Research on Foreign Direct Investment in Service Industry

Under the national policy goal of increasing labor income and employment rate, service industry is expected to be a powerful engine for stimulating economic growth, optimizing industrial structure absorbing employment, while foreign direct investment playing an important role in promoting upgrading improving efficiency. This article first analyzes trade effects multinational companies based on monopolistic advantage theory, product life cycle internalization theory eclectic paradigm international production, then introduces development status China’s industry. The study found that under premise ensuring economy social security, corresponding policies should adopted introduction specific industries correctly guide flow capital so it can serve optimize