The Research On The Choice Of Outward Foreign Direct Investment Modes Of The Equipment Manufacturing Industry In Liaoning In Post-Financial-Crisis-Era

The economy of the world devastated after the turmoil of the financial crisis,every country was impacted in varying degrees. The impact of the financial crisisspread from the virtual economy to the real economy, many enterprises withintangible assets such as advanced technology have encountered difficulties, whilemany countries relaxed restrictions to foreign capital investment and liquidity in orderto revive their economies. All of them offer an excellent historical opportunity toimprove competitiveness by getting advanced technology according to foreign directinvestment, enhance sales ability by opening up market and seek better future forLiaoning’s equipment manufacturing enterprises of economic pillar industries. Andmay elect foreign direct investment related enterprises can seize the opportunity, thesmooth and efficient implementation of their own development goals, therebybringing forward the province’s economy better. However, the way of foreign directinvestment related to if the enterprises seizes the opportunity, implemented theirobjectives the smoothly and efficiently to stimulate economy better to move ofLiaoning province.Therefore, in the paper, the author takes equipment manufacturing enterprises inLiaoning province as the research object based on the academic achievements ofexperts and scholars by comparison to make analysis, study its connotation,advantages and disadvantages. Then, combining with background of post-crisis era,the author puts some strategy suggestions about the way of foreign direct investmentto help for equipment manufacturing enterprises in Liaoning province.According to research, the author finds that there are two types of foreign directinvestment, including Greenfield investments and Cross-border mergers andacquisitions, both of them have strengths and weaknesses. In Liaoning province, thereare a large number of equipment manufacturing enterprises, it’s a matter of success or failure that whether choose the most suitable way for the enterprise to foreign directinvestment. The empirical research shows that firm size; international businessexperience, technical level and the system and economic development of the hostcountry have impact on foreign direct investment in varying degrees. Although thetwo factors of motivation and post-crisis era are not empirical researched to analyze,after financial crisis, the domestic and international environment are very different. Itrequires enterprises not to be confined to historical experience, take a hard look at thechanges in the new era, new context, carefully consider the impact of various factorsand then make a realistic and suitable choices. In the paper, through theoreticalresearch and empirical analysis, the author gets his conclusions that high technologylevel, large-scale, experienced international operations, liberal system and conditionsof economic development of host country make Liaoning equipment manufacturingenterprises tend to choose the way of cross-border mergers and acquisitions. Themotive is directly related to the choice of foreign direct investment. In post-crisis era,the enterprises have many opportunities with a lot of challenges, so for foreign directinvestment and its mode selection, on the basis of the internal and external factors, theenterprises need government’s support and help.