| With the rapid development of globalization, the multinational flowing of international capital is gradually active. The international investment, especially the international direct investment, has been performing a gradually important function in the liberal and global world economy and has been playing an increasingly important role. When the multinational company began to invest oversea directly, it is quite important to choose the right direct investment pattern. How to choose a market entry mode which suits to the condition of business enterprise and can meet the need of its development is the urgently problem to solve. Nowadays there are more and more scholars pay attentions to that.The green-field investment and transnational M&A are two basic market entry modes. They are quite different from each other, but they can act for each other. It is unreasonable to simply say which is better than the other. When the business enterprise carries on a choice, it should consider the circumstance of business enterprise itself and the local related economic policy background. After carrying out the opening and reforming policy, the level of Chinese economy and all citizens'income has risen greatly, and the international competition ability of the business enterprise has strengthened. It is time for the companies in China to invest outward and directly. As a developing country, the technology of our country is lower than the developed countries and higher than the other developing ones. Therefore we should choose different investment methods respectively while facing different countries.This paper summarizes the domestic and international scholars'standpoints about the theories of the way of international direct investment. Finally we will set up a model to deduce and analyze this problem with the game theory. When the multinational company invests outward and directly, they should adopt green field investment to developing countries and transnational M&A to developed ones. |
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