Advantages and disadvantages of transnational corporations

(A) China private enterprises to participate in the international division of labor of multinational companies, the problems and reasons.

According to the situation of China's relatively developed coastal areas with export-oriented economy, there is a big gap between private small and medium-sized enterprises and multinational enterprises in terms of industrial distribution, enterprise scale and production management level, forming a dual structure, that is, the industrial distribution of private small and medium-sized enterprises is concentrated in the textile industry, and the scale of enterprises is small, adopting the traditional family workshop-style internal management method. However, foreign direct investment, especially the direct investment of multinational companies in recent years, is concentrated in the machinery and electronics industry, with obvious scale benefits and modern industrial management mode. This dual structure obviously restricts the pulling effect of export-oriented economy on China's overall economy and the activating effect of export-oriented economy on China's economic stock. The reasons for this phenomenon mainly include the following aspects.

1, the development level of small and medium-sized enterprises in China is limited, and it is difficult to meet the requirements of multinational enterprises.

The system reform of small and medium-sized enterprises is still not in place, and the management structure of enterprises is mostly family-owned, so it will take time to transform into modern enterprise management mode. From the perspective of production level, the product quality problems of small and medium-sized enterprises have been outstanding for many years, and the level of specialized and standardized production is low, so it is difficult to form a specialized supporting production system. In addition, the low capital operation ability and limited reinvestment ability of SMEs are also one of the reasons that restrict their development. Generally speaking, the management level of small and medium-sized enterprises in China is low, lacking modern management talents, and it is difficult to adapt to providing supporting cooperation methods for multinational companies and state-owned enterprises with high technology and capital content.

2. There are certain risks in the development of supporting service relationship between small and medium-sized enterprises and multinational enterprises in China.

The existing research shows that the main motivation for multinational enterprises to choose local enterprises to supply them is to reduce production costs and improve the level of specialization, so that technology and products can adapt to local conditions better and faster. It is obvious that small and medium-sized enterprises provide supporting benefits for multinational enterprises, and the spillover effect of multinational enterprises can be obtained by providing supporting facilities. But to some extent, this connection also has negative effects. First of all, local SMEs are in a weak position in the order negotiation with multinational companies. Multinational companies sometimes depress the prices of suppliers, which often leads to vicious competition among suppliers and further reduces their profit margins. Secondly, SMEs will bear certain market risks. If multinational companies withdraw their capital, local suppliers will lose the source of orders. Even if multinational companies do not transfer, suppliers are at risk of being locked in by some big buyers.

3. It is difficult for small and medium-sized enterprises in China to cross the industrial level gap between the domestic market and the international market.

Small and medium-sized enterprises mainly produce for the domestic market, while foreign-invested enterprises, especially those engaged in processing trade, are basically oriented to the international market. The gap between the domestic market and the international market in industrial height makes it difficult for small and medium-sized enterprises to enter the international market and can only provide supporting products for multinational enterprises.

5. The policy goal of local government to attract foreign investment is too single.

Generally speaking, the policy objectives of local governments in China to attract foreign investment are too single and lack the necessary means to expand the "spillover" effect. In China, an important way to attract foreign investment is to establish economic and technological development zones. As far as attracting foreign investment itself is concerned, the way of development zone has indeed achieved certain results. However, from the perspective of improving the overall pulling effect of export-oriented economy on China's economy and promoting the docking and integration of private economy and foreign-funded economy, there are considerable limitations in the policies and operating mechanisms of development zones. The core problem lies in the lack of organic connection between development zones and local economy.

The general mode of economic and technological development zones is that foreign businessmen rent or buy a piece of land from local governments to build factories for production. Most of the raw materials are imported from abroad, and most of them are directly or indirectly exported after processing and production. Due to some problems in concepts, incentives and policies of local governments on how to improve the efficiency of foreign capital utilization, expand the "spillover effect" of foreign capital, and consider the impact and influence of foreign capital on domestic industries, it is difficult to actively bridge the gap between multinational enterprises and local small and medium-sized enterprises in cooperation and matching. In the hot spots of foreign investment, or the machinery industry with a long industrial processing chain, such as automobile and bicycle industry, the supporting relationship between enterprises in the development zone often occurs between foreign-funded enterprises, while domestic-funded enterprises usually only have general supporting service capabilities, so it is difficult to really enter their processing production chain or procurement network.

