The Entry Options Of Banks' Multinational Investment: Greenfield And Acquisition

Transnational investment has wept across the world since the 1980s, among which the cross-national investment in banking business sees the most rapid development. Because of its special role in the national economy, and its inner vulnerability, banking industry attracts the attention of the host countries. Currently, with the unavoidable tendency of economy globalization and financial liberalization, a great deal of research has been done on the multinational investment of banks. There are usually two ways when the multinational enterprises invest in the foreign markets, one is Greenfield investment, and the other is acquisition. It is a critical issue to choose the fittest way when facing with markets of different economies, which concerns not only the company, but also the investors from other countries, the domestic companies and the government in the host country as well. Under the trend of globalization, transnational investment has been causing great concern by each passing day. There are usually two ways when the multinational enterprises invest in the foreign markets, one is Greenfield investment, and the other is acquisition. It is a critical issue to choose the fittest way when facing with markets of different economies, which concerns not only the company, but also the investors from other countries, the domestic companies and the government in the host country as well.When it comes to China, there are great opportunities and grave challenges facing with the emerging of foreign banks. The commercial banks could elevate their operating aptitude improve their service with the foreign investment, while the qualified customers, and the human resource as well, are likely to be drawn to the foreign banks. As a result, it is the responsibility of our government to enact some measurement with positive attitude, at the same time, our commercial banks ought to foster strengths and circumvent weaknesses and rise to the challenge of economic globalization, and find out the optimal way to invest overseas.Our investment abroad has constantly increased due to the recent policy. For the global economy crisis arose by American contamination, the world will see dollar-devaluation, global inflation, slowing down of some major economies' development, relative rise in value of RMB and drop of foreign investment's price. As a major power with limited resources, the surprisingly development of Chinese foreign investment will undoubtedly provided an opportunity for our banking multinational development. This thesis, based on the research of entry mode, will be worth with theoretical values.