The Theory Basis on Location Choice in FDI of the Multinational Enterprise

Hui-fang LIU


fundamentally speaking, when all multinational enterprises invest directly abroad, choosing which country or area to invest depends on the judgment of anticipated benefits or anticipated net profits, the country or area which has high anticipated benefits will become the investment location. When making the location choice of FDI specifically, multinational enterprise needs to consider three aspects that include the motivation of direct-target layer of FDI, the competitive force condition of enterprise’s FDI, and all kinds of investment environment factors of investing-target country or area.
Key words: multinational enterprise, FDI(foreign direct investment), location choice
Résumé: D’une manière générale, toutes les entreprises transnationales, en s’investisssant à l’étranger, choisissent le lieu selon leur appréciation sur le bénéfice net prévu. Le pays ou la région où on prévoit le plus grand bénéfice net serait élu pour le lieu d’investissement. Dans l’application concrète, l’entreprise doit considérer synthétiquement les trois facteurs suivants : les mobiles au niveau de l’objectif direct, la compétitivité d’investissement direct de l’entreprise et l’environnement d’investissement du pays ou région cible.
Mots-Clés: entreprise transnationale, investissement direct à l’étranger, choix géographique

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