From the aspect of resource utilization, foreign capital has priority to use all kinds of resources or elements in the development zone, including land, labor, capital and various software and hardware facilities, while private small and medium-sized enterprises are more difficult to enjoy the corresponding preferential conditions. At present, in the Pearl River Delta region of Guangdong, where marketization and private small and medium-sized enterprises are highly developed, the shortage of land resources has become an important restrictive factor affecting the development of small and medium-sized enterprises.

(B) China private small and medium-sized enterprises to provide support for multinational enterprises should take specific measures.

1. Actively try various mechanisms by providing supporting service information; Vigorously cultivate intermediary organizations

The problem of service information is obviously the primary problem to promote the establishment of links between small and medium-sized enterprises and multinational enterprises. Governments at all levels can collect and disseminate information about contact opportunities through various means, including announcements, seminars and international exhibitions, and ensure the accuracy of the information. Governments at all levels should focus on the central issue of supporting services, constantly expand the scope of services, actively explore various ways and establish various forms of intermediary service institutions while transforming government functions, and provide a package of services and support for joint ventures and cooperation between small and medium-sized enterprises and multinational enterprises. For example, the government can take the Expo as an opportunity to focus on the problems existing in the provision of supporting services by small and medium-sized enterprises to multinational enterprises, and vigorously promote the development of intermediary organizations and socialized service systems. Encourage small and medium-sized enterprises to set up trade associations and other coordination service institutions, establish information communication mechanisms, reform the original departmental public intermediary services, introduce competition mechanisms, promote the rational flow of social service resources, and launch a series of related services such as training, guarantee and legal consultation.

2. Based on quality certification and industrial agglomeration, build a technical support service system around supporting services.

In the increasingly fierce competition, the technical ability of small and medium-sized enterprises is the main factor that hinders them from becoming suppliers of multinational enterprises. At the same time, whether multinational companies purchase complex and high-tech parts in China also depends on the technical ability of domestic enterprises. Multinational companies especially emphasize that supporting enterprises should have the ability to continuously follow up and improve quality, and think that this ability is more important than the actual quality level at a certain point. At present, more and more multinational companies require suppliers to pass VDA, ISO900 1, QS9000 and HACCP certification. Facts have proved that establishing supply relations with multinational companies is the most effective way to improve suppliers' technical capabilities. The government should implement incentive policies to urge small and medium-sized enterprises to pass various quality standards certification, paving the way for small and medium-sized enterprises to establish supply relations with multinational companies. Governments at all levels can improve the technological innovation ability of small and medium-sized enterprises by starting with quality certification, establishing continuous investment funds and taking effective incentive measures.

3. Strengthen talent training for small and medium-sized enterprises.

Although China pays more and more attention to the development of human resources, the government's training plan for small and medium-sized enterprises and suppliers has not been implemented, and it is rare for multinational companies to train supporting enterprises. From the international experience, some countries provide financial support to encourage enterprises to train human resources. South Korea gives tax compensation to large companies in training talents for small and medium-sized enterprises. In addition, Singapore and Malaysia have carried out fruitful practices in this regard. China can take measures such as subsidizing the establishment of supplier associations, subsidizing private sector training programs and cooperating with international institutions to promote the establishment of training links between multinational corporations and small and medium-sized enterprises.

The experience of some countries proves that the incentive policy to promote local suppliers to learn and improve their skills has a high final return. Better practices also include: mobilizing buyers of multinational companies to overcome obstacles in resources and organization, carrying out all-staff training, making training plans and subsequent regular evaluation.

4. All localities should formulate targeted incentive measures to promote Sino-foreign joint ventures and provide supporting services for local small and medium-sized enterprises.

Pearl River Delta, Yangtze River Delta (including southern Jiangsu and Wenzhou), Bohai Sea and other coastal areas of China, where export-oriented economy is developing rapidly, have their own characteristics in terms of policies, organizations, markets and industrial development environment. These differences have resulted in different modes, potentials and problems in introducing foreign capital, foreign trade, foreign capital diffusion effect and the relationship between export-oriented economy and the development of small and medium-sized enterprises in these areas. Local governments should specifically study the problems of foreign capital, government, intermediary organizations and domestic small and medium-sized enterprises in terms of systems, mechanisms and capabilities according to the actual situation in the region. On this basis, formulate relevant policies to promote closer industrial ties between local SMEs and multinational companies.