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Comprehensive Theory Of Cross-border Mergers And Acquisitions - Of Cross-border Mergers And Acquisitions Will Become The Main Form Of China's Utilization Of Foreign Capital

Posted on:2003-10-12Degree:MasterType:Thesis
Country:ChinaCandidate:Y ZhangFull Text:PDF
GTID:2206360092986959Subject:National Economics
Abstract/Summary:PDF Full Text Request
China has been reforming and opening up to the outside world for more than twenty years. These years are just the years through which the development of economy globalization has been speeded up. As the global expanding of the transnational corporations, the principal part of the contemporary international trade and the international investment, more and more Cross-border Mergers & Acquisitions (Cross-border M&A) cases happened. There became a global tidal wave of Cross-border M&A in the end of the 20th century. This tidal wave has become the prominent character of the world economy, and it will be a far-reaching influence of the future world economy.The new wave of the Cross-border M&A shows that, between the two means of international direct investment, Cross-border M&A has substituted for Cross-border Greenfield Investment as the main method of foreign direct investment. The worldwide M&A activities of transnational corporations, has influenced the development of economy and society of all the countries and areas with its striking scale of capital flow and corporation coalition, so everyone should face and respond to the new trend of the international direct investment.China will opening up to the outside world unalterably, and attracting the foreign capital is always the essential part of the opening policy. China's affiliation to WTO will make her deepen the amalgamation of her and the global economic system.China will be more and more close to the Cross-border M&A. In recent years, there is a decline in using foreign investment in China. The main course is the gap between the prominent method of the introduction of foreign investment and the prominent method of Cross-border investment. China will open up to the outside more widely and deeply after the affiliation to WTO, and will bringinfinite chances to the foreign direct investment. Then there must be a great change in the situation of using foreign investment in China: Cross-border M&A will be the main method of using foreign investment step by step. So it is very necessary to make a deep research of the theory of Cross-border M&A.Understanding and analyzing the global Cross-border M&A; mastering the present situation of using foreign investment in China; concluding the future of the development of the foreign capital introduction in China and putting forward the countermeasure propositions are the train of thoughts and the main contents of this dissertation. This article begins with the brief introduction of the main theories international direct investment. These theories analyze and explain the motivations of the Cross-border M&A from different points of view, but they can't give powerful theory foundations to explain why to choose Cross-border M&A instead of Cross-border Greenfield Investment. In Part Two, the general situation and the courses of the M&A tidal wave are discussed, and the effects of Cross-border M&A are also analyzed from both macro and micro points of view in this part. Knowing that the effects include both positive and negative aspects, can help us make good use of the method of Cross-border M&A by strengthening its positive effects while restraining its negative effects. Part Three reviews the course of introduction of foreign investment, does an in-depth analysis to the prospect and makes a conclusion that Cross-border M&A will become the predominant method of the attracting foreign investment. In the last part of the article, some propositions are posed to respond the foreign M&A activities in China.
Keywords/Search Tags:Cross-border Mergers & Acquisitions, Green field Investment, Ripple Effect, Economic Globalization
PDF Full Text Request
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