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On Multinational Enterprises’ Monopoly Structure in the Era of Economic Globalization

Author: CaoHongJian
Tutor: LiuMaoSong
School: Hunan Normal University
Course: Industrial Economics
Keywords: Globalization Multinational Monopoly Structure Monopoly Structure profits The new theory of contestable markets
CLC: F276.7
Type: Master's thesis
Year: 2005
Downloads: 209
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Abstract


Across space boundaries of countries and regions in the knowledge economy and information technology to promote the economic and social life of mankind, as well as institutional and social barriers of culture, presenting a full range of contact on a global scale, exchange and interact trend, thus forming our so-called globalization. In the era of economic globalization, the competition between the countries in the competition of comprehensive national strength, economic strength as the core of a country's competitive advantage and influence is reflected in its dominance of the global resources. Multinationals personality on behalf of the economic competition between countries, the organizers of the global allocation of resources, and the era of economic globalization, the basic forms of industrial organization. Under the conditions of economic globalization, the concept of national sovereignty has also been a new development, national sovereignty can be extended by multinationals. In a way, a country can achieve control of other countries through its multinational companies. Multinational corporations have become the global allocation of resources on behalf of organizers with the personality of a country's economy in the global competition, because it is a unique competitive advantage. Multinational companies competitive advantage comes from its monopoly structure and the resulting high monopoly structure of profit. The profits of the monopoly structure of the profit and monopolistic behavior profit of two completely different nature. Early in the development of market economy, monopoly profits mainly as detrimental to the efficiency of the profits of monopolistic behavior. In the era of economic globalization, multinational corporations monopoly profits mainly as efficient structure of monopoly profits. Structure of monopoly profits to multinationals in the following points: (1) economies of scale brought about by increasing returns; (2) The cost of the weak growth of the range of economic effects; (3) innovation advantage of the high monopoly structure of profit; ( 4) learning effect huge spillover effect; (5) flexible contract network greatly reduces transaction costs. Multinational monopoly structure under the conditions of globalization and the information economy, efficiency, and will not impede competition, this new theory of contestable markets. Baumol contestable market theory \The era of globalization can be greatly enhanced competitive multinational monopoly structure does not hinder competition and harm social welfare. From four points to explain: (1) flexible production, agile manufacturing and virtual organizations reduce sunk costs; (2) competition in geographic King box expanding reduce sunk costs and exit barriers; (3) imitate reduce market entry barriers transferred sunk costs; (4) product differentiation strategy can reduce the sunk cost. China's policies to antitrust and industry regulation should pay attention to the following points: (1) focus on

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CLC: > Economic > Economic planning and management > Enterprise economy > A variety of enterprise and economic > Multinational
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