Research On International Entrepreneurial Environment For Foreign Direct Investment

The world has already entered economic interdependent ages nowadays, being placed in each nation that develop a stage according to the different purpose, all making foreign direct investment the important code to promote the native economic power further directly, so the enterprise internationalization became a big characteristic and trend of the economic development in the world. People see various forms of international operation coexist in the same enterprise, see through global resource integration, enterprise operation turns into a new stage, multinational corporation would be the typical representative of such enterprise. Actually, that multinational corporation carries on overseas investment is a kind of entrepreneurial behavior under the environment different from economy, society and present industry condition of home country.Therefore, starting a business already becomes the strong power to push employment and economic growth in all countries. The function of starting a business to social development not limits at increasing output per capita or income level, but more important it also can promote the formation of new social structure and economy structure, allow more people to participate in the process of economic development and gain corresponding repay. So, the cultivation and study of entrepreneurial environment have already caused great attention of all countries.A lot of methods and monographs on evaluation of international entrepreneurial environment have already appeared in academic circles. The research frame of this article depends on the Resource-Based View and Supply and Demand Theory and the conclusion is evaluation index system of International Entrepreneurial Environment for FDI. This article is divided into 5 chapters.Chapter 1, introduction. This chapter introduce background and the research meaning of this article. The chapter sets out from the present condition of international business development and the situation our country faces at present, and shows that the change of international entrepreneurial environment for FDI mainly embodies several characteristics as follows:1.Electronic commerce becomes the important operation method of international business gradually; 2.Technique knowledge in international business trade weighs more and more; 3.The mode of operation in international business tends to be globalized more and more. The article mainly adopts the method of demonstration analysis, method of comparative analysis and the method of qualitative examination etc. The research frame is based on the original relation between the resource demand and supply to establish a business and mainly include following contents: the strategic target of enterprise for FDI and resource demand to start a business, the resource demand of enterprise for FDI and environment factor, environment factor with its subject, the influence of entrepreneurial environment on strategic target. The article carries on the analysis under this research frame combining the characteristics of FDI.Chapter 2, correlative conception and theories study. This chapter explains the theories that prop up this article: basic FDI theories; entrepreneurial environment theories; international business environment theories and introduces the foundation of the theories above and advanced research results in detail, finally carries on a theory overview. Chapter 2.5 emphasizes to introduce the multinational investment theories of developing countries as the base for the following contents.Chapter 3, constitution of evaluation system of international entrepreneurial environment for FDI, This chapter is totally divided into 3 parts.Chapter 3.1 contrastively analyzes the strategic target of FDI enterprises with resource demand to start a business. First , according to the principle of multinational corporation to establish strategic target: profitability, ability of output, leading technique, development of employee, public responsibility, concludes the strategic target of multinational corporation for FDI: customer service target, financial resource target, human resource target, market target, organization structure target, physical facilities target, production(business) target, productivity target, social responsibility target, research and development target, ability to earn profits target. Then starting from the demand and obtainment channel of the three kind of initial resources needed to establish a business: technique, capital, human resource, contrastively analyzes strategic target of enterprise with the resource demand to establish a business. Chapter 3.2 contrastively analyzes the resource demand of enterprise for FDI with environment factor. First analyzes resources of multinational corporations for FDI: governor and management organization resources, employee resources, marketing and sales resources, financial resources, production resources, equipment and facility resources, organization resources and corporate image resources. Then contrastively analyzes the resource demand with environment factor, and concludes the indirect environment factors enterprise should possess from environment to ensure resource supply: policy and statute, intermediary system, culture, market and informationization etc.Chapter 3.3 analyzes environment factors with environment subject. The factor of entrepreneurial environment is the external one to influence the action to start a business, and the subject carries entrepreneurial environment. This chapter first elaborates the motives of multinational corporations for FDI: resource-based type, market-search type, efficiency-based type, risk-spreading type, technique-spreading type, global strategy type, pollution-transfer type, following preferential policy type. Then divides the environment of host country into two parts according to basic international business theory: general environment and special environment. General environment includes politics, economy, technique, social culture, nature and infrastructure etc. Special environment includes entrant, competition between enterprises of the same industry, substitute or service, provider and consumer etc. Then analyzes the strategic group of multinational corporations and the correlation level between host country and multinational corporations. They all derive from the 5 forces above.Chapter 4, demonstration analysis of international entrepreneurial environment in the Yangtze River Delta. This chapter fist analyzes macroeconomic, policy and statue, technology and its transformation, social culture, business environment and infrastructure and market-opening level in ShangHai Municipality, Jiangsu province and Zhejiang Province, and then contrastively analyzes the present conditions of the 3 areas. Finally concludes the key factors of international entrepreneurial environment for FDI in the Yangtze River Delta and support the evaluation index above.Chapter 5, conclusion: evaluation index system of international entrepreneurial environment for FDI.