Foreign Direct Investment And Foreign Trade Of The Home Country

As the two most important aspects of the operation of international economy, foreign direct investment (FDI) and international trade become more and more interacted, under the background of economic globalization, and especially the integrated globe production. More attention has been paid to the mechanism between FDI and international trade, from different perspectives by many scholars. The normal and positive analysis towards the effects of FDI on international trade indicates that, even its mechanism is various with different industry and with diversified motive, FDI positively affects international trade of the home country as a whole. Not only does FDI directly or indirectly influence the export and import scale, structure and direction, but broaden the scope of exporting market. Further more, FDI has unignorable effects on the home country's the balance of payments and the terms of trade and the competitiveness of foreign trade as well. During the past more than 20 years, although China has been the largest host country of FDI among the developing countries, and the adsorption of foreign direct investment improves the competitive capacity of international trade of China to some extent, but can't fundamentally change it on the other hand. Under the new economic condition, the "go out" and operation in foreign countries strategy has become the unavoidable choice of the enterprises in China, in that this can fundamentally enhance the competitive capacity of economy of China...