Research On Location Choice Of Transnational Corporations Manufacturing Investment In China

With the development of economy globalization, the investment on manufacturing of transnational corporation (TNCS) in China is becoming more and more active, so there are many theories on this. But because there are many differences in. sources of TNCS, motive of corporations, management strategies and various districts in China, the location choices on manufacturing industry of TNCS in China are made a complicate and dynamic decision process. In this condition, there are some defects in the traditional theory research such as, lacking of systematic research framework, static more than dynamic, synthetic more than comparative, obsolete more than creative. Therefore, on the basis of these defects, it should be improved in the theories on the location choice of investment on manufacturing industry of TNCS in China.In this paper, we aim to study the location choice of investment on manufacturing industry of TNCS in China. Detailed information has been acquired by the author using foreign direct investment theory, transnational business, regional economy, and economical geography. And the method used in our study is known as link theory with practice, link quality with quantity, comparative analysis and systematic analysis. The procedure can be briefly described as follows. In theory study, on the basis of FDI theory and location theory, special mention is given here to the location decision factors in location choices in FDI of TNCS. In practice study, according to the regional distribution and changes of investment on the manufacturing industry of TNCS in China, the author is now initiating some experimental investigation in investment history, strategy changes and investment behavior characters, and based on this, it comes to the conclusion that there are many factors such as cost, market, agglomeration economy institution and social culture. In addition, the author gives a case study of Motorola in China to prove the conclusion in detail.In summing up, it may be stated that on the basis of our study, we can give some suggestion on the FDI utilization and instruction on how to invest in China to TNCS.