The Study of China Foreign Investment Enterprise Competition Strategy

On 19/09/2013, in International, by rain

With the implementation of China’s reform and opening-up policy, China’s economy gradually entereda boom period from economic recovery in the early postwar period. Especially into the1990s, economicgrowth in China has made remarkable achievements. China’s vast market and high-speed and steadyeconomic development situation attract foreign investments. With the large amount of FDI inflows, andaccompanied by the impact of FDI in foreign corporate culture, on the one hand,the Chinese enterprisesabsorbed a large number of FDI to solve the problem of insufficient funds of their own enterprises, on theother hand,impacted by of foreign advanced business culture. By the means of learning the advancedbusiness management and marketing experience, and combining with China’s domestic situation, therehave been a large number of successful private enterprises such as Haier, Huawei and so on. Looking at theworld economic circle, only one of the few countries in the ranks of developed countries, especially thepull, Africa, and Asia, there are a large number of developing countries, they are also seeking the country’seconomic progress, the lack of its own strength to attract FDI become a popular choice of these developingcountries. Therefore, with adequate capital reserves, the face of wide range of needs of the world FDI,Chinese companies have embarked on a “going out” the road.Chinese enterprises to invest from the start of the1990s, went to the growing size of the case, hasmade certain achievements. Foreign investment In the beginning of analysis of the status quo of Chineseenterprises overseas investment, the further integration of international foreign investment theory of themotives of the Chinese enterprises to invest overseas to make for the analysis, the need for foreigninvestment in China. The article focuses on the SWOT analysis of China’s foreign-invested enterprises to draw its strengths and weaknesses, and proposed countermeasures, correctly Chinese enterprises to investoverseas strategic play a guidance role.


Study of China’s Foreign Direct Investment Location Choice

On 17/09/2013, in Finance, by rain

With the development of economic globalization, foreign direct investmentworldwide has become an important method of enhancing economic strength andinternational competitiveness. Through foreign direct investment, you can keep away fromthe tariff barriers to reduce trade friction, improve the domestic industrial structure andpromote new products. Today the world economy is becoming more and more complicatedand the economic crisis caused by the subprime mortgage crisis is in the recovery. TheEuropean debt crisis is becoming worse and worse, the domestic economic reform isworking. China’s foreign direct investment is in a vigorous upswing. So it is becomingessential to study the location choice of China’s foreign direct investment.Firstly, we review the regional distribution of China’s foreign direct investment.Secondly, we introduce the current situation of regional distribution from following threeaspects:regional distribution of flow and stock, regional distribution of industry investmentand regional distribution in the developed and developing countries. Through the study ofthe current situation, we put forward the problems of China’s foreign direct investment.Then we put forword the main influence factors and secondary influence factors of theforeign direct investment in china. Through the analysis of influence factors, we choose themost important influence factor—marketing factors as explanatory variables for empiricalstudy. This paper chooses six explanatory variables and forty-nine national data to make ananalysis for the influence factors of china’s foreign direct investment. Through theempirical study, we get the main influence factor of foreign direct investment for allcountries, developed countries and resource developing countries. Finally, In theproposed level, combination the histotical experience of American and Japan with the theempirical results, we put forward pertinence and maneuverability proposals for the foreigndirect investment of China’s enterprises.


A Study on the Location Slection of Banking Industry Foreign Direct Investment

On 13/09/2013, in Finance, by rain

With the strengthening of global economic integration trend, our national banking starts to go global and actively expand foreign direct investment. In the process of the foreign direct investment, the correct location selection is a crucial aspect for the banking acquiring production factors and maximum benefits. Since the1970s, the western economists such as Hymer smith, Vernon and Dunning have had further research for the enterprise’s international direct investment and formed different theoretical system. The traditional foreign direct investment theory more or less, directly or indirectly related to the aspect of the location selection. However, the system research of foreign direct investment location selection, especially the banking foreign direct investment location selection has not been concerned.We selected Chinese banking as the research object, combined theoretical analysis and case analysis method, studied the location selection of the national enterprise’s foreign direct investment. Based on the OIL paradigm of Dunning’s theory, taking quantity of China branches in the international market as the independent variable and impact factors influencing the Chinese foreign direct investment as the dependent variable, we set up the multiple regression model based on panel data. Comprehensive analysis the main factors which influence foreign investment location choices of commercial Banks in China, we can get that the first factor is bilateral trade volume and psychological distance between the host country and China, fully demonstrated “follow their customers” is our primary reason of banking on FDI location choice.Finally, combined with foreign direct investment location choice practice of ICBC, this study summarizes location choice features of our banking industry’s foreign direct investment at the present stage: first, location choice excessively gathers and internationalization is still in the early stage. Second, adjust measures to local conditions, carry on diversified development strategy. Three, use various agencies investment. Then, based on this, we put forward relevant suggestions of foreign direct investment location choice in service industry: first, rely on Hong Kong、Macao and the Asia-pacific region, unfold the global strategic layout; Second, deepening layout in Euramerica and other developed area; third, promote emerging market, such as Africa.


