| In the circumstances of economic globalization, the international business outsourcing has become an important management method for Multinational Corporation of developed countries. Many western corporations outsourced their manufacturing and corporations' management to developing countries. A global manufacturing value chain centered by outsourcing has produced. Furthermore, by taking the outsourcing business, China enterprises can join the manufacture chain of developed countries and take advantage of technology spill over. It will help enterprises with outsourcing business gain more market shares, achieve economies of scale. Outsourcing has changed the management strategies of many Chinese firms, and has greatly promoted the establishment of Chinese "Manufacturing Centre". In this outsourcing market of China, the Chinese enterprises which entering the international market are facing both the opportunities and challenges.We divide the paper into 5 chapters. Chapter one is an introduction. In chapter two, we make a general description on outsourcing and industrial structure, including definition, economic theory of outsourcing and a common developing path of industry; In chapter three, we use the model of Feenstra to search the effect of international outsourcing on industrial structure. Then analyze how the international outsourcing affects the upgrading of industrial structure. In chapter four, we describe the history of China's undertaking international outsourcing and the developing of industrial structure. We estimate international outsourcing in China's industrial structure of the selected years of 1997-2002 to get the point that international outsourcing has great effect on the upgrading of China's industrial structure. In chapter five, we give some suggestions on how to upgrade undertaking international outsourcing based on the trends of international outsourcing and the advantages and disadvantages of China's undertaking international outsourcing. |
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