Open AccessThe Light Assets Trend of Multinational Corporation OFDI and Its Enlightenment to China
Author(s) -
Hongjian You
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/692/3/032111
Subject(s) - foreign direct investment , multinational corporation , diversification (marketing strategy) , foreign portfolio investment , business , open ended investment company , globalization , investment (military) , economics , international trade , market economy , international economics , return on investment , production (economics) , finance , macroeconomics , marketing , politics , political science , law
The asset-lighting of foreign direct investment is a new phenomenon in the development of multinational corporations. There are four major characteristics: the increase of non-equity investment, the low proportion of fixed capital, the high proportion of investment in the service industry, and the decline of productive investment. Although the current global foreign direct investment There has been a decline for four consecutive years, but due to the impact of COVID-19, the trend of traditional international investment patterns has further emerged. The overseas investment of multinational companies has entered a new stage, which is mainly affected by the strengthening of restrictions on foreign investment by various countries, the digitization of global value chains, and the further decline of manufacturing. Facing the continuous decline in global foreign direct investment and the new trend of asset-light assets of multinational OFDI, China needs to embrace the digital transformation and shift its focus from a traditional investment model to a digital investment model. In the process of foreign investment, we should combine the differentiation of non-equity models to expand overseas markets, build a regional industrial chain, promote regional production specialization and industrial diversification, and use new methods to solve new problems of anti-globalization.