The Research on China’s Direct Investment in Africa

On 11/09/2013, in Finance, by rain

With the implementation of China’s’going out’strategy and the deepening of China-Africa Cooperation, more and more Chinese enterprises go to and invest in Africa. At present, China’s direct investment in Africa has characteristics as diversification of the investment entities and investment industries, localization of the production chain, as well as extended and unbalanced investment location. The number of African countries is large, and their investment environments are all different. So opportunities and challenges coexist for Chinese enterprises to invest in.At the angle of location choice of foreign direct investment, and on the basis of combing the existing literatures, this paper researchs and analysis on the choice of the location of the Chinese direct investment in Africa. Takes the data of53African countries as sample, do factor analysis of investment environment through17indicators in5major categories, tease out that the level of economic development, the economic openness, the market operational efficiency, and the resource-richness and high-quality human resources richness are the important factors that affect the Chinese enterprises to invest in African. By doing environmental efficiency analysis about China’s direct investment in Africa, find that the environmental benefits in Nigeria and other15countries are relatively good. So these African countries could be important consideration for Chinese enterprises to invest in.


The Research of Location Selection for Chinese Oil Enterprises’ Foreign Direct Investment

On 10/09/2013, in Agriculture, by rain

After the reform and opening-up, the economic development in China has been inan amazingly fast pace. China has quite relied on the import of oil. In this situation, it isnecessary to encourage Chinese oil enterprise to explore new oil resource abroad..At present, China has three methods to solve the problem ofoil shortage, which arereinforcing the location survey inside the country, buying oil through foreign tradedirectly and carrying out foreign direct investment. By practice, carrying out foreigndirect investment(FDI) is proved to be suitable for globaldevelopment trend and befavorable toward utilizing foreign resource, markets and technology. However,Chinese oil enterprise is confronting three major problems while investing abroad-lacking of excellent oil, high cost and high risk. As a result, launching a researchingand analyzing the investing environment of the candidate countries with a scientificand efficient way has significant meaning to Chinese oil enterprises.In this article, I reviewed some relevant researches made by experts and listedsome theories about FDI location selection to support my research. After analyzing theoil distribution in the world, I summarized some problems that Chinese oil enterpriseswere facing while investing abroad. Based on the former analysis, I designed anevaluation system to launch an empirical analysis with17indexes, separating15aimcountries into four ranks. Finally, both macro and micro suggestions for Chinese oilenterprises to select FDI locations were given to enhance their performance abroad.


The Research of Location Selection of FDI of Chongqing Lifan Group

On 24/06/2012, in Management, by rain

【Abstract】 Firstly, I pointed the necessity of FDI for our motor companies and the problems which they are facing. In the 21th Century, economic globalization has become a trend. Our enterprises will have to invest in foreign countries. In China, many factories can produce motors, but in many cities, motors are forbidden to be used. For those motor enterprises, the main problem is, the domestic market is becoming smaller and smaller. However, there is a huge market in other countries. So our motor enterprises should go abroad to develop the international market. Our enterprises want to invest abroad very much, but there are many problems, one of them is how to select a proper location for FDI?Secondly, I introduced the relative theory and method. The location theory mainly study how to select a proper location when a company have decided to invest abroad. The cost school and the market school are influential. The cost school consider that the cost is very important for an enterprise, and the market school consider that the market is very important for a company. As a company, if we want to invest abroad, we should have a clear guide. The last purpose for enterprises is to make the largest profit, but it’s condition is market. So, we should take the strategy named “market-oriented”. Then, we should use a set of scientific method to evaluate a location, and we should also learn from some foreign motor companies.Thirdly, under the guide of theory and method, we can solve the practical problems of location selection. I analysed the whole process of Lifan group’s location selection. Lifan group is a powerful motor company, under the new condition, it have invested abroad actively. These years, China’s motor companies have taken a good international market share by export, but lately, something is changing, it became difficult for us to continue the trade. Under this condition, Lifan group have invested in some foreign countries, such as Vietnam, and now it has gotten some achievements.


