Research On The Internal Financing Of The Multinational Enterprise And Its' Paths To Carry Out

Many foreign scholars like A.Alchian and O.E.Williamson researched on Internal Capital Market (ICM) initially. They believed that the ICM could increase values to multinational enterprises. In fact, many relevant follow-up studies made by a lot of domestic and foreign scholars have also been proved this viewpoint.On the basis of reviewing domestic and foreign relevant literature, this text analyzed the internal and external restrained conditions of the MNE's internal financing from the aspects of property right, budget, transaction cost, performance and foreign exchange.Regarded element heterogeneity and enterprise heterogeneity as the prerequisite, the text researched the special operating mechanism of the MNE's ICM with the concept of "Synergy Effect". And finally the text proved the conclusion above through a mathematical equation.Then, this text summed up several kinds of modes and specific operating methods of the internal financing, and enclosed Nokia Group as a case to make the questions of ICM are more clearly.At the end of this paper, the text discussed the current situation of MNEs on the external financing of our country briefly and analyzed the meanings to the MNEs' development of our country.