The Choice Of Multinational Banks' Entry Mode To A Host Country

To develop China's multinational banks is an important subject we cannot avoid after we enter to world trade organization. It has strategic significance for China's future economy development. In regard to multinational banks' research, we always treat them as a part of multinational corporations. But multinational banks as financial corporations are different from productive corporations. They deal in money. On the base of this background, my paper made some research on the choice of multinational banks' entry mode to a host country. I hope it will be useful to the development of our China's multinational banks.Multinational banks can take different entry modes to a host country; every mode has its advantage and disadvantage. Multinational banks can get different benefit from different entry modes. Firstly this dissertation summarizes the effects to the choice f entry mode to a host country, points out the deficiency, and brings forward to research the entry mode to a host country by general economics analysis tools such as transaction cost economics and game theory.Then, there is an economics analysis about agencies and branches. This dissertation states organization character, the requirements for an agency and transaction harmony system about agencies and organization character, benefit character, business character and finance innovation about branches. We can come out agency agreement is a kind of contract. It's a gambling equilibrium between multinational bank and the host country. Multinational banks get a beneficial contract condition by the choice of a system. Afterwards, this dissertation analyzes the decision of agency value and the choice of entry mode by build a gambling model of commission agent price decision. In that model, we first assume product homogeneity and no supervision cost, and then loose supervision cost condition. In the end, we analyze product heterogeneity. On the other hand, this dissertation uses transaction dimension theory to analyze entry mode. Lastly this dissertation looks back the process of our multinational banks' development and states the present status. The dissertation analyses the existing problem and give some advice.On the base of above study, this dissertation conclude that it lies on the profit for the choice of agency and branch when product homogeneity and it is better to choose branch with the finance innovation accelerating when product heterogeneity.