Research on Implimentation of Direct Investment Location Factors Model in China West FDI Invitation

On 23/06/2012, in Finance, by rain

【Abstract】 Since 1980s, foreign direct investment has been a major economic phenomenon in the world. However the problem of imbalance stands in the way of foreign direct investment development. In China this imbalance exists in the respect of foreign investment utilization source country and the respect of foreign investment domestic distribution.In the early stage foreign investment distribution imbalance can make notable contributions to economic development. Yet when this imbalance brings about larger and larger gap between different investment regions in the sector of development level and people’s living standard, the emergence of a series of economic and social problems will be inevitable. Under the background of China west grand development, how to invite more foreign investment to the west then grows to be one of our government’s main concerns. It is not irrational and unrealistic to force foreign investment to flow into the western region. Instead an exploration of another way-out is in high demand, and this situation brings birth to thesis.


Analysis and Study on Location Selection of Distribution Center of CS Multiple Supermarket Corporation

On 22/06/2012, in Management, by rain

【Abstract】 Based on the relative theories of production and operation management in thefield of industry engeering, the dissertation makes a deep analysis of the originalstatus and the current problems on CS multiple supermarket corporation. It raises thecreative solution by using some methods such as quantitative analysis and qualitativeanalysis, model analysis, contrast analysis, and so on, combing the relative model andcalculation methods.Firstly, the dissertation introduces the significance, the structure and thetechnology route of the study. Secondly, the dissertation introduces the theory basis ofthe study, including: production operation theory, supply chain theory, operationalresearch, system theory and control theory, etc.The dissertation uses some modelmethods, including: location selection measurement method, AHP method and vaguecomprehensive evalution model, etc. The dissertation uses some study methods,including: model analysis method, the quantitative analysis and qualitative analysismethod and contrast analysis method.The innovation point of the dissertation is that it raises creatively the locationselection model of building a distribution center and a new supermarket at the sameaddress.Considering the differences of the status and the effect, the study regards thelocation selection result of the distribution center as the main aspect, while regards thelocation selection result of the new supermarket as the secondary aspect. That is to say,it makes the location analysis of the new supermarket, then takes the locationselection result of the new supermarket as a factor of the distribution center selectionanalysis. Because of their same address, on the one hand, new supermarket can extendthe sale range of the corporation and reduce the distribution cost to the lowest level;on the other hand, because of the core effect of the distribution center in thecorporation, the new supermarket can provide the new place which is needed toincrease for the distribution center at the necessary time, thus tries its best to reducethe extended cost of the distribution center.In the end, the dissertation analyzes the improvement of the supply chainconformity degree and the competitive power of the corporation and the increase ofthe economic benefits and the social benefits from the new supermarket and the newdistribution center after they have been builded and operated for a period.


Research on Location Selection Strategy of Chinese Companies in Foreign Direct Investment

On 17/06/2012, in Management, by rain

【Abstract】 Foreign direct investment is the important strength to urge the economic globalization. As a crucial way to join the international distribution and improve integrative competitive power, it now becomes the hinge to obtain the power of global control. Location selection in investment object country is the most important part in direct investment abroad. This article systematically expounded the frame of location selection analysis in the foreign direct investment based on the theory of location selection of foreign direct investment. It also included the relationship between the district selection and outside district decision factors in foreign direct investment, and the relationship between location selection and self inside factors in foreign direct investment, e.g. the advantages of trans-national company, the characteristics of industry, competition strategy mode and so on. Combined with these factors driven to the consideration of location selection in direct investment abroad under these premises and focused on the current problems occurred in the foreign direct investment, the article stated related location selection strategy in foreign direct investment suitable for Chinese companies. This article concluded and systematically analysed the factors of foreign direct investment strategy selection, introduced quantitative and qualitative analysis method through demonstrating mathematical model and typical cases, stated the location selection strategy suitable for Chinese companies. Therefore it provided feasible and scientific strategy for Chinese companies to develop location selection overseas.


Analysis of Regional Factors for Foreign Direct Investment in China

On 10/06/2012, in Finance, by rain

【Abstract】 China’s Foreign Direct Investment (FDI) has been of considerable size since it opened to outside world, but it is imbalanced in terms of regional distribution. This paper explores the crucial regional factors affecting multinational enterprises (MNEs) to investment in China and provides corresponding suggestions.Traditional factors include natural recourses, comparative labor cost, market capability and capital productivity. The aggregate factors include infrastructure, congregate economy, human resources, perfect government and law system, and etc.In China, FDI has been concentrated in east coastal provinces and along the Cheng Jiang River. Recently, there was a major shift from the south to the north and the middle reaches of Chang Jiang River. This paper summarizes regional situation of FDI and analyzes the regional factors contributing to the situation from the investing (Japan, Korea, US and Germany) and host countries. At last, the thesis also gives advice on regional factors in order to attract more FDI and make the even development of them in China.