Study Of Cross-border Direct Investment

The thesis takes a research on a hot issue of the current Chinese and world economy ?overseas direct investment. It begins from the basic definitions and takes a full review of the development of the overseas direct investment. A great amount of data has been used to illustrate the impact it has on the economy of the host nation and source nation. Also a summary and analysis have been made on the practice of overseas direct investment in China which lead to an opinion the author has about the promotion of overseas direct investment in China. The main content of the thesis includes: Chapter one: the definition of overseas direct investment and multinational company. Overseas direct investment is defined as an investment action an investor of one nation (or region) takes to gain profits from an enterprise and acquire full or a certain level of management of the enterprise in another nation (or region). Overseas direct investment can be divided into stock investment and non-stock investment. In stock investment, the minimum level of stock proportion is 10%. The basic characteristics of overseas direct investment are also discussed in this chapter. Compared with indirect overseas investment, the direct one differentiates itseW in these parts: the overseas transfer of production materials; the transfer of financial capital is not essential; the investment lasts a long period and involves great risks; the blurry difference between the direct and indirect (stock investment) overseas investment. The relationship between overseas direct investment and multinational companies is also included in this chapter. Multinational companies are the absolute subjects of the overseas direct investment, while overseas direct investment is the most important measure and form multinational companies have recourse to in the organization of economic activities worldwide. Chapter two: the characteristics of different phases during the development of .overseas direct investment. The reasons for the unprecedented rapid development of overseas direct investment after war are as follows: firstly, the technological development has provided the possibilities and premises for the rapid development Abstract of overseas direct investment; secondly, the more elaborateness of international division of labor and the deepening internationalization of production z e the main impetus for the development of overseas direct investment; thirdly, overcoming trade barriers to dominate international market is the main force for the development; fourthly, the global policies of free trade and investment give great support for the rapid development; fiflhly, the global trend of privatization is a special factor for rapid progress of overseas direct investment among multinational companies. The trend of the development has also been discussed in this chapter. Firstly, merge and acquisition have gradually become the main measures of overseas direct investment. Secondly, the free factors in the policies for overseas direct investment have been strengthened step by step. Thirdly, developed nations are still main sources of overseas direct investment, which the investment among the developed nations, especially 搕he Great Triangle?still constitutes the main part of overseas direct investment. Fourthly, the developing nations show a strong sign of developing overseas direct investment, and investment continues to flow into these nations. Fifthly, central and eastern Euro...