Study On The Relationship Between Mergers And Acquisitions And The Overcapacity’s International Strategy

After the financial crisis, the economy still remains in the recession, and theglobal economy has fallen on difficult times. China’s import and export trade isfacing a severe market environment. From a domestic perspective, there areovercapacity, repetitive production, vicious competition, decreasing export profitswhich approaching to zero in iron and steel industry,shipbuilding industry,automobile industry, electronic information industry and other dominant industries;from an international perspective, China’s industry is facing the trade friction, tradeprotectionism, which is facing a more complex international environment.Embattled, China must shift the excess capacity, promote the industrial upgradingand industrial restructuring to achieve steady and healthy development of economy.Therefore, the state has promulgated the relevant policies to promote mergers andacquisitions. The state has promulgated the "guidance" on accelerating mergers andacquisitions of enterprises in main industries to promote the merger and acquisitionactivities. In the current economic environment, mergers and acquisitions is nodoubt the best way to solve the excess capacity and to realize the internationalizationfor both enterprises and industries.Firstly, the paper reviewed concepts and theories of mergers and acquisitionsand internationalization from different perspectives, so to define the scope of thisstudy; from the point of view of industry chain, build a theoretical framework aboutmergers and internationalization, so to make the foothold and analysis angle of viewclear. Besides, it laid a solid foundation for the theoretical basis; by using theindustry selection principles, the paper chose its explicit research targets.Secondly, the study formed its creative internationalization theory based on theresearch findings, combined with the mergers, the industrial chains and industrialagglomeration theories from a perspective of industrial chain. It reveals the theessence of internationalization, and highlights the internationalization path. It canpromote the internationalization, foster new economic growth point, form the newcompetitive industrial advantage, achieve industrial upgrading and structuralrestructuring and establish modern industrial system through mergers andacquisitions. Thirdly, the paper selected and built a model, based on the combination oftheories from the empirical point of view, to research on the relationship betweenmergers and acquisitions in the typical industries and internationalization, that is, thetransmission mechanism of mergers and internationalization. And it providedempirical evidence to help achieve the research goal.Finally, the paper studied the international strategic choices of traditionalindustry and high-tech industry based on the research above, through the iron andsteel industry and electronic information industry’s internationalization strategyrespectively. And based on this, this paper put forward some suggestions.This paper combined mergers and internationalization theories, making up forthe lack of theories combined the two aspects,with a certain degree of innovation;from the point of view of industry chain, to study the internationalization strategy isin line with the development trend of the current industry environment today, with ameaning of guidance and forward-looking. It also has great important guiding valueto achieve healthy development of overcapacities and construct modern industrialsystem.