Causes And Consequences Of Foreign M & A Fast Moving Consumer Goods Industry

Cross-border merger and acquisition (M&A) has become a primary form of foreign direct investment and the most important strategy for business overseas expansion with the development of economic globalization. China's entry into WTO makes it open wider to the outside world, and multinationals are entering China with lower costs and risks by means of foreign direct investment, in particular, M&A. Fast moving consumer goods(FMCG) industry, a powerful driving force of Chinese economy, is faced with the challenge of increasing cross-border M&A. Therefore, it is of great significance to discuss the causes and consequences of M&A in Chinese FMCG industry and explore possible countermeasures.The article consists of five chapters.Chapter 1 discusses the background, significance and main structure of the research, and displays current situation of Chinese FMCG in general.Chapter 2 focuses on the characteristic of Chinese FMCG, including the history of development, the environment of production and problems to be solvedChapter 3 illustrates causes and current development of M&A in Chinese FMCG industry.Chapter 4 explains the effects and consequences of M&A in Chinese FMCG industry.Chapter 5 is the conclusion and possible measures: The first is to establish anti-monopoly mechanism and optimize the procedure of M&A. The second is to standardize the behavior of local government. The third is to adopt proper industrial and financial polices. The last is to pay more attention to brand and talent.All in all, I analyze the reasons and consequences of M&A in Chinese FMCG industry and submit possible measures, which I hope can be served as positive advice for law-makers and government regulators..