Multinational Companies In The Business Strategy Of The Chinese Localization Study

As the world' s economy and economic globalization are dynamicallydeveloping, transnational corporations have played an important role in theworld, which widely influences economy, politics and social life of the world.With the constantly changing situation of the world, TNCs have been adjustingtheir development strategies to the trend of the world' s development. Dueto different consumption structure and different cultures in differentcountries, TNCs have to carry out localization strategies in host countries, which have become an indispensable part of global strategies.In order to adapt to China' s economic situation in intense marketcompetition, TNCs promote localization operation in China in terms of supplychain, human resources, R&D and corporate culture so that they establish aChinese operational system.On the basis of data and facts, this article employs theory related toFDI and Integration-Responsiveness model to analyze why and how TNCs adoptlocalization strategies systematically, which provides author' s own thoughtfor the government making policy and Chinese enterprises who are confrontedwith TNCs' challenge as well as some practical experience for the coming TNCsand Chinese enterprises that are about to invest abroad.