The Necessity Of China's Overseas Investment For Smes And Strategic Analysis

The multinational theories were established with the development of the western multinational companies, which were the product of globalization and presented the trend of world economy. At the beginning stage, the study focus of the researchers in the field was always the huge multinationals, which mainly came from the developed countries. With the further development of the economy globalization, the multinational companies, which came from the less-developed countries, were involved into the multinational cooperation and became an important part of world economy. This phenomenon attracted the eyes of the economists and multinational theories emphasizing on the operation of those multinationals, which came from less-developed areas, came into being.Though the huge multinational companies are still the mainstream of the cross-country operating in the world economy, the position of middle-little sized companies in the field become more and more important. In our country, the function of the middle-little sized companies is still significant. It's well known that there is severe labor surplus problem in our country, which hampered the health development of the economy heavily. While, relating statistics show that emphasizing on the development of the middle-little sized companies is an excellent method to tackle the problem. Of course, there are many reasons to pay attention on the development of the middle-little sized companies.Under the economy globalization circumstances, the middle-little sized companies also have the motive to enter into the global competition taking advantage of the comparative advantage and achieving the further development. There are many manners to take part in the global market; FDI (foreign direct investment) is one of the choices. The middle-little sized companies are an important part of the world economy .The cross-country operation of the middle-little sized multinationals affects the execution of our "foreign - orientated" strategies. So, the study on such field has great meaning.The article tends to demonstrate the feasibility of FDI of our middle-little sized companies with the theories on less developed countries multinationals. The analysis on the operating circumstances is further used to prove the necessity of their foreign direct investment. FDI is the right way for the development of our middle-little sized companies though there are still a lot of difficulties facing them: the small scale, the lack of capital, talent problem, laggard technology, the imperfect policy system and so on. Basing on the systematic analysis and still from the angle of economy globalization, the writer puts forward the strategy proposal on foreign direct investment to guide on the FDI of our middle-little sized companies.