(1), which is conducive to accelerating the adjustment and optimization of the national industrial structure. The adjustment and optimization of industrial structure is an important and urgent task for economic development. Foreign direct investment will create a favorable international environment for it to implement this strategic task.
Through international direct investment, some long-term products and industries can be transferred out; We can use foreign capital and technology to transform traditional industries, accelerate the development of high-tech industries and service industries, and improve the overall level of industrial development.
(2) It is conducive to deepening the reform of the national economic system. International direct investment will promote the process of economic reform; Will promote the reform of state-owned enterprises and establish a modern enterprise system; Promote the deepening of system reform in foreign trade, banking, insurance, securities, commerce and other fields to meet the needs of gradual opening up in these fields.
(3) it is conducive to joining the process of world economic globalization. Economic globalization is an inevitable historical trend, which has both opportunities and severe challenges for developing countries. International direct investment is conducive to extensive cooperation with multinational companies, introducing multinational companies' capital, technology and management experience, and expanding exports by using multinational companies' sales channels and networks.
2. Disadvantages of international direct investment:
(1), the behavior of foreign investment is chaotic. The economy of developing countries is still in the process of gradual opening up. So far, the information circulation in the market is still very closed, and there is still a lack of intuitive and reliable understanding of the specific environment of the international market, and there is no good channel for foreign investment, which leads to the disorder of foreign investment.
(2) Lack of risk avoidance and prevention. Investors lack timely information and comprehensive understanding of the overall trend and current events of the international market, and have no clear understanding of the income of distinguishing capital investment in the investment process. At the same time, the laws and regulations on foreign investment behavior are not perfect, which leads investors to bear a lot of trade risks in the process of foreign investment.
(3) Foreign trade management will be restricted by foreign market rules to a certain extent.
Extended data:
There are several main theories of international direct investment:
(1), investment development cycle theory: "The tendency of developing countries to invest abroad depends on: the stage of economic development; The country has the advantages of ownership, internalization of international direct investment and regional advantages.
The investment development cycle theory combines a country's ability to attract foreign investment and foreign investment with the level of economic development, and holds that a country's international investment status is directly proportional to its per capita GNP. The changes in the international investment status of developed and developing countries in the world are generally in line with this trend.
(2) Small-scale technology theory: The biggest feature of small-scale technology theory is that it abandons the traditional view that it can only rely on monopolistic technological advantages to enter the international market, and organically combines the competitive advantages of developing countries' foreign direct investment with the characteristics of their own markets, thus providing a theoretical basis for foreign direct investment in economically backward countries.
(3) Technology localization theory: Technology localization theory explains the foreign investment behavior of developing countries. Although the technical characteristics of multinational companies in developing countries are characterized by small scale, technical standardization and labor-intensive, the formation of this technology includes innovative activities within enterprises.
(4) Theory of technological innovation and industrial upgrading: The upgrading of industrial structure in developing countries shows that the improvement of technological capabilities of enterprises in developing countries is the result of continuous accumulation. The improvement of technological capability of enterprises in developing countries is directly related to the growth of foreign direct investment.
The industrial distribution and geographical distribution of foreign direct investment in developing countries change gradually with the passage of time, and it is predictable.
Baidu encyclopedia-international direct investment