兩岸經貿交流提升與台灣科技人才: 機會與衝擊 - 政大學術集成

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(1)國立政治大學亞太研究英語碩士學位學程 International Master’s Program in Asia-Pacific Studies College of Social Sciences National Chengchi University 碩士論文 Master’s Thesis. 立. 政治大. ‧ 國. 學 ‧. 兩岸經貿交流提升與台灣科技人才: 機會與衝擊. n. al. er. io. sit. y. Nat. The Rising Cross-Taiwan Strait Economic Exchange and Taiwan’s Science & Technology Talents: Opportunity and Challenge. Ch. engchi. i n U. v. Student: Jialing Huang Advisor: Dr. Ming Lee. 中華民國 103 年 05 月 May 2014.

(2) 論文題目 Thesis Topic. 研究生：黃佳琳. Student: Jialing Huang. 指導教授：李明. Advisor: Dr. Ming Lee. 國立政治大學治政大碩士論文. 學. ‧ 國. 立亞太研究英語碩士學位學程 ‧ er. io. sit. y. Nat. A Thesis. n. al Submitted to International Master’s Program i v in Asia-Pacific Studies n U engchi National Chengchi University. Ch. In partial fulfillment of the Requirement For the degree of Master in China Studies. 中華民國 103 年 05 月 May 2014.

(3) Acknowledgement Thanks to all of the people who assisted on my thesis!! I would say that having a full-time job and conducting this thesis research at the same time has been very difficult for me. First of all, I appreciate Mr. Corwin’s assistance on the thesis before I found Dr. Ming Lee as my advisor. He provided professional suggestions and leads when I was stuck on the research. His help made my thesis turn out to only have few small issues and, because of his. 政治大 thesis adviser. Since he is the 立Dean of the College of International Affairs, NCCU, he is very. help, was completed in only a few months. I am also grateful that Dr. Lee agreed to be my. ‧ 國. 學. busy, but he graciously shared his time to discuss this thesis with me and provide clear instructions that saved me a lot of time fumbling around. He is kind, patient and professional.. ‧. I am honored that Professors Ding-Shu Wang and Kao-Cheng Wang agreed to be on my oral. sit. y. Nat. defense committees. And I want to thank all the interviewees who spent time conducting the. n. al. er. io. in-depth interviews with me. Thanks also to a very good friend, a native English speaker,. v. who helped with some proof-reading and shared his opinions with me for the thesis. Thank. Ch. engchi. i n U. you all your help to achieve the completion of this thesis and diploma. Without your help, I would not have reached my goal. Thank all of you..

(4) Abstract Globalization helps cross-strait economic exchange. China is transitioning from just being a “world-factory” to also being a “world-market.” Foreign investments have been flowing into China; foreign companies set up branches and factories in China. When Taiwanese enterprises move their production lines to China, Taiwanese S&T talent needs to play roles in communications, training and skill transfers. Taiwanese investors and companies, however, have the advantage over their global competitors of sharing the same. 政治大 workers) more opportunities than other countries. At the same time, there are some 立. language and culture with China, which affords Taiwanese enterprises and talent (skilled. challenges that Taiwanese science and technology talent needs to face. The author will first. ‧ 國. 學. describe the patterns of economic globalization in the world, especially between Taiwan and. ‧. China. The author will then present some of the reasons that Taiwanese enterprises invest in. sit. y. Nat. China engage in science and technology work in China. The author will supplement the trend. io. er. analysis with details from in-depth interviews with some Taiwanese industry S&T workers to propose suggestions to Taiwanese professionals, to human resource management and for. al. n. v i n C ha particular eye towards trans-national labor policy -- with retention of talent and know-how engchi U and to avoid “brain-drain”.. Key words: Globalization, Cross-Taiwan Strait Relations, Talent’s Dispatch, Kunshan, Science & Technology Talents. i.

(5) 摘要全球化趨勢帶動兩岸經貿交流互動，中國大陸從世界工廠成為世界市場，外資紛紛轉往中國大陸投資設廠。然而，因為台灣與中國大陸擁有相同語言及文化背景，也使得台灣企業及科技人才比其它企業擁有更多的優勢及機會。台灣企業大舉投資中國大陸並在中國設立生產基地，台灣科技人才必需扮演中間溝通、技術移轉的角色。而台灣科技人才也將面臨因此現況帶來的機會與挑戰。作者將提出經濟全球化與全球及對兩岸的影響、台灣企業投資大陸設廠及台灣科技人才到中國大陸工作的原因;並透過深度訪談了解台灣科技人才的想法及意見及提出在就業上的建議給台灣科技人才及台灣企業人力. 政治大. 資源管理政策上的建議以留住人才、減少因產業外移中國大陸而造成人才流失。. 立. ‧. ‧ 國. 學. 關鍵詞: 全球化、兩岸關係、人才外派、昆山、科技人才. n. er. io. sit. y. Nat. al. Ch. engchi. ii. i n U. v.

(6) TABLE OF CONTENTS Chapter I. Introduction ........................................................................................................... 1. 1.1 Research Motivation and Background .......................................................................... 1 1.2 Research Purpose .......................................................................................................... 3 1.3 Literature Review .......................................................................................................... 3 1.3.1 1.3.2 1.3.3 1.3.4. Globalization ..................................................................................................... 4 Definition of Science and Technology and Science and Technology Talent..... 7 The Law of Migration ....................................................................................... 8 Push and Pull Theory ........................................................................................ 9. 治政 In-depth Interview ........................................................................................... 12 大立 13 Case Study ........................................................................................................ 1.4 Methodology ............................................................................................................... 11. ‧ 國. 學. 1.4.1 1.4.2 1.4.3 Interview Questions......................................................................................... 14 1.5 Research Limitations and Scope ................................................................................. 15. ‧. 1.6 Organization of the Thesis .......................................................................................... 17. sit. y. Nat. 1.7 Findings ....................................................................................................................... 19. io. er. Chapter II Globalization in Taiwan and China ..................................................................... 23 2.1 Economic Globalization .............................................................................................. 23. al. n. v i n Economic GlobalizationC and the World ...................................................................... 24 hengchi U. 2.2. 2.3 Economic Globalization and Taiwan .......................................................................... 27 2.4 Economic Globalization and China ............................................................................ 31. 2.5 Economic Globalization and Cross-Strait Relations ................................................... 33 2.6 Conclusion................................................................................................................... 36 Chapter III The Cross-Strait Economic Exchange ................................................................. 38 3.1 Policies before and after Opening the Economic Exchange ....................................... 38 3.2 Status of the Development of the Cross-Strait Economic Exchange .......................... 41 3.3 Status of the Taiwan Enterprises that have been Investing in Countries..................... 44 3.4 Conclusion................................................................................................................... 46 iii.

