The Position and Function of Multinational Corporations in International Trade

The Position and Function of Multinational Corporations in International Trade

Economic globalization is the development process of the world in the fields of production, trade, investment, finance and so on, in order to realize their own interests and adopt various methods, beyond the limits of space and society. Analysis of the development of economic globalization, multinational companies have always played an important role in promoting.

Enterprise competitiveness is an important manifestation of industrial competitiveness and even national competitiveness. Multinational companies are the main force of modern enterprises, the world’s comprehensive national strength and competitiveness of the important components. The current economic competition between the country and the country is being carried out on a global scale with unprecedented scale and intensity through a global business strategy implemented by multinational companies. According to the changes in the market and the needs of competition, some well-known multinational companies based on the global, production and operation of the implementation of global strategic arrangements, the other countries of the market and resources into its global arrangements. In order to achieve its global business strategy, many multinational companies to their multinational companies into a worldwide company, in the global set up production bases and sales agencies, the establishment of international business information network, build a global research and development system, and actively participate in the international economy Cooperation and competition. In the implementation of global business strategy, multinational companies to actively promote the localization of overseas companies to win the host government and the public recognition and support.

The international investment of transnational corporations is a favorable condition for accelerating the process of economic globalization. International investment is the basis for international economic and technological cooperation. International investment in multinational companies, on the one hand, is to expand the global financial capital, the monopoly of the actual needs of the world market, on the other hand is the production of international and social requirements of the inevitable. Some large multinational companies have to carry out large-scale foreign and systematic investment, set up investment holding companies abroad, unified management of investment enterprises. Multinational companies have a clear chain of foreign direct investment competition effect, as long as there is a multinational companies to expand outward investment, peer multinational companies in order to keep their own domestic and foreign resources and market share, will compete to foreign investment expansion.

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