Research into Equity Arrangement-Based Overseas Operation Strategy of Transnational Corporations

Well-suited equity arrangement plans lie at the core of the maximization of profit for transnational corporations (TNCs). Equity arrangement, from the perspective of a full-scale cross-national investment, should be a dynamic process of options, involving initial equity arrangement on the TNCs' entry into the host country and adjustments after years of localized operation. This paper bases itself on the strengths & weaknesses of different equity arrangement plans and the respective contributing factors by enumerating cases of such arrangement by TNCs branches in China with the intention of making an approach to the choice of a well-suited equity arrangement.