Research On The Intra-firm Trade Of Multinational Corporations In The Perspective Of Network Economy

Since the half of the 20th century, under the influence of the globalization andinformationalization, the multinational corporations have got enormous developmentin both quantity and scales. The multinational corporations take direct foreigninvestment as a major measure in their trans-nation operations, which make the finalproducts, intermediate goods, technology and service flowing quickly around theworld. At the same time, this kind of flow is mainly in the form of intra-firm trade.We can say, the multinational corporations' intra-firm trade plays a very importantpart in leading international trade. Intra-firm trade has also changed the worldindustry. it has also plays an extremely important role in accelerating the pace ofglobalization of the world economy.Under the influence of the network economy, the market environment outside themultinational corporations and multinational corporations' internal operationmechanism changed a lot. With the purpose of pursuing maximizing the profit allaround the world, the multinational corporations make as much links of producingand management included in the modern information network as possible, using thetechnology of " virtual reality " to coordinate the production on the internetaround the world. With the constant development of network economy, the parentcompany and sub-company of the multinational corporations can make full use oftheir production capacity, resources and talents, promote the subdivision of the workinside themselves, and lead to the final result of promoting the growth of intra-firmtrade within the multinational corporations. So, network economy has intensive effecton intra-firm trade of the multinational corporations. Intra-firm trade still has thetendency to expanding continually in quantity and scale in network economy.