(7) Chapter IV Status of Taiwanese Enterprise in China ............................................................. 48 4.1 Reasons for Taiwanese Enterprises to Invest in China ............................................... 49 4.2 The Motivating Drivers for Taiwanese Enterprises to Invest in China ....................... 50 4.3 The Challenges of Taiwanese Enterprises that Invest Overseas ................................. 55 4.4 Taiwan’s Opportunities and Challenges Arising from China’s Rapid Growth ........... 56 4.6 Conclusion................................................................................................................... 61 Chapter V The Reasons for Taiwanese S&T Talents Work in China .................................... 63 5.1 The Reasons of Taiwanese S&T Talents Work in China............................................. 64. 政治大 Exchange ..................................................................................................................... 67 立. 5.2 The Status of Manpower Movement after the Cross-Strait Economic and Trade. 5.3 Opportunities and Challenges ..................................................................................... 69. ‧ 國. 學. 5.4 Conclusion................................................................................................................... 74. ‧. Chapter VI Case Study and Data Analysis ............................................................................. 76. sit. y. Nat. 6.1 Push ............................................................................................................................. 76. io. er. 6.2 Pull ............................................................................................................................. 83 6.3 Intervening Obstacle ................................................................................................... 86. al. n. v i n C h .................................................................................... Findings and Suggestion 94 engchi U. Chapter VII. Appendixes ........................................................................................................................... 102. 1. Appendix A .................................................................................................................. 102 2. Appendix B .................................................................................................................. 103 3. Appendix C ...................................................................................................................111 4. Appendix D ................................................................................................................. 117 5. Appendix E .................................................................................................................. 125 6. Appendix F .................................................................................................................. 132 7. Appendix G ................................................................................................................. 139. iv.

(8) List of Figures Figure 1.1 The Push-Pull Model ........................................................................................... 11 Figure 5.1 Statistic of Taiwanese Population Enter to China................................................ 68. List of Tables Table 1.1. Questionnaire ....................................................................................................... 20. Table 2.1. States Dependence on Foreign Trade .................................................................. 27. Table 3.1. The Cross-Strait Economic and Trade Relations Prior to 2008........................... 41. Table 3.2. Taiwan’s Foreign Investment by Country ........................................................... 45. Table 3.3. Taiwanese Investment in China by Industry........................................................ 46. Table 4.1. The Motivations for Taiwanese Enterprise Investments Overseas- in. 立. 政治大. ‧ 國. 學. Left-to-Right Order of the Top 10 Main Investment Area .................................. 52. ‧. The Transform of Taiwanese Enterprise’s Motivation of Investing to China ..... 54. Table 4.3. Trade between Taiwan and Mainland China ....................................................... 59. Table 5.1. Preliminary MAC Statistics on Cross-Strait Economic Relations Dec., 2013 .... 68. Table 5.2. China’s Average Monthly White-Collar Employee Salaries in ........................... 71. n. al. er. io. sit. y. Nat. Table 4.2. Ch. engchi. i n U. v. Four Different Regions ....................................................................................... 71 Table 5.3. Reasons of. In-adaption for Working in China .................................................. 72. Table 5.4. The Experience, Current Situation and Opinions about Working in China by Taiwanese Workers .............................................................................................. 73. Table 7.1. The Supply and Demand of Global Talents in 2015.......................................... 100. v.

(9) List of Acronyms ARATS. Association for Relation across the Taiwan Strait. ASEAN. Association of Southeast Asian Nations. CAGR. Compound Annual Growth Rate. CIER. Chung-Hua Institution for Economic Research. ECFA. Economic Cooperation Framework Agreement. FDI. Foreign Direct Investment. FTA. Free Trade Agreement. GDP. Gross Domestic Product. HRST. 政治大 Human Resources 立for Science and Technology International Standard Classification of Education. ISCO. International Standard Classification of Occupations. IT. Information Technology. MAC. Mainland Affairs Council. MOEA. Ministry of Economic Affairs, R.O.C.. NAFTA. North American Free Trade Area. ‧ 國. ‧ y. sit er. io. al. v i n C h Co-operation and Organization for Economic Development engchi U n. PRC. Nat. OECD. 學. ISCED. People’s Republic of China. PC. Personal Computer. R&D. Research and Development. SMEs. Small-Medium Enterprises. S&T. Science and Technology. SOEs. State-Owned Enterprises. TPP. Trans-Pacific Strategic Economic Partnership Agreement. SEF. Strait Exchange Foundation. WTO. World Trade Organization vi.

(10) Chapter I. Introduction. 1.1 Research Motivation and Background. 政治大 the world have been competing 立 with both their own domestic enterprises as well as foreign. In recent years, because of the trend of economic globalization, enterprises from around. ‧ 國. 學. enterprises.1 The economic exchange between the cross-strait countries has been growing since the late 1980s. The Mainland Chinese government opened and reformed its economy in. ‧. 1979. After that both China and Taiwan lifted the ban on visiting relatives in each other’s. er. io. cultural exchanges, political negotiation and so on.3. sit. y. Nat. countries in 1987.2 Both sides’ exchanges have been extended to economic exchanges,. al. n. v i n C h exchange between In order to promote the economic China and Taiwan, both sides engchi U. officially opened “Three direct links”- having trade relations, postal communication and air/navigation traffic in 2008 and implemented “Economic Cooperation Framework. Agreement (ECFA).” On Sep.12th, 2010 in order to make both sides’ exchanges operate more smoothly, direct flights were established between both sides on Dec. 15th, 2008.. 1. 2. 3. Szu-Min Weng, The Labor Right of Expatriates in China (MA Thesis for Institute for Labour Research, Taipei: National Chengchi University, 2010), p. 1. Fu-Bell Lee, “Encyclopedia of Taiwan: Lifting the Ban on Visiting the Relatives in China Mainland,” Ministry of Culture, September 24, 2009, http://taiwanpedia.culture.tw/web/content?ID=3890 Chong-Hai Shaw, “The Analysis of the Cross-Strait Political Definition Basing upon the Historical Development of Cross-Strait Relations (I),” Prospect Quarterly, Vol.4, No. 4, 2003, pp. 10-11. 1.

