The Research Of TNC External Growing

In light of the current "Dual Growing" phenomenon of the TNC's international operation, this paper proposes the "Dual Way Growing", i.e. the internal growing through accumulating and integrating internal resources and the external growing through acquiring and integrating external resources. And TNC attains the competitive advantage through the "Dual Growing". The paper puts forward the new theory of a muti-aspect and dynamic theoretical analysis framework concerning the TNC's competitive advantage based on the current research.Based on all these researches, this paper takes the advantages gaining from the internal growing as the internalization advantages â…  while the advantages gaining from the external growing as the internalization advantages â…¡, aims to integrate these two advantages into a theoretical framework with a comprehensive analysis and puts forward the dual advantage theory on TNC's international operation.In the mean time, this paper delves into the heated topic of the internalization advantages â…¡, indicating that all past researchers have taken the external growing as a profile of the internal growing and lacked integrating the internal and external growing into a theoretical framework by transaction cost theory from new institutional economics. Moreover, this paper goes deep into the phenomenon of the external growing based on the strategic management theory, particularly from the core competence theory and the value chains theory. Furthermore, this paper study how the TNC acquiring the three main economics through the external growing, that is economics of focus, economics of speed and economics of network. This research proposes by the new framework from the specialization, mass customization, and modularization. And the research explains the reasons and conditions for the change of growing model on TNC's international operation.This paper points out that the significance of internalization advantages â…¡ is increasing gradually along with the latest international recombination and transfer of the TNC. The paper thinks the internalization advantage â…¡ is an important part of the TNC's competitive advantages, and it cannot be neglected. The internalizationadvantage II is in company with the internalization advantage I to constitute two sides of one coin. The internalization advantage I and the internalization advantage II are interactive and supplementary to each other, with the former being the foundation of the formation of the latter whereas the latter being the elevation of the former. These two form the dual advantages of the TNC's international operation, with the indispensability of one to the other.In the end, the paper analysis the effects on home countries and host countries causing by the TNC's external growing, particularly the effects on Chinese and Indian market, by the application of the above-mentioned theoretical framework on the dual advantages of the TNC's international operation. The paper pointes out that the selection of the external growing way relates with the resources' structure from the externality. The latest international recombination and transfer of the TNC relates with the basic situation of a country, e.g. the industry structure and the institution structure. And the above process is a matching course.