A Study in MNE''s Strategies of Intra—firm Trade Effect and Industrial International Competitiveness-A Comparison of Taiwan''s and Japan''s Manufacturing Corporations in China

• Main Authors: Kuo Kuo-Hsing, 郭國興
• Other Authors: Lin Tsai-Mei
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/75243094236651410097

博士 === 中國文化大學 === 國際企業管理研究所 === 93 === This paper is one of the few study which discusses the intra-firm trade effect strategies of Taiwan MNE’s subsidiaries in Mainland China. The purpose of this study is trying to get a way to strengthen the international competitiveness of Taiwan MNE’s subsidiaries in Mainland China in order to counter response the intense competition from Japan, Korea, and the American MNE’s subsidiaries in Mainland China. In addition, due to Japan MNE’s subsidiaries superior international competitive advantages created by its FDI, this article examines and compares the intra-firm trade effect strategies of those Japan MNE’s subsidiaries in Mainland China. The material findings of this study are summarized as follows: First, both Taiwan and Japan MNE’s subsidiaries in Mainland China imported 10.7 billions and 28.1 billions respectively from Taiwan in 1999 and Japan in 2000, accounting for 55 % and 93 % of each overall exports to Mainland China. This result tells us that Japan MNE’s subsidiaries in Mainland China, relatively to Taiwan MNE, dramatically raised the export-induced effect which indeed substantially promote the growth of intra-firm trade. Second, as for intra-firm trade effect, it shows that in the purchase of raw material and spare parts, both Taiwan and Japan MNE’s subsidiaries in Mainland China tend to reduce the percentage of purchasing from its home country. Instead, they prefer to purchase from the locals (Taiwan 45 % and Japan 40 %). As for the sale of products, both Taiwan and Japan MNE’s subsidiaries would increase export-substitution effect in order to strengthen its competitiveness in Mainland China.