Location Factors Analyses Of The Choice Of Foreign Direct Investment Flux And Flow Direction

In the tide of international economic,international division and production are strengthened further , the location selection of foreign direct investment(FDI) behaves as special space regularities. The right location selection is a matter of great importance for the Multinational Co-operations (MNCs) to improve productivity effects and benefits, and to maximize the space efficiency of direct investment. Focusing on the topic of the flux and flow direction of foreign direct investment, this paper deals with the location factors of several optional host countries and home country from the following five parts: In the first part, the author mainly explains the relationship among investment conditions and motivation theory, location theory and investment location theory. Then the author creates the investment profit optimization discrete time model and the location disparity margin discrete time model. By the comparative analyses of profits and optimization investments, the author proves that location factors, especially the particular factors of host country different from home country and other optional countries, influence the optimization of investment profit, as well as the choice of flux and flow direction. Otherwise, the author illuminates the influence mechanism. Then a location selection mode is finally built based on above analyses, the author creates three class index system of location factors to evaluate function of the location factors when the MNCs makes a choice of investment flux and direction. Furthermore, the author introduces a practically extend use of the results with the method of fuzzy comprehensive judgment. Finally on the foundation of the above stated, the author proves and provides some location factors strong related with FDI flux and flow direction at the present time and for the future. Based on the research, the author brings forward some pertinent suggestions to foster the location core competitive power, which could help host countries attract FDI, and home countries supervise FDI as well.