The Study On The Choice Of Outward FDI's Mode For China's Enterprises

As the process of economic integration speeds fast, more and more China's enterprises join the ranks of foreign direct investment, but outward FDI of China's enterprises is still in its initial stage, and the enterprises will face with the choice of kinds of issues, the choice of outward FDI is the important among those. The study on the choice of outward FDI's mode for China's enterprises has an important practical influence on the development of China's enterprises. The purpose of this paper is to explore and make use of international market entry mode choice theory to study on the choice of outward FDI's mode for China's enterprises, and provide a reference for China's outward FDI.Greenfield investment and cross-border M&A is the two most common mode of China's outward investment, so this paper selected the models to study. First of all, on the basis of looking back the domestic and foreign documents about the research of the choice of outward FDI's mode, this text summarized and analyzed the status quo of outward FDI's mode for China's enterprises, and focused on the analysis of influence factors of the choice of outward FDI's mode for China's enterprises, and used binary logistic regression model to test part of factors. The empirical results showed: the level of development in host country affects the choice between Greenfield investment and cross-border M&A for China's enterprises in a large extent, and then is growing ratio of firm and size of firm, but in comparison R&D intensity and cultural distance has little impact on the two modes.Secondly, on the basis of empirical tests, this text analyzed how to choice outward FDI's mode with two cases for China's enterprises, the cases are New Hope Group and BOE TECHNOLOGY GROUP CO., LTD which are on behalf of Greenfield investment and cross-border M&A.Finally, the paper put forward some advice to the choice of outward FDI's mode for China's enterprises from the dimension of firm and government, based on the conclusion from the text.