Abstract

Foreign investment is one important way in the world economic activities. With the further development of economic globalization and integration, the flow of international production factors has became more and more frequent, and FDI plays a more and more important role in the development of international trades. With the deepening of China's reform and opening up policy and the development of economic globalization, China has attracted many countries’ investments, and American’s investments in China are growing. However, the cultural differences between China and America are really large and affect the American’s direct investments in China. To analyze the effects of cultural differences, this paper focuses on three main aspects: the models of American’s direct investment, the areas of American’s direct investment and the degree of American’s direct investment.

Keywords: direct investment; models of investment; cultural differences

Contents

Abstract

摘要

1. Introduction.1

2. Literature Review.1

3. The Definitions .2

3.1 The definition of culture.2

3.2 The definition of FDI .3

4. The Effects of Cultural Differences.4

4.1 The effects in modes.4

4.2 The effects in areas.5

4.3 The effects in degrees.6

5. The Solutions.7

5.1 Make flexible strategies7

5.2 Respect other country’s culture.8

5.3Adapt different cultures.9

6. Conclusion.10

Works Cited.12