The Study On O Company's Strategy For Foreign Direct Investment In Singapore

Along with the development of reform and opening up in the past 40 years,especially after the entry into the WTO in 2001,China which benefits from globalization and international division of labor has undertaken the industrial and capacity transfer from a great deal of western developed countries.Since foreign trade export processing and manufacturing industry constantly grows,China has become the world factory.However,in recent years,the globalization shows a trend of reverse development,the world has seen a growing trend of trade protectionism,especially in the United States.This situation has had a great impact on China's export-oriented SMEs(Small and Medium Enterprises).A large number of export-oriented SMEs face serious challenges of bankruptcy or business closure.Based on the above background,the author draws on Dunning's The Eclectic Theory of International Production from the three aspects of ownership advantage,internalization advantage and location advantage with the combination of the theories related to country of origin effect,trade barriers and foreign direct investment.O Company which focuses on foreign trade is selected as the research target.This thesis firstly analyzes the motives of the company's foreign direct investment and the risks that may be encountered in the process of foreign investment.It then analyzes how O Company evaluates Singapore as the investment destination and assesses its entry model and investment implementation in Singapore.Lastly,this thesis analyzes how to effectively avoid the tariff barriers of products exported to the United States and successfully maintain the market share in the United States after the company's origin of the product changes from China to Singapore.This thesis is based on the real situation of the author's own business,the research will enrich and develop Dunning's theory.What's more,the research can also offer referential value for those companies facing the same challenges as O Company or many other small and medium-sized manufacturing enterprises that are about to conduct foreign investment in the market.