Finally, Taiwan was acceded into the World Trade Organization (WTO), opening up the gate for Taiwan to globalization. Therefore, businesses in Taiwan must brace for any challenges imposed by global competition caused by WTO. However, although globalization has created new opportunities in the international market, it will also give rise to increasingly intense competition for domestic market opportunities. Businesses must ponder and redefine how to stand up to an increasing number of competitors in the wake of globalization. This study was designed to investigate how multi-national businesses ¡V the vanguard of the international market ¡V use their sources of competition advantage, knowledge management and global layout strategy, as their chips to win over others in competing for international market share. This study also offers suggestions in this regard for multi-national businesses. After collecting and analyzing solid data, this study has come up with findings that follow: I. There exist no significant differences between business characteristics in the sources of competition advantage, knowledge management issue, global layout strategy, and the mechanism to implement knowledge management. II. There exists a significant positive correlation between each pair of these variables: the sources of competition advantage, knowledge management issue, global layout strategy, and the mechanism to implement knowledge management. III. Do such variables as the sources of competition advantage, knowledge management issue have predictive power for the mechanism to implement knowledge management and global layout strategy? 1. There exists significant influence between the sources of competition advantage and the mechanism to implement knowledge management. 2. There exists significant influence between knowledge management issue and the strategy of global layout. 3. There exists significant influence of knowledge management issue on the mechanism to implement knowledge management. IV. The sources of competition advantage, through the intermediate effect of knowledge management issue, can affect the strategy of global layout. V. The sources of competition advantage, through the intermediate effect of knowledge management issue, can affect the mechanism to implement knowledge management.