Author(s)

Ruohan Wang, Jia Ruan

Corresponding Author

Ruohan Wang

ABSTRACT

In 2005, after the change of exchange rate, the expectation of upward expectation was deepened because of the fluctuation of RMB exchange rate. For international companies, on a country's currency exchange rate volatility trend is expected to change its subjective leading on the investment strategy of the country, is expected to exchange rate in the adjustment of China's FDI entry with a total layout of the industry leading role is allow all doubt. China is in a special phase of economic growth and transformation, and the policy of improving the allocation ratio of manufacturing industries and service industries needs the help of a large number of foreign capital. Therefore, it is a significant time to explore the adjustment principle of the exchange rate expectation change to the domestic FDI entry quantity at this time.

KEYWORDS

RMB exchange rate expectation; foreign direct investment; export oriented FDI; market oriented FDI