Research On Intra-firm Trade Agent Of Transnational Corporations

The intra-firm trade of multinational corporations (MNCs) is the important part of international trade. The rapid development of MNCs'intra-firm trade leads to great changes on the content and form of international trade. The essence of intra-firm trade refers to international trade launching inside the Multinational corporations, namely between Multinationals parent company and subsidiary, and the transnational trade relations between the same systematic subsidiary. Intra-firm trade is with its enormous scale, unique characteristic influence host country, investment country in enterprises in international trade, and even the whole international economy, has already become a noticeable phenomenon in the economic activity of the world. So, studying and exploring the agent of MNCs'intra-firm trade, not merely in theory, but in reality, are significant.The article apply the research policy of combining theory analysis and positive analysis, and combining historic analysis and practical analysis, put the margin analysis and equilibrium analysis of new classical economics and institution analysis and structure analysis of transaction cost economics into the analysis system of the intra-firm trade of multinational corporations. Whole paper is according to the research order that from generalization to concretization and from static analysis to dynamic analysis. Casson have proved that no matter which is bigger, income or cost, internalization will exist as long as internal cost being smaller than external transaction cost. This article has summarized the general agent of multinational corporations'intra-firm trade, in order to determine the analysis scope of intra-firm trade agent. On the base of dividing the resource-arrange pattern into market and enterprise, utilizing static analysis method of transaction cost into the analysis of static optimization of the boundary and scale of multinational corporations to discuss the intra-firm trade and then make it dynamic, discuss the dynamic chosen on intra-firm trade with the dynamic analysis of transaction cost. Then, we review the main standpoint of the paper: it is uncertain that MNCs'intra-firm trade will produce, while internal transaction cost is smaller than external transaction cost. The multinational corporations consider that under the long-term condition, the external transaction cost curve and the internal transaction cost curve are able to move, and in order to realize long-term equilibrium, the multinational corporation will also consider carrying out intra-firm trade in a short time, even if the internal transaction cost is greater than external transaction cost. Lastly, basing on analyzing the present situation of intra-firm trade in our country, we present our countermeasure.