The Host Country's Economic Development Impact Study Of Cross-border Mergers And Acquisitions

Since appeared in end 19 century together with FDI, cross-border M&A has developed a lot. It mainly experienced five significant development, especially in 1990's cross-border M&A developed rapidly because of the globalize economy, information technology, open market of many countries.After China joining WTO, China became a competitive market because of it's wide capacity and potential. Developed countries transferred manufacturing to China to make China became"world plant", and even brought finance to Chinese market. Almost all the industries of China experienced cross-border M&A. Cross-border M&A brought huge impact on the economy of China.So the impact to the economy of host must be attended, especially for those developing countries. It brought us such a question: What kind of impact will it bring to us? How it impact? How can we take the advantage if its a chance or how can we avoid if its a obstacle. I will research the answer to the questions above in this paper, combing theory and practice. I will also have an outlook in Chinese market, discussing how can we avoid negative factors and take advantage of positive factors during cross-border M&A.