In international trade, the traditional means of competition is price competition. That is to say, enterprises reduce production costs and use prices lower than those of similar products in the international market or other enterprises to combat and exclude competition in foreign markets and expand product sales. Nowadays, due to the improvement of living standards around the world, especially in developed countries, the increase in the proportion of durable consumer goods expenditures in total expenditures, the continued inflation around the world, the continued rise in prices, the general shortening of product life cycles and other factors, price competition has It has been difficult for multinational companies to win the most customers, and non-price competition has replaced them. Facts have proved that non-price competition is the main means by which contemporary multinational companies monopolize and compete for the market. Non-price competition refers to means such as improving product quality and performance, increasing color and variety, improving product packaging, decoration and specifications, improving pre-sales and after-sales services, providing preferential payment terms, updating trademarks, strengthening advertising and ensuring timely delivery. To improve the quality, reputation and popularity of products, to enhance the competitiveness of goods and expand the sales of goods. Multinational companies mainly improve the non-price competitiveness of goods from the following aspects: ① improve product quality and overcome technical barriers to trade; ② strengthen technical services, improve product performance and extend the service life; ③ provide credit; ④ accelerate product upgrading and continuously launch new products. Products, update colors and varieties; ⑤ Continuously design novel and diverse packaging and decoration, paying attention to the "personalization" of packaging and decoration; ⑥ Strengthen advertising and vigorously research and improve advertising and sales techniques.

Diversified business methods of multinational companies

Compared with ordinary domestic enterprises or general foreign-related companies, multinational companies have significantly more global production and business methods, including import and export, licensing licenses, technology transfer, cooperative operations, management contracts and the establishment of overseas subsidiaries, etc. Among them, the main form of establishing overseas subsidiaries is to develop and expand its global business. 1. The development of multinational corporations has promoted the growth of international trade and the world economy

In 1993, the number of multinational corporations worldwide reached 37,000, and their overseas subsidiaries totaled 170,000. Since 1982, multinational companies have grown very rapidly. By the end of 1992, global overseas direct investment had accumulated to US$2 trillion, one-third of which was in the hands of the top 100 large enterprises. In 1992, the overseas sales of global multinational corporations totaled US$5.5 trillion, which was US$1.5 trillion higher than the value of merchandise exports. It can be seen that the overseas investment of multinational companies plays a greater role in the world economy than domestic trade. In fact, multinational corporations have become the most active and influential force in contemporary international economy, science and technology, and international trade. And this power will be enhanced with the overall upward trend of investment by multinational companies.

2. The impact of transnational corporations on the foreign trade of developed countries

The development of transnational corporations has greatly promoted the foreign trade of developed countries after the war. These effects include enabling products from developed countries to be produced and sold in host countries through foreign direct investment, thereby bypassing trade barriers and improving the competitiveness of their products; from the perspective of raw materials and energy, they have indeed reduced The dependence of developed countries on developing countries also makes it easier for products from developed countries to enter and utilize the host country's foreign trade channels and to easily obtain business intelligence information.

3. The impact of transnational corporations on the foreign trade of developing countries

1. Transnational corporations’ foreign direct investment and private credit supplement the shortage of import funds in developing countries.

2. The capital inflow of multinational companies has accelerated the changes in the commodity structure of foreign trade in developing countries. After the war, developing countries introduced capital, technology and management experience from foreign companies and vigorously developed export processing industries, which enabled certain industrial sectors to achieve technological leaps and promoted changes in the commodity structure of foreign trade and the development of the national economy.

3. The capital inflow of multinational companies promotes the formation and development of industrialization models and corresponding trade models in developing countries. After the war, developing countries used foreign capital, especially investment from multinational companies, to implement industrialization models and corresponding trade models, which can be roughly divided into three categories: primary product export industrialization, import substitution industrialization and manufactured goods export substitution industrialization. stage. Import substitution industrialization refers to a country's policy of adopting strict import restrictions such as tariffs, import quantity restrictions, and foreign exchange controls to restrict the import of certain important industrial products and support and protect the development of its own industrial sectors. The purpose of implementing this policy is to replace imported products with domestically produced industrial products to reduce the country's dependence on foreign markets and promote the development of national industry. Export substitution industrialization refers to a country taking various measures to promote the development of export-oriented industries, replacing traditional primary product exports with the export of industrial finished products and semi-manufactured products, and promoting the diversification and development of export products to increase foreign exchange earnings. , and promote the establishment of industrial system and sustained economic growth.

4. Multinational corporations control the trade of many important finished products and raw materials

Multinational corporations control the trade of many important finished products and raw materials. More than 40% of the total sales of multinational companies and 49% of foreign sales are concentrated in four sectors: chemical industry, machine manufacturing, electronic industry and transportation equipment.

5. Multinational corporations control international technology trade

In the fields of world science and technology development and technology trade, multinational corporations, especially those from 12 developed countries such as the United States, Japan, Germany, and the United Kingdom, multinational corporations play a decisive role. Multinational corporations hold about 80% of the world's patent rights and basically monopolize international technology trade; in developed countries, about 90% of production technology and 75% of technology trade are controlled by the 500 largest multinational companies in these countries. Many experts and scholars believe that multinational corporations are the main source of contemporary new technologies and the main organizers and promoters of technology trade. Western multinational companies manipulate technology transfer in the following three main ways:

1. Technology transfer from parent companies to foreign subsidiaries. In this transfer method, key technologies are still controlled by the parent company, but some technologies are transferred to foreign subsidiaries. In this way, the parent company can not only maintain its monopoly on technology, but also gain income and increase profits by selling technology and processes to subsidiaries.

2. The company transfers technology externally through technology licensing trade. Technology licensing trade in international trade mainly consists of three parts: first, the transfer of technology patent usage rights; second, the transfer of technical know-how; third, the sale and purchase of trademark usage rights. Through technology licensing trade, multinational companies help to enter into direct industries. Invest in markets and sectors that are inaccessible.

3. The company transfers technology to joint ventures. Multinational companies also provide technology transfer to their foreign joint ventures, so that they can not only obtain technology royalties, but also receive a share of the joint venture's profits, and even receive some preferential treatment from the host country. Sometimes, joint ventures formed between multinational companies and host countries themselves involve technology at a discount.