A Study On The Political Risks Of Chinese Enterprises' Direct Investment In Latin America

With strategy of "going out",it is a new stage that China's OFDI is going in.As China's second direct investment destinations,Latin America undoubtedly draw worldwide attention to the investment.China's direct investment in Latin America is facing unprecedented opportunities,and coexist with it is the risk.Among them,the political risk of the Latin American countries is the most common and influential,and has the characteristics of unpredictable,wide coverage,complex and so on.In this context,the study of the Latin American political risk and Chinese enterprises'management towards this political risk when investing directly in Latin America is of great significance.Firstly,the paper reference much foreign and home scholars' correlation fruit.Based on the connotation and source of political risk,this paper studies the political risk assessment,control and the influence of political risk on China's OFDI.On the basis of expounding the present situation of Chinese enterprises' direct investment in Latin America,this paper analyzes the main performance of political risk that China may encounter when exerting direct investment in Latin America currently.Combined with the political risk index data in ICRG(Country Risk Investment Guide),this paper reviews and studies the political risks of some countries in Latin America,and further analyzes the relationship between Latin American political risk and China's investment in combination with China's direct investment in some Latin American countries.Secondly,in the study of Chinese enterprises' strategy to deal with Latin American political risk,this article proceed with in-depth interviewing with five different levels of business managements at different natures of entrepreneurs.With the analysis of in-depth interviews,In this paper,we will carry out multi-case cross-analysis of Chinese enterprises of dealing with political risks in Latin America,and compare their common and differential strategies,so as to provide realistic reference for future research.Finally,this paper puts forward some suggestions for Chinese enterprises to avoid political risk from two aspects:government and enterprise.The innovation of this paper is that,on the one hand,providing with the qualitative and quantitative assessment of the political risk level of Latin American countries,on the other hand,analyzing the interviews towards Chinese enterprises in coping with Latin American political risk at the angle of reality,enriching the existing research on Latin American political risk.