Foreign Direct Investment Behavior Research

As one side of FDI (foreign direct investment), outward direct investment is a senior format of multinational operation in host countries and contains many important topics. This paper mainly focuses on following issues: motivation, locations, industries and entry strategies. Accompanying with ODI theoretic discussion, this paper has analyzed ODI conducts of China's enterprises. In addition, the author puts forward some ideas about strategically holistic approach for China's ODI.As a series of theories on international cross-border direct investment, ODI theories contain investment motivation, investment conditions and investment advantages, etc. Based on different conditions, each theory argues ODI from a certain angle and purpose. For the development of China's ODI, it is by all means necessary to learn the traditional ODI theories. This paper summarizes main ODI theories, makes comments on them from China's specific angle, and theoretically discusses about China's ODI.The dynamical mechanism of ODI is the first problem that China's enterprises confront with when they want to develop abroad. In research of this question, this paper sorts the motives into two groups: domestic factors and foreign factors and gives names them "thrust" and "pull" respectively. Especially, in contrast to many domestic researches concentrating on the foreign factors, the author penetrates into the facts and analyzes the domestic causes of China's ODI. In this chapter, export is discussed alone for the purpose of readers' better understanding of China's ODI: why China's enterprises select ODI and why ODI becomes a trend in China.Investment locations and industries are two important questions in the conducts of ODI. The two questions are independent but they are also strongly related. In the paper there is a chapter discussing about them respectively first, and then on the basis of the discussion the relevance of them are researched. In the last part of this chapter, the author raises some suggestions about the decision of Investmentlocations allying with industries.And then, based on the above discussion and analyses, the author tries to put forward ideas about ODI mode of China's enterprises. Namely, enterprises are advised to, based on their investment industries, enter the areas that they own comparative advantages and are able to gain short-term profits according to the different features of the areas. Moreover, enterprises should also make worldwide strategic plans, and decide their long-term investment plans in combination with short term ones so that they can finally fulfill their dreams: multinational operation.At last, two significant issues in ODI practice are discussed: investment entry mode and investment equity mode. There are mainly two choices of investment entry: Greenfield building, and cross-border merges & acquisitions. This is a hot topic in China, and in this paper a research on this issue has been launched based on the relevant statistic data of China's enterprises. At the same time, investment equity structure is another vital side closely related to the investment entry method. In the paper, the author researches the mode of equity structure and other relevant factors, and brings forward suggestions for Chinese enterprises if they are going to invest directly overseas.ODI of China's enterprises is now developing by a large margin and the research of the topic is becoming increasingly important day by day. Sincerely, may all the work in the paper contribute a little to the practice of China's enterprises' outward direct investment.Heyong(lnternational Trade) Directed by Liangshengang...