(11) The Economic Cooperation Framework Agreement (ECFA) makes the economic cooperation and exchange between Taiwan and China more frequent and enhances the willingness to invest. The “Three direct links” direct flight brings the convenience of traffic between both sides4 and increases the frequency of workers going to China from Taiwan for business trips. Because of increased investment,5 the opportunities for staff who travels to China for work will increase6 and that in turn will make parent-subsidiary communications faster, more direct and efficient. At the same time, it will grow the exchange of both sides staffs, 7 cooperation and division in industry, 8 foreign companies’ investment and. 政治大 movement of science and technology (S&T) skills and talent to Mainland China. 立. competition leading to more effective impact. Also, it will accelerate funding and the 9. ‧ 國. 學. Taiwan and China share the same language, culture, background and the advantages of proximity. With China’s numerous low-cost workers, Taiwanese enterprises continue to set. ‧. up factories and branches in China in order to promote their own competiveness and to create. y. Nat. sit. even more global economic advantages for themselves. 10 “Globalization” has widely. n. al. er. io. influenced many different areas. In terms of the economy, it causes resource redistribution. i n U. v. and integration; enterprises divide work tasks (specialization), the trade patterns between. Ch. engchi. business partners and their countries, restructure commercial activities and change patterns of. 4. Chao-Ping Li, The Impact of Cross-Strait Direct Flight on Taiwan Airlines Industry ---- A Case Study of China Airlines Company (MA Thesis for Eminent Public Administrators, Taipei: National Chengchi University, 2009), pp. 13-17. 5 Jing-Ming Lin and Ping-Lung Hsin, The Estimate of the Population of the Taiwanese People who Work in Mainland China, Unpublished, 2007; Ping-Lung Hsin, “The Influences and Response of Taiwan Labor Market by the Sign of ECFA across the Taiwan Strait,” December 26, 2012, http://www.npf.org.tw/post/2/11806 6 Ping-Lung Hsin, Ibid. 7 Chu-Chia Lin, “Taiwan Chengchi University Chu-Chia Lin: The Imperative Investment of Taiwan Enterprises Invest to Mainland China,” Xinhuanet, April 10, 2006, http://big5.xinhuanet.com/gate/big5/news.xinhuanet.com/tai_gang_ao/2006-04/10/content_4406118.htm 8 Chien-Kuo Pang, “The Prospects for Industrial Cooperation across Taiwan Strait in the Post-ECFA Era: A Political Economy Analysis,” Journal of National Development Studies, Vol. 11, No.1, 2011, pp. 45-46. 9 Chu-Chia Lin, op. cit., “Taiwan Chengchi University Chu-Chia Lin: The Imperative Investment of Taiwan Enterprises Invest to Mainland China,” http://big5.xinhuanet.com/gate/big5/news.xinhuanet.com/tai_gang_ao/2006-04/10/content_4406118.htm . 10 Szu-Min Weng, op. cit., p. 1. 2.

(12) enterprises production. Because Taiwan and China have opened trade exchange with each other starting in the late 1980s, the relationship between both sides is becoming closer. The exchanges with each other include inter-countries exchange, inter-enterprise exchange and inter-employee exchange. Taiwanese enterprises have been establishing a production base in China, which changes the working model for Taiwanese employees. The author will probe the opportunities for and the effects on Taiwanese S&T talent that results from the always-changing and growing cross-strait economic exchange.. 1.2 Research Purpose. 政治大 After the cross-strait 立 economic exchange began between the two countries, there have. ‧ 國. 學. emerged some dynamics and effects on Taiwanese technologies and on both employment and working conditions for both Chinese and Taiwanese workers. The goals of this thesis are. ‧. summarized below:. sit. y. Nat. io. er. 1) To understand, from the Taiwanese S&T talents’ point-of-view, their opinions and thoughts about the new world of work and employment.. al. n. v i n Cnew 2) To understand, the effects and of employment on Taiwanese S&T talents. h erealities ngchi U. 3) To propose a set of suggestions with respect to on employment to Taiwanese S&T talents. 4) To propose a set of suggestions to Taiwanese enterprises for adjusting and adopting their policies for human resource management and how to respond to the continuously evolving Taiwanese S&T talents’ working model.. 1.3 Literature Review Since the development of globalization and during the growth of globalization, countries have been trading and cooperating, investing in other countries, engaging in cultural 3.

