Abstract: This paper proposes an integrated approach which combines the entropy method and the technique for order performance based on similarity to the ideal solution (TOPSIS) for multiple objective decision making. The relationship between economic development level of Shandong Province’s 17 areas and the foreign direct investment location choice is analyzed by considering the factors related to market, cost, cities cluster and investment policies. In the proposed approach, the entropy method is introduced to determine the relative weighting of assessment criteria, and the TOPSIS approach is employed to rank 17 areas of China’s Shandong province for the overall performance. A numerical example is examined to illustrate how to apply the proposed method to rank the foreign direct investment location choice in China. Furthermore, we conduct the sensitivity analysis to identify how much each weight influences the final decision. Research results and case study show that the integrated approach is effective and feasible in the location choice of foreign direct investment.