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Analyses of the Internationalization Strategy of Chinese Enterprise in the Context of Globalization

Author: LiJie
Tutor: WuXianMing
School: Wuhan University
Course: Business Administration
Keywords: Internationalization of Chinese enterprise Economic globalization Theory of internationalization Strategy of internationalization
CLC: F279.2
Type: Master's thesis
Year: 2005
Downloads: 969
Quote: 6
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Abstract


China’s status as a major economy in the structure of world economy makes some differentiation in its internationalization between developed countries and other developing countries. Unlike those developed country MNEs who possesses ownership—specific advantage such as leading technologies, advanced R&D, excellent management techniques, Chinese enterprises that still in its infancy are provided with comparative advantages including huge domestic market, low cost of labor, economy of scale stem from large manufacturing, favorable investment climate, mature production technology profit by attracting foreign investment over 20 years. It’s vital for the development of internationalization of Chinese enterprises in a quick, stable and healthy way that how to give full play to comparative advantages of Chinese enterprises, to regenerate newly comparative advantage, and furthermore to form competitive advantage against foreign MNEs in global market. With a lately involvement, either academia or Chinese enterprises itself is lack of sufficient internationalization practice to support and to form an adequate internationalization theory for Chinese enterprises. Therefore, it’s important to analyze various internationalization theory and models.Targeting the Chinese enterprises, based on internationalization theory of developed country and developing country, this article expounds the connection between economic globalization and internationalization of enterprise in the context of economic globalization, and tries to bring forward an adequate strategic thinking from four dimensions by systemic analyze and comparison: industry positioning and comparative advantage; regional selection of investment based on advantage—fulfilling and advantage—seeking; the distribution of R&D investment based on decentralization and technology—upgrading; sustainable development of internationalization and integration of resource of the enterprise. Finally, for the existing fact that Chinese enterprises commonly ignore the risk of its internationalization and unreasoning action on some inter country projects, this article introduce an method of risk management—"Risk Rehearsal" to help enterprise enhance consciousness to risk, identify and evaluate risk, to establish adatabase of solution to possible risk so as to keep the enterprise away from risk and reduce damage of certain risk in the internationalization.

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CLC: > Economic > Economic planning and management > Enterprise economy > Companies around the world economy > China
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