What is the motivation of international enterprises to make overseas direct investment?

International direct investment refers to the investment of enterprises or individuals in one country to enterprises and other institutions in another country. Direct investment can obtain all or part of the management rights and control rights of factories and mines of the other party or host country.

The motives of international direct investment are diversified.

1. Profit-driven: Value-added is the internal driving force of capital movement, and profit-driven is the * * * motivation of all capital export modes.

2. Factor-driven: using abundant or low-cost foreign production factors (resources and labor) to meet domestic demand or reduce production costs.

3. Market-driven: occupy foreign markets and digest excess capital. Multinational companies, branches and subsidiaries.

4. Political motives: controlling the host country's economy, capital flight (seeking new investment places under the national austerity policy), war, turmoil, inflation, supervision, policies, etc.

5. Utilization of foreign capital: Opening to the outside world promotes national economic development.