Comparative Advantages And Outward Foreign Direct Investment

With deepening of the unification of the world Economy, the international direct investment has changed greatly since the 1990's.The rapid expansion of international direct investment helps to stimulate the world economy, therefore, it becomes an important strategy for the whole world to start outward FDI.The present outward FDI theories based on the multinational enterprises of the developed countries quicken and promote ourward FDI of the developed countries such as America and Japan etc. However, the developing countries have no advantages in market monopoly, capital, technology and management ,therefore the traditional theories can hardly be used to conduct the outward FDI of the medium & small enterprises of the developing countries. Based on the theories of small -scaled technology and practical technology, the article adopting theoretical model emphasize and prove reasonableness of the theories.As a developing country, outward FDI of China which is influenced by comparative advantages is still at the initial stage. As a result, the article takes Chinese outward FDI situation as it's background, points out questions of FDI. From views of theory and reality, the article makes a full analysis on comparative advantages of our country, and also raises some operable proposals on how to make use of comparative advantages to develop FDI.