碩士 / 逢甲大學 / 經營管理碩士在職專班 / 97 / Taiwan is an export-oriented country with a large number of small and medium sized enterprises (SMEs). SMEs are resilient but regrettably, due to their size, only can evaluate macro-economic environment based on information from the media and yet have limited understanding of it. Observing and interpreting changes in macro-economic environment, therefore, is the top priority of business leaders. Understanding of macro-economic environment determines a company’s visions and various decisions and plans to achieve it. Misunderstanding may cause irreparable damage. For this reason, we should approach it from a broader perspective and from different historical angles.
The current international financial crisis, triggered by subprime mortgage loan in the U.S. in August 2007, resulted in the collapse of Merrill Lynch, Lehman Brothers and Bear Stearns, 3 out of 5 largest investment banks in the U.S. The survivors, Goldman Sachs and Morgan Stanley, were restructured into banking holding companies to receive support from FED. Even the world’s largest insurance company, AIG, did not survive. Under the leadership of FED, central banks worldwide pumped USD 850 billion into financial system due to spread of financial crisis worldwide. Then central banks in UK, Germany, France and other countries continue to inject capital to save domestic markets.
The Regan administration adopted low interest policies so that citizens with less means could afford loans for house purchase. The structured note problem and financial difficulty of AIG, however, worsened subprime mortgage loan, giving rise to this financial tsunami. If we observe history from a longer time span and attend to structural changes in history and long-term development, the current financial tsunami along with two oil crises in the 70s, Mexico financial crisis in the 80s, Asian financial crisis at the end of the 90s and financial crisis in Argentina at the beginning of this century, are the results rather than cause of history. If we approach the financial tsunami from the standpoint of Merrill Lynch, Lehman Brothers and Bear Sterns or from that of Goldman Sachs, Morgan Stanly, Fannie Mae and Freddie Mac, then the whole picture might be obscured.
The financial tsunami, originating in the U.S., was caused by the unreliability of USD as the international currency. Before the crisis, USD was considered as the hard currency and more reliable than other currencies. People started to believe it which led to excessive currency and liquidity in the market. The world is awash in money but in reality it is only a piece of paper.
How did USD become the international currency? Why did USD, the major currency in financial market, decline? How will international financial structure transform? How should leaders of SMEs respond? A glance of international finance history may answer all the questions.
WWⅠ and WWⅡ provided USD an excellent opportunity to establish its financial hegemony. FED, as the world central band and the core of a more exquisite financial market, shaped the USD as the instrument to store value, evaluate and conduct foreign exchange. Besides, USD enjoyed the benefit of international mint tax and international inflation tax.
Decline of the USD is inevitable due to fast build-up of US national debt and deficits in government budget, national saving and international trade. The age of USD was when global growth was supported by U.S. deficits. Hence, long-term depreciation of USD is unavoidable which waters down U.S. debt. This phenomenon is the contributing factor to financial tsunami and global recession. USD also becomes the unstable international currency. To counter defects of the “unstable currency”, regional currency is an alternative. Circulation of euro, initiatives to establish Asian dollar and even RMB are challenging the hegemony of USD.
Faced with changes in macro-economic environment, how should Taiwan SMEs reposition themselves in the globalized world? I believe that Taiwan SMEs should strengthen their core values in international trade to compete effectively in the ever-changing environment.
| Identifer | oai:union.ndltd.org:TW/097FCU05457124 |
| Date | January 2009 |
| Creators | Chien-Hsing Chou, 周建興 |
| Contributors | Cheng-Shu Kao, 高承恕 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 136 |
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