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Fdi Entry Mode: Greenfield Investment And Cross-border Mergers And Acquisitions

Posted on:2006-05-27Degree:MasterType:Thesis
Country:ChinaCandidate:Y H BanFull Text:PDF
GTID:2206360152488259Subject:National Economics
Abstract/Summary:PDF Full Text Request
As economy globalization progresses, foreign direct investment (FDI) becomes the fundamental channel that integrates multinational enterprises worldwide. Multinational enterprise FDI spreads all around the globe including developed countries, developing countries, as well as third-world countries. The discrepancy of a country's economic environment determines the various FDI entry modes. In connection with an enterprise's own circumstance and the diversified economic environment of a country, it is very important to select an appropriate mode for FDI to enter the local market. As a matter of fact, it is a key factor of whether the FDI will be successful going into the region.This thesis creates a model that combines theory and real-life example to analyze the factors that impact FDI entry mode. In different countries and under various economic environments, this model should analyze and select the best FDI entry mode from Greenfield investments and mergers and acquisitions (M&As). The thesis covers the following content:Part 1: Basic Concept Definition and Theory Fundamental - Definition of Foreign Direct Investment, Greenfield Investments, Mergers & Acquisitions. This part explains and illustrates internalization theory, monopoly dominant theory and other international direct investment theories, and proposes the fundamental of the thesis based on those theories.Part 2: Factors which Influence the Choices of FDI Entry Mode - Both of external factors such as economic environment of the country and internal factors such as the enterprise's own situation will influence the choices of FDI entry mode.Part 3: Choices between Greenfield Investments and M&As - Model Creation. Under some theoretical assumption, a cost benefit analysis model will be created based on the modified classic Cournot model, comparing enterprises using three dimensional techniques to select the best FDI entry mode.Part 4: Testing of FDI entry mode model - Analysis of the United Biscuits international Acquiring of Gyori Keksz case-study, and other case-studies of nine multinational enterprises from US, UK and Germany establishing FDI projects in Hungary, Poland, and Czech. The analysis of these different FDI projects will illustrate the rationality and appropriateness of the FDI entry mode model.Part 5: Chinese Enterprise FDI Entry Mode Choices. Based on the model, how will Chinese enterprise select the best FDI entry mode in developing countries, third-world countries, economy transforming countries and developed countries.
Keywords/Search Tags:Foreign Direct Investment (FDI), Greenfield Investments, International Mergers and Acquisitions, Entry Mode Selection
PDF Full Text Request
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