Timing Strategy Of Chinese Small-and-Medium-Size Enterprises Engage In Foreign Direct Investment

Foreign Direct Investment is a powerful international strategy used by most enterprises frequently. As a result, multinational enterprises have dominated the world economy. While, the reason small-and-medium-size companies, which is prevalent in account, invested directly abroad to improve their competition is different from huge ones. Un common conditions, small-and-medium-size companies invested in the developing countries to keep their foreign markets for the reason that they lack of research and development capacities and cannot survive only by domestic market.With the continuous development of Chinese economy, China has almost become the main force which fast the world economy. This change made many famous multinational enterprises enter into China, and big station-owned enterprises in China grow rapidly and become mature. For the same reason as mentioned above, Chinese enterprises, especially small-and-medium-size ones encountered the questions that whether and when invest abroad. And the question about timing is more important in these two questions, because although small-and-medium-size companies is more flexible than multinational enterprises when choose invested abroad, the ability of conquering the risk is less stronger than the latter ones. So, timing is significant both in improving competition at low cost, and in surviving of the small-and-medium-size companies.The thesis get the conclusion that too many obstacles will hinder the development of small-and-medium-size companies because competition is more and more intense in China by analyzing the problem that overinvestment and insufficient demand coexisted, which hold Chinese economy back. These obstacles which includes over competition, unsatisfactory return rate, environmental pollution, etc, will threaten the survival of small-and-medium-size companies, and the worst impact is preventing macroeconomic from developing healthy and orderly. While, the relative...