A Research On The Location Choice And The Entry Mode In Chinese Foreign Enterptidses

In recent thirty years, under the global economic integration background, our country's whole economy has being greatly increased step by step, and appeared much more cooperation with other countries. Going with much more foreign direct investment in China, the increasing of the national saving deposit in urban and rural areas, the abundant of the foreign exchange reserves, our country's foreign direct investment also has greatly developed, the capital volume of investment is rising quickly. Foreign direct investment can not only use the superfluous capital well, decrease the press of RMB on increasing in value, but also it can upgrade the reputation and the competitive ability of Chinese enterprises. So the research of our country's foreign direct investment has remarkable practical meaning.Based on analysis of many foreign direct investment theories, the paper researched the origin, the seedtime, the characteristic of our county's foreign direct investment, analysed and summarized the problems of county's foreign direct investment from the location choice and the entry mode. Then, the paper researched the choice of location by the means of contradistinctive and exemplification, and concluded that the location choice of our country's foreign direct investment, which choose the developing country as the main object country and the developed country just is supplement, is a reasonable strategy. For the mode of entry of foreign direct investment, we build a general equilibrium economic model, and conclude that the multinational enterprise is likely to mergers and acquisitions the host country's enterprises which the technology doesn't advanced. The later, the easier to be merged and acquired. The multinational enterprises are likely to build a new country when the sunk cost of build new factory is small. At last, we proof the conclusions mentioned in this paper by the successful mode of foreign direct investment of Hair.