With the deep development of economic globalization, MNCs have moved into a new stage. Nowadays, there are about 65,000 companies, which own around 850,000 overseas branches. In 2001, their sales reached 19,000 billion USD, which was as twice as the global export quantity. Generally, these branches occupy ten percent of global GDP and one third of global export. MNC is still the leader of global economy.The rapid development of MNCs results in two aspects. On one hand, all kinds of advantageous factors in the macro environment promote it. On the other hand, MNCs have specific advantages which domestic companies and host country companies do not have or need high costs to gain. Take MNCs of early phase for example, they established obvious composite advantages on the basis of advanced industry in the developed countries. Not only they had rich capital and large scale, but also had they strong technological ability and advanced management capabilities. What's more, at that time, trade barriers and investment restricts were popular which made transnational operations risky and costly. Therefore, only a few of large companies with apparent advantages can manage transnational operations successfully.Such kind of enterprises was the objectives in traditional MNC theories' research. Form static angle, those theories explained MNC's foreign direct investment, analyzing MNC's operational advantages. The founder of Theory of Monopolistic Advantage, S.H. Hymer studied the structure of industrial departments in which American firms carried on FDI. He found that FDI activities were related to monopolistic industry deparments' structure. So he put forward that large companies carried on FDI overseas mainly resulted in their monopolistic advantages. Later, many scholars perfected the theory and formed several famous theories and attitudes, suchas Core Capital Theory.In fact, just as things have a developing process, companies' transnational operations have their own routes. During this process, operational advantages change continually, which means to the development of their nature, degree and way of use in a wider sense. Consequently, research on MNC's FDI operational advantages is dynamic. As a comprehensive notion, MNC's operational advantages have many respects. This article only focuses on organization structure advantages and technological advantages.A company's organization is the systematic guarantee of implementing operations and investment strategies. Since 1990's, western MNCs especially large ones began another climax of organizational restructuring. The article analyzes its traits and inspiration. In theory, it discusses the relationship between environment and organization structure. With introduction of Value Chain Theory, this article explains the inner motivation of this adjustment and future organizational structure's development direction. Again, surveying the general development routes of MNC's organization structure, we can realize further that the best organizations are the ones that fit environment well. Generally, we regard the organization ability as soft ware of one company's core competition; and the ability of technology is the hard ware. Traditionally, MNC's technological advantages included large scale, centralized R&D and technology's internally transferring. However, as the environment changes, traditional large MNC's technological advantages declined whereas SME's advantages became more obvious. This article introduces SME's innovation theory and analyzes the development of MNC's technological advantages from the relationship between environment changes and technology.After China's joining WTO, China's opening up enter a new stage. More and more MNCs go into China and make China their production base, R&D base and purchasing base. On one hand, it brings great opportunities; on the other hand,China's whole economy confronts fiercer competitions. MNC need China and China need its own MNC. At present, in China, firms that carry out transnational... |