On Multinational Enterprises' Monopoly Structure In The Era Of Economic Globalization

Promoted by the knowledge economy and the information technology, the economic and social life of human beings is leaping over the boundaries of nations and regions, surmounting the institutional and cultural obstacles, presenting a global trend towards connection, exchange and interaction in all directions and aspects, thus forms globalization as we call. In the era of globalization, the competitive advantages and influence of a nation embody mainly in the dominating power over global resources that its multinational enterprises possess. Multinational enterprises are the character representatives of the economic competition between nations, the organizers of the distribution of global resources, and the basic form of industrial organization in the era of economic globalization. Under the condition of economic globalization, the viewpoint of national sovereignty has achieved new development—the sovereignty of a nation could be extended by its multinational enterprises to some extend, and a country can control other countries through its multinational enterprises.It is because of their special competitive advantages that make multinational enterprises the organizers of the distribution of global resources and the character representatives of their country in global competition. The competitive advantages of multinational enterprises derive from their monopoly structure and the high profits their monopoly structure brings about. The profits of monopoly structure and monopoly conducts are different in nature. In the early period of the market economy, monopoly profits mainly embodies in monopoly conduct profits that impedes efficiency. But in the era of economic globalization, multinational enterprises' monopoly profits drives mainly from the efficient monopoly structure. The monopoly structure profits of multinational enterprises come from five aspects: 1. The increasing reward caused by economies of scale. 2. The effect of scope economies...