Research On Apple's Financing Mode And Its Implication

With the development of economic globalization,globalization is no longer a strange new word.More and more enterprises begin to enter the stage of globalization and become multinational companies.International direct investment is becoming more and more common,and transnational business model is becoming more and more common.Chinese enterprises have gradually expanded their business scope to the world through new construction and mergers and acquisitions.For example,Alibaba,Tencent,Huawei,Haier and a large number of Chinese multinational enterprises have begun to exert influence in the world.China's one belt,one road initiative,has played a very important role in Global trade and direct investment.However,from the list of China's top 100 multinational corporations in 2020,there are only 5 enterprises with transnational index above 50%,and 38 enterprises with transnational index below 10%.There is still a big gap between China's multinational corporations and western developed countries.Funds play an important role in the economic activities of enterprises.Whether the stable sources of funds can be raised in time and in full is related to the long-term operation and development of enterprises.Different from domestic companies,multinational companies not only need to fully consider the impact of various factors in the domestic financial market,but also can not ignore the impact of the international financial environment on enterprises.Compared with domestic enterprises,due to the diversity of financing modes,the financing structure of multinational companies is more complex.How to raise the funds needed by the operation of the enterprise under the condition of reducing the financing cost;how to choose between debt financing and equity financing on the basis of maximizing the enterprise value;how to ensure that the founder can enjoy the control of the company after the equity financing of the enterprise,etc.These are the problems that multinational companies may encounter in the financing process.Therefore,multinational companies must take into account the host country's factors,take into account the changes in the international market,constantly adjust and choose the most suitable financing mode,which will be conducive to the long-term development of enterprises.Firstly,this paper reviews the relevant research literature on the financing mode of multinational corporations.Secondly,it analyzes the theoretical knowledge needed by the financing mode of multinational corporations,such as MM theory,priority financing theory,enterprise life cycle theory,etc.Then,this paper will make a simple carding of the basic situation of apple,and then specifically analyze the development experience and financing process of apple,focusing on the choice of its financing modes.According to the enterprise life cycle theory,this paper explores how Apple combines the actual situation of the enterprise itself in the seed stage,start-up stage,development stage and mature stage of the enterprise,Finally,the paper gives the enlightenment and suggestions on how to choose the financing mode and how to adjust the financing structure for multinational companies in different development stages;We should save the cost of financing and use diversified financing modes to raise funds;Multinational companies should expand internal financing appropriately and strengthen the organic combination of internal financing and external financing;Pay attention to bond financing and develop bond market;Multinational companies should pay attention to the change of control right caused by equity dilution after equity financing.I hope this paper can provide some thinking and inspiration for the choice of financing methods of other multinational companies in China,so as to improve the international competitiveness of China's multinational companies.