Foreign Direct Investment Area, Select On And Then

Nowadays, with the high-speed development of international division, we can see fewer products which were produced in just one country, one corporation. The flow of international direct capital embodied and accelerated this trend. We can see countries produce commodities by the side of water-line as industrialist, and every country has its function and position.Because of international division, foreign capitals flow into developing countries. But the destiny of capital is something being selected. Developing countries such as China, Mexico and India absorb a majority of foreign capitals because of its low labor cost and market potential. However, other developing countries attract fewer foreign direct capitals. This thesis uses the theory of value-added chain to analyze the location of market-oriented foreign investment when foreign capitals are facing the problem of buyer's market.China, as the world's biggest developing country, attracts FDI through its low labor cost, wide market and economic development. All of these are based on the situation that China attaches two parts of value chain. Multinational Corporation combines these advantages with its self-advantage to compete with others and gains profits.The theory and analysis of instances is redound to the absorbing of FDI bases on developing countries'self-advantages. At the same time, this thesis suggests that China should attend to the international competition with its advantages not to the international division. All of the suggestions are based on Chinese situation and the trend of international division. Through attending in international competition, China can obtain profits by achieving the high-valued chain.