Research On Location Choice Of Enterprises’ FDI In Zhejiang Province

Usually, when an enterprise has the corresponding FDI ability, the primary factor to consider is how to make the location choice, that is, the target location of investment. The factors that affect the location choice are varied. For example, the enterprise’s own characteristics, domestic and foreign economic environment, trade policies will have an impact on the choice of enterprises, and then affect the overall efficiency of FDI. In the current process of the internationalization, most enterprises are not reasonable positioning their own development advantages, then makes their steps limited. Therefore, how to combine the enterprise’s own situation to carry on the scientific location choice is the important question which the current enterprises need to consider during the FDI process. Based on the empirical analysis, this article studies the location choice of FDI in Zhejiang Province.First of all, the article summarizes the relevant theories of FDI. Based on these analyses, the present situation and characteristics of the location choice of FDI in Zhejiang enterprises are analyzed. Secondly, analyze the factors that affect the location choice of FDI of Zhejiang enterprises from three angles of the host and home countries, the enterprises. And illustrate through the actual cases. Then variables are determined, empirical research also carried out. The following conclusions are drawn through the empirical study:First, for market seeking enterprises, developing countries, especially in Asia, are the main areas of FDI. Second, for resource seeking enterprises, countries in Asia, African and Oceania which have abound resources are preferred. At the same time, some of developed countries with advantages of talent and technology will have a strong appeal to the enterprises. Third, for capital seeking enterprises, to invest countries with prosperous financial markets is important. Fourth, from the overall perspective, all kinds of enterprises will be affected by the exchange rate in the choice of location. At last, the article puts forward some suggestions about the location choices from two aspects.