Study On Competitiveness Of Multinational Corporations(MNCs) Based On Five FDI Force Model

Since Dunning presented the hyperbolic decline theory, ownership-specific advantage, internalization incentive advantage and location- specific advantage have become the mainstream of FDI study. OIL paradigm studies international competitive advantage formation of MNCs, take three advantages as the micro-foundation of FDI. Considered the development of economic globalization and the new competition pattern of MNCs, this paper shifted the focus to the driving mechanism for FDI. And established Five FDI Force Model constituted by pressure, motivation, capacity, gravitation and resistance.After the analysis of its internal structure, this paper presented a competitiveness theory based on Five FDI Force Model. This theory point out that competitiveness of MNCs is deternined by the combined effect of five FDI forces, capacity is the base of company competitiveness, and embeddable capacity is the core of modern MNCs'competitiveness.In the end, this paper roundly analyzed the two embedding modes of MNCs: standardization embedding and differentiation embedding. And proposed relative policy suggestions to improve international competitiveness of Chinese MNCs.