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On The Conditions Of The Cross-border Investment

Posted on:2004-02-13Degree:MasterType:Thesis
Country:ChinaCandidate:Y X WangFull Text:PDF
GTID:2206360095453290Subject:World economy
Abstract/Summary:PDF Full Text Request
We need to devote major efforts to developing Transnational Corporations (TNC), as the deepening of the level of the world economy integration and the international competition. Chinese corporations also face the same kind of opportunity and challenge, but according to the traditional theories of corporation investment, most Chinese companies have not met all the conditions. Should Chinese companies run internationally until they have acquired all the traditional investment conditions?To answer this question, I divide this thesis into the following four parts. Firstly, many economists proposed the conditions and the aims of international investment. Then I use Microsoft, Oracle and Sina.com as examples to illustrate that the high-tech companies begin to operate internationally even when they do not fully meet those conditions proposed in the first part. Thirdly, I use Flectronics, TSMC and Haier ass examples to illustrate that those manufacturing companies are also try to break the traditional limits. At last, I proposed that the Eclectic Theory has been broken by the practices of TNCs.This thesis has both theoretical and practical meanings. John Dunning proposed the Eclectic Theory before 1980, but the world economical environment has changed much since 1980, and it cannot explain the developing practices of many TNCs. So to explore the new conditions of transnational investment conditions is a new theoretical subject. In the practical meaning, since China entered WTO in 2001, Chinese enterprises face the toughest competition, and the central government are continuously encourage them to participate the world market. But according to the traditional Eclectic Theory, most Chinese companies should stay in China, because they do not fully meet those conditions. Through this thesis, we know that inknowledge-based economy, a company should go internationally as long as it has some core competitive ability, so many Chinese companies can and should run internationally.
Keywords/Search Tags:Transnational investment, Eclectic theory, The industry of software, The industry of Internet, The industry of manufacturing, The industry of traditional manufacturing
PDF Full Text Request
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