Research On J Company’s Overseas Investment Risk And Prevention Strategy

In the continuous development of global economic integration,more and more Chinese enterprises have gone abroad to carry out overseas investment and transnational operations.With the take-off of China’s automobile industry,China’s automobile industry has also ushered in earth-shaking changes,from the beginning of independent construction of factories to produce automobiles in 1953,China’s auto companies from the initial closed development model,gradually to the international cooperation model,and is currently in the overseas expansion model of the comprehensive development period.Today,China is the world’s largest outflow of foreign direct investment,and the scale of overseas investment is growing,while the risk of overseas investment is also increasing.In the face of the complex and changeable international investment environment,many enterprises have a weak risk awareness and insufficient risk response capabilities,so how to strengthen the awareness of risk prevention of overseas investment and improve the ability to deal with risks has become an important issue of great concern to Chinese enterprises.J company is engaged in import and export trade enterprises,with many years of overseas market experience,since 2009 in the past ten years of business has established 4 overseas companies,this article to J company as a case,its overseas investment activities for risk analysis,assessment and accordingly put forward corresponding risk prevention measures.By combing the political,economic,socio-cultural risks and operational risks faced by J Company’s overseas investment,constructing an evaluation system with secondary indicators,using analytic analysis to quantify J’s overseas investment risk data,it is concluded that the risk of political environment change,exchange rate fluctuation risk and technical risk is currently the risk that J Company is most concerned about,and finally puts forward corresponding preventive measures for various risks,by strengthening attention to bilateral dynamics,obtaining state support,rational use of financial products,and enhancing the sense of belonging of overseas employees.Clarify the strategic positioning of overseas investment,establish and improve the risk management mechanism and other measures to reduce the impact of overseas investment risks on J Company and ensure the ability to operate sustainably in the future.It is hoped that this article can provide reference for overseas investment risks and prevention for China’s automobile export enterprises,enhance the ability to cope with overseas investment risks,gain more competitive advantages in overseas investment activities in the future,and accelerate the process of international development of enterprises.