Keywords: international influence of international trade
First, the positive impact of intra-company trade on international economy and trade.
1. Expand the scale of international trade and promote the development of international trade.
On the one hand, in the process of international expansion, multinational corporations set up subsidiaries, merge other companies and form strategic alliances with other companies around the world, and then carry out frequent internal trade with overseas subsidiaries or strategic partners, so that their parent companies or subsidiaries can obtain raw materials, semi-finished products, finished products, technology, consulting, information and other resources needed for production and operation without market transactions, which greatly promotes the development of international trade in goods and services. On the other hand, the in-depth development of international division of labor makes the production specialization and cooperation between subsidiaries or alliance members of multinational corporations higher and deeper. The internal trade of multinational corporations involves more kinds of goods or services, and many factors of production circulate within multinational corporations through internal trade. Domestic trade promotes international economic and technological exchanges and cooperation, which is conducive to faster improvement of the level of economic and technological development. The extensive development of domestic trade has enriched the types and ways of international trade. In a word, intra-company trade has expanded the scale of international trade and promoted the overall development of international trade.
2. Deepen the international division of labor and promote the liberalization of international trade.
The international division of labor regulated by the internal market of multinational corporations has been further developed, and the international division of labor under this condition is more detailed, which is manifested in the specialized production of a certain component, part or process of a product. On the other hand, the promotion of international exchange, cooperation and collaboration has deepened the international division of labor, and the development of international trade within companies has deepened the international division of labor. In addition, the production of more and more new products needs the cooperation of various scientific and technological forces, and the products can be fully developed and improved in the world market. In departments with advanced technology and equipment and high technical level, the division of labor will inevitably transcend national boundaries, and the international division of labor within departments will be widely carried out, and international trade will become increasingly frequent on this basis. In order to better produce products that can only be successfully developed by joint research and development of multinational enterprises, it is objectively required that governments of all countries create a good trade environment, reduce trade restrictions, and make factors of production or products of all countries flow freely in the world. Therefore, international trade within the company promotes the liberalization of international trade.
3. Promote the development of international technology trade and service trade.
One of the main motives for multinational companies to conduct intra-company trade is to prevent the loss of their own technological advantages. In order to maintain their technological advantages and gain competitiveness in the international market, multinational companies often choose to transfer technology or products with high technology content through internal trade. The most active force in international technology trade comes from multinational companies. If multinational companies transfer technology through internal trade, they can not only reduce the risk of leakage, but also obtain multiple effects of technology trade, that is, the benefits brought by technological advantages are several times the value of technology itself. The huge benefits gained from internal trade will stimulate the enthusiasm of multinational companies to continuously carry out research and development and pursue the latest technology, and also provide excellent funds for multinational companies to engage in research and development, laying the foundation for the development of international technology trade.
Second, the negative impact of intra-company trade on international economy and trade.
1. Affect the geographical flow of goods in international trade and change the meaning of trade balance.
Before the emergence of intra-company trade, the commodity flow of international trade was generally produced in the home country and then flowed to all parts of the world through the international market. However, intra-company trade has changed the structure of this commodity flow. Through the worldwide coordination arrangement of the parent company and the division of labor among subsidiaries, raw materials, accessories and technologies flow to the subsidiaries with the most cost advantage through internal trade, and then they are produced into semi-finished products or finished products and then flow to other subsidiaries or parent companies, thus changing the flow of international commodities.
Therefore, on the basis of changes in international commodity flows, the accounts of the parent company and its subsidiaries can be adjusted as needed. For example, the profit of the parent company can be increased by the increase of the sales volume of the subsidiary products, and the resulting foreign exchange surplus or deficit has deviated from the meaning represented by the traditional trade balance. The traditional trade surplus is the net income of foreign exchange, but in the international trade in which intra-company trade participates, the foreign exchange account is not strictly consistent with the actual trade situation. For example, there is a huge trade deficit in the United States, which is attributed to the adjustment of American industrial structure to some extent. Some multinational companies arrange overseas subsidiaries to produce products, and then buy back semi-finished or finished products through internal trade, which leads to an increase in US imports.
2. The complexity of international trade relations has changed the structure of the world market.
First of all, the trade between subsidiaries of multinational companies in different countries is international trade, but in fact the buyer and seller are the same company, which is often counted as general market trade; Secondly, the internal trade of multinational companies evades the tax revenue of the host country by means of transfer pricing, transferring huge profits, causing certain damage to the economic development of the host country, and some industries with high pollution and high energy consumption transferred by multinational companies have caused predatory losses to the economy, environment and resources of the host country; In addition, the trade between subsidiaries of multinational corporations in developed countries will be manifested as the import and export of the host country, but it has little to do with the economy of the host country. The beautiful data shown by foreign trade statistics may not be consistent with the actual situation, while some developed countries put pressure on their trading partners under the pretext of trade deficit and other issues, which will lead to tension in trade relations between countries.
3. Obstruct the market from allocating resources and interfere with the normal international trade order.
International trade within the company belongs to the "invisible hand" that excludes the market, and the allocation of price mechanism is limited. Instead, the company allocates resources artificially and monopolizes superior resources, which is not conducive to the development of market competition, and is not conducive to the enthusiasm of market participants and the prosperity of economic activities to a large extent. Although the intra-company trade of multinational corporations allocates resources through global strategy, it is only limited within multinational corporations, and the resources artificially allocated by multinational corporations are not necessarily optimal on a global scale. The normal formation of the international trade order needs free market allocation, which is conducive to the survival of the fittest, promoting market competition, promoting technological upgrading and providing a good environment for the progress of international trade in all aspects. However, the development of intra-company trade interferes with the establishment of normal international trade order and may lead to abnormal trade order.
Three. abstract
Transnational corporations have played a decisive role in the development of international economy and trade. This paper analyzes the positive and negative effects of intra-company trade on international economy and trade. I hope this research can lay a material foundation for the prosperity and development of international trade.
refer to
[1] Lu Rongzhong, Du Haoyang. Several Issues on the Internal Trade of Multinational Corporations [J]. Journal of Xiamen University (Philosophy and Social Sciences Edition) 20 1 1(2).
[2] Zhu Qing. An analysis of the internal trade of multinational companies [J]. Chinese and foreign entrepreneurs, 20 1 1(9).
[3] Tian Chunhua. Analysis of internal trade of multinational companies [J]. International Business Studies, 20 12(2).