根據一家頗負盛名的顧問公司估計， 在西元二千年至二千零五年間， 直接外來投資在中國大陸石油化學工業的金額將達到三百億美元。 假若我們注意到 BP, Exxon Mobile…等石油化學巨擘在中國大陸的投資規模，便不難理解為何中國大陸的石化工業已成為最具吸引力的投資市場之一。

X公司亦追隨此一市場趨勢並增加其在大陸的投資金額達到二億五千萬美元。那麼一個有趣的問題產生了。亦即為何中國大陸能吸引包括X公司在內如此眾多知名跨國公司到中國大陸作如此巨大的投資呢 ? 當進入此一仍由共產黨統治但具有投資吸引力的市場時，在營運上伴隨著什麼樣的風險呢 ?
更進一步的分析在兩相比較之下，為何X公司在台灣投資之金額比其在中國大陸的投資金額要少很多呢 ?

我的論文研究目的可歸納為兩點
• 針對X公司的進入模式與從IEMBA課程所學到的理論做一比較
• 提供給後續欲進入兩岸的石化工業投資者一些參考的線索

總之，欲進行國際化的公司須選擇適當方案以決定如何參與世界各地的市場。一般而言，有六個進入國外新市場的模式 ，分別為(1)出口 (2)統包 (3)授權 (4)加盟 (5)合資 (6)獨資 。每一個進入模式都有其不同的優ˋ缺點須待仔細評估以配合特定市場環境。就傳統上而言，則是以跨國公司的核心能力和欲進入市場的開放程度來決定最適宜的進入模式。

A widely respected consultancy firm predicts that the amount of FDI (Foreign Direct Investment) into the petrochemical sector in China will reach USD 30 billion between 2000 and 2005. If we consider the huge investments in China announced by several renowned petrochemical MNCs (multinationals) such as BP, Exxon Mobil and Shell, we can quickly conclude that the chemical market in China has become one of the most attractive for investments.
In a similar way, Company X has also followed this trend and increased its investment more than 250 Million USD in China. An interesting question arises, namely, why is China able to attract such huge investments from so many well-known MNCs including Company X ? What kind of operation risks are entailed when entering this attractive market still under communist rule? Further, why by contrast, is there so much less investment by this multinational company X in Taiwan ?
My research has two objectives which can be summarized as follows :
• To verify if the entry mode chosen by Company X accords with the academic theory about which I have learned in the IEMBA course.
• To provide some clues about the entry modes for new entrants who are interested in investing in the chemical market either in Taiwan or in China.

In principle, companies who want to go international can choose from a wide range of alternatives when deciding how to participate markets in the world. Firms use basically six different modes to enter foreign markets: (1) exporting, (2) turnkey projects, (3) licensing, (4) franchising, (5) establishing joint ventures with a host country firm and (6) setting up a whole owned subsidiary in the host country. Each entry mode is accompanied with respective advantages and disadvantages of which has to be evaluated by the concerned company to meet its needs in a specific business/ market environment. Traditionally, it has been usually the core competence and the extent of market openness for MNCs to drive the choices of entry mode into a new market.

Key words: Entry Modes, Multinationals, Foreign Direct Investment

Table of contents:
1. Reasons for research ……………………………….. 1
2. Research objectives ……………………………….… 3
3. Basic assumptions ………………………………… 4
4. Relevant literatures ………………………………… 5
4.1 Rationales of cooperative ventures ……………………. 5
4.2 Consideration of entry modes …………………………. 10
4.3 Advantages and disadvantages of entry modes………… 16
4.4 Definition of globalization …………………………….. 23
4.5 Motivation and advantages of being a MNC ………….. 24
5. Changes of key factors which affect entry choices …. 27
5.1 The shift of Chinese trading policy to attract FDI …….. 27
5.2 Accession of Taiwan and China into WTO …………… 30
5.3 WTO influence on chemical industry in Taiwan ……… 31
5.4 WTO influence on chemical industry in China ………... 33
6. Research methods ……………………………………. 36
7. Research procedures …………………………………. 38
8. Analysis of Company X’s entry modes………………. 41
8.1 The evolution of entry modes into Taiwan market ………….. 41
8.1.1 Influence of institutional theory ……………………….. 42
8.1.2 Market competition ……………………………………. 43
8.1.3 The current and future chemical markets in Taiwan…… 44
8.1.4 Venture specific factors ………………………………… 49

8.2 The evolution of entry modes into China market…………….. 49
8.2.1 The current and future chemical markets in China…….. 49
8.2.2 Venture specific factors………………………………… 55
9. Research findings …………………………………….. 57
10.Discussion and conclusion …………………………… 63
10.1 The impact of company X’s failure to invest in China
on its competitiveness in Asia ………………………….. 63
10.2 The impact of company X’s failure to invest in Taiwan
on its competitiveness in Asia ………………………….. 63
10.3 Conclusion ……………………………………………… 64
11. References ……………………………………………. 67

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3. Company X annual report 2003/2002
4. European Chamber of Commerce Taipei “ The impact of Taiwan’s WTO accession on key sectors of the economy ” Jan, 2002
5. Farko F. Contractor and Peter Lprange “ Coorprative strategies in International Business ”
6. Franc Kaiser and Philipp von Bueren, “ China and WTO – Business Opportunity for Swiss Companies ”
7. Hong Kong Monetary Authority Quarterly Bulletin 金融管理局季報, 11/2002

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