Research On Location Selection Strategy Of Chinese Companies In Foreign Direct Investment

Foreign direct investment is the important strength to urge the economic globalization. As a crucial way to join the international distribution and improve integrative competitive power, it now becomes the hinge to obtain the power of global control. Location selection in investment object country is the most important part in direct investment abroad. This article systematically expounded the frame of location selection analysis in the foreign direct investment based on the theory of location selection of foreign direct investment. It also included the relationship between the district selection and outside district decision factors in foreign direct investment, and the relationship between location selection and self inside factors in foreign direct investment, e.g. the advantages of trans-national company, the characteristics of industry, competition strategy mode and so on. Combined with these factors driven to the consideration of location selection in direct investment abroad under these premises and focused on the current problems occurred in the foreign direct investment, the article stated related location selection strategy in foreign direct investment suitable for Chinese companies. This article concluded and systematically analysed the factors of foreign direct investment strategy selection, introduced quantitative and qualitative analysis method through demonstrating mathematical model and typical cases, stated the location selection strategy suitable for Chinese companies. Therefore it provided feasible and scientific strategy for Chinese companies to develop location selection overseas.