Research On Risk Prevention And Management Of Jiangxi DK Mining Company’s Outward Foreign Direct Investment In Africa

Throughout the development situation of the world, cooperation among countries becomes increasingly close, capital flows freely in the global scope, as well as unceasingly development of the economic globalization and the world integration. Chinese enterprises, which have largely opened vision and new ideas of management, are very eager to invest to the African countries with lower cost, wider market and great development potential. Especially in Africa, with its abundant mineral resources; this has become the hotspot to the domestic small and medium enterprises (SMEs) of mineral resources industries such as Jiangxi DK mining company.But at present, the researching depth and width of mineral resources industrial SMEs’investment risk management in Africa is lagging behind the general enterprises’ outward foreign direct investment (OFDI) risk management in Africa, and even lagging far behind the study of foreign direct investment (FDI) risk management in China. On the basis of this circumstance, this paper selects Jiangxi DK mining company as a case, with the method of theoretical research and investigation analysis, case study and comparative analysis, does research of the behavior of DK company OFDI management in Africa, and analyze the risks and reasons of DK company from three perspectives including macro level, medium level and micro level. Among which, the macro level is mainly based on the analysis of the risks of host country’s politics, law, culture and environment, and reasons. The medium level is mainly based on the analysis of the risks of mineral resources industry, market and their reasons. The micro level is mainly based on the analysis of the company’s operational, management and technological risks and reasons. After that, this paper also takes the successful OFDI risk prevention and control experience of UK, Japan and India for reference, and puts forward the risk prevention and management suggestions of the three perspective levels.In conclusion, this paper has positive significance to improve the general operating level and comprehensive competitive strength of OFDI by not only SMEs but also enterprises from mining resource industry.