A Study on Capital/Labor Intensive Technology Adoptions for Transnational Enterprises Investment Decision under Exchange Rate Exposure

• Main Authors: Yi-Jiun Lin, 林怡君
• Other Authors: Tyrone T. Lin
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/s738uv

碩士 === 國立東華大學 === 國際企業學系 === 95 === This master thesis attempts to provide a threshold of international investment and constructs a mathematical model to be a reference for technology adoption. The thesis also aims to follow the real options approach to unearth the optimal real exchange rate of transnational investment decision. The proposed model introduces two axials to produce four investment strategies of a domestic firm as follows: keeping its original technology, adopting the labor intensive technology from Country B, adopting the capital intensive technology from Country C, and adopting the coexistence technology from Country D. This thesis then provides some suggestions from sensitivity analysis. There are three situations on risk premiums of . When the risk premiums of , , and increase, the suitable technology is the labor intensive technology from Country B. Also, the numerical example indicates when the initial exchange rate of Country B ( ) and the initial exchange rate of Country C ( ) increase, the suitable technology is the labor intensive technology from Country B, and both of their investment values are decreasing when the parameter is increasing. The numerical analysis of correlation coefficient ( ) indicates when increases, the suitable technology is also the labor intensive technology from Country B, but the investment value is increasing gradually.