| 1. Background and Significance of the ThemeWith the accelerating globalization of economy and liberalization of investment, international capital flow has greatly progressed and some new trends have arisen in this field. International Investment, especially Foreign Direct Investment (FDI), has played more and more important roles in the world economy. The scale, direction, and structure of FDI significantly influence a nation's economic development, balance of payments, industrial structure and international competition.Since our country carried out the policy of opening to the outside world, introducing and utilizing foreign direct investment has been our basic national policy and important strategy. FDI has made a great contribution to our economic construction, such as supplementing capital, enhancing technical level, improving management, and increasing export scales. But in recent years, the actuality of utilizing FDI has been wandering and descending, for instance, the adjustment of FDI structure has slackened, the economic efficiency has decreased and its function of impelling economy has weakened. In the background of economic globalization and China's entry into WTO, how to adjust our policy of introducing FDI, link up with WTO regulations, optimize FDI structure, and enhance efficiency of foreign capital are problems in dire need of settlement. Reasonably introducing FDI is only one side of foreign direct investment, the other side is making direct investment in foreign countries. Though China has no obvious competitive advantages in capital, technology, management, and marketing, some enterprises have possessed relative or absolute advantages and achieved great success in foreign direct investment. However there are enormous differences in investment scale, capital structure, market strategy, and technical level betweenChina's and international transnational corporations. Henceforth, we should pay more attention to the direct investment in foreign countries, and adopt flexible measure to improve it.In conclusion, there are two trends of the world economic development: one is world economy globalization and the other is regional economy groupalization. The main measure of scrabbling for market has gradually turned from commodity export into technology and capital output. Liberalization of trade and investment is the aim of international multilateral trade mechanism and the important impetus of economic globalization. We should adjust policies on introducing FDI on one hand, and actively participate in the internationalization affairs on the other hand.2.Structure and Contents of the thesisThe paper is composed of four chapters.The first chapter is "the new characteristics of foreign direct investment". The author discusses the new characteristics and the reasons of foreign direct investment. The development of world economy and adjustment of international economic pattern influence the scale, structure, and direction of international capital flow, and make FDI bring about many noticeable changes. (1) Foreign direct investment grows rapidly and its scale expands unprecedentedly. (2) Bi-directional capital flow between developed countries is the mainstream, and capital flow into developing countries is imbalance. (3) The industrial structure of FDI gradually upgrades, and high technology industry and the third industry gain favor. (4) Transnational merger and acquisition becomes the main mode of FDI. (5) Foreign direct investment of developing countries develops rapidly and successfully. The second chapter is "the evolvement of FDI theories". According to the development of theories, the author discusses the background, mainviewpoints, and estimation of each representative theory. The first section is "the early three FDI theories", including Monopolistic Advantage Theory, Lifecycle Product Theory, and Intemalization Theory. The second section is "the forming of Theory of International Production Compromise". After S. Hymer brought forward the theory of FDI in... |
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