A Study On The New Development Trends And Features Of Multinational Corporations

With the continuous development of the world economy,transnational direct investment (FDI) that multinational corporationsrepresent, influenced by globalization of information, economy, andresource, has replaced international trade as the main promoter ofworld economic development. In order to stimulate the nationaleconomy and technology development, governments are formulatingnew policies and attracting investment of multinational corporations.Since the beginning of the21st century, the pattern of the worldeconomy were developing towards multi-polarization, and theinternational inter-regional division of labor has also undergonetremendous changes of form. In this context, subject of the regionaldivision of labor has gradually transferred from countries tomultinational corporations; technological progress and thegeographical division of labor are increasingly deepening. InSeptember2008,"subprime crisis" broke out in America. Soon afterthat,“sovereign debt crisis” spread in European countries, whichmade the global financial crisis continue to expand and the future of the world economy become bewildering. Therefore, the mostanticipated event would be how multinational corporations couldresponse to this crisis, meet the development need of diversificationand differentiation and obtain greater development. This article willsort out some theories of the multinational companies and analyzethe latest data and cases to summarize the new developmenttendency and features of multinational companies. Its conclusion willhave vital implications for each country that how can be morereasonable and effective to make use of transnational directinvestment to promote economic development.At first， the article analyzes the development status of themultinational companies in the world, and find that there are four newtrends worth mentioning:1、the rising status of the multinationalcorporations strategic technology alliance;2、 a wider range ofindustries for cross-border mergers and acquisitions and theenhanced.3、multinational R&D internationalization that pays moreattention to aggregation effect of industry and knowledge;4, brandmarketing has become the top priority of multinational corporations.Secondly, we will have a review of the investment history ofmultinational corporations in China and summarize the main featuresof the three main phases (the exploratory stage: from1979to1991;the stage of continued growth and high-speed development: from1991to2001; the adjustment and improvement stage: from2002topresent).Thirdly, through the comparison of the data and caseanalysis, we will sum up the variation trend of multinationalinvestment in China (increasing investment in capital-andtechnology-intensive projects; service sector as the investment focus of transnational corporations, the increasing tendency of “Clustering”and sole proprietorship).Finally, combined with those new trends andfeatures, we will offer relative proposals based on the status quo ofthe introduction and utilization of transnational direct investment inChina, which will make use of transnational investment moreeffectively and promote sustained and steady development of China`seconomy.Generally speaking, in order to promote the healthy developmentof transnational direct investment in our country, four areas must beworked on:（1、optimize the investment structure of the FDI；2、keepa geographical balance of the FDI flows；3、 promote more FDIinvestment in "green economy"；4、deal with the relationship betweenFDI and national safety） As China is now in a transition of theeconomic and social development, how to promote our socialistmodernization process with the aid of transnational corporations, andaccelerate the development strategies of "going out" and “bringingin"—to study the issue has important practical significance for theChinese government to attract foreign investment and build thesociety of four “modernizations” and two “types”.