| dc.description.abstract | The globalization and liberalization of the world economy had caused more and more enterprises to step out of national boundaries and sought opportunities on a global scale in the form of multi-national enterprises. Taiwan’s enterprises, with its strong sense of survival, diligence and practical spirit, had developed the amazing Taiwan economic miracle that had won the praises of many. Therefore, the re-structuring of Taiwan’s industries and the liberalization of the Chinese economy became a natural process leading to investments in China with expectations of market dominance and business superiority.
While seeing vast business opportunities, one also sees many difficulties that Taiwan enterprises face as they invest in China. One major difficulty that determined the success or failure of the investment is closely linked to the enterprises’ ability to obtain financing. In Taiwan, more than half of the publicly listed companies, covering a wide range of industries, already have investments in China. From our research, one can discover that the different business model of Taiwan enterprises that invest in China resulted in different financial policies. This research aims to show how the different business model of different Taiwan industrial enterprises impacted their financial policies; and to provide a source of reference to other Taiwan enterprises wishing to invest in China.
This research is based on “Case Studies.” From readily available literature, the major financial limitations of Taiwan enterprises looking to invest in China are determined and their possible sources of financing are analyzed. Based on this background, research is conducted by studying the actual cases of different Taiwan industrial enterprises. Two enterprises are studied: one the BenQ Group, representing the science and technology industry that had set up manufacturing facilities in China, and the other Taiwan Hon Chuan Enterprise Co., Ltd., representing the traditional drink packing industry. Based on information obtained and interviews conducted with the above companies, an analysis on their business model and financial policies are made and compared. From these studies, a conclusion is reached that under different business models there are different financial considerations and how the different business models impact the financial policies of these companies. Finally, a comparison of the readily available literature and the conclusion of this case study are made and the differences analyzed.
This research aims to propose three major key points:
1. The difference in the business model of the traditional industries and the business model of the technology industries are based on their investment motives, the sources of their profits and their marketing and management patterns.
2. Multi-national enterprises, because of their global markets and management, enjoy the benefits of more resources and flexible of financial policies, thus, enabling them to also obtain higher benefits from their financial investments.
3. Traditional industries adopt local financing, while multi-national enterprises adopt global financing, which ultimately will affect their cost of financing.
Through this research, it is hoped that more people will perform further research into this subject so that it can assist Taiwan enterprises in their financial policy decisions when they invest in China. | en_US |