Research On The Internal Control Of Chinese Multinational Enterprises

As the economic communication between countries goes further,the economic globalization has enabled enterprises to break through territorial confines to scheme resources, organize production and marketing through out the world.The enterprises would just survive only by joining the globalization,taking part in the international competition and cooperation utilizing foreign and domestic resources and markets,and running business worldwide.An internal control(hereafter shortened as IC) system is a must for a successful enterprise whether in China or elsewhere in the world.In a society with market economy,establishing a modern corporative system and conversing the operational mechanism to make enterprises become competitive entities in the marketplace will be a principle task and a long-term goal for China's reform on its enterprises.IC system will play a major role in modern corporate governance by assuring smooth completions of all works and rising operational and management levels in an enterprise.Therefore,this thesis conducts some research work and discussions on IC system theoretically and practically.Since China has implemented the reform and opening up policy,China has gone through multi-national operation in business for 20 years and has made some achievements.As of the end of 2001,6610 overseas and non-financial foreign enterprises have been authorized to set up by the Foreign Trade Bureau,spreading over all over 153 countries and regions in the world.Their business involves trade,resource development,industrial and agricultural production and processing,project contracting,transportation,financial Insurance,medical and health,tourism and catering industries.This has played an active role in enhancing China's foreign exchange and cooperation with foreign countries,learning from foreign advanced technology and management experiences and strengthening our business' competitiveness in the international market. However,we have to make the further study because there still exist many problems of the transnational enterprises no matter in the numbers of these enterprise or their ability to participate in world's competition.This paper is on the existing problems in the transnational operations of our multi-national enterprises basing on relating theories of internal control systems in transnational operations.It also has applied all kind of ways of analysis such as demonstration and criterion analysis, historical review and comparison analysis,theories research and countermeasures research. Therefore,how to improve internal control measures in the transnational ventures can be summarized through analyzing different cases,making judgment,studying the existing problems and making analysis of the reasons.