Research On Option Of Liaoning-FDI Location Based On The Theory Of Competitive Advantages

The FDI still be in a up-hilling stage in Liaoning province, the multidimensional investment has been a common phenomenon, based on this practical situation, it is very necessary to own a method or a model for the entrepreneurs of Liaoning province to effectively select a reasonable investment place, so that the investment becomes more economy-oriented and the life of enterprise will be lengthened, considering all the above-mentioned, this paper analyzes and anatomize main theories in the domain of FDI and competitively so as to construct an pagoda-like model for foreign investment, in a word ,we could use this model as an implement for location's selection in FDI.This paper is based on the traditional research approaches, on one side, it recognizes the specific behavior of enterprises' FDI is determined by the match-up between the enterprises' resource and the resources in the corresponding FDI home country or places, on the other side, it deliberately divides the mainstream theories into two categories: One is concerning about the location of FDI utterly, such as the Monopoly Advantage Theory, Internalization Theory and so on;the other one is not accentuating the location of FDI wholly, such as the International Production Eclectic Theory, Theory of Product Life Cycle, Theory of Small scale technology and so forth. Besides all the above-mentioned theory exploration, this paper further researches the impact of competitive advantage to the location of FDI, while absorbs the beneficial parts of theory of FDI as well as those of theory of competitive advantage, in order to put forward a pyramid model which aims to analyze the Option on location of FDI based on the competitive advantage. This paper endeavors to take advantage of the forgoing model to explain the inner relationship between the Option on location of FDI and the nurture and maintenance of enterprises' competitive advantage, as well as analyzes the relative conditions which mainly form thecompetitive advantages, finally this paper raises a posit that an appropriate option on location of FDI could enhance the enterprise's competitive advantages. Verifying the pyramid model, concluding the experiences and making suggestions, which would be conducive to the future option of location of FDI in LIAONING.