Research On Fuyao Glass Transnational Investment Risk

With the deepening of China’s reform and opening up and the further development of the " The Belt and Road" initiative,transnational investment has become an important way for many enterprises to participate in international trade and expand their market share.In addition,the new pattern of " dual circulation " investment development,how to give full play to the advantages of domestic big cycle,to facilitate the sustainable development of foreign investment has become a heatedly discussed topic of discussion in the academia and industry.Enterprises will be faced with a more complex international investment environment when making transnational investment,and the investment risks have also significantly increased.Moreover,the global outbreak of the COVID-19 pandemic in 2020 has exacerbated the uncertainty of transnational investment risks.Therefore,how to identify and effectively prevent transnational investment risks has become a hot issue worth studying.The research methods in this paper are literature study,case analysis and principal component analysis—— Fuyao Glass,an industry leader with many years of transnational investment experience and gradually became a globally excellent automotive glass supplier,was selected as the case study object.First,the 12 risks of Fuyao Glass investment in the United States were identified through qualitative analysis.Secondly,the expert scoring method was used to score the impact degree of the 12 risks.Thirdly,principal component analysis was used to extract and calculate the results of the expert score and the comprehensive scores of various risks.Then,the financial index method is used to analyze the overall financial risk of Fuyao Glass and the financial risk of Fuyao American Company,so as to evaluate the transnational investment risk of Fuyao Glass.The research results show that Fuyao Glass should attach great importance to the macro-environmental risks of investment in the United States,especially the political risk,economic risk,disaster risk and legal risk.In terms of financial risks,the overall risk of Fuyao Glass is low,but the long-term solvency and profitability of Fuyao United States are at risk,therefore attention should be paid to strengthen risk management.Finally,the preventive countermeasures are put forward for the identified risks,which provide guarantee for the sustainable development of Fuyao Glass transnational investment,and bring reference and inspiration for Chinese manufacturing enterprises that are willing to invest and are making transnational investment.