Research On Overseas Investment Risk For Lenovo Group Based On Internal Control Theory

With the economic globalization develops further and further, Chinese enterprises think that overseas investment plays an important role in their development process.Foreign investment refers to investment subject to obtaining foreign ownership,management rights and other related activities through equity investment in money,securities, physical assets or technology, intellectual property and other assets and interests or to provide security. It also provides the corresponding behavior of the security services.Faced with an increasingly complex international environment and market trends, the risks faced by foreign-invested enterprises also showing complex features. Since the development time of Chinese enterprises to invest overseas business is not long, the system is not perfect and weak, many companies not only generate revenue but caused no losses to the detriment of the enterprise. The method of dealing with the overseas investment risk is a big problem for enterprises to achieve the overseas investment's objectives.The so-called internal control is a series to ensure economy, efficiency and effectiveness of operations in the interior to take a self-regulation, restraint, control and evaluation of the systematic approach to achieve business objectives carried out. If the enterprises want to set a sound internal control system, they require the preparation of the scientific budget, to form a good cycle funds, the establishment of a complete risk coping mechanisms to improve the ability to control personnel and strict supervision and inspection.Scientific and effective foreign investment will make the business expand, the market more international, the perspective of business expand and to absorb new technologies. In this paper, the basic theory of internal control issues to do a more detailed break down, I use the methods of case studying to research Lenovo Group. Lenovo's successful experience proved to strengthen internal controls to reduce the risk of overseas investmententerprises played an irreplaceable role, it is still inadequate for the future of local enterprises to invest abroad provides an important reference. The results show that in the enterprises' overseas investment risk control, establish the concept of reasonable internal control mechanisms should be further attention and strengthening.