FDI and trans-corporation of service trade

For a long time, the research of foreign direct investment and trans-corporation mainly confine to the enterprises of manufacturing industry and most theories of international production are only fit for goods production. However, the fast development of service economy can’t permit us to ignore fact again, can’t permit our research to be only limited to the goods, but leave the question open to service. Gratified, this kind of state is changing.

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On one hand it is because people have realized the importance of service department day by day; On the other hand it is cause of the promotion of negotiations concerning service trade in MET (Multilateral trade negotiation) “Uruguay Round In this case, more and more researchers and policymakers set about to analyze all respects of the field of service, especially the characteristics and its decisive factor and influence in the international economic association of the service trade.

Because of the particularity which most service trades have, it makes the foreign direct investment particularly important. Because compared with goods, a lot of services produce and supply the foreign rake in the locality only through its foreign affiliated enterprise. This characteristic out of the common of service trade, and the importance of distinguishing service trade and foreign direct investment of service trade Indicate that there Is special reason in the foreign direct investment of service trade.

The importance of trans- corporation of service trade, the fact that Investment of service trade, goods trade and foreign direct investment are often linked up closely impel people to further pay close attention to foreign direct Investment and trans-corporation of the service industry..