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What is the significance of the existence of multinational corporations?
Multinational corporations are the core organizers of international economic activities and become important promoters of international economic integration. Multinational companies are the main undertakers of technological development, and often combine capital, technology, training, trade and environmental protection to carry out a package of tangible and intangible comprehensive assets to stimulate economic growth. Multinational companies make comprehensive use of the organization and management ability of global production factors and conditions, making them potential and efficient production organizers. In fact, the transnational production and service network composed of about 40,000 multinational companies and 250,000 foreign branches is expanding day by day, and an international production system organized and managed by multinational companies is taking shape. Therefore, as far as economic impact is concerned, transnational corporations have played a vital role in allocating resources on a global scale, improving the competitiveness of home and host countries and promoting the process of economic integration. The integration of various economic activities of transnational corporations also means that the policies of host countries need to be sensitive to the potential contributions that these companies may make in a wide range of fields. In terms of policies and systems, the regionalization strategy of multinational production has strengthened the trend of regional integration. Once some countries are brought into this regional production network, deeper pressure of policy integration will arise. This means greater policy coordination and policy convergence among neighboring countries. When multinational companies treat investment, production, resources and marketing decisions with a global perspective and organize and manage transnational value-added activities with a set of methods, the complexity and internal relations of the international production system are exposed. For many multinational companies, even for many multinational companies whose production integration is still in the basic stage, an international network has been formed between them. Maintaining and expanding this network and making all parts of this network form a single production structure are the main problems. With the development of this process, an international production system is taking shape. As an institution in an integrated organizational structure with many connections with the world economy, transnational corporations play a decisive role as direct coordinators of international economic activities. Integrated international production system is the core of world economic globalization.