Chinese Market:Its Potentials, MNC's Penetration Strategies, & Its Relevance to Asian Countries(1) = 多國籍企業의 中共市場浸透戰略

다국어 초록 (Multilingual Abstract)

The study reported in this paper shows the businessmen in Asian NIC’s that
China’s emergence in international trade can be perceived as a business opport-
unity. rather than as a competitive threat. It also suggests a strategic approach
to capture this perceived opportunity.
This paper is made in omnibus style comprising four interrelated researches,
the conclusions of the formers becoming the starting assumpticns of the latters.
The objective, research methcdology, and conclusion of each research are explai-
ned beldw:

Research One: Analysis of prospective products in the Chines market. It sc-
reens various products currently imported to the Chinese market, and identifies a
few in which MNC’s have comparative advantage over others. Using a two-stage
index analysis as a research methodology, it chooses four product groups wtih
best potentials: special-purpose machineries, steel products, plastics, and fertilers.

Research TWO: Evaluation of MNC’s penetration strategies into the Chinese
Market. It evaluates a number of feasible MNC strategies for penetrating into the
Chinese market. Using a weight-applied index analysis, the research identifies
‘establishing marketing branch-offices in China’as the best alernative, and ‘joint
venture with a neighboring LDC’as the second best. This conclusion applies un-
iformly to all of the four product groups chosen in Research One.

Research Three: Analysis of location economics of neighboring LDC’s as a
partner country in joint venture investment by an MNC. It reviews location ec-
onomics of five Asian countries in producing steel products (specifically seamless
steel-pipe) which was chosen as one of the four product groups in Research One.
A computer program with an optimization algorism is deveioped, and it generates
the desirability of the countries as a joint venture partner in the following order:
the Philippines, Thaland, Taiwan, Korea, and India.

Research Four: Sensitiviy analysis of Korean strategies in attracting MNC’s
for joint venture investment in Korea. It investigates a number of variables to
check whether Korea’s attractiveness can be enhanced by changing them. Throu-
gh the sensitivity analysis of the model developed in Research Three, it identi-
fies ‘the investment ratio by foreigner’as the most effective variable, i.e.,by
changing the maximum rate from the current 49% to 100% Korea easily becomes
the most attractive joint venture parter. Other variables such as ‘reduction of
corporate tax rates’, ‘regulation of price levels’,‘reduction of interest rates’,
and ‘direct subsidies’are proved iess effective.

목차 (Table of Contents)

• Ⅰ. Introduction
• Ⅱ. Study One: Import Goods that the PRC will Require from the Industrialized Nations in the 1980’s
• Ⅲ. Study Two: MNC penetration Strategy for the PRC Market
• Ⅳ. Study Three: Economic Analysis of Nations with Potential joint-Vent-ure Partners
• Ⅴ. Study Four: Analysis of Korea’s Strategy to Attract MNC Investment
• Ⅵ. Summary and Conclusion
• Footnotes