Improved Research On L Company Quality Cost Management

On the condition of open Economy, the entry and exit of FDI is an important approach to blend into Economic Globalization. Since the late 1990s of 20th, FDI has been the significant power for the international economic integration. From a strategic perspective, all economic powers in the world are the major countries of FDI, which can prove that FDI is the mark of mature economies and one of the approaches to growth path. To become a mature economy and strengthen the international competition for China, FDI is an inevitable strategic choice. From a practical point of view, however, some low value-added export industries with export competitive power have large excess capacity. Facing with increasing trade protectionism and anti-dumping against Chinese export, China should encourage FDI to bypass the barriers.Since the 1950s 20th, the theory of FDI and multinational corporation has developed swiftly with the growth of practice behaviors. The theory mainly researched FDI in three paths: location choice of FDI, industries choice and pattern choice. First of all, this paper summarizes these theories. An important part of the economic reform process in China has been the promotion of foreign direct investment (FDI) inflow. After more than twenty years of economic reform, China has become one of the most important destinations for cross-border direct investment. Then, we develop a general analysis and international comparison of Foreign Direct Investment (FDI)'s location choice , industry choice and entering choice. Furthermore, it applies the data of China's direct investment to 30 host countries for 2000-2008 year and studies the main factors which would affect China's FDI location choice. The result shows that the host country's exchange rate has significant negative impacts on China's FDI while the export from China to the host country,wage level and the host country's GDP have significant positive impacts. No one disputes the fact that FDI in China has been one of the major successes of the past 3 decades.Finally, according Chinese realities, we give some policy and suggestion to FDI.