A Game Theory Analysis On The International Finance Of Small And Medium-Sized Enterprises In China

Since the reform and opening-up to the outside world, small and medium-sized enterprises are playing an increasingly important role in our national economy, especially in satisfying diversified and individual demands, realizing socialized profession cooperation, processing science and technology innovation, and increasing employment opportunities. However, the small and medium-sized enterprises are trapped in finance due to their poor credit, single finance form, limited finance channels and high finance cost, which make finance an urgent problem to be solved. With china's entry into WTO, the economic relationship between China and other countries in the world become closer, and international capital flows more frequently. More and more small and medium-sized enterprises begin to seek international capital by listing abroad, issuing international bond and in other ways, due to the limited support from domestic financial system, to boost them to be stronger in their own industries. International finance plays an active role in alleviating capital shortage of the enterprises, improving their administration level and enhancing their international competitiveness. So the study on the finance behavior of small and medium-sized enterprises is of importance. This paper starts with the essence, manner and characteristics of international finance. On the basis of analyzing current situation of international finance for small and medium-sized enterprises and considering asymmetric information, and risk cost of interest rate and exchange rate, the paper analyzes systematically the game theory relationship between the small and medium-sized enterprises, investor and two governments of both sides through the game theory. The paper attempts to master equilibrium path of mechanism in the course of international finance of the small and medium-sized enterprises, and offer micro theoretical foundation for the small and medium-sized enterprises' international finance practice. On this basis, the paper put forward relevant policies and finance suggestions aimed at the finance problem of small and medium-sized enterprises.The research suggests that the success of international finance needs to harmonize the relationships between the four parties involved. So, in order to meet the capital demand of SMEs, on the one hand, we should build a favorable external environment for international finance on the macro side to improve the domestic financial system and pay attention to keep good relationship with investor and the country it belongs to. On the other hand, we should improve the internal environment of SMEs on the macro side to strengthen information transparency of enterprises and decrease the asymmetry degree in the process of information transfer.