Problems Arising From China SMEs' Multinational Operations

In today's world, economic globalization has become one prominent feature of the economic development. More and more enterprises, not only giant multinational enterprises, but also small and medium-sized enterprises, take to transnational operations to achieve optimally allocating resources and participate in international competition. It has been imperative already for small and medium-sized enterprises (SMEs) of our country to carry on the transnational operations in the face of the trend of economic globalization and of the demands of their own development. Global jumpstart is the best way for SME to expand their business as some economists have pointed out. And if effective operation strategies and government support are guaranteed, prosperous future for SME in transnational operation can be predicted.This paper begins with the definition and meaning of small and medium-sized enterprises. Then, traditional theories of transnational operation are briefly introduced. Under this frame, an analysis is made about necessity of the multinational operations for the small and medium-sized enterprises from the subjective and objective respects. And then a feasibility is discussed to show practical significance to study SMEs' multinational operations. After that, it gives a detailed introduction about the present state of development and existing models of SMEs assisted with several typical cases. By analyzing the cases of transnational operations of early ChunLan Group and some WenZhou SMEs, the paper makes a detailed discussion on the problems and solutions for our small-medium enterprises in transnational operations as a substantial evidence for the following parts. The key part of the paper lies in the analysis of the problems and obstacles always existing in the SMEs's proceeding in multinational operations, such as lack of sufficient management about enterprises and polices from government. In the concluding section of the paper, the author provides some countermeasures and suggestions for the problems mentioned ahead.Sincerely hope that the paper will provide positive theoretical and practical reference for our Chinese small and medium-sized enterprises on multinational operations.