| Summary: | 碩士 === 淡江大學 === 國際貿易學系國際企業學碩士班 === 95 === Analyses the relation between FDI and the trade performance of mother country, intermediate goods is seen to have played a dominant role. Recently, firms invested overseas established local supply chain and became localization on both materials purchase and products sales. In this paper we use Taiwan as a case study to examine the determinants of firms’ souring choice on materials and intermediate goods purchasing. In addition, we also examine the determinants of firms’ overseas products sales. Our basic statistic analyses show that firms decreased sourcing the intermediate goods from mother country, but increased sourcing from host country (including from domestic firms and local Taiwanese firms) during 1999 to 2004. Moreover, the percentage firms sell their products back to Taiwan and sell locally increased during this time. Our empirical results show that investing areas, investing period, organization of foreign subsidiaries, operating style of overseas company, product relation between headquarters and foreign subsidiaries, and the scale of company are important determinants of firms materials purchasing decision and products sales decision. Firms with Wholly owned entry mode and vertical specialization depend on Taiwan supplying material and intermediate goods rather than that with joint venture style and horizontal specialization. Moreover, we found that firms investing China and South-east countries tend to reverse import their product rather than investing developed countries. Also, firms adopting OEM style in foreign subsidiaries preferred sourcing locally and selling their products to other countries.
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