The Adjustment Of Multinational Companies' Strategy Of Investment And Operation Under The Condition Of Economic Globalization

Under the condition of economic globalization, multinational companies which are the direct pushers to globalization deeply revise their strategy of investment. This text will systemically analyze and conclude the adjustment of multinational companies' strategy of investment and operation to help Chinese enterprises to execute 'go-abroad-management' strategy and multinational companies to operate abroad.Firstly, multinational companies revise their investment targets, investment areas and investment methods. Instead of traditional investment areas' predominance, some modern factors determine the oversea investment areas that multinational companies choose. The factors are whether the commercial culture and social circumstance of the area tend to be innovative, whether the area has the professionals which own created and innovative ability, whether the area has the correlated industry and enterprise group and whether the area has enough knowledge, wisdom and intangible assets accumulation. So the style that the capital of multinational companies in developed country flow into developing country is out of date. On the contrary the multinational companies in similarly developed countries invest in each other and the multinational company in developing country tends to invest in developed country. As far as investment methods are concerned, multinational company invests in a series of correlated fields or every parts of a business according to the global markets' unification for multinational investments which means multinational companies does not only invest in one or two projects any more. The investment decision-making of multinational companiy aims to elevate its international competition ability based on global markets and strive to realize investment strategy' s globalization, systematization, investment method' s diversification and internationalization. Nowadays, because the international investment' s cost and venture of multinational companiy are continually increasing according to the prevailing New Trade Protectionism and increasing drastic competition in international economic fields, many multinational companies like to invest in developed country' s markets using Cross-border Mergers and Acquisitions method and in developing country using non-equity arrangement method.Secondly, at the same time multinational companies also largelychange their methods of management. Since 1990s, many famous multinational companies abandon their traditional hierarchically arranged management system and turn to decentralized managing structure which is characterized with flat and even and networking structure. This change enhances companies flexibility and communication ability, simplify companies' decision-making procedure and fully activate employees' active spirit and responsibility sense. Following the knowledge economic, knowledge management is adopted into managing mechanism and gradually becomes the primary adjustment in mangement method of multinational companies. Multinational companies deepen knowledge management by executing flexible management and green management.Thirdly, the money collecting approach for oversea investment of multinational companies turns to outer finance markets. As the investment scale enlarging, the primary inner money collections cant reach the investment demand of multinational companies any more. So taking advantage of the rather developed capital market and bank industry in local country, multinational companies turn to get loan fund as much as possible outside their parent companies to cut down their equity capital portion.According to the systemic analysis and conclusion above for the adjustment of multinational companies' strategy of investment and operation, this text raises the following measures that China should take to put its 'go-abroad-management' strategy into reality: Chinese government should expedite the improvements in the managing service system of foreign economic cooperation, perfect its oversea investment insurance law following market developing trend and taking enter...