Study On The Implication Of The Rules Of Origin To The Multinational Enterprise Production In EAFTA

Economic globalization and regional economic integration has become the trend of world economic development today, while the multinational company is the product of world economic development, which has become increasingly international. And the multinational company is the science and technology of the modern large enterprises to adapt to highly specialization and is also the organization form and way of operation of the production, circulation, financial internationalization reasonably allocating resources worldwide. As the result of promoting the process of world science and technology revolution, 80% of the world's technological innovation is done by the multinational companies which are mostly by the developed countries of transnational corporations. Transnational corporations through the allocation of resources, in the best country or region to invest and build factories, making full use of local advantages, and expanding the market share of products in developed countries. For developing countries, multinational companies can make full use of labor or land cost advantages. Meanwhile, the investment will bring to the area of intangible assets and opportunities, effectively promote the economic development of developing countries, reduce the gap, and share the results. But the investment of multinational companies involve a lot of countries or areas, which usually establish a free trade area to obtain the benefits of trade between countries. Member States use the rules of origin to protect or restrict economic development. Along with the increasing scale and number of east Asia FTA, the hub – spoke FTA system has gradually formed with the association of ASEAN as the axle.Political and economic links between the countries of East Asia continues has gradually strengthened. Clear division of labor among industries and the cooperation has increased. Among China, Japan and South Korea and ASEAN countries vigorously develop the export-oriented manufacturing industry. Industrial division of labor between countries develops close economic ties, therefore the final products often contain multiple countries' raw materials and intermediate products, or through a number of countries production processes. The production system as a whole, the production of a product includes a variety of links, and each link of the production will take place in different countries. So it is very important to coordinate and simplify rules of origin and procedures to strengthen regional economic cooperation in East Asia.The core issue of this paper is to study the effect of rules of origin on the production strategy of multinational enterprises., Through six chapters to introduce. Firstly, this paper introduces the background, significance and research status of this paper. Secondly, it introduces the basic problem of the rules of origin and the East Asia free trade area. Then it introduces the development situation of transnational corporations in East Asia free trade area. According to the analysis, this paper sums up the East Asian FTA rules of origin mechanism of transnational corporate production strategies impact, and is combined with Japan's Toyota for analysis of effects. Finally, the measures to regulate the development of rules of origin in East Asian Free Trade Area are established, and the corresponding measures are analyzed from three angles of the rules of origin, the legal norms and the transnational enterprises themselves.