Foreign Direct Investment Of Chinese Enterprises Operating Risk Research

From the theory of foreign direct investment and international risks, this paper discusses the causes, mechanism and effects of Chinese enterprise foreign direct investment operation risk on the basis of research on international risk classification and risk early warning mechanism.China's foreign direct investment activities exist in the following features: (1) started late but fast developed;(2) investment modes were innovated; (3) investment areas were increased;(4) investment industry were expanded;(5) investor were diversified. But the road ahead is tortuous because (1) the whole low return rate on investment, (2) increasing investment failure case.(3)upgrading on the loss of investment,(4)more complicated reasons of risk.In order to recognize and understand the rules and characteristics of Chinese enterprises overseas investment risks, and improve return rate on investment, multinational business risks will be divided into the foreign exchange risk, management risk and decision-making risk. The causes and mechanism are discussed as following: exchange accounting risk, exchange transaction risk and exchange operation risk for foreign exchange risk; organization management risk, financial management risk, human resources management risk and cross-cultural management risk for management risk; investment location risk, investment mode risk, investment industry risk, the investor risk for investment decision-making risk.The empirical research is carried out to analyse the degree of exchange exposure of five continents representative countries in the main destricts of Chinese overseas investment enterprise according to the direct quotation data from January to December in 2007 by using standard variance method, and the effects of foreign exchange risk are measured in Australia. Then TCL, lenovo, huayuan group cases are studied for the effect researches of organization management risk, financial management risk, human resources management risk and cross-cultural management risk.Finally th investment decision-making risk are embodied in the Denong, CNOOC and TCL cases.According to the status quo, causes and mechanism, effects of normative analysis and empirical research results, this paper puts forward the countermeasures and suggestions from the aspect of national macro such as state intervention, the establishment of overseas insurance and the signing of bilateral agreement.The suggestions to control the foreign exchange risk, management risk and decision-making risk are also proposed from the aspect of enterprise micro.