Study On The Risk Of Chinese Enterprises’ Cross-Border Investment And The Location Selection

In recent years, cross-border investment of Chinese enterprises is in the ascendant. China has been facing unprecedented opportunities for foreign investment. Foreign investment presents an unprecedented high growth trend. But at the same time, the traps and losses encountered were also increasing. Statistics showed that the percentage of successful multinational investment of Chinese enterprises, especially in cross-border mergers and acquisitions, was only30%.Due to the late start, and the lack of experience in international investment, foreign investment in China have been repeatedly in danger, and some of the projects had suffered billions of loss. How to increase the risk identification and prevention and control capabilities, and how to help more enterprises better "go out" and more healthy "go down"? This is a question related to the goals of the national strategy, also affected result of investment of tens of thousands of Chinese enterprises transnational.This thesis is based on the enterprise cross-border investment risk control theory and enterprise transnational investment location choice theory theory.It also take the"2011China’s foreign direct investment statistics bulletin" into consideration.It summarizes the characteristics and development of enterprises’international investment after China’s reform and opening up policy. Then this paper expounds three dimensional risk identification of investment and gives its index design in detail. That is to say, macro risk-country risk, medium risk-industry risk, enterprise risk, total design three levels of indicators, including three level index,10secondary indexes,38level3index, in order to make comprehensive identification and evaluation of enterprises’ multinational investment risk in detail.And then it constructs overall decision on the enterprise transnational investment location selection. The decision model includes three parts, namely making sure of strategic positioning based on the of the transnational investment motivation, and risk analysis and evaluation based on three dimensional risk identification method of primarily choosed countries, and then risk identification based on grey-AHP and eventually determine the cross-border investment location. The overall decision model carries on the quantification decision. Finally, it selects an enterprise-a mining group company’s cross-border investment location seldction case to analyze. The main innovation of this study lies in the establishment of Chinese enterprises cross-border investment through the3D risk identification system and features, and using gray-level analysis method to quantify the decision on the location choice. This article is trying to establish such a system, which starts from risk characteristics of the transnational corporate investment, and analyzing enterprises transnational investment process, from the sources of risk to the various aspects of the risk assessment measurement designed for Chinese enterprises cross-border investment location selection. This is to provide in-depth analysis of an existing theoretical depth and practical framework for risk management and operational management, thus having certain theoretical and practical significance.