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The study on the development drives and investment location determinants of multinational corporations ¡V Illustrated by the case of Want-Want group

Due to the unusual political and economic ties across the Strait, the trade between Taiwan and Mainland China, as two independent economic entities, can be regarded as special ¡§state-to-state¡¨ trade. Logically, Taiwanese enterprises, which have invested in Mainland China, can also be defined as special Multinational Corporates¡]MNC¡^. The utmost aims of international capital flows include lowering costs and exploiting new marketplaces. The mature industries in developed economies have been losing their competitive advantages in cost and marketing, while the developing economies are usually able to provide those MNCs with more potential markets and lower operation costs. Therefore, the enterprises in developed economies can alternatively keep their competitive edges by making use of cross-border operations and capital flows. Under the frameworks of International Product Life Cycle (IPLC) and the Diamond Model, the study aims to interpret the motivations of the capital flows and the investment location determinations among Taiwan and the economic regions in Mainland China. Want-Want group, denoted as a successful Taiwan firm in Mainland China, enjoys prosperous experiences in that market. The group categorized as food industry, which falls in the mature period of product life cycle in Taiwan. Hence, the study takes it as an example to illustrate the application of the IPLC theory in the Mainland China, and to interpret the investment local determinants by the conditions illustrated by the Diamond Model. The study has scrupulously examinated the history of Want-Want group investing at Taiwan and various economic regions in China. The findings are that when multinational corporations make foreign direct investments, the Product Life Cycle theory and Diamond Model theory can appropriately interpret the motivation and location selection respectively.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0317108-173148
Date17 March 2008
CreatorsWang, Chen-I
ContributorsChing-Peng Chu, Wei-I, Kuang-Tai Hsu, Kao-chang, Teh-Chang Lin
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0317108-173148
Rightsnot_available, Copyright information available at source archive

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