The Study On Multi-national Distribution Corporations' Investment In Chinese Market

China joined in WTO in 2001, and after three years of grace period, Chinesedistribution industry opened the door to global competition in 2004. Accordingly, multi-national distribution corporations began expanding their market share in China withoutbeing intervened by Chinese government's restriction policy. As a result, globalcompetition between multi-national distribution corporations and Chinese distributioncorporations, and industry competition between department stores and large-scalediscount stores, get more intensive. For this reason, it is necessary to analyze multi-national distribution corporations' investment in Chinese market more in details.In the body of this paper, the status of multi-national distribution corporations'investment and their influences in Chinese market are examined. Then, competitiveadvantage and competitive disadvantage between multi-national distributioncorporations and Chinese distribution corporations are fully analyzed. In addition, howChina takes advantage of multi-national distribution corporations' investment inChinese market is also presented.Since social reformation along with the open-door policy, China has adopted anexport-oriented economic development strategy, and international trading has rapidlydeveloped in China. In comparison with international trading, however, Chinesedomestic market has slowly developed, which resulted in unbalanced economicdevelopment in China. For this reason, China has come to realize the importance ofdomestic market development. As regional bloc economy is widely established in theglobal economy, foreign corporations have expanded their investments in Chinesemarket. In addition, multi-national distribution corporations regard China as a veryimportant market and they continue to execute their investments in China, which comesinto a spotlight as the largest consumer market in the 21st century. Therefore, Chineseeconomy and Chinese distribution industry cannot keep away from the effect of multi-national distribution corporations.For this reason, this paper is focused on multi-national distribution corporations'influences in Chinese economy, and it suggests how China can utilize their investments.Finally, it presents ideas to cope with possible bad effects.Suggestions:1. Macroeconomic perspective: mid-west inland economic development2. Microeconomic perspective: Chinese distribution industry development bybenchmarking multi-national distribution corporations3. Measures to cope with bad effects...