The Decision-Making Analysis On Yinguang Company's Foreign Investment TDI Project In South Africa

Now, economy globalization has become an impersonal question which must be thought better by those increasing domestic enterprises, it compels us to face cruel competition much more, at the same time; it brings more markets and opportunities to all of us. Foreign direct investment (FDI) is one active choice to adapt the course of globalization. But it must be a great risk apparently for those enterprises which investing in a relatively strange place. To decrease this risk, it is necessary to make a scientific decision-making analysis on foreign investment project before actual investment.In the paper, Gansu Yinguang Chemical Group Ltd.'s foreign direct investment twenty thousands ton TDI (Toluene Diisocyanate) project in South Africa is treated as an researchful object, combined correlative theory of FDI and theory and method of evaluation on investing project, the decision-making on the Yinguang Company's foreign investment project is analysized. By the analysis on Yinguang Company's exterior circumstances and interior conditions, it is realized that why Yinguang Company should invest in foreign country and the necessity and urgency of proceeding with foreign investment to Chinese enterprises at the present time. By the introduction about the target investing country — South Africa, it is clarified that South Africa is appropriate to invest. Furthermore, a detailed evaluation of TDI market, technology, finance, indeterminacy and risk on Yinguang Company's foreign direct investment TDI project in South Africa is made. This FDI project fills the vacancy.of producing TDI in South Africa and its circumjacent region, the consumption of TDI there is great; The adopted technology of producting TDI is proprietary by Yinguang Company who has the cultural property right, it is mature and reliable; And all the financial evaluating indicator are much better than the basic industrial finance indicator, the financial benefit is great; and risk of investment is very little, the feasibility of this project is great, too.Finally, this paper puts forward some suggests on actualizing the Yinguang Company's foreign direct investment TDI project in South Africa according to actual conditions ofYinguang Company.By the analysis of decision-making on the Yinguang Company's foreign direct investment TDI project, this paper not only provides consulted opinion for the company's decision maker, but also gives useful referenced method to those enterprises being faced with the same question — analysis of decision-making of foreign direct investment.