Study On The Influence Of Business Environment On MNC’s Investment Intention In China

With the rapid development of globalization, MNC as the main carrier of foreign investment, has been rapidly spread around the world. On the one hand, its rapid development provides effective spread way for production and science technologies’ continuous transfer and progress on a global scale; On the other hand, due to the developing countries’ active participation in international trade, foreign investment has access to developing countries rapidly, which creates strong financial support for their development. China, as the largest developing country, is bound to face the problems and challenges of foreign investment. As we all know, the flow of transnational investment depends largely on the pros and cons of the business environment. At present, our country’s business environment has had a profound change. How to optimize the business environment and improve the MNC’s investment intention in China are important to administrative departments. So, business environment is divided into political service environment, economic environment, social environment and infrastructure environment. According to different investment motivations, investment intention is divided into market oriented intention, reduce cost oriented intention, technological and management oriented intention and preferential policy oriented intention. Then, use the empirical analysis method to explore the cross impact of business environment factors on different investment intentions, and on this basis, put forward specific measures to optimize the business environment.First of all, this paper reviewed the studies about business environment and investment intention written by domestic and foreign scholars, on the basis of which, build hypothesis, and then according to the theory of attribution analysis, establish a theoretical model.Secondly, this study collected the data of affect factors of investment intention in China through questionnaire, and then done empirical analysis.The results are as follows: Economic environment is the greatest influence factor of market oriented investment intention, followed by infrastructure factor, the weakest influence factor is social environment.Infrastructure environment is the greatest influence factor of reduce the cost oriented investment intention, followed by economic environment, the weakest influence factor is political service environment.Infrastructure environment is the greatest influence factor of technology and management oriented investment intention, followed by social environment.Political service environment is the greatest influence factor of preferential policy oriented investment intention, followed by infrastructure environment and social environment, the weakest influence factor is economic environment.Finally, the specific measures to optimize the business environment were put forward according to the empirical results.