Degree Of Internationalization, Foreign Entry Mode And Performance

Economic globalization is irresistible. To achieve substantial development in the future, each country must actively integrate into the globalization process, participates in, cooperate and compete, increasing the international competitiveness of nation and enterprises. Since the Reform and Opening up, China has actively integrated into the globalization process, participating in the international division of labor. By "bringing in "and "going out", the level of China's opening up has been greatly improved, many enterprises accelerate the pace of going out, and the degree of internationalization of the domestic economy has been greatly deepened.There has been thirty years since the Reform and Opening up. What is the status of internationalization of Chinese enterprises? Did internationalization really promote the growth of enterprises? What kind of entry mode is more suitable for Chinese enterprises? What is the main problem which the Chinese enterprises is facing and how to improve these problems in the future? That is very important to research and judgment these problems for the Chinese enterprises.Based on the domestic and international theory and the research, combining the Chinese actual circumstance, firstly, this paper judged the stage of the internationalization of Chinese enterprises. Secondly, based on the benefits of internationalization and the costs of internationalization, this paper constructed a framework about the relationship between DOI and performance, the relationship between foreign entry mode and performance. Finally, this paper made a empirical research.This paper concluded that:(1) China's enterprises are still in the initial stage of internationalization; (2) The degree of internationalization was a positive correlation between firm performance, international diversification strategy does help to improve business performance; (3) International trade entry mode is the most efficient foreign entry mode at present. This paper explored and analyzed the main reasons which caused these conclusions. Firstly, the internationalization of Chinese enterprises started late, the enterprise scale is weakness and cannot form scale advantage. Secondly, Chinese enterprises are located in the bottom of the global value chain, and competitive advantage is mainly embodied in low-cost manufacturing advantage. This belongs to the comparative advantage, rather than the monopoly advantage. These eventually lead to enterprise specific ownership advantages and internalization advantage can't form and lead to the entry mode of FDI has not formed scale and fully played its potential. Finally, this paper put forward suggestions from the macroscopic and microcosmic perspective.