Global Service Network and the Choices of China

Jun zhang

Abstract


Global production network has become the main competitive force on the micro level in the process of globalization, which is monopolized by transnational corporations. After the transfer of manufactures from developed countries to developing countries, global transfer turns to service industry, especially the transfer of knowledge intensive services such as financial services, professional services, information services, research and development and technology. The paper constructs global service network as the framework to analyze how knowledge intensive service industry develops in China by involving in the network. It draws the conclusion that by involving in global service network, which incorporates knowledge transfer mechanism, the developing countries can acquire later-comer advantage and develop their industry in some period, but the lock-in trap would be damage to their further development.

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International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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