Foreign Direct Investment Of Large Enterprises Under The Background Of The “belt And Road” Initiative Strategy Evolution Analysis

With the continuous development of the “Belt and Road” initiative,the trade facilitation and investment facilitation of countries along the “Belt and Road” have gradually improved,creating a better political,economic,and cultural environment for Chinese companies to participate in investment cooperation in countries along the “Belt and Road” and to promote the cooperation of multinational companies.However,enterprises are also facing increasing challenges when conducting oversea direct investment.Blindly entering the market will cause enterprises to fail to fully understand the needs and changes of the investment recipient country(short as “host country”)market,thereby causing investment risks and wasting resources.Therefore,there are strong uncertainties in investment decisions and how to enter the host country’s market in an appropriate way has become the core problem that enterprises face when making foreign direct investment.In order to better help enterprises,the government of the origin investment country(short as “home country”),and the government of the host country make relevant decisions on oversea direct investment,the evolutionary game theory is used to analyze the oversea direct investment strategy of enterprises under the background of the “Belt and Road Initiative”.First,this thesis analyzes the pros and cons of the three parties,the enterprise itself,the government of the home country,and the government of the host country,in the process of oversea direct investment.On this basis,the evolutionary game model of the three parties is constructed.Among them,the strategic combination of the enterprise is cross-border mergers and acquisitions or new investment,the strategic combination of the home country government is incentive or nonincentive,and the strategic combination of the host country government is incentive or nonincentive.In order to explore the evolutionary stability strategy of the participants and the overall system,a Chinese iron and steel company A,the Chinese government and the government B of a Southeast Asian country are selected as the research objects and case study is conducted.The evolution path simulation analysis is carried out through MATLAB to explore the key factors affecting the evolutionary stability strategy.Based on the analysis of company A’s decision-making behavior and strategic choices,the characteristics,and evolutionary patterns of its oversea direct investment are revealed.Overall,the research results show that:(1)The evolution result of the oversea direct investment strategy evolution game system constructed in this thesis is affected by factors such as benefit,economic cost,risk cost of different investment methods,government incentives and benefits,and income transmission efficiency.(2)In the case study,changes in the initial strategy probability values of company A,the Chinese government,and the government B of a Southeast Asian country will affect the rate of system convergence,but will not affect the final convergence state of the system.(3)Company A’s strategic choice of investment methods is most sensitive to the benefits brought by different investment methods,and less sensitive to the incentives and discounts adopted by the Chinese government for different investment methods of enterprises.These results can provide theoretical guidance for promoting oversea direct investment behavior of enterprises,enhancing industrial cooperation between my country and countries along the “Belt and Road”,and promoting the development of regional economy and the strengthening of cooperative partnerships.