Research On The Transnational M&a Of The Enterprises In Developing Great Power

Transnational M&A has become mainstream of international investment,since 2000 and its ratio has increased rapidly.Brazil,Russia,china and India are the four strongest and most potential representations of Emerging economies associations the transnational M&A,of which are very important for the promotions of competition ability and industrial structure even for the conversion of world situations.The article made description critics and analysis of the annexation of the enterprises in developing BRICs from below: theory,history grand point of view,microcosmic analysis and corresponding policy.The theory of the annexation of The enterprises in developing BRICs mainly the theory of western mainstream FDI which include.The theory of monopolistic advantage;The theory of internalization;Product life cycle;The eclectic theory of international;The theory of marginal industry expand;and so on.These theories properly explained the investment in developed countries, which can also be used as reference for the investments in developing countries.The theory of FDI aimed at the developed countries based on the experiments before 1980s,parts of its preconditions are already out of effect and can not explain the international annexing among developing countries.international investment in developing countries are as below:Louis J. wells Theory of small-scale technology;Theory of technology localization theory;Theory of technological innovation and industrial upgrading;Theory of investment development;Theory of imbalance foreign investment;and so on . theories partly explained the reason of international investment among developing countries,which can be used as reference for the international annexing in BRICs.For example,Theory of imbalance foreign investment points out that in the enterprise of property imbalance can convert its situation fundamentally to gain advantage by compensation from international investments.This properly explained the monopolized advantage and the reason of BRICs annexing.The annexing tides in history was among the enterprises of America Europe and Japan the rate of which was above 90%,Until 2000 the rate of developing countries reached 10%.Retrospect the history of enterprises annexing in developing countries,the conclusion is that the start is late and the ratio is limited.In resent 10 years,the international investment of developing countries has developed rapidly, the rate of 2008 has reached 17%,witch has changed international investment situation.Since the financial crisis BRICs enterprises have become the principle forces of transnational M&A,which changed the transnational M&A situation.The grand political and economic factors which affect transnational M&A are as below:first the transnational M&A is related with economic globalization and the economic cycle of the country.Economic globalization promotes and leads further development of transnational M&A.Transnational M&A and economic cycle are the change of wave to the same direction,the annexation of developed countries is prior to the cycle and that of developing countries is falling behind.The global industrial adjustment has the leading effect of transnational M&A in developing countries.The retro annexation of enterprises in developed countries by developing countries is always the dominant industries. This coincide with the global industry distributions.Third the non traditional security factors have important effect on transnational M&A in developing countries.Fourth the strength and efficiency of native lands and host countries have important effect on transnational M&A.countries especially great countries can make helpful grand environment in international regulations, market admittance and system insurance.The effective efficiency of the countries can provide the related supports forcefully in time.Fifth the change of the regulations can restrict transnational M&A.The global regulation change can provide regulation preconditions for the transnational M&A and some restrictions on the native annexations.BRICs enterprises annexation enriched the property advantage theory and region advantage theory.The experiment of the developed countries proved that it was not available to get coral technique and increase the industrial structure,market could not exchange the technique.Transnational M&A is an important way to get coral technique and increase the industrial structure.By the annexation for leaning and material and by the choice of regional advantage,the annexation growth and competition advantage can be promoted.By analyzing the triangle annexation model,we concluded that transnational M&A were important for the developing countries to increase its competition based on the investment imbalance theory and absorbing monopoly advantage theory.BRICs transnational M&A have different driving force comparative advantage and rate of success.There are disadvantages backward in the BRICs enterprise annexation The enterprises should avoid the weak points and accelerate the construction ability in order to turn the disadvantages into advantages as early as possible.The international investment and annexation amounts shrink a lot.But in 2008 BRICs annexation rose against the wind,In 2009 the annexation amount lessoned but the ratio of transnational M&A kept rising.The property advantage of BRICs is deficient:the financial structure and security system are not perfect;security bulwark of the host countries;the annexation experiences are deficient.All these above lead to the risks and challenges of annexation.But in the long run the quantity of annexation will increase,the quality will be promoted,and will play more and more important role in international investment.China is the most potential developing countries with its unique characteristics,in which the advantage and disadvantage coexisted.Under the socialist market economic system it is easier for the government to establish large enterprises which can make transnational M&A with incomplete and unclear property advantages.The enterprises are developed under monopoly and its coral competition is very limited.Its state owned identity leads to great haphazard and risks.The annexation of Rio Tin to M&A Aluminum group of China is a good example. Facing the complex international situation Chinese government should accelerate the system,construction and promote the governmental efficiency in order to provide necessary support for the enterprises.The enterprises also should promote its abilities of working while learning. Based on its unique characteristics the enterprises should hold the opportunity tightly to annex with fear while fear with annexation in order to become the first class international enterprises earlier.