Research On The Cross-culture Risk Management Of China Enterprises In FDI

With the rapid development of global economic integration, International Foreign direct investment is increasingly becoming an important way for international economic cooperation and China is becoming a remarkable foreign direct investor. As a main way of transnational management, FDI is inevitably faced with the cultural differences between different countries and enterprises. If both sides don’t pay enough attention, cultural clashes between member countries and host countries is likely be caused. Once the cultural clashes upgrade, it is highly possible that cross-cultural risk will emerge, which will disturb even hinder the smooth progress of management activity. Therefore, in order to make our country enterprise smoothly conduct foreign direct investment, it is an important research subject to establish the warning mechanism of culture risk management through the cultural risk identification and analysis, then our country can effectively prevent and avoid the culture risk in the future foreign direct investment.In this paper, many methods are adopted to analyze cross-cultural risk in foreign direct investment of our country. In the background, the current situation of foreign direct investment of our country is analyzed firstly, and then the current cross-cultural risk theories are summarized on the basis of many collected domestic and foreign research achievements. Then the performance, causes and influence of cross-cultural risk in the foreign direct investment of our country is analyzed. Then, we take SAIC’s acquisition of Ssangyong for example, systematically analyzed the cross-cultural risk of FDI of Chinese enterprises,then made a study of cross-cultural risk measure for this case. At last, standing the position of our business, put forward several countermeasures of improving the enterprise’s foreign direct investment of cross-cultural risk management. Finally the major works and conclusion are summarized, and the future research direction of cross-cultural risk management in foreign direct investment of our country is prospected.