Multinational corporations and host country market structure

Author: Zhang Hong
Publisher:
Publish Date: 2006-09-06
Features: With the deepening of economic globalization, the formation of an international production system centered on multinational corporations has integrated all countries into it, and their investment behavior will inevitably affect the market structure of the host country. This book takes "Multinational Corporations and Host Country Market Structure" as its topic, based on the research framework of industrial organization theory, and follows a single-cycle route of "(Parent Country) Market Structure → Foreign Direct Investment → (Host Country) Market Structure." It analyzes how Western large multinational corporations originating from oligopolistic market structures in their home countries, through their foreign direct investment behavior, cause the market structure of host countries to evolve toward an oligopolistic form. Taking China's automotive industry and detergent industry as examples, it examines the impact of multinational corporations on China's market structure, highlighting the significance and countermeasures of using foreign direct investment by multinational corporations to transform China's "low concentration, fragmented competition" market structure.