Transnational Corporations in China

Transnational Corporations in China

Transnationals are important in the world where the BRIC (Brazil, Russia, India and China) are a force to be reckoned with. China, with its 2 billion of people, is the most populous country in the world. The People’s Republic of China (PRC)’s entry into the World Trade Organization (WTO) opened up a market rich in opportunities. Economic reform and liberalisation have greatly contributed to the giant’s economic development, with figures quoted as high as 8 and 14% growth rate per year. Dark predictions from pessimists even warned Chinese officials that at that pace China would run out of resources.

Despite global economic turmoil, China’s foreign direct investment (FDI) still raked in a lofty 90 billion dollars, preceded only by the US (Jia, 2010). As is usually the case with the FDI question, advantages include technological and managerial progress, while disadvantages stem from happenstances such as the local economy getting under strain. So, in 2009, there were 670,000 foreign invested enterprises legitimized by the PRC. The author goes on, stating that of the 500 largest players on the cross-border arena, 480 took the decision to invest in China. The author goes on that a mighty 70% of the national gross in foreign funds come from US, Japan, Korea, Taiwan, Hong Kong, and Singapore. In classical management theory, the first mover advantage is often given as evidence that being the first in a new field or situation, innovating, represents an opportunity like no other. The old managerial truth seems to be fully utilized in modern day China. Clearly, years of reform and openness have agreed with China’s business expansion. Not only production geared at domestic markets, but also export, is aided by FDI. Naturally, employment stands to benefit from the international arrangement, with 130 to 150 million jobs being created. An outcome welcomed and overdue. Chinese migrant workers have for decades evidenced population displacement due to work queries. The real estate market has seen a stupendous surge in prices, with an impressive continuing upward trend.

The concerns related to transnational corporations (TNCs) are justified. Foreign firms are often quicker to innovate and develop. If the indigenous firm is too small to follow suit, it risks losses or even going under. Of course, many would argue that this (competitiveness) is the way business works altogether. In contradistinction, if local entrepreneurships succeed, the whole country’s economic system stands to gain.

Together with knowledge management (KM), wisdom management (WM), and supply chain management (SCM), new product development (NPD) constitutes a bundle of business strategies. Thomas et al. (2008) test numerous hypotheses with data from cross-border investment in China between 1998 and 2001. The sample consisted of ten thousand manufacturers. FDI can instigate peculiar transformation in wages; foreign firms can have an indirect influence. For example, local firms rarely invest generously in R&D (research and development) and rely on cutting costs, especially by reducing wages. Valuing quality to a higher extent than locals and being by definition, quite large corporations already, the newcomers inadvertently drive minimum wage up. The subject has been hot in the Mainland for a while. Thus, the end result is a better environment for NPD.

China’s economic impact on the world is in plain sight. One of the world’s most active exporters, China can indeed be viewed as the factory or workshop of the world (Thomas et al. 2008). Multinational corporations clearly play an important role in China. As globalization and informatization carry on their respective courses, it is interesting to imagine what would happen if the number of Chinese international companies continuously expanded, what are the limits under the sky?

References:

Jia, X. (2010). Analysis of the economic influences of the investments in China from transnational corporations. International Business Research, 3 (2): 117-119.

Thomas, H., Li, X. & Liu, X. (2008). Ownership structure and new product development in transnational corporations in China. Transnational Corporations, 17 (2): 17-44.

The national flag of China

跨国公司在中国

跨国公司是重要的世界里，金砖四国（巴西，俄罗斯，印度和中国）是一个不可忽视的力量。中国凭借其20亿人，是世界上人口最多的国家。 人民共和国中国（中华人民共和国）加入世界贸易组织（WTO）的入门开辟了一个市场机会丰富。经济改革和自由化，极大地促进了巨大的经济发展，高达8和 14％，每年增长速度高引述的数字。从悲观主义者悲观的预测甚至警告中国官员说，中国将在这样的速度耗尽资源。

尽管全球经济动荡，中国的外国直接投资（FDI）仍倾斜在一个崇高的900亿美元，之前美国（贾，2010）只。由于通常情况下与外国直接投资的问题，包 括技术和管理优势的进步，而缺点，如当地经济受到了压力越来越事件干。因此，在2009年，共有670,000由中华人民共和国外商投资企业合法化。笔者 接着，指出上最大的500家跨境竞技场玩家，480代为决定投资中国。笔者接着，一个强大的70来自美国，日本，韩国，台湾，香港，新加坡来的国家外资总 额的％。在古典管理理论，先发优势往往是作为证据，作为在新的领域或情况第一，创新给出，代表了一样，没有其他的机会。旧的管理真理似乎是充分利用现代的 中国。显然，改革开放多年来已与中国的业务扩张。不仅在国内市场面向生产，而且还出口，是得益于外国直接投资。当然，就业带来好处的国际安 排，130，150万被创造就业机会。一项成果的欢迎和逾期。中国农民工的人口迁移证明因工作查询几十年。房地产市场已经出现了价格与令人印象深刻的巨大 的浪涌持续上升的趋势。

的关注与跨国公司（跨国公司）是有道理的。外国公司往往更快地创新和发展。如果原公司太小，不能跟风，它有可能亏损，甚至倒闭的。当然，许多人认为这（竞争力），是经营方式的作品完全。在对比，如果当地企业家精神成功，整个国家的经济体制站获得。

共同构成的知识管理（KM），智慧管理（WM），供应链管理（SCM），新产品开发（NPD的）一包的经营策略。托马斯等人。 （2008）从跨境投资在中国1998年至2001年的数据测试无数假设。样本包括一万的厂家。外国直接投资可以煽动工资奇特转型，外国公司可以有间接的 影响。例如，本地公司很少慷慨投资在R＆D（研究与发展），依靠削减成本，尤其是通过降低工资。重视质量提高到一个更高的程度比当地人和定义是，不少大型 企业已，新人无意中车道最低工资。该问题已经在内地热一段时间。因此，最终的结果是新产品开发更好的环境。

中国对世界经济的影响是在众目睽睽下。世界上最活跃的出口国之一，中国的确可以被看作是工厂或世界（托马斯等人。2008）研讨会。跨国公司在中国显然发 挥了重要作用。随着全球化和信息化对各自的课程进行，有趣的是想象会发生什么，如果中国的国际公司的数量不断扩大，天空下什么限制？

参考文献：

    佳，十（2010）。从分析跨国公司在中国投资的经济影响。国际商务研究，3（2）：117-119。

    托马斯阁下，李，刘十，十（2008）。所有制结构与跨国公司在中国的新产品开发。跨国公司，17（2）：17-44。

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