Comparative Advantage With Chinese Enterprises, Cross-border Mergers And Acquisitions,

Multinational merger & acquisition (M&A) is one pattern of foreign direct investment, and also it is the extension of enterprises' M&A. Thus, the research of multinational M&A is based on the theory of FDI and enterprises' M&A. There are many theories explaining multinational M&A, which regard scale enterprises in developed countries as the researching objects. They can explain some phenomena of M&A in developed countries, but cannot be applied to the enterprises in developing countries. So Relative Advantage Theory is preferred to explain enterprises' M&A in China.The main contents of Relative Advantage Theory is as follows:(1) The motivation and condition is the enterprise's acquired relative advantages;(2) These advantages are not absolute, and relative to other enterprises in the same industry;(3) Enterprises' relative advantages are caused by the disequilibrium of marketability in different countries, so some enterprises in developing countries have advantages in some aspect to invest in foreign countries, so much as in developed countries;(4) These advantages are dynamic, so enterprise having relative advantages can be strengthened by FDI and some enterprises lack of advantages can acquire them by FDI;Relative Advantage Theory can give good explanations on the facts that our enterprises are lack of enough competitiveness, but their M&A is developing rapidly. The result is follows: the condition of our enterprises' M&A is the advantages relative to other foreign enterprises, not the advantage of monopolization. The advantage is dynamic. Our enterprises can decide to carry out M&A or not, and choose the site of M&A. Meanwhile, under the support of government, enterprises' relative advantages can be transformed absolute advantages.There are six chapters in the thesis. In chapter 1, there is a review on the theory of multinational M&A and FDI. In chapter 2, we define the concept of M&A and multinational M&A, introduce the main contents of Relative Advantage Theory, and explain the phenomena of M&A in developing countries including our country. In chapter 3, we introduce the course of our enterprises' M&A, and conclude its characters. In chapter 4, we analyze macroscopical and microcosmic advantages of our enterprises during the course of multinational M&A from the start point of "relative advantage". In chapter 5, based on Relative Advantage Theory, we explain how to choose correct industry, site, and investment pattern according to our enterprises' advantages. In chapter 6, we give some advice on how to transform our relative advantages to core advantages, how to increase success ratio of M&A and enhance our competitiveness.