Comparative Advantages And Chinese Enterprises' Cross-border M&A

With the development of globalization, cross-border M&A has already exceeded newly-built investment, and has become the main way of foreign direct investment. Thus, any country should pay attention to the influence of cross-border M&A to the world. After entering the WTO, because of the economic internationalizing in an all-round way, Chinese enterprises are involved into the intense competition environment. Some of them have made success in these M&A transactions, and their international competitive abilities have been improved.The structure of this essay is as follows: at first, We introduce the development of Comparative Advantage Theory and the main theories of FDI in developed countries. Then, we consider that the condition of our enterprises'cross-border M&A is the advantage comparative to other foreign enterprises. We also define the concept of comparative advantage in cross-border M&A .As the main way of the foreign direct investment, cross-border M&A is related to the market environment, industrial environment, enterprises'interior factor and etc. so, we analyze the advantages in three levels-micro, middle and macro during the course of cross-border M&A from the start point of comparative advantages. The purpose is to present the theoretically support of the cross-border M&A of Chinese enterprises. Then, we explain how to choose correct industry, site, and investment pattern according to our enterprises'advantages. At last, we give some advices on how to transform our comparative advantages to competitive advantages under the support of government and the effort of enterprises.