Location Shandong Foreign Direct Investment Selection

With the rapid development of China’s economy and the invasion of foreignMulti-National Corporation constantly, enterprises in China not only faces more andmore fierce domestic competition, but also faces the competition from Multi-NationalCorporation, what’s more the domestic energy, technology, and the improving costrestricts the development of national enterprises seriously. The national enterprisescan break the restriction of the shortage of domestic resources though making full useof the opportunities of globalization in the world. Because the companies in Chinaface an increasingly competitive international environment, China should activelycarry out foreign direct investment to make the economic steady growth. Chinaactively carry out the "going out" strategy to promote Chinese enterprises’ strengthand the economic growth. After several years, the development of Shandong Provincein economic grows rapidly. The traditional industry of Shandong province especiallylabor-intensive industry is developing rapidly. The characteristics of the industryformed a great complementarity to the developed countries, what’s more, it is alsothe dominant industry for the majority of the developing countries. And so itbelongs to the middle position of the enterprises in Shandong province and has thepossibility to invest the developed and developing countries.It described the system of enterprise’s foreign direct investment conditionsaccording to the theory of foreign direct investment location theory. The paperdescribes the current situation of foreign direct investment in Shandong Provincefrom the three sides, it includes the main body of investment, industry distributionand regional distribution. Next it put forward to the problems about the presentShandong province foreign direct investment location choice, and the proposal isproposed from the enterprises and government. And then explained the reasons ofthe foreign direct investment in Shandong Province, which include resource oriented,market-oriented, technology oriented and so on, and use many examples to prove them. And next the paper summarize the influencing factors of foreign directinvestment. These five aspects include the direct target of foreign direct investmententerprises, regional industry’s the degree of the cluster, the investment environmentof the host country and so on. One area of the industry’s degree of clusterincreasingly become important factor of foreign direct investment and play anincreasingly important role. Finally, in order to enhance the core competition of theenterprises in foreign countries, I summarize the suggestions of location selection offoreign direct investment in Shandong province.