Outward FDI And Enterprises' Sustainable Development

Enterprises' outward FDI first took place in the western developed countries, and the related theories didn't appear till 1960s. Afterwards, with the development of economy, the bonds among countries become stronger and stronger. Not only the enterprises of the developed countries invested outward continuously, those of the developing countries also open to the outside and gradually make full use of both domestic and international markets and resources as well. The purpose of outward FDI is for better development; however the reality is not optimistic. The proportion of the enterprises that have good profit is very small. Not to speak of better development, some enterprises in the developing countries even close down eventually.During the early stage of Chinese reform and opening up to the outside world, we welcomed FDI to our country to develop economy. But the gap between Chinese outward FDI and other nations' is very large. After joining the WTO, Chinese enterprises not only need to face the local competition, but also couldn't escape the involvement of the international competition. How to make Chinese enterprises get victory in the fierce competition and to establish worldwide brands, undoubtedly outward FDI is an important approach. But the existing international investment theories--traditional or the developing countries' international investment theories--mainly concentrate on investment motivation and region choice of the already outward FDI enterprises, but lack in the study on the essential motivation and how to realize the investment motivation.Enlightened by the sustainable development theory, the authoress analyses the essential motivation of outward FDI in a new perspective, and conducts research on how to realize the motivation and finally provides theoretical references to the enterprises which will perform outward FDI. Since the concept of sustainable development was proposed in 1987, it enriches its connotation gradually and extends into many fields. From a broad view, the concept of sustainable development in enterprises came into being.Based on the study conducted by the former researchers, the authoress summarizes the connotation of sustainable development in enterprises, and makes a comparative analysis of the conditions of realizing sustainable development and the specific motivations of outward FDI enterprises, and draws the conclusion that the essential motivation of outward FDI is to realize the sustainable development of enterprises.As for how to realize the sustainable development of enterprises, the authoress proposes the principle of making right choice about regions insisting the win-win policy with the host countries. Region choice depends on both the enterprises and the host countries. On the one side, enterprises should be aware of its strengths and weaknesses, and make clear the purposes or the motivations of outward FDI; on the other side, they ought to conduct a thorough investigation of the host countries, and understands the investment environment deeply. The purpose of the host countries' attracting investment is for sustainable development in other fields. Only when the requirements of the enterprises match those of the host countries, can the investment be operated successfully.Outward FDI is an important way of realizing sustainable development for enterprises. After the right choice of region is made, enterprises should insist on the win-win cooperation with the host countries. And they ought to protect the host countries' investment environment and abide by the corresponding rules. Only when a win-win situation is obtained, can the enterprises display their advantages and make up for its shortcomings and realize sustainable development in the end.Based on this view, the authoress analyses the conditions and problems in outward FDI, and conducts an empirical research on the determinate factors on outward FDI region choices, and proposes region choice strategy and offers advice and experience to enterprises which aims to establish world-wide brands. During the paper-writing, the authoress employs inductive, deductive, logical analysis, comparative analysis, game theory analysis and empirical analysis to ensure the conclusion is scientific and logical, and provides advice and experience for enterprises which conduct outward FDI.