Study Of Chinese Manufacturing Enterprises In Foreign Direct Investment

Foreign Direct Investment (FDI) has been regarded as one of the most essential part of The Strategy of Going-Out. It also enables the country to face the challenge from globalization and take an active role in the international business stage. In the latest twenty years, with the effort from Chinese government and enterprises, the scale and performance of Chinese enterprises'FDI experienced a significant improvement.Based on Comparative advantage, the thesis makes a thorough discussion on the FDI situation among Chinese enterprises. The first part states the current situation and problem in Chinese enterprises'investing abroad. The second part reviews the most-related investment theories from foreign economists, such as Dunning's Theory of Eclectic Paradigm of International Production, Kiyoshi Kojima's Comparative Advantage Theory, Wells's Small Scale Manufacturing as a Competitive Advantage Theory, Sanjaya Lall's Technological Location Theory. Then the core theory of the thesis—Comparative Advantage Theory for Chinese Enterprises'FDI—is put forward. The third part discusses more detailedly about the comparative advantage of Chinese manufacturing enterprises'FDI through three aspects: the comparative advantage from macro environment, from the specific industries and locations, and from the investing enterprises. Accordingly, the fourth part gives some suggestions about the further development of Chinese manufacturing enterprises'FDI. Lastly, the fifth part is the conclusion, restating the opinions about the thesis that comparative advantage should be the guiding theory for Chinese manufacturing enterprises'investing abroad.