Based On The Food Security Problem From The Perspective Of Foreign Direct Investment

Food safety is the top priority of our country’s rural economy, at the same time,it is also the foundation of the national economy, and important component ofnational economic security. Food’s safety or not will decide other departmentsdevelopment speed, affect our country’s construction of a harmonious society, and bein relation to well-off society goal. With economics globalization, more and moremultinational enterprises get into domestic market, so that China’s food safetyinevitable by the international influences. Therefore, how does foreign directinvestment affect China’s grain industry and how does foreigner choose their actionstrategies are full of theoretical and practical significance.Firstly, this paper, based on the existing theories, analysis the reasons and effectof introducing foreign capital. Foreign enterprises do more investment in China’smarket in the pursuit of monopoly advantage, market after effect, internalization costand globalization strategy to layout. Foreign direct investment has two aspects of thepositive and negative effects on our country’s food market, for example, it can offsetmarket funding gap, management gap and technology gap, promote market innovation,perfect market system; but it also adds pressure on domestic food enterprise andincreases the difficulty of macro control. Through setting an evaluation model wedraw a conclusion: China’s grain is basic security in the current situation.Secondly, this paper analysis market main body’s action choice in the grainmarket by setting five game models. Domestic food enterprises compared to foreignfood giants, unequal too much. Because of the low confidence threat signal, Domesticfood’s can’t stop foreign food’s attacking step, their optimal strategy is to let foreignerenter China food market, so as to obtain spillover effect, achieve a win-win situation.At the same time, in order to avoid be controlled by foreign enterprises, thegovernment needs to protect domestic food enterprises, but this protection mustpositive support domestic enterprise market competition.Finally, China deal with foreign direct investment should be based on thedomestic market, formulate foreign direct investment regulations and directory guide.In short, reasonably and actively respond to foreign direct investment is usefulfor the food security. Only in the open conditions, we can protect our countryeconomic.