The Impact of Economic Globalization on Chinese Enterprises:An Analysis Based on the Theory of International Economics

摘要

This paper uses principles of international trade, foreign direct investment,international factor flowing and international division of labor to comprehensively analyze the advantages and disadvantages of economic globalization and its impact on Chinese enterprises. The paper points out that: if the international market is perfect, international trade will optimize allocation of resources globally, urge equalization of factor prices all over the world. It is the beneficial of the enterprises worldwide to streamline production. If the international market is imperfect, the global equalization of production factor prices can not be achieved. Even though the factors and enterprises of China having a competitive advantage participated in international circulation, the owners of these enterprises may not be able to gain the lasting stable profits. The TNCs which occupy the core value chain and have a monopolistic advantage earn the major benefits of economic globalization. The high-level production factors of China with stronger bargaining power and higher mobility may also obtain more gains.