ABSTRACT
This chapter explores the entry modes of multinational corporations (MNCs) into Chinese market from socioeconomic perspectives. It presents a theoretical discussion of MNC's entry modes into the host country within the transaction cost framework, and investigates the entry modes of MNCs in the Chinese particular institutional and business environments. The chapter examines MNC's entry modes from various dimensions, including investors' cultural backgrounds, the technological nature of investment projects, and the economic environments of different regions. It discusses three primary factors affecting MNC's entry modes within the transaction cost framework. These factors include sociocultural distance between MNC's home countries and the host country, technological nature of investment projects, and the institutional and business environments and policies of the host country. The chapter also provides an empirical investigation of MNC's entry modes in China is presented using systematic statistical data. In China, the economic conditions and policy environment vary substantially among different regions.
