The Development Of TNCs' International Production Systems And The Tactics Of Chinese Enterprises

At the beginning of 21st century, great changes took place under the global economic environment. The most important changes among those are economic globalization, innovation of technology, the loosening of economic polices in each country and the sharpening of the toughness of competition. In order to adapt to the abrupt changes of global economic environment, TNCs have to set up international production strategies. Thus, TNCs locate different parts of the production processes, including various services functions, across the globe, to take the advantage of fine differences in costs, resources, logistics and markets. TNCs' international production systems come in to being and develop under this background.TNCs allocate resources in the world gradually. On one hand, they focus on the high value-added functions such as research and development of technology and marketing; on the other hand, they transfer the manufacturing function to their members of their international production systems through a arrange of equity and non-equity relationships.Chinese low labor costs and good manufacturing bases make China the ideal target for TNCs to transfer their production functions. China's entry into TNCs' international production systems brings opportunities and threats to Chinese economy.This dissertation tries to study the way how Chinese enterprises grasp the opportunity to make full use of TNCs' international production systems to developthemselves during the development of TNCs' international production systems.This dissertation is divided into five chapters.Chapter 1 illustrates the emergence and development of TNCs' international production systems from the respects of theoretical foundation and practical drives respectively, and describes the situation, drivers, core elements and new features of them. Then it introduces the core elements of TNCs international production systems.Chapter 2 firstly analyzes the influences of TNCs international production systems on the world economy. Secondly, this chapter analyzes specially its far-reaching influences on Chinese economy.Chapter 3 is the emphasis of this dissertation. This part discusses the tactics of Chinese enterprises to use TNCs international production systems. This part firstly points out the relative policies and measures of the government to help Chinese enterprises to make use of TNCs international production systems. Then, it analyzes the specific tactics of Chinese enterprises. Chinese enterprises must make long-run strategies when they make use of TNCs international production systems. At the same time, they have to know the specific ways to use it. This chapter makes detailed study on these two aspects.From the above research, we can reach the main points of this dissertation:The development of TNCs' international production systems exerts great impacts on the world economy, especially the economy of developing countries. During the process of making using of TNCs' international production systems, Chinese enterprises must base themselves upon long-run strategies. They should take the opportunity of joining TNCs' international production systems to grasp core technologies, cultivate core competence, set up their own brands and increase their competitiveness at last. Chinese enterprises should also explore the specific ways to make use of TNCs' international production systems. Large state-owned Chinese enterprises could let TNCs to participate in the process of assets restructuring to deepen the reforms; large Chinese enterprises could try to be contract manufactures of TNCs. SMEs could provide outsourcing business with TNCs or become theirsupporting suppliers to develop themselves.