| Firstly, I pointed the necessity of FDI for our motor companies and the problems which they are facing. In the 21th Century, economic globalization has become a trend. Our enterprises will have to invest in foreign countries. In China, many factories can produce motors, but in many cities, motors are forbidden to be used. For those motor enterprises, the main problem is, the domestic market is becoming smaller and smaller. However, there is a huge market in other countries. So our motor enterprises should go abroad to develop the international market. Our enterprises want to invest abroad very much, but there are many problems, one of them is how to select a proper location for FDI?Secondly, I introduced the relative theory and method. The location theory mainly study how to select a proper location when a company have decided to invest abroad. The cost school and the market school are influential. The cost school consider that the cost is very important for an enterprise, and the market school consider that the market is very important for a company. As a company, if we want to invest abroad, we should have a clear guide. The last purpose for enterprises is to make the largest profit, but it's condition is market. So, we should take the strategy named "market-oriented". Then, we should use a set of scientific method to evaluate a location, and we should also learn from some foreign motor companies.Thirdly, under the guide of theory and method, we can solve the practical problems of location selection. I analysed the whole process of Lifan group's location selection. Lifan group is a powerful motor company, under the new condition, it have invested abroad actively. These years, China's motor companies have taken a good international market share by export, but lately, something is changing, it became difficult for us to continue the trade. Under this condition, Lifan group have invested in some foreign countries, such as Vietnam, and now it has gotten some achievements. |
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