Studies On The FDI Location Choice Of Shandong

Since reform and opening up of our country, Shandong Province has done a lot of useful attempts in the foreign direct investment After China joining the WTO, It has greatly promoted free flow of production factors mainly capital internationally. To integrate into the world economy extensively and intensively, to share the benefits of participation in the international division and gain the advantage of international exchange to a greater extent, Shandong enterprises must actively participate in the international division and promote foreign direct investment by which they can utilize resources all over the world to the best and enhance their international competitiveness.In foreign direct investment activities the most important issue is the location choice. Good or bad investment location choice is related to the success or failure of foreign direct investment. Investment location choice as a business decision-making, is not to consider the restrictive role of factors of host county, nor to consider enterprise's choice of location, but consider the enterprises factors and regional factors in the host country and the host Government factors comprehensively, and give emphasis on anastomosis between the main features of regional characteristics of the host country and enterprises. Only by this the enterprise can success in foreign direct investment and make full use of its comparative advantages and the host advantages. In the face of so complicated and international investment environment, enterprises of shandong province must carry on the careful and rational location choice in foreign direct investment, which could exert the advantages, reduce the risks and guarantee the success of investmentThe issue of the paper studies is not the whole strategy of Shandong FDI, but a part of the strategy, that is to say location choice of FDI. The paper systematically sums up the typical western industry zone theories and FDI theories contained location choice for reference to study FDI location choice of shandong enterprises. Secondly, the paper discusses the status, motivation and problems existed in location choice of FDI through theoretic study and empirical analysis. Thirdly, the writer makes choice to the target countries based on the Different investment motivations through quantitative and qualitative analysis, and finds the emphasis investment countries. Lastly, the writer puts forward the suggestion to the enterprises and the government.The study results and methods, based on integration of FDI theories and lots of empirical research results, summarizes location choice factors of host countries according to different investment motivations, which meet the needs of pursuit profits of enterprises to make foreign direct investment. The writer expects the paper will play a positive role to let the shandong enterprises know how to make investment location choice and Gain full economic and social benefits and promote Shandong's economic and social development.