Since the early 1980, the economic development of Taiwan has mainly relied on the small and medium-sized businesses that steadily play the important roles in leading the development of globalization of Taiwan industries. However, under the trend of mergers and acquisitions between businesses and grandization of the enterprises, the operation of the small and medium-sized businesses has faced a tough challenge and competition from foreign businesses, especially the traditional metal processing industry, which forces the small and medium-sized businesses have to upgrade and transform themselves. Currently China has already become the global manufacturing plant and the international investment center in Asia. In 2002, Taiwan and China joined WTO at the same time; Taiwan metal processing manufacturing industry faces the serious cost competition from China and pincer attack of American-European brand advantage in global markets. Under this difficult situation, it is very important for Taiwan traditional manufacturing industries to find out the better way to survive in the competitive environment. For example, the metal processing manufacturers in Taiwan are facing tough competitions from foreign businesses in a bidding war for opportunity to do business in China. Is it important for Taiwan's economy that the small and medium-sized businesses can compete against those foreign competitors? The Taiwanese small and medium-sized companies must join force and work together to compete and stay competitive in global industries. Under the new structure of WTO and the agitation for industry globalization, it is important for Taiwan's metal processing industry to do research and come up with a solution to be more competitive in the international market so as to grasp its own transnational competition advantage. The relevant research institutes in Taiwan should make this issue a top priority since Taiwan resources are very limited compared to other countries like Europe, the United States and Japan. They must work together in all aspects of business and share with each other their resources and knowledge to stay competitive in the current situation. This research adopts the theoretical foundation approach and real cases study. Aiming to Taiwan's metal processing industry, I invited two top managers for the metal processing companies in south Taiwan to have deep discussion on the problems they have been facing. Through the interviews with the two managers, I learn their business plans on transnational investments, experiences in tactics planning and transnational management¡Ketc., by which this research will focus on the study of the advantage of transnational investment that would become the core target for the small and medium-sized businesses to create synergy. The points of the main theme include institutional framework, financing, industry development, technological innovation, and competition between China and foreign countries on the study and judgment upon advantage tactics, such as shutting and strategic alliance. Under the changeable situation that several new developing markets are open, and that the newly-developed countries join the global competition, this research consults the transnational enterprises about their overall arrangement of investment and experiences of management to make Taiwan numerous traditional industries and the small and medium-sized business have macroscopically global vision of management tactics. The forming of the market regional economy and trade competition directly influences the future fortune of numerous small and medium-sized enterprises in Taiwan. Taiwan small and medium-sized businesses must gradually adjust themselves to globalization trend and make corresponding strategies for it while Mainland China is positively expanding international trade and improving technology and quality through national economy projects.