I. modes of equity participation in international direct investment

1. the meaning of equity participation: equity participation refers to a direct investment mode based on ownership and taking decision-making management right as the way (holding common stock) to achieve effective control or influence on enterprises.

2. Owning all the shares-a wholly-owned enterprise

(1) Significance and influence on investors

① It can have absolute operational control

② It can have all foreign profits

③ It is conducive to keeping technical know-how and trade secrets

④ It must bear risks independently

(2) Significance and influence on the host country

① It can make up for the production of the host country. Land use fees, income from purchasing equipment and raw materials in the host country)

③ Increase employment

④ Market share is occupied, so you can't share profits

3. Owning partial equity-joint venture (including majority equity, semi-equity and minority equity)

(1) Gradually emancipate your mind on the issue of joint venture-demanding "absolute holding" → "not seeking all". They can all be regarded as national enterprises "

(2) the mode of capital contribution-cash, physical objects, industrial property rights (trademarks, patents, Know-how, etc.)

(3) the positive aspect-the ability of all parties to the joint venture can be condensed, advanced technology and scientific management methods can be introduced and applied, and the responsibilities, rights and interests of all parties to the joint venture are clear

(3) In a relatively passive position

2. Non-Equity Participation of international direct investment

1. Contractual Joint Venture

(1) Meaning of cooperative operation

According to the cooperative operation contract signed by all parties, the investment conditions, income distribution and risks of all parties are stipulated.

(2) Features

① The rights and obligations of both parties to a joint venture are agreed upon in the joint venture through consultation, instead of taking the share subscription ratio as the criterion like a joint venture

② The capital contribution form of a cooperative operation is different from that of a joint venture (the investment ratio may not be calculated in monetary units)

③ The benefit distribution of a cooperative operation is different from that of a joint venture (not by capital, But according to the cooperative operation agreement and contract)

(3) the organizational form of cooperative operation

① "legal person" cooperative operation (both parties set up an economic entity with legal person status in a country and have independent property rights and legal right to sue and appeal)

② "unincorporated" cooperative operation (the entities set up by both parties only have the right to use the property of the cooperative enterprise without independent property ownership, and joint management can be established. The examination and approval procedures and procedures are very simple; Avoid a series of complicated problems such as the price of physical or technical shares; The management organization can be large and small, complex and simple, and has considerable flexibility.

2. International technology transfer and technology investment

The meaning of technology-knowledge, technical know-how and ability related to manufacturing methods and management. It can be divided into manufacturing power, design power, new technology development power and management power.

3. international leasing

(1) meaning

a lease relationship between lessors and lessees located in different countries, in which the leased assets are given to the lessee for paid use within a certain period. The lessor, lessee and supplier may be natural persons, legal persons or national and international financial organizations of two or three countries. Generally, the leased object is movable or immovable property with high value, such as complete sets of equipment, ships, planes, etc. (Lease Act during World War II).

(2) Characteristics of international leasing (integrating trade, financing and investment)

① Separation of ownership and right to use

② Combination of monetary credit and physical credit

③ Easy-to-get tax concessions (investment tax reduction or exemption from property tax)

④ The business involves a wide range, and it needs multilateral cooperation, * * with the completion of the transaction (three-party relationship-2 In addition, there are loan agreements)

(3) Ways of international leasing

① Finance lease —— When enterprises need to raise funds to purchase machinery and equipment, investors sublet large-scale complete sets of production equipment and transportation equipment to users through leasing companies located in the host country. Therefore, financial leasing is also called Equipment Lease. The essence is to replace "financing" with "financing", that is, the leasing company does not directly lend money to the enterprise, but buys machinery and equipment on its behalf and then rents it to the enterprise for use.

② operation lease: the lessor provides special services (insurance, maintenance, etc.) at the same time as financing, which is a combination of the two. It is generally used for machinery and equipment with certain monopoly in maintenance and management technology.

③ maintenance lease-a typical maintenance lease is car rental. The leasing company shall provide all services to the lessee, including car purchase, registration, tax payment, maintenance and repair.

④ the relationship involved in Leverage Lease-lessee, lessor, long-term lender and (custodian), including sales contract (lessor and supplier), loan agreement (lessor and lender) and lease contract (lessor and lessee)-the source of funds-the lender but not the lessor (its funds only account for about 2%-4%).

⑤ Sale and lease back lease —— The lessor purchases the subject matter from the owner and user, and then rents the purchased subject matter to the original owner for use (mostly for real estate).

⑥ sublet lease-leasing companies or bank trusts rent equipment from abroad and sublet it to domestic users (2 contracts)

⑥ comprehensive lease-a form of lease that integrates lease and related trade methods (lease+compensation trade, processing with supplied materials, joint venture, cooperative production, exclusive sales, etc.).

4. International project contracting

(1) Main contents Engineering design provides funds such as machinery, equipment, technology, raw materials and labor for the training of construction and installation commissioning personnel

(2) Features

More costs, more profits and stronger competition

(3) Classification

① project contracting of Separate Contract (the owner comes to the Sub-Contract)

② project contracting of Turkey Contract

③ project contracting of sub-contract (the general contractor comes to the sub-contract).