(13) exchange, and increasing interdependence. The net effect of the combination of these has triggered a new/modern migration of human-beings. Ravenstein proposed that the reasons why human-beings migrate are primarily due to economic factors, especially the intense desire to increase personal well-being, material wealth and ability to require desired goods. Generally, population migration is from a place which has fewer opportunities to places with more opportunities. 11 This chapter is divided into four parts, each of which describes theories related to this research. The first part is the definitions of “Globalization.” The second part defines “S&T talents.” The third part describes “Push and Pull Theory.” And, the. 政治大. forth part describes “The Law of Migration.”. 立. 1.3.1 Globalization. ‧ 國. 學. The phrase of “Globalization” is an umbrella term that has been in common use since. ‧. the 1980s. The definition of “Globalization” involves several different aspects.. 12. y. Nat. Globalization theorists have different descriptions for “Globalization.” It is described as a. er. io. sit. “condition,” 13 a “phenomenon,” 14 a “stage,” 15 a “phase,” 16 a “discourse,” 17 “an ideology”18 or a series of waves, much like we know consider the evolution of the industrial. al. n. 19. revolution.”. 11. 12. 13 14 15. 16 17. 18 19. Ch. engchi. i n U. v. E. G. Ravenstein, “The Laws of Migration,” Journal of the Statistical Society of London, Vol. 48, No. 2, 1885, pp. 198-199. Al-Rodhan, R.F. Nayef and Gérard Stoudmann, Definitions of Globalization: A Comprehensive Overview and a Proposed Definition (Switzerland: Geneva Centre for Security Policy, GCSP Press, 2006), p. 3. M. Albrow et al., Living the Global City (New York and London: Routledge press, 1997), p. 20. A. S. Bhalla, Globalization, Growth and Marginalization (Ottawa: IDRC Press, 1998), p. 1. Richard Langhorne, The Coming of Globalization: Its Evolution and Contemporary Consequences (UK: Palgrave Macmillan Press, 2001), p. 2. A. S. Bhalla, op. cit., p. 1. Robert Spich, “Globalization Folklore: Problems of Myth and Ideology in the Discourse on Globalization,” Journal of Organizational Change Management, Vol. 8, No. 4, 1995, pp. 6-29; C. Walck and D. Bilimoria, “Editorial: Challenging ‘Globalization’ Discourses,” Journal of Organizational Change Management, Vol. 8, No. 4, 1995, pp. 3-5; P. Kelly, “The Geographies and Politics of Globalization,” Progress in Human Geography, Vol. 23, No. 3, 1999, pp. 379-400. Robert W. Cox, Globalization: Critical Reflections (Boulder: Lynne Rienner Press, 1996), p. 23. John Micklethwait and Adrian Wooldridge, A Future Perfect: The Challenge and Hidden Promise of Globalization (NY: Random House Trade Paperbacks; Revised and Updated Edition, 2000), p. xvi. 4.

(14) Globalization involves the causes, the course of, and the consequences of trans-national and transcultural integration of human and non-human activities. Thus, the sum of these activities encompass economic integration, coordination and transfer of policies across borders, transfer of knowledge, increased cultural stability, mass manufacture of products, enhanced international relationships and changes in the discourses of power. It also includes a multitude of hidden agendas, such as how to determine the definition of “Globalization,” which is often decided by the background of an individual’s political ideology, geographic location, social status, cultural background and ethnic and religious affiliation.20. 政治大. “It is the process of world shrinkage, of distances getting shorter, things moving closer. It. 立. pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.”21. ‧ 國. 學. “Globalization is reflecting technological advances that have made it easier and quicker. ‧. to complete international transactions - both trade and financial flows. Markets promote. sit. y. Nat. efficiency through competition and the division of labor.”22 The global market brings the. n. al. er. io. opportunity for people to enter the larger markets of the world. What this means is that these. v. people can enter into more capital flows, more technology exchanges, have access to cheaper. Ch. engchi. i n U. imports and access to larger export markets. 23 “Globalization” is a set of continuous evolutionary adaptations and innovations, which involves the causes, course and consequences of many kinds of activities. It accelerates technologically advanced, “complete international transactions - both trade and financial flows” and further affects labors flows internationally. In recent years, the global market brings opportunities to workers, but on the other hand, it also brings challenges to those same workers who now face increased competition with others. “Globalization” makes countries without borders, which are now 20 21 22 23. Al-Rodhan, op. cit., p. 3. T. Larsson, The Race to the Top: The Real Story of Globalization (U.S.: Cato Institute Press, 2001), p. 9. Ibid. Al-Rodhan, op. cit., p. 3. 5.

(15) forced to both share resources and to compete with each other.. I-Hsin Hung conducted Probit regression analysis and analyzed the data - “Taiwan manufacturing firms’ survey data to understand firms’ foreign direct investment (FDI) location choice” from the Ministry of Economic Affairs (MOEA), R.O.C. to prove that if the percentage of small-medium enterprises (SMEs) that receive orders in Taiwan and produce in China are high, it will cause negative effects with regards to the ability to recruit low cost labor. This shows that the interaction between China and Taiwan is increasingly part of the globalization trend and as countries from around the world have been investing in China it. 政治大. will affect the agreements with and influence the Taiwanese markets.24. 立. ‧ 國. 學. There are many ways to define “Globalization” that may be determined from different angles or through various lenses. As stated previously, “Globalization” might be a condition,. ‧. a phenomenon, a stage, a phase, a discourse, an ideology or even a revolution. In the author’s. sit. y. Nat. opinion, these interpretations are interrelated and results in the recent situations Taiwan now. n. al. er. io. faces, affecting international trade and cross-border labor flows. On the way to defining. v. “Globalization,” the author would assert that it is an integration of “everything,” including. Ch. engchi. i n U. the challenges to and opportunities for labor that are the main topics of this research. Globalization changes the world, shrinks distances and speeds up the transfer of information, but it also brings different challenges and opportunities to people. Later, the author will more deeply investigate Globalization’s influences on China, on Taiwan and between them each.. 24. I-Hsin Hung, The Impacts of Outward Foreign Direct Investment on Employment in Manufacturing Industry in Taiwan (MA Thesis for Master for Eminent Public Administrators, Taipei: National Chengchi University, 2009), p. 12. 6.

