Study On Influencing Factors For Location Choice In Multinational Automobile Companies' International Entrepreneurship

After entering 21st century, with the rapid acceleration of economy globaliza-tion,many multinational automobile companies startup their international entre-preneurship. The automotive industry, as a symbol of economic level in a country, is sensitive to the regional development condition, such as correlation between upper and lower companies, cooperation between assembling and part supplying companies, etc. Under the driving of the economy globalization, the automotive industry has become a global one and competed in the world scope. The automo-bile enterprises in China can not defend stubbornly the domestic market, avoid the globalization again the competition and the challenge. Greeted the global competi-tion, the enterprise implements internationally International Entrepreneurship al-ready not merely was one kind of strategic choice, moreover will be decides the enterprise future the long-term survival and the development key. Being the first step of the international entrepreneurship, the location choice is an influential bearing on the success of multinationals' business. The main task of this disserta-tion is to find the factors influencing the location choice of multinational automo-bile companies. It is very important in theory and practice to study the effect fac-tors of the option of automotive multinational enterprises' localization and make reasonable countermeasures to attract automotive multinational enterprises' FDI in China. Adopting the research method of qualitative and quantitative unit, the thesis is based on the current theory documentary, and starts with analysis of the basic conditions and structural characters and analyzes influencing factor and re-gional choice of the international entrepreneurship of companies.The dissertation consists of five chapters. The first chapter introduces the background of the topic and research approach of this dissertation. The second chapter discusses the research of theories by the economists in China and abroad. The third chapter discusses the location determinant factors and characteristics of location choice of multinational automobile companies'international entrepre-neurship and these location factors in China. There are two cases'study in the forth chapter in order to analyze the location determinant factors and characteristics of location choice of multinational automobile companies'international entrepre-neurship. The fifth chapter comes to conclusion and discusses the research pros-pect.There are four sections in the first chapter. First section introduces the three phases of the definition of"international entrepreneurship". Bases on the difference between research intentions the dissertation discusses the variable and research topic from the angles of entrepreneur, enterprise, environment and performance, and then studies the conformity model of international entrepreneurship. In this model the international entrepreneurship is considered as a many dimensions in structure, includes three dimensions—the level of internationalization, the velocity of internationalization and the scope of internationalization. The conformity model of international entrepreneurship combines the methods and knowledge into a framework, it shows the research of international entrepreneurship is not cobbled from unrelated parts of theory, but a systematic transdisciplinary research area with clear boundary. Section two focuses on historical development in industrial loca-tion. From the evolution of traditional industrial location theory, the thesis has ana-lyzed the classical location theory, the neoteric location theory and the modern lo-cation theory from the perspective of time, and has comprehended the main schools of location theory, from the perspective of theory. Then the dissertation has ana-lyzed the characteristics of location formation and evolution from the following three respects mainly. The function of agglomeration is enlarged more and more. The third section analyses development of industrial cluster theory, from the theo-ries of Alfred Marshall's Economics to Michael E. Porter's Competitive Advantage theory, and sums up the representative theories. The development of foreign direct investment location choice theory is now not reasoned and systematic, the fourth section discusses the development of foreign direct investment location choice the-ory. The fourth section studies Dunning's Eclectic Theory and other representative foreign direct investment location choice theory, in the fourth section also intro-duces the new direction of foreign direct investment location choice theory.The chapter three consists of two sections. First section focus on the location determinant factors of multinational automobile companies'international entrepre-neurship. There are eight parts in first section. First parts analyzes the location de-terminant factors based on the aspect of the economic growth rate, the stage of economic development, population, trade barrier and the convertibleness of cur-rency. Second part studies the location determinant factor of cost. The cost is the sum of enterprise operation and investment, it could be grouped to venture cost and operating cost. The lower cost is attractive to enterprise. Third part discusses the location determinant factor of policy. The location determinant factor of policy could be divided to three classes that include institution of law, institution of economy and the institution of the enterprise operation cost. The fourth part of sec-tion researches the physiogeographical factors, includes geographical position, re-gion area, population distribution and natural resource, etc. In the fifth part the dis-sertation studies the location determinant factors of social culture, which include language, custom and educational level. The sixth part focuses on agglomeration economy. Based on the research of agglomeration economy it comes the conclusion that industrial cluster and agglomeration economy play an important part in location choice of multinational automobile companies'international entrepre-neurship. The seventh part of this section analyzes the effect of behavior of the firm. The last part of first section research the factor of region industrial structure. The second section of this chapter focus on the analyzes the location determinant fac-tors based on the aspect of market scale, growth potential, industrial cluster, labor cost, productive assets and investment environment,that multinational automobile companies'international entrepreneurship in China.The chapter four consists of two sections, analyzes two cases of multinational automobile companies' international entrepreneurship. First section analyzes the case of the location choice of Toyota's international entrepreneurship in France. On the basis of market scale, industry chain, logistics cost, parts supply and labor re-sources, Toyota had chosen Valenciennes-Onnaing Nord in France to build Toyota Motor Manufacturing France S.A.S. (TMMF), it proved that the market scale and industrial cluster are the important location determinant factors of multinational automobile companies'international entrepreneurship. The second case is the loca-tion choice of Honda in Guangdong. Based on the analyses it comes the conclusion that market scale, growth potential, industrial cluster, labor cost, productive assets and investment environment are the location determinant factors of multinational automobile companies'international entrepreneurship in china.The dissertation concludes that the location choice of multinational automobile companies'international entrepreneurship is a common result of many different location factors. The main factors are market scale, cost, policy, physiogeographi-cal factors, social culture, agglomeration economy, behavior of the firm and region industrial structure, the factors of multinational automobile companies'interna-tional entrepreneurship in China are market scale, growth potential, industrial clus-ter, labor cost, productive assets and investment environment. Based on the analy-ses of cases it comes the conclusion that the industrial structure is an important factor for multinational automobile companies'international entrepreneurship. Based on the above analysis, the dissertation also suggests a solution to attract mul-tinational automobile companies startup their international entrepreneurship in China for the center government is to go on refine market institution and invest-ment environment, while for local governments is to promote agglomeration of automobile industry in local area.