Research Of Factors Influencing Liability Of Foreignness Of Chinese Enterprises

Liability of foreignness, LOF for short, means as a foreigner, non-domestic enterprises usually face a lot problems that domestic wouldn’t do, and pay for a lot. After Reform and Opening, Chinese enterprises have been achieving leapfrog development in the scale and speed towards the international market. While, as more and more enterprises come out the door, the liabilities become more serious, which need us pay more attention to.There are a lot researches in this field, while in prospect of Chinese enterprises, there are few. Besides, some relative researches viewed only from system or culture, but not considering the changeable international environment. Therefore, in this paper we define Chinese enterprises the object of study, who are treated as foreigners to other host country. Besides, we select political risk, relation between countries and domestic stress, and analyze how and how much they affect LOF that Chinese enterprises faced overseas.Through describing the phenomenon, testing the assumptions, and analyzing case, it turns out that, all the three aspects affect the liabilities from different way. Based on the analysis, to improve the current situation, we give countermeasures and suggestions on how to ease the liabilities from three aspects:government, industry association and enterprises.We’d like to guide our enterprise develop overseas business by our research, make them notice the liabilities, guard against and avoid the bad effect in effective way, ease LOF and cost, promote the process of overseas, and raise Chinese enterprises’position and advantages in the international market.