The Selection Of FDI’s Mode For Chinese Corporations

Since1990s, as the process of economic development fastly, the world economyhas been in a wide r and deeper interdependence. By the end of2011, Global foreigndirect investment (FDI) flows totaled up to$1.24trillion, about for44times of thenumber ($28billion) in1982. As one of the most important ways of international capitalflows, foreign direct investment has become the main driving force to promote thedevelopment of economic globalization. Foreign direct investment is increasinglybecoming an important research topic in the field of International economy.The international financial crisis sinee2008, world economy still did not recoverfrom the crisis, the world’s major economies frustrated, international capital flowvolume dropped significantly, but the foreign direct investment in China still keep risingtrend, large enterprises with foreign direct investment way to open up internationalmarket. A large number of enterprises faced the “opportunities and machine”, accelerate“going out” strategy. Enterprises foreign direct investment has two important strategicdecisions. One is the location choice decision; the other is the choice of entry modedecision. Both the important decisions not only decide whether the enterprises can makean efficient foreign direct investment, at the same time to the long-term development ofenterprise have also had a significant impact. Therefore, enterprises FDI entry modechoice as one of the two important decisions has been all the scholars on internationaldirect investment research emphasis and focus. For China, especially at the importantmoment of economic transition, research in enterprise foreign direct investment modeselection has an important realistic meaning.Greenfield investment and cross-border mergers and acquisitions of Chineseenterprises’ foreign direct investment are two kinds of main modes. This article due tospace constraints, only selects the two kinds of modes analysis and research. Firstly，This article reviews the domestic and foreign scholars on foreign direct investmententry mode selection of the relevant literature and analyzed on the basis of,brieflydescribed the Chinese enterprise foreign direct investment entry mode choice of thecurrent situation, analyzed the effect of entry mode choice of various factors, putforward a series of hypothesis, and the use of two logistic regression model the maincan be improved further by influencing factors empirical test. In the empiricalconclusions on the basis of foreign direct investment of Chinese enterprises, scientific and rational choice of entry mode to provide some available countermeasures.