Analysis Of Market Entry Mode Selection On Service Industry FDI

Since the 1990s, service industry international transfer becomes the new tr end of international industry transfer after manufacture industry international tra nsfer and service industry foreign direct investment is one of the most importa nt ways of service industry international transfer. Recently the percent of servic e industry foreign direct investment in foreign international investment is on th e rising and service industry service industry international transfer plays an imp ortant role in the development of service industry international transfer and ser vice industry globalization. One of the most important questions that service m ultinational enterprises making the foreign direct investment face to is the choi ce of foreign direct investment entry modes..China have entered the WTO and with the promise,. Facing the trend of service industry international transfer, how to get the entry mode of service industry foreign direct investment that on the benefit of Chinese economy become the important question that Chinese government has to think of. For Chinese service firms, the competition will become cruel but they can imitate and learn the service multinational enterprises to form their own core competence. The choice of entry modes for service industry foreign direct investment may limit restrict the extend to overflow of service technology. On the other hand, Chinese government made the "Go out" policy for Chinese service firms So how to choose the entry modes of foreign direct investment become an important part that influences Chinese service firms make the foreign direct investment successfully.This paper takes the latest theory of service industry foreign direct as theorial base and takes the choice for entry modes of service Industry foreign direct investment as research objective, by comprehensively using theory analysis, empirical analysis, game theory analysis and comparative analysis. This paper not only try to analyze the common factors of choice for service industry foreign direct investment entry modes, but also research the choice of entry modes that service industry foreign direct investment in China and the entry modes that Chinese service firms makes foreign direct investment should choose. That makes theory and practice together and both of those are important. What this paper researches as following: (1) the types, internal characteristics and influence factors of service industry foreign direct investment. The internal characters lead to the advantage and disadvantage of kinds of service industry foreign direct investment entry modes. The influence factors of service industry foreign direct investment entry modes are always the emphsis of economists' research. This paper tries to research influence factors of service industry foreign direct investment comprehensively and exactly to form the theoncal basis of common analysis frame. (2) From the perspective of services transnational corporations and host country policy, this paper establishes game model of services FDI market entry model. The result shows that the services transnational corporations which provide high-quality services product tend to choose a high degree of control mode and they will select the appropriate proportion of equity to restrict the spill-over effect. On the other hand, the central government and local governments policy coherence influences the choice of services FDI market entry model. The game models we have established provide a new analytical framework for China attracting services FDI and making policy to guide the choice of services FDI market entry model. (3) analysis of choice for entry modes of service industry foreign direct investment tend to enter Chinese market and how Chinese service firm choose direct investment entry mode. Both of those play an important role in Chinese service industry development.At last , we give the reasonable advice of guiding the service industry for eign direct investment entry modes as home country andchoosing direct invest ment entry modes as investing firms, which including the effective measures from government and firms. Catch the chance of service industry foreign direct investment and Chinese economy will growing fast.