Multinational Control Mechanism

The developing tendency of economic globalization in the 21st century can be concluded as: knowledge as basement, finance as center, information technology as guide, transnational corporation as support, "going abroad " strategy is an important measure which our country has taken in order to face economic globalization. So, our country should strength investment outside actively, bring up our own transnational corporation. However, because we mainly have taken "absorbing foreign investment" measure twenty years before, the scale of our investment outside is very small, the level is also very low. until now, most of our corporations still haven' t set up modern company system, they have long distance with the criterion of transnational corporation, bringing up our own transnational corporation is our task currently. Researching the management of transnational corporation is a realistic choice to a postgraduate who study international trade and want to be engaged in foreign investment.By studying the research about the relationship between transnational corporation and its oversea subsidiary and forecasting research tendency in the future, combining what 1 have studied, such ideas as follows come into being: research the system which transnational corporation controls its subsidiary in order to give some beneficial suggestions for our companies' carrying out "going abroad" strategy.The first part of this paper is introduction. It concludes the history, present and tendency of the research about the relationship between transnational corporation and its oversea subsidiary, then on the basis of forerunners' research, it selects the controlling system between transnational corporation and its subsidiary. Introduction also includes the way and content of research.At the beginning of the second part, this paper analyzes the conception of controlling system, after analyzing currency research about the controlling system of transnational corporation, it puts forward the outline system about the controlling system between transnational corporation and oversea subsidiary. Because this paper emphesizes on the hot topics in the theory and reality such as strategy, govenmance system, channel, brand, tansferring prices and technology tranformation, this outline has the quality of openness, which limits its severity to some extent.The strategy of development means that the company makes its aims of development considerring some aspacts such as its own advantange and outside situation. Making strategy is the first task of one company, carrying out the strategy needs strict stategic controlling system as guarrantee. The third part analizes stategetic controlling system between transnational corporation ans its oversea subsidiary.The forth part analizes the governmence system of oversea subsidiary of transnational corporation.The fifth part, the sixth part, the seventh part separately researches the channel concrolling system, transferring prize system, brand controlling system from the angle of markettingThe eighth part researches the technology transformation system of oversea t oversea subsidiary of transnational corporation.The last part gives some remarks for the companies which want to carry out "going abroad" strategy in our country.