The Outward FDI Based On The Demands Of Our Country

The outward direct investment theories which began coming on the 1960's, mostly were based on studying trans-corporation of developed countries. They took the competitive advantage of the micro-economies as the starting point; they emphasized the importance of the macroeconomic factor endowment or the integration between the microeconomic and the macroeconomic advantages; and they direct the enterprises to expand their industries by outward direct investment based on those. Even the theories of taking developing countries'trans-corporation as research object, which appeared in the seventies of the 20th century, still emphasized the significance of competitive advantage of the enterprises.Since the mid-1990's, Chinese enterprises gradually go abroad to product and operate through the outward direct investment. However, majority of these enterprises do not have the usually competitive advantages or monopoly status as these foreign trans-corporations. For example, they do not have the advantages of production technology and productivity; they do not have the advantages of the capital size, also. Some state-owned enterprises, although with strong backing for the national capital, they still do not have transnational competition conditions on the enterprise's production efficiency and management. Our scholars who research the outward direct investment, usually make positive analysis and provide some advice to our outward direct investment activities based on the west international direct investment theories, which will inevitably arise in the limitations and the biases.This paper tries hard to explain why these enterprises go abroad that they do not have the competitive advantage, the monopoly status or the advantage of factor endowment. With the aid of mathematics inferential reasoning, the paper thinks that it is not the plenty or the necessary qualification to launch the outward direct investment whether the enterprises have the advantages. Chinese enterprises'outward direct investment is based on the various demands, including microscopic economical demands and macroscopic economical demands. Through outward direct investment, we gain the enterprises'or the national essential capital, technical, the natural resource, the human resources and the managerial experience, and so on; we resolve the essential factor disposition contradiction and achieve the microscopic and the macroscopic maximization of benefit.Therefore, it is necessary to build the theory and the model of"requirement...