprises. The article selected our country's representative high tech listed of new energy company for the sample object, using the Eviews6.0 statistical analysis software, to carry on the regression analysis to establish two kneading board data model. The findings indicated that the knowledge capital of enterprise is playing more and more important role.Chapter 4: the prospal of consumer capital and its future development.Consumption capitalization theory converted consumer behavior into capital investment philosophy theory. In practice can use consumer equity, consumer investment, consumer options and consumer choose a variety of forms such as consumption to extent to production areasj, it is the core content of consumption capitalization. Enterprise's implementing consumption capitalization strategy can generated four effect , they are scale economy, consumption gathered, capital precipitation, "harmonious consumption". Implementation of consumption capitalization strategic needs a series of measures, including the generalized of consumer concept. General consumers including consumer individual, the association composed by individual consumer and social legal enterprise which act as consumer identity. The general consumer concept can help consumers solve the consumer at a disadvantage in the market.The third part is the conclusion.According to the former chapters about theoretical analysis and empirical studies for capital extension , there are following conclusions:The first, capital concepts are extend ceaselessly.With the development of world economy, capital concept is extend ceaselessly. Capital not only includes the traditional monetary capital, but also the knowledge capital and consumer capital.The second, the knowledge capital is playing an increasingly important role.With the arrival of knowledge-based economy, the enterprise knowledge replaced the industrial economy era of land, buildings, equipment, raw materials and products, it has become the primary capital for enterprises to participate in the market competition and maintain competitive advantage, promote the enterprise value and the key factors for production, the enterprise knowledge capital is playing an increasingly important role.The third, the enterprise core capital is the key factor for enterprise development.Enterprise rely on capital to particapte in the market competition,gain advantage and profit.Analysing the function of monetary capital, knowledge capital and consumer capital, we can draw the conclusion that enterprise is inevitable to exist with a current special capital which is different from other capital in different phases.It is a capital which can coordinate with other capital,magnified other capital's affect to bring competitive advantage, we called it enterprise core capital. Core capital is the base of enterprise core competence,is the most direct elements to produce and promote core competence.This chapter also discussed the relationship between enterprise core competence and the enterprise core capital, the conclusion is different core capital determines the core competence of the different structure and enterprise management mode.To achieve sustained competitive advantage and high profit in the market need enterprise to develop and make good use of core capital, give play to the role of core capital,cultivate and promote enterprise's core competence ability to make the enterprise develop sustainably.