Location Choice and Industry Transfer of FDI

Every kind of inquisition data shows, in recent years some multinational enterprises have already withdrawn from the delta of Yangtze River or the delta of Zhujiang River in China, the other some are thinking it over, and even simply trying to withdraw from China. By building up an oligopoly output competition model consists of multinational enterprises and the host state enterprises, this paper analyzes how the cost factor influences FDI location choice in the host country, moreover analyzes the large-scale industry transfer tide of FDI taking place in China which is induced by variation of cost factor.