On The International Service Industry Transfer By Transnational Corporations

After developed countries transfer the manufacturing industry to the developing countries with advantages of cheaper cost of the labor and lower total cost, a new wave of international transfer of knowledge-based service industries from developed countries represented by U.S.A to the new market countries with the advantages of intellectual talents has been flourishing recently. The transnational corporations (TNCs) also begin to offshore and outsource their service functions. International service industry was transferred through methods of offshoring, outsourcing and so on, and China has become a hot spot for service industry FDI . With china's economy develops more quickly and opens more broadly, the international industry transfer will effect our economy more deeply. So it is particularly important to master the characteristics and the trend of the service industry transfer, then makes use of the industry transfer selectively and actively in order to quicken the development of our country's service industry and improve the service industry competitiveness.This paper takes the service industry transfer as its study object and makes comprehensive and systematic studies about this transfer bases on the basic theories through qualitative analysis and quantitative analysis. The whole paper analyzes the trend , characteristics , and motivations of the transfer and so on, providing a full-scale picture of this new trend. And the article also puts forward some integrative countermeasures to meet the new industry transfer. The frame of the paper is as follows:The paper is composed of five chapters. The first chapter introduces the trend of the service industry transfer, and makes a review of the relevant literatures, at last points out the purpose and the meaning of this article. The second chapter analyses from the national point of view about the whole status of the service industry transfer, including its background , characteristics, limitations and the influence. The third chapter analyses TNCs' strategic choices about its service functions' offshoring and outsourcing from the corporation's point of view. First it defines the different methods of the transfer and distinguishes the differences of the methods. Then it introduces thetrend of different transfer method, finally it analyses the location choices of offshoring. The forth chapter analyses the status in quo about China's acceptance of service industry transfer, then analyses the motivation of FDI flows into our country through econometric analysis and gets a result that China has some location advantages. At last, it puts forward a lot of comprehensive countermeasures to china's acceptance of the service industry transfer effectively.