Chinese Foreign Direct Investment Advantages For Study

Since the Mid 1990's, every country has experienced the pressure of globalization, which will reconstruct the international economic structure. China also must catch up with the tide of globalization, break through the bounds of countries to make sure the realization of modernization. However, our capital input and output are seriously out of proportion, and the phenomenon of capital flight is serious, too. All of these require us to research foreign direct investment. The thesis is composed of four parts:Part 1: raise of the problem: In order to participate the international competition initiatively and actively, as well as to adjust the proportion of the capital output and input, we must encourage our firms to invest abroad. But do our firms have advantages to compete with the western multinationals? What kinds of advantages? And how can they realize their advantages? These are the main subjects we should research.Part 2: Theory on investment advantages. According to traditional theory on investment advantages, absolute advantages such as scale advantage, technologic advantage is indispensable for firms to invest abroad. While firms in developing countries also take part in the international investment though they don't have absolute advantages. Louis T. Wells and Sanjaya Lall analyzed it and discovered that developing countries also have advantages such as small scale technology advantage and cost advantage etc. The posit is very useful for our research. Part 3: Research on Chinese firms' FDI advantages. Based on the posit of Wells and Lall, together with China's special situation, this part will discuss the advantages Chinese firms have to invest abroad.Part 4: Factors influencing the realization of the advantages of Chinese firms and our strategic choice. We have had achieved a lot since our firms' FDI beginning in 1979. Still there are factors that restrict the realization of the advantages of Chinese firms. This part will discuss those restricting factors from aspects of investment firms, investment location, investment industry and government policies, accordingly, strategic plan will be proposed.The hallmark and innovation of this thesis:Firstly, from the aspect of advantage, this thesis probes the various complicated FDItheories and draws great inspiration: the advantageous conditions of FDI are notabsolute. The lack of balance in economic development in different countries andregions enables the advantages among the enterprises to have its relativity.Secondly, the latest data is essential for a practical thesis. When the thesis is beingdone, the campus is blocked because of SARS, many difficulties is conquered tomake sure the systematic, accurate, latest data.Lastly, as to research method, the thesis unite normal research and empirical research;qualitative research and quantitative research; theory research and policy research.