Yunnan Province, Foreign Direct Investment Location Choice And Entry Mode Research

Along with the rapid development of economic globalization and the deepening of China's reform and opening up, the objective request vigorously developing foreign direct investment and promoting economic development. The "go global" strategies of our government greatly promote the foreign direct investment of the Chinese enterprises. Due to the geographic advantages, in the early 1980s, the enterprises of Yunnan province has started to go abroad to look for the market in southeast of Asia. With some enterprise developing to mature, the subjective need to seek for growth and opportunity, accelerate the breakthrough in the development of direct foreign investment of enterprises of Yunnan province.The paper analyzes the originality, development stage, characteristics of foreign direct investment on the basis of previous theories about foreign direct investment. Concerning the importance of the location choice and entry mode to enterprises'foreign direct investment, particularly oversees investment at the initial stage, the paper focuses on the location choice characteristics and obstacles of Yunnan enterprises'direct foreign investment as well as enterprises'entry mode characteristics and selection limitation. In terms of mythology, the paper adopts qualitative methods to identify the impact of enterprise's location choice and entry mode. Besides, by special study combined with questionnaire survey, the paper examines some Yunnan enterprises which have implemented foreign direct investment, and identifies the main factors affecting the location choice of enterprises'foreign direct investment by factor analysis of Empirical Analysis. Based on analysis of main affecting factors, the paper puts forward relevant suggestions. It is suggested that, as for the location choice of foreign direct investment, ASEAN should be placed more emphasis on, India and south Asia market are for the second, and the developed market is for the last. Likewise, the paper firstly generalizes five main indicators from three levels, namely enterprises, industry, country, and accordingly establishes two logistic regressions to evaluate the extent to which the main factors affect enterprises'location choice. Subsequently, taking ASEAN for example and combined with affecting factors, the paper proposes an entry mode selection strategy. Finally, the paper proves the proposition by studying the LL Group which has succeeded in the location choice and entry model.