On The Effects And Problems Of China's Enterprises' Being Merged And Acquired By Multinational Corporations

Cross-border merger & acquisition has become the mainest form of FDI presently, it has also become the mainest form of introducing foreign investment by western developed countries .With China' s entry into the World Trade Organisition, it has become a must to mix home and abroad capital together. China has adjusted some laws and regulations and gradually softened the limitations of Chinese enterprises' merger & acquisition by multinational companies, which will make cross-border merger & acquisition more active . In this thesis, we mainly talk about the economic effect and existed problems. Starting with the FDI theories , and then study the reasons why the multinational companies merge and acquire Chinese enterprises. By the analysis of economic effect on China through theories and authentic proof, we have proved that it is our strategic point of using foreign investment to attrack cross-border merger & acquisition. Together with the example study we also approched the substantial existed problems in cross-border merger & acquisition and the countermeasure to solve those problems. During the study , the author bases the study on the profit of the host country, choosing some economic index to go on analysis of authentic proof, hoping to make progress in the study of cross-border merger & acquisition.