【正文】 y useful tool for synthesizing previous research findings and developing an eclectic theory of global market strategies. Rapid economic development in China as the biggest Big Emerging Market has attracted many multinational corporations. Since the beginning of the economic reform in late 1970s the Chinese government has encouraged foreign investment and opened industry after industry to foreign participation. Major MNCs have all taken positions in China, and many of them have expanded their operations in the country as they gain more experience, and as new policies create such opportunities. The convergence of numerous MNCs in China provides a unique opportunity to examine the adequacy of the evolutionary perspective in explaining firms’ expansion activities in the global market, and to explore its strategic implications for managerial decision making. Thus, this research attempts to substantiate the evolutionary perspective of global market expansion delineated in previous research by examining MNCs’ expansion in China. Furthermore, this research proposes a normative framework of strategic transitions throughout the expansion process, including the key aspects of MNCs’ business: mode and scale, operations management, marketing strategies, and human resources.EXPANSION OF MNCs IN CHINAInternationalization or global market expansion of MNCs is a sequential process of incremental development. Previous researchers have suggested different stages of development, such as entry, expansion, and experienced, and initial entry, local market expansion, and global rationalization (Douglas amp。 Craig, 1989). However, prior to entry into a foreign market, firms often have to engage in intensive research and preparation. This is particularly true in the case of China, which represents a remote and unfamiliar market to many foreign firms. Thus, this research examines four stages of market expansion: preparation, entry, expansion, and experienced. Each stage is associated with unique characteristics in the external environment and presents new challenges, which in turn affect MNCs’ objectives and priorities. 1. Preparation StageThe stage of preparation is characterized by immense interest in the target market, yet lack of information and knowledge. Thus, assessment of market environment, such as demand and risk is the key concern and objective. Unfamiliar with the local culture, political environment and business practices, MNCs devote much of their effort to intelligence gathering, assessing risks, and cultivating relationships. These activities may include market research, trade missions, and even establishing representative offices in the target country. How to structure the dealtransaction cost analysis and financial feasibilityis another important task in the preentry stage. Sufficient preparation is crucial and sometimes takes years. One of the mon problems faced by MNCs in China is an accurate estimate of the demand for their products. Access to foreign currency by local organizations and the purchasing power of consumers clearly impact the demand for foreign goods. Economic conditions and the boombust cycles affect the demand for products. Lack of policies and guidelines for governing the operation of foreign panies also created a lot of uncertainty. Understanding this nature of China’s developing economy is essential for MNCs to make informed decisions as to the time and place of entry and new product introduction. The plexity and scope of opportunities in China make it essential that panies research all the relevant factors before making substantial investment. Many MNCs such asATamp。T and McDonalds spent years courting the Chinese government andresearching the local market. 2. Entry StageMarket research and knowledge acquisition should reduce the level of uncertainty and perceived risk, and increase resource mitment. In the entry stage, a firm faces key decisions about the time, place, and method entry, and the challenges to establish a beachhead operation and to ensure its smooth operation. The length of this experimentation stage depends on the bination of the environment, management mitment, and the petitive advantages of the firm. Sufficient planning and securing all the success requirements are paramount for the initial success. While some firms chose direct export or operated offshore in places like Hong Kong, many foreign firms entering China made some form of direct investment. In this period of experimentation, firms have to learn how to navigate through the omnipresent Chinese bureaucracy, to obtain the blessings of key government agencies, and to establish good working relationships with their local partners. While many early entrants have been moderately successful, some firms simply plunged into the market without sufficient preparation and securing all the success requirements. Hastening to expand the scale and scope of their operations in the country, the return for some MNCs has been less than gratifying. Many MNC operations suffer from sluggish sales, escalating overhead costs, and an inefficient local work force. 3. Expansion StageNew external triggers and success of the first flagship operation create opportunities for further expansion. In this stage, firms begin to venture intonew product areas and geographic markets. Thus, the foremost task is to identify other emerging and untapped markets. Understanding the mechanics behind the target country’s economic trends can assist MNCs in establishing realistic goals as they make incremental mitment in resources to expansion. Constant monitoring of the market environment and political events can help MNCs discover market opportunities and seize them in a timely manner. In the expansion process, MNCs also face enormous challenges in negotiating new operations, establishing an efficient distribution network, and creative marketing strategies to ensure continuous sales growth. As the market conditions gr