The Endogenous Advantage Process Of Cross-border M&A And Its Revelation To China

This thesis researches that The New Classical Theory analyzes the FDI as a result of gradual progress of enterprise's endogenous advantage. It is the transaction efficiency of Labor and Capital and the restriction of market capacity which inspire FDI directly in the process of Enterprise's Endogenous progress. Infra-marginal Analysis explain that to seeking for maximizing of the profit,an Enterprise will transform to MNE through jumping to FDI form export with the enhancement of transaction efficiency of key factors in the market.In the process of the FDI, it depends on the technology transaction efficiency of the static enterprise's cooperative effect and transactions efficiency of property in the market when investors consider an entry mode (Including Greenfield Investment and M&A) to different centuries. When MNE chose an entry mode in the process of progressing, it is the prompt ion of the transactions efficiency of property which made the maximize profit of M&A higher than Greenfield investment, that is to say, when the income of the improvement of the transaction efficiency of property is enough to remedy the fixed input of Greenfield investment, M&A occurs. On the contrary, the MNE will choose the Greenfield investment as the best entry mode.In the developing environment of Market Economy in our country, the SOE does not have an obvious advantage in technology. Meanwhile, the unclear of the property in the SOE leads to low efficiency of property transaction, to seeking for the low labor cost the MNE choose Greenfield investment as the entry mode. Therefore, only if we make the property clear in SOE from all aspects including government, enterprise, reduce the transaction cost of property in the market, the MNE will choose M&A as the entry mode when in the FDI process...