Studies on the Decision Model of Foreign Disposing for Transnational Enterprises

• Main Authors: Yi-Shin Chen, 陳怡馨
• Other Authors: Tyrone T. Lin
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/60561724907994176419

碩士 === 國立東華大學 === 國際企業學系 === 97 === The main purpose of this thesis is to construct a mathematical model for expatriating manpower in transnational enterprises by using ROA (real options approach) to discuss the expatriating strategy of transnational enterprises, by considering when expatriating activities are related to two countries, and the fluctuation of foreign exchange rates is an out of consideration external effect on the currency value, and determining the optimal expatriating threshold. First under an uncertainty situation, model Ⅰ utilizes the aggregate concept of ROA to evaluate the potential expatriating value of human resources in transnational enterprises. We consider the level of foreign exchange rate that will influence the currency value by a calculation process that the cash flow of operation revenue in an overseas subsidiary can be translated into the domestic currency value to determine the optimal threshold of the foreign exchange rate, and can analyze the optimal timing to expatriate or outsource manpower to fill the vacancies in an overseas subsidiary. In addition, model Ⅱ considers the foreign exchange rate level and attribution of countries (such as capital intensive countries and labor intensive countries) that must produce different costs and revenues under varied situations. We utilize the flow concept to evaluate the revenues and costs that were generated by the decision to expatriate and outsource to determine the optimal threshold of foreign exchange rates. Further, we analyze the optimal decision timing to expatriate or outsource manpower to fill the vacancies of an overseas subsidiary in a labor intensive country and a capital intensive country. The result presents that use a financial viewpoint to evaluate the expatriation costs and revenues, the parent company will choose more expatriating employees to capital intensive country but lesser to labor intensive country to conform considerations of the maximum profits. Managers can utilize this result to hire manpower, and make the optimal allocation in human resources that can achieve the object of minimum operation costs in the future.