(16) 1.3.2 Definition of Science and Technology and Science and Technology Talent 1. Definition of Science and Technology (S&T) “In general, S&T is the abbreviated term for science and technology; in particular, S&T emphasize the utilization of innovation to bring about technological applications.” The Organization for Economic Co-operation and Development (OECD) proposed that the field of Science and Technology (S&T) includes natural sciences, engineering and technology, medical sciences, agricultural sciences, social sciences and humanities.25 The classification. 政治大 electro-optical industry, the communications industry, the information service industry, the 立. of the Science and Technology (S&T) industry includes the semiconductor industry, the. computer hardware and information appliance industry, the machine industry, the aerospace. ‧ 國. 學. industry, the electronic parts and components industry, the crucial materials industry and the. ‧. energy industry.26. y. Nat. sit. 2. Definition of Science and Technology (S&T) Talent. n. al. er. io. “Science and Technology (S&T) Talent,” in general, means engineers, scientists and. i n U. v. skilled worker or the people who have the professional skills and background in information, sciences and engineering.. 27. Ch. engchi. “Human Resources for Science and Technology (HRST) cover. all personnel engaged in scientific or technological activities. HRST are defined in terms of qualifications or current occupation.” 28 The classification of qualifications is by the International Standard Classification of Education (ISCED) and the classification of. 25. 26. 27. 28. National Science Council, “Definitions of Science and Technology Statistics Terminology Brochure,” http://cdnet.stpi.org.tw/course/OECD/S&T_terms_NSC_2004.pdf Ministry of Economic Affairs, R.O.C, “Categories of Science and Technology industry,” http://hirecruit.nat.gov.tw/chinese/html/taiwan_08.asp Yi-fan Lin, Investigation of the Career Development and Career Needs of the Female Human Resources in Science and Technology (MA Thesis for Department of Business Administration, Taichung: Tunghai University, 2010), pp. 8-9. National Science Council, op. cit., “Definitions of Science and Technology Statistics Terminology Brochure,” http://cdnet.stpi.org.tw/course/OECD/S&T_terms_NSC_2004.pdf 7.

(17) occupation is by the International Standard Classification of Occupations (ISCO).29. 1.3.3 The Law of Migration Closely related to the phenomenon of Globalization are theories of “Migration,” such as proposed by Ravenstein, who proposed both “The Law of Migration” and “Push and Pull Theory.”30. Later, Lee also proposed the definition of and reasons for mass migration. Lee. proposed that “Migration is defined broadly as a permanent or semi-permanent change of residence”31 and that there are seven factors which cause such migration, which are listed. 政治大 nature of the act, or external or internal migration. Ravenstein assumed the initiation of a 立. below. There is no restriction on movement based upon distance, the voluntary or involuntary. move and consequences of the move are vastly different for the different models of. ‧. ‧ 國. 學. movement.32. “1) Most migrants proceed a short distance towards centres of commerce and industry; 2) Most. y. Nat. migrants move from rural areas to urban areas; 3) The process of dispersion is the inverse of that. sit. of absorption, and exhibits similar features; 4) Each main current of migration produces a. al. er. io. compensating counter-current; 5) Migrants proceeding long distances generally go by preference. v. n. to one of the great centres of commerce or industry; 6) The natives of towns are less migratory. Ch. i n U. than those of the rural parts of the country; 7) Females are more migratory than males.”. engchi. From 1990 to 1997, migrant workers of OECD countries increased significantly.33 The migrant workers’ income was just 9% of the per-capita income of high-income countries.34 The numbers of workers on production lines (labor-intensive, low-skilled manufacturing) are. 29 30 31 32 33. 34. Ibid. E. G. Ravenstein, op. cit., pp. 198-199. E.S. Lee, “A Theory of Migration,” Demography, Vol. 3, No. 1, 1966, pp. 49-50. E. G. Ravenstein, op. cit., pp. 198-199. ILO (International Labor Organization), “Facts on Labor Migration,” 2006, http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_067570.pdf ILO,World Bank, Migration News, Vol. 13, No. 3, 2006, http://migration.ucdavis.edu/mn/more.php?id=3217050 8.

(18) decreasing, but the numbers of high-tech and professional workers are increasing.35. For the entire existence of human-beings, migratory activity has been continuous. There are many factors that cause this migration, but the foremost reason for it is prevailing relative economic conditions. People try to find ways to improve their lives and one of the ways is to migrate to other places which have more opportunities and relative high income potential and better working conditions.. 1.3.4 Push and Pull Theory. 政治大. “Push-and-Pull Theory” is one of the most important theories for migration and. 立. immigration.36 It is the most widely held neoclassical models on base studies of migration. ‧ 國. 學. and immigration.37 The theory was the first presented in “The Laws of Migration” by E. G. Ravenstein.38 Ravenstein proposed that there were many factors which caused migration.. ‧. These factors include, for instance, tyranny, heavy taxation, bad climate and poor living. y. Nat. sit. conditions. Nonetheless, the intense desire to improve one’s and one’s family’s material. n. al. er. io. conditions, thus simply economic motives are the main and most important factors.. i n U. v. Ravenstein also stated that migration is typically from low to high opportunities locations39. Ch. engchi. and all other things being equal, from high-density to low-density locations. 35. 36. 37. 38 39. Jien-Tsz Yu, “The Impact of International Migration to Country’s Society of Immigration under the Globalization Wave – The Comparison of Germany and Taiwan’s Migrate Worker, Immigration Policies and the Impacts,” Gong Gong Zheng Ce Yu Di Fang Zhi Li ─Di Fang Zi Zhi Lun Wen Ji ( ), Vol. 2009, 2010, p. 325. Qiang, Li, “An Analysis of Push and Pull Factors in the Migration of Rural Workers in China,” Social Sciences in China, Vol. 1, 2003, p.126. Cheng-Chan Lee, The Safety Border Management of Global People Movement (MA Thesis for Institute of China and Asia-Pacific Studies, Kaohsiung: National Sun Yat-Sen University, 2009), p. 19; Ming-huan Li, “An Overview of the Western Theories of International Migration in the 20th Century,” Journal of Xiamen University, No. 4, 2000, pp. 13-14; Shih-Chieh Sung, A Comparative Study on the Factors of Immigration Policy-Making in Taiwan and in Singapore (MA Thesis for Graduate School of Southeast Asian Studies, Nantou: National Chinan University, 2000), pp. 10-11. E. G. Ravenstein, op. cit., pp. 198-199. Ching-Yao Yang, Analysis of Taiwan and China’s Opening on High Education and the Population Migration of High Education Asia, Paper on the Cultural and Educational Academy Meeting of Tamkang University (Graduate Institute of China Studies, Taipei: Tamkang University Press, 2010); Jhong-Wun Shih, The Professionals and Skilled Migration from the Philippines (MA for Graduate Institute of Asian Studies, Taipei: Tamkang University, 2012), pp. 62-63.. 公共事務地方自治地. 方自治治理文集. 9.

