The Incentive And Measures Of Transnational Corporations’ Divestment In China

Divestment has emerged with the development of foreign direct investment, Divestment research began in the 1970 s. As normal economic Phenomenon, divestment is in accordance with the change of economic rule. Since the reform and opening up, foreig n direct investment inflow to C hina steady growth, but in recent years, as China’s cost advantage is gradually lost and the new trend of world economic integration, multinational divestment in C hina have become increasingly frequent pheno menon. Due to the withdrawal of a number of multinational investment decisions failed or out of the competition in the market, may be more conducive to the growth of domestic enterprises, but some withdrew with advanced technology and production of advanced products of multinational companies, it is bound for China’s economy produce a series of negative impact on growth, technological progress, the employment rate and a complementary industry business. In essence, the divestment of foreign direct investment of transnational corporations, are the world’s economy develops to a certain level the inevitable result is a phenomenon of international capital transfers normal. However, under the impact of the financial crisis, the scale divestment and divestment speed transnational corporations have maintained an upward trend and reached its peak in 2011. If it is not taken seriously enough, unchecked, will inevitably have a negative impact on C hina’s economic development. Therefore, how to distinguish a rational and look at transnational corporations pull back and take different responses to different situations in order to achieve positive effects maximized and negative impacts minimized is the focus of this dissertation.The current world economic environment faced by transnational corporations are becoming increasingly complex. The world economy affected the 2008 financial crisis, still in an adjustment period after the crisis, the global economy generally slow growth, differentiation trend of the world’s major economies, the international financial market fluctuations, on the other hand, the process of economic globalization and regional economic integration speed up the process, the computer and the network is more developed, information communication more smoothly, to the expansio n of multinational business and global strategy offers many advantages, but multinational companies face more complex economic environment, market competition is increasingly fierce. To accommodate this economic environment and market conditions, the multinationals operating status must be based on the strategic objectives and the actual situation, adjust the size and structure of foreign direct investment. The only way to advance with the times, not to be out of the market. Purpose of this dissertation is to better understand and manage transnational corporations, through the establishment of mechanisms to deal with the divestment of divestment have a tendency to take positive measures to prevent multinationals divestment; take action on divestment to minimize negative impacts; take active measures to attract reinvestment.Firstly, the dissertation studies the relationship between the multinational divestment variable and transmission mechanism. Secondly,current research multinational divestment, including domestic and international divestment. By domestic and international law and comparative data from the divestment, the divestment database, the main divestment companies, the divestment industry and the divestment location research in China’s domestic divestment is special. Thirdly, in our analysis TNCs divestment motivation from the home country is in order to more clearly logic, its own multinational corporations and the world economic environment are in-depth analysis of TNCs’ divestment reasons, mainly include the instability of foreign policy, the rise in production costs, the market is more competitive and exchange rates four aspects of change. Finally take a series of coping strategies. Firstly, the establishment of mechanisms to deal with divestment, including early warning and intervention mechanism to deal with the handling mechanism and a guide reinvestment mechanisms. Second ly, the implementation of specific coping strategies to maintain a stable foreign policy; speed up industrial restructuring a nd the introduction of chain investment; central and western regions to attract foreign investment to enhance benefits for divestment trend of transnational corporations have to provide the necessary divestment alternatives to change the divestment domestic easy to address; to combat the vicious competition, and create a fair market environment; for some heavy pollution and low efficiency of multinational companies to take measures to actively promote their divestment.