A Study of Exchange Rate Risks for Taiwan’s Enterprise in China under Triangular Trade

• Main Authors: KUO TSUNG-YING, 郭宗穎
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/68609603374621454256

碩士 === 僑光科技大學 === 全球運籌管理研究所 === 98 === From 1965 on, Taiwanese sequential booms in economy, even making a record $18.7 billion trade surplus in 1987, set up tough foundation for the later technological leap of information . Nevertheless, during the about 20-year economical flourish, Taiwanese factories mainly fabricated goods for European and American companies in an OEM model. In 1990s, China was open to the world abruptly and made a conspicuous magnet effect by her abundant and low-cost laborers. Consequently, Taiwanese labor-intensity industries, textile and footwear manufacturers as vanguards among them, were massively shifted to mainland . Since direct invest in mainland is forbidden by our government and foreign currency is seriously controlled in China, most Taiwanese businessmen’s invest arrangements are operated by the nominal companies set up in the third tax-free areas. A triangular trade model is formed by getting orders in Taiwan, fabrication in China and fund arrangements in third area. In triangular trade, currency risk is escalating as the involved money from two kinds to three kinds. The risk may result in great loss to business. This study, by gathering and assembling related information and practical experience, has defined some strategies and suggestion in association with risk hedge, by which. I Trust these research do contribute Taiwan companies in China, Who are doing Triangular trade, a few useful strategies in risk hedge of exchange rate.