碩士 / 國立臺灣大學 / 國際企業學研究所 / 105 / Corporations face risks when investing abroad. Since political risks in host countries are not fully predictable, corporations should develop reactive strategies to avoid losses. Textile industry in Taiwan has conducted foreign investment for decades and focused on developing countries, with unstable regimes, growing economies and high political risk. This study captures the experience of the textile industry in their reactions to political risks, and discusses the difference between the theories and their applications by interviewing managers and reviewing current articles relating to political risks.
This study defines political risk as any non-economic factors influencing the operation of foreign corporations leading to losses. Political risk stems from the political environment in host countries, including public policies, government actions, social environment and international relationship. Some reactive strategies to political risk prior to investment include carefully selecting methods of foreign direct investment, taking insurance against political risk, and negotiating and compromising with host governments. Corporations can also manage risk by withdrawing capital, lowering the ratio of asset and liability, and setting up outstanding corporate image. Further, corporations can make use of financial strategy, formation of coalition or market forces to control the risks.
After conducting some case studies, the author found that participant corporations evaluated political risk mostly based on their own information. However, Taiwan textile industry’s investment in Southeast Asia is often influenced by anti-Chinese riots, strikes and officials corruption. In addition to securing the safety of Taiwanese employees, participant corporations bear and spread the risks by downsizing the scale of production, maintaining low profile, and not relying on government-business relations, which differs from actions suggested in theories. This study suggests that participant corporations’ reactions to risks may provide useful insight for those who seek to invest abroad.
| Identifer | oai:union.ndltd.org:TW/105NTU05320040 |
| Date | January 2017 |
| Creators | Yin-Chieh Hsieh, 謝茵絜 |
| Contributors | Yi-Long Jaw, 趙義隆 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 116 |
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