The Analysis About Income And Risks Of Chinese Publishing Industry's Foreign Direct Investment

Since the reform and opening up,Chinese publishing industry developed rapidly and achieved the achievements that have attracted the attention of the world,also has made certain progress in terms of foreign direct investment.But compared with the United States and other developed countries,there is still a big gap.This was not only in line with the China's identity of "publishing power",but also restricted of China's soft power in the global influence from a side.Firstly,China's publishing industry should learn about the investing environmental conditions carefully when it ready to invest to foreign directly.Generally,the investment environment is a huge,complex,and irregular system.Its total characteristics are complexity,vulnerability and risk,such as extensive coverage,numerous contains.And some problems are probably encountered but such as taxes,foreign exchange management,international balance of payments,international settlement,import and export trade,copyright trade etc in the host countries.The difference about investment purpose,management procedures,methods,and ideology that exists between Chinese publishing enterprises and the government and publishing enterprises in the host country on investment,management,there is a big difference,results in complicated investment environment.Moreover,the stability of investment environment is poor,and the risk is big.China's publishing industry is easily affected by investment political,economic environment,social stability,military situation and international economic environment of host country.For the,we can not only learn the investment environment from an objective point of view of international environment,the domestic environment and regional environmental,but also learn from specific aspects of the soft environment(i.e.,a human can control the characteristics of environment and hard environment(i.e.objective with material foundation environment)surface.Before investing to foreign directly,China's publishing industry should consider foremost how to avoid the risk of investment,ensure the validity and the feasibility of the project of the investment,conduct a feasibility study and provide a scientific basis for decision-making.China's publishing industry foreign direct investment projects in the feasibility study of the main content including project background and history,book printing capacity,project resources,project environment,library project long-term planning,project organization,financial and economic evaluation.After the completion of the above several work,to determine the value and benefits of the project,determine the project's investment costs,production costs and sales revenue.At the same time to carry out financial evaluation,specific content is computer project net present value,and internal rate of return rate,payback period and loan repayment period and the rate of investment income and other,and fund balance analysis and sensitivity analysis.At present,foreign direct investment of China's publishing industry is still in the initial stage and facing a completely different business market economic environment with domestic economic environment.Chinese publishing enterprises should clearly recognize that some political risks and cultural risks are existing or potentially existing in the international operations,analysis deeply these risks and their causes,and take active preventive measures against these reasons.