Compromise Theory of Transnational Operation of Chinese Small and Medium Enterprises and Empirical Analysis Under Economic Globalization

Abstract

Transnational operation of Chinese small and medium enterprises is an inevitable trend of enterprise’s survival and development under the condition of economic globalization. Currently, transnational operation of Chinese small and medium enterprises exist many issues needed to be addressed due to a lack of effective theories and on the basis of analysis of “comparative advantage,” “Internalization advantage,” and “The advantages of geographical location” of China’s medium and small enterprises, trying to propose “compromise” theories of transnational operation of Chinese small and medium enterprises, and empirical analysis, followed by discussion on the countermeasures of transnational operation of Chinese small and medium enterprises.