Industry Organization Effect Study Of The Multinational Corporation Entry To Our Country

The multinational corporation are investing our country, which is one kind of economicbehavior that changing the contest framework and market composition in our country. Deepeningfurther in the wake of our country entering WTO effect along with reform and open in the pastfew years, more and more multinational corporations are pouring into China, and such enteringrange and depth are changing, and the industry organization entry to our country has come intobeing the obvious effect. In order to make the multinational corporation entry accords with thedemand that our country industry developed more further, and we have to study deeply themarket action character, and makes the relevant foreign capital policy to standardize the FDIaction. Nowdays most studyintroduces the research progress that the west industry organizationtheory make, aimed industry organization status at the age of our country planned economy limitopen market economy in the early days. Yet at present the market economy system shunt, Nationcapital is carried on recombining strategy, multinational corporation entry under the new postureand follows the example of coming into being the fundamentality alternation to our countrymarket concentrating degree, market action and performance, they analyze about this theme arelimited. Weight the advantages and disadvantages analysis that the multinational corporationentry, domestic scholars has discuss fromother different angles. I study chiefly the effect on ourcountry from the industry organization theory angle, which is the multinational corporation entry,groping for foreign capital policy, which is fit for present, our country economic situation. Intheory, I think that the multinational corporation entry (including increasing our country marketconcentrated degree, causes main part pluralityization and high entry barriers and lower exitbarriers) action which optimize the composition in market, and the international by means of thecontest in multinational corporation market conducts the effect, and turn to the more maturecontest strategy of our country, business market competition only depend on price fightingtransition through in the interest of gives priority to with the non- price contest. In economicsperformance, I believe the obvious positive effect in the foreign capital as a whole, the concreteembodiment is living to come into being on" the effect is spilled over to the technique",whichby means of relationship effect to advance domestic industrial , and enhance the governmentefficiency , along with improve the resources utilizations ratio and etc . At the same time, I try totestify my standpoint by means of demonstrationalong with mathematics model analysis. FinallyI analysis workable competition market theory, I put forward our country industry organizationoptimization target. I argue the government must constitute appropriate foreign capital policy,industrialpolicy to ensure country industry security.