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Political Risk In Foreign Direct Investment Of State-owned Enterprises And Private Enterprises

Posted on:2012-10-22Degree:MasterType:Thesis
Country:ChinaCandidate:R R WengFull Text:PDF
GTID:2189330332995878Subject:Political Theory
Abstract/Summary:PDF Full Text Request
Since reform and open up, with "bringing in" and "going out" strategy having been put into operation, China has successfully accomplished change from peremptory attracting direct foreign investment powers to foreign direct investment powers, it becomes the nucleus of the world economic development, also China enterprise moves towards the world, realize important steps of internationalization. Foreign direct investment for Chinese enterprises provides a broader cast of heaven and earth, the long-term development of Chinese economy provides staying-power dye-in-the-wood power. It will inevitably become more enterprise's goals and direction in the future; also will bring unprecedented opportunities and challenges.To raise one's guard of existing potential risks of Unknown market and unknown fields is that all Chinese enterprises have the least cautious attitude and risk awareness. However, for a long time, the enterprise in foreign direct investment and international operation, the first concern is the appearance risk of closely relating with the enterprise internal operation process, such as strategy, products and management, project risk, etc. But it often neglect is the external environment risk, especially political risks, which is lurking in the enterprise around, but keep the outbreaks of. Most Chinese enterprises exist blind fluky mind, don't have enough attention. But in recent years, the international situation becomes more complex and subtle, political risk forms also become diversification. And once in place, which produces destructive and harmfulness even could be far greater than other risks. In order to be able to deal with foreign direct investment, our enterprises must pay enough attention to the understanding and the sober.In the special historical shape, Chinese enterprise has formed two teams state-owned enterprises and private enterprises. In foreign direct investment, state-owned enterprise backed by government, act as a scout walking leader. And private enterprises also don't fiddle, self-improvement and self-reliance, become energetic counterpart. Two types of enterprise owing to historical reasons and realistic basis, different in ownership, corporate governance structure, development target, the scale of the enterprise, social responsibility, etc.And also directly decides the differences in characteristics, types, causes and countermeasures of many different.This paper, starting from this discrepancy, let the state-owned enterprises and private enterprises as a comparative study of the two samples; respectively analyses political risk each may face of in foreign direct investment, and put forward corresponding solutions. On this basis, it carries on the comparative analysis of the two kinds enterprises and summarizes the differences and similarities. Research conclusion shows that in two types of enterprise of foreign direct investment, the political risk presents four aspects of the different:the pertinence, destructive, expressive and independence. The reasons for the formation of the political risk, both compared the internal reasons such as ownership background and social function, the internal quality, the investment field and so on, also analyzes the external causes such as investment fields, macroscopically guidance, service platform, violence factors. In political risk solutions, both from internal countermeasures system reform, risk management level, the enterprise itself quality, third-party help for micro proposed the corresponding solution, also from set up image, legal system construction, management service platform and foreign investment insurance system, puts forward the countermeasures macroscopic level.
Keywords/Search Tags:Foreign direct investment (FDI), Political risk, State-owned enterprises, Private enterprises
PDF Full Text Request
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