Study On The Transnational Operation Of Township Enterprises

With the development of the unification of the global economy, the transnational operation is becoming one of the main characters of our modern worldwide economic operation and the transnational corporation have become the most actives the most important and the most influential type of economic organization. So far, there are over 60,000 transnational corporation in the world ,furihermore they , which cover 90% of the global direct investment and 40% of the world production and 60% of the international trade , are worldwide the most important investors and establishes. It is well known that the world economy will develop in the direction of the transnational operation.Our township enterprise, which mainly consists of medium sized and small enterprises, have achieved great progress in export of commodity and in overseas operation since the Reform and Opening which took place over 20 years ago,furthermore they have become an important growing point and are also playing a considerable role in export business of our country. When our township enterprises are actively introducing foreign capital and technology to improve steadily their capability of export, some potential township enterprises are also led to go abroad to do business and to develop transnational operation. There were 1886 township enterprises which had established their overseas ones and their total investment was 16.5 billion yuans by 2000.However ,as compared with their foreign counterparts , we have smaller size of enterprises , lower ability to make technical innovation and less advanced management system ,and there is also a long way left for us to go both in respect of the exploitation of intellect and of the capability to compete in market. With the development of globalization of the world economy and especially with our entrance into WTO, our township enterprises will meet the great challenge and the hard competition from overseas and domestic market. Therefore, facing the globalization of the world economy and the freedom of the trade & investment, it is our practical choice to develop our transnational operation, that is, to encourage and support the township enterprises to open overseas market and to benefit from the direct overseas investment.In order to guide and improve the transnational operation of our township enterprises to develop healthily, steadily and sustainedly , based on the tendency of the unification and globalization of world economy and the feasibility and necessity of the transnational operation of our township enterprises , the author applied the theory of international foreign direct investment and put the township enterprises into the range of the medium sized and small enterprises , as a result , put forward , in macro and micro ways , some strategic thought and a few concrete measures about the transnational operation of our township enterprises .