(19) According to related research, “Push” means away from the social and economic conditions which are not conducive to people’s well-being, which includes factors with general influence such as war, turmoil, natural disaster and ecological environmental deterioration. “Pull means attraction to locations which are relatively attractive with respect to the aforementioned factors or provide new opportunities to improve people’s lives.”40. During this process, there may be interfering factors which slow migration. These are called “intervening obstacles.”41 In the original model, Lee summarized four factors that cause mass migration and developed a chart (figure 1.1) shown below. “In every area there. 政治大. are countless factors which act to hold people within the area or attract people to it, and there. 立. are others which tend to repel them.” The “+,” “-” and “0” signs indicate positive influence. ‧ 國. 學. (pull), negative influence (push) and indifference to the condition (neither push, nor pull) respectively.42 Hao Duan arrives at the same conclusions as Lee’s “Push and Pull theory”. ‧. that: “the negative factors in origins encourage residents to move out and positive factors in. y. Nat. sit. destinations attract people to move in. If the push factors in origins and pull factors in. n. al. er. io. destinations are strong enough to overcome the obstacles to moving, migration happens.”43. i n U. v. “In the original model, Lee classifies all factors influencing migration into four categories: “1). Ch. engchi. Factors associated with the area of origin; 2) Factors associated with the area of destination; 3) Intervening obstacles; 4) Personal factors.”44. 40 41 42 43. 44. Jhong-Wun Shih, op. cit., pp. 62-63. Qiang, Li, op. cit., p. 126. E.S. Lee, op. cit., pp. 49-50. Hao Duan, Embodied Migration: An Affective Understanding of the Push-pull Theory (Ph.D. Dissertation for School of Physical, Environmental and Mathematical Science, Sydney, AU: University of New South Wales, 2012), pp. 9-10; E.S. Lee, op. cit., pp. 49-50. Ibid. 10.

(20) Figure 1.1 The Push-Pull Model Source: E.S. Lee’s push-pull model, Demography,1966, p. 50.. We know that migration is for finding a better environment. It means that people will. 治政大intensity, “push” factor intensity and The velocity of migration is determined by “pull” factor 立 “intervening obstacles”, which are impediments to a flow velocity that would otherwise be move to another place when that new place is better than their original place/environment.. ‧ 國. 學. determined solely by push and pull factors and their respective intensities. “Push” factors. ‧. include a bad local situation such as a bad climate, a bad employment environment, a bad economic environment, a bad political environment, and so on. Conversely, “pull” factors. y. Nat. er. io. sit. include the incentives that are of opposite polarity to the “push” factors. They include a good employment environment, a good or competitive wage regime and so on. The factors of. n. al. Ch. i n U. v. “push” and “pull” determine migration activity and velocity, which is then impeded if during. engchi. migration there are any significant obstacles. If applying this theory to the cross-strait employment situation, China is the “pull” and Taiwan is the “push” and the obstacles may include personal factors which affect Taiwanese employees with respect to their employment opportunities.. 1.4 Methodology This research will first gather case-related information and then conduct in-depth interviews. Finally, using the collected information and interview results, the author will. 11.

(21) analyze these data. Instead of simply quantifying statistical data, the author has chosen to further rely upon Qualitative Research Methods and apply in-depth interviews－which, here are using semi-structured interviews as the basis for the research and then drawing qualitative conclusions. First, the author will gather case-related information, including website information, research reports, academic journals, news and other textual sources. Secondly, the author hopes to conduct in-depth interviews with (primarily) mechanical engineers and human resource managers. Finally, this study will analyze the statistical data, summarize the interview results through systematic coding and content analysis of the interview data and. 政治大 propose follow-up studies to generalize and refine the initial conclusions. The author will 立 propose summary conclusions and recommendations to practitioners. The author will also. introduce the concept of the in-depth interview technique that was adopted its operating. ‧ 國. 學. methods and processes, the interviewees and the designed interview questions.. ‧ er. io. sit. y. Nat. 1.4.1 In-depth Interview. In-depth interviewing is a method of face-to-face communication by which the. al. n. v i n C h with each otherUthe research topics within the research interviewees and researchers discuss engchi scope to extract the information the researcher needs, including the interviewees’ own. experiences, thoughts, opinions and ideas. An in-depth interview is applied broadly in a variety of qualitative research studies. With respect to the selection of interviewees, the author has chosen two human resources managers, two mechanical engineers and two mechanical engineering managers. Essentially, all of the interviewees have experience in working for note-book computer design and manufacturing enterprises. With respect to the mechanical engineers and the engineering managers, the interviewees need to have worked and travelled back-and-forth between China and Taiwan or are Taiwanese people having had the experiences of working in China. Otherwise, the interviewees include a cross-section of 12.

(22) single, married, male, female and other varied social backgrounds to compare and contrast the different influences that may have affected the interviewees’ experience, as summarized below.. Object. Department. Position. Experience (Year). Ms. HJ. Human Resource. Manager. 18. Ms. HE. Human Resource. Manager. 15. Manager. 25. Manager. 16. Engineer. 12. Engineer. 5. Mr. MT Ms. MA. Mechanical Department. Mrs. EJ. 立. Mr. EB. 政治大. ‧. ‧ 國. 學. Married Status / Gender Single Female Single Female Married Male Single Female Married Female Single Male. 1.4.2 Case Study. sit. y. Nat. io. er. This study will be conducted over multiple sessions to study and analyze the interviewees and to reach any the conclusions, suggestions or opinions. The interview will be. al. n. v i n conducted with questions to relational results based on the content interviews. C h people and the U engchi The verbatim transcription of the sessions will be appended to this study. Based on the results. or differences between and across interviews, the author will conduct case-analysis on each interview to discover any interviewees’ unique responses and any complexity that arises from the interview set. The author will then re-sort the interviewees’ stated thoughts, voiced suggestions and/or opinions, from which the author will propose provisional conclusions and suggestions for HR and management policy and procedure and for individual S&T workers in Taiwanese enterprises.. 13.

(23) 1.4.3 Interview Questions. The author will refer to “Push and Pull Theory” and the retention and recruiting policies of typical Taiwanese enterprises to design the interview questions. The author will integrate several relevant aspects, theory and representative policies to frame and determine the questions with which the in-depth interview will be conducted.. “Globalization” has caused trade, worker migration and economic policies to be changed or modified by many countries over time, at the same time. It makes enterprises,. 政治大 external (foreign) competition 立 for resources, wages, skills and jobs. The direction of the. workers and professionals need to face not only internal (domestic) competition, but also. ‧ 國. 學. interview questions include the potential personal factors contributing to worker and professional migration and suggest ways for enterprises to retain talent and modify recruiting. ‧. polices in response to their competitors and suggest ways the workers and professionals can. sit. y. Nat. respond to the effects of globalization to maintain or enhance control over their own. n. al. er. io. opportunities. There will be two types of questionnaires: one for each Mechanical Engineers. v. and Human Resource Managers respectively. For different positions and roles, determining. Ch. engchi. i n U. their points-of-view, opinions and practical experience will be accomplished with different questions during each interview. The questionnaires are detailed within Appendix 1.1.. The purpose of this research is to probe under the trend of growing cross-strait trade and economic exchange for a notebook industrial mechanical engineer’s impact and opportunities. Based on the Push-Pull theory (Push and Pull forces and obstacles), the researcher will conduct analysis and research to investigate possible policies and solutions for the future. Each question in the questionnaire is coded by an interviewee’s unique code and the response content. There are two-character question-type codes, two-digit question sequence codes, two-character interviewee identification codes and two-digit response content codes. The set 14.

(24) of interviewees include mechanical design managers, mechanical engineers and human resource managers whose coding of the title are as below. For example, in an interview with mechanical engineer Mr. B who answers question type “push” in the first paragraph of the first question, the coding would be PS-01-EB-01. Mechanical engineer - “E”+ Interviewee-name-code-character Mechanical design manager - “M”+ Interviewee-name-code-character Human resource manager - “H”+ Interviewee-name-code-character. 政治大. The coding of the type of questions are: Push - “PS”. 立. ‧ 國. 學. Pull - “PL”. Obstacle - “OB”. ‧ sit. y. Nat. 1.5 Research Limitations and Scope. n. al. er. io. Many various Taiwanese trans-national industries enterprises have established factories. i n U. v. or branches in different areas in mainland China. Many Taiwanese employees are now. Ch. engchi. required to travel back-and-forth between Taiwan and China. In order to attain accuracy in this study, the author will limit the scope for the type of Taiwanese enterprise and type of S&T talent, the type of product and the location of the enterprise. The research scope is listed as below three items. 1) This research will focus on the notebook computer (Laptop) OEM design and manufacturing industry, because the characters of notebook computers are: high but rapidly decreasing prices and that the notebook computer design and manufacturing enterprises have adopted global logistics management in order to satisfy their clients’ needs. This means that the enterprise fitting this profile receives orders in Taiwan, 15.

(25) produces and assembles the product in China, and then ships the manufactured product to its clients, often in, for example, the United States. At the time of this writing, the growth rate of the PC (Personal Computers) market is 6~8% Compound annual growth rate (CAGR) and that of the notebook computers is 20% CAGR. Some argue that this shows that the PC as a product is gradually replaced by notebook computers. In a few years, it is projected that notebook computer shipments will exceed that of PC shipment volumes.45. 2) The technology industry is widely distributed throughout China, so the author has chosen the cluster - Kunshan, Jiangsu Province which has the most Notebook computer factories.. 政治大 3) As the author mentioned立 in point #1 above, the notebook computers as a product have the. ‧ 國. 學. characteristics of high, but rapidly decreasing price and that the requirements to participate in the market are increasingly high, there are massive demands for S&T talent,. ‧. in particular for electrical and mechanical engineers. Further, there are also many different. sit. y. Nat. types of skilled technology workers that are needed to travel back-and-forth between. n. al. er. io. Taiwan and China for business trips. Therefore, this research will focus on mechanical. v. engineers who have been working in or have experience with the notebook computer industry.. Ch. engchi. i n U. The research objective requires that the author focuses on technology talent that has innovation, creative abilities, and advanced skills in their field. Mechanical engineering designers need to design systems that meet the requirements of the market for appearance, interior layout, accommodating the newest components and in which combinations culminating into entire mechanical design options until one of the options is chosen for development for mass production. Further, the interviewees need to have experience with 45. Ding-Yi Shen, The Case Study of Notebook Sub-contractors for the Commercial Value of Global Enterprises’ Information Strategy and Science and Technology (MA Thesis for Department of Information Management, Taoyuan: National Central University, 2005), p. 22. 16.

(26) working in the enterprises that have branches or production lines in China. Because the notebook computer production cycle is around four months (one month for design and the last month is from trial run to mass production), another requirement of the interviewee is a person who has business trips totaling at least three, but ideally nine months per year.. 1.6 Organization of the Thesis This thesis is organized as follows: first, there is a discussion on “Globalization.” The second to forth chapter focuses on the study of the status of economic exchange between the. 政治大 and growth of the economic 立exchange, both sides’ policies before and after opening free. two cross-strait countries, China and Taiwan. This chapter includes the emergence, evolution. ‧ 國. 學. economic exchange (trade and finance liberalization) and the status of Taiwanese enterprises that have been investing in other countries. The fifth chapter focuses on the status of. ‧. Taiwanese people who have migrated to China. This will specifically focus on the Taiwanese. sit. y. Nat. technology talent that works between Taiwan and China and the Taiwanese technology. n. al. er. io. talent employment situation in China. Finally, the author will elicit and discuss the reasons. v. that Taiwanese technology talent choose to work in China. The last two chapters detail the. Ch. engchi. i n U. data analysis, draw conclusions from that analysis and make provisional suggestions for national economic policy, corporate procedures and policies and enhancing opportunities for the Taiwanese S&T worker. This research is organized as follows: I. Introduction This chapter introduces the research motivation, background, purpose, limitation of method and scope. The author will summarize the related literature and theories and propose our research methodology.. 17.

(27) II. Globalization in Taiwan and China This chapter summarizes the relations between economic globalization and the world and its effects on our Chinese-Taiwanese cross-strait relations. III. The Cross-Strait Economic Exchange This chapter will describe the evolution of Taiwanese policies towards China and our respective relations, exchange and development over the various Taiwanese presidential administrations.. It will also summarizethe evolution of Taiwanese enterprise investment into China over these different periods of economic policies by each president.. 政治大 This chapter will focus on the reasons and motivation for Taiwanese enterprises to 立. IV. Status of Taiwanese Enterprises in China. invest in China; and the challenges when they invest in overseas operations, such as the. ‧ 國. 學. necessary human resource challenges.. ‧. V. The Reasons of Taiwanese S&T Talents Work in China. sit. y. Nat. This chapter will focus on the reasons for Taiwanese S&T talent to choose to work in. io. er. China, the status of manpower movement after cross-strait trade and finance liberalization. Further, the author will summarieze some of the opportunities and challenges the can. n. al. expect to face.. Ch. VI. Case Study and Data Analysis. engchi. i n U. v. Utilizing the data from our in-depth interview methodology, the author will re-sort the interviewee various responses into three categories -- the push, pull and intervening obstacles that are from push-pull theory. With the data thus re-sorted, the researcher will analyze the data and present select case study elements. VII. Conclusion Based on the results of analysis, the author will summarize the apparent effects, opportunities and challenges to the Taiwanese S&T worker navigating the changing landscape driven by respective Taiwanese-Chinese economic relations.. The author will 18.

(28) finally propose some modest suggestions for Taiwanese S&T workers on employment, for trans-national Taiwanese enterprises’ human resource management policies and for the Taiwanese government with respect to policies that will maximize benefits for the Taiwanese people and maintain or enhance future competitiveness of the Taiwanese enterprise.. 1.7 Findings. 政治大 with different areas of influences. Globalization is a consequence of trans-national and 立. “Globalization” has brought and continues to bring a series changes and developments. trans-cultural integration of human and non-human activities. 46 “Countries share and. ‧ 國. 學. distribute their resources and activities in finance, trade and capital flows with each other.. ‧. Globalization reflects technological advances that have made it easier and faster to complete. y. Nat. international transactions - both trade and financial flows. Markets promote efficiency. n. er. io. al. sit. through competition and the division of labor.”47. i n U. v. With the example of Taiwan and China, the rise of the economic exchange between the. Ch. engchi. two changes the situation and environment for both sides, including the operation of their respective enterprises. Taiwanese enterprises have comparative advantages over China in research and development (R&D). China has a comparative advantage over Taiwan in low-cost raw materials, land and unskilled labor. This drives both sides to cooperate with each other to jointly become more efficient and to jointly attain greater benefit from and within the global marketplace. The operations of Taiwanese enterprises have changed their employees’ working patterns, especially those of the technological professionals. Those employees play the role of a bridge between the parent companies (in Taiwan) and the 46 47. Al-Rodhan, op. cit., p. 3. Ibid. 19.

(29) subsidiaries (in China) to transfer information and to transfer skills. Since we know that Taiwan has more skilled employees and workers, this will ideally help Taiwanese enterprises succeed. Many countries establish recruiting policies to attract excellent talent domestically and from overseas. These related policies and their associated results affect everyone. Taiwanese enterprises need to decide how to adjust their policies towards better recruiting success and employee retention. Employees now need to compete with people from around the world. This situation provides opportunities, but there can be negative consequences for unprepared individuals that are now suddenly part of a global labor marketplace. This new. 政治大. employment environment affects everyone. This is one of the motivating factors for conducting this research.. 立. ‧ 國. 學. The author plans to conduct face-to-face in-depth interviews with different types of employees within an industry to attempt to discover the points of view of the modern global. ‧. employee from different angles. The research will further try to discover hidden agendas or. y. Nat. sit. biases that people may not recognize and their impacts on everyone. The most important. n. al. er. io. result of the research is to hopefully bring information to people for their reference and to. i n U. v. provide a list of suggestions for consideration at the national policy level, the corporate. Ch. engchi. policy level and some ideas on how to best adapt to these new realities. Table 1.1 Questionnaire Retention. Push. Recruiting. HR:. HR:. 1. What is your company's compensation or motivation system for your talents who are willing to go to China for work?. 1. What is your company’s policy for recruiting professional talent? What are the differences of policies between recruiting domestic and overseas talent?. 2. What percentage of the flow of the talents in your company are because of dispatching to work in Mainland 20.

(30) China? 3. What is your compensation for it?. company’s. Engineer:. Engineer: 1. What is your company’s policy for employees who are dispatched to work 1. What kind of factors would affect in Mainland China? What is important your job selection personally? to you about the policy? Why? 2. On the side of enterprise, what kind of policy would you prefer, when you consider a transnational enterprise?. 立. 3. Every country has been recruiting 政治大 domestic and overseas talents. Does it affect your employment situation. ‧ 國. 學. in Taiwan or even overseas? Does it present opportunities or challenges to you?. ‧. HR/ Engineer:. y. sit. er. 2. What are your company’s policies compared with other companies’ to avoid or decrease “brain drain”?. io. Pull. Nat. 1. Compared with other enterprises, what are your advantages with regards to retention?. al. n. v i n C h your companyUhave advantages that would appeal to 3. In your opinion, does i they? e n c h are overseas professional talents?gWhat. Intervening. HR:. HR:. 1. What’s your company’s policy to provide a security and comfortable environment to the employees who are dispatched to work in China?. 1. As we know, every country has been conducting recruiting, have you ever had handicap with other corporations or countries when you are recruiting?. Obstacles 2. What is your company’s policy to accommodate the families of single or married dispatched talents?. 21.

(31) Engineer:. Engineer:. 1. If being dispatched to work in China, how do you manage the family, health, career plan issues and so on, to be able