Capital Investment

As the process of globalization is accelerating, countries encourages their enterprises to invest in other countries, using both domestic and foreign markets and resources to participate in the international competition, then promoting its economic development. Since the reformation of China, Guangdong province has been succeeding in export-oriented economy, and resulting a good economic foundation, except these, enterprises in Guangdong province have obtained certain advanced technology and applicable technologies for developing countries. So Guangdong has the possibility to invest in foreign countries. Meanwhile, Guangdong is short of natural resources, to invest in other countries can obtain resources through a stable channel. Also, it is a way to promote the industry change. Therefore, it is inevitable to invest in other countries.
As the comprehensive economic strength is improving, the investment of Guangdong’s outward direct Capital Investment is becoming universal. How to determine the industry and location choice is an important issue to be resolved. At last, on the basis of the outward direct investment’ motive of Guangdong’s enterprises, this thesis analyzes the industries and location choice of Guangdong FDI systematically, then gives recommendations accordingly. On the industry choice side, firstly, this thesis have learned the international experience to determine the benchmark of Guangdong province’s Outward direct investment, then combined with the economic development of Guangdong to analyze the comparative advantage industry, natural resource-intensive industries and technology-based industries for Guangdong’s industry choice. On the location choice, this thesis analyze the location advantages of the developing countries developed countries and Eastern Europe and West Asia Regions. At last, this thesis makes specific recommendations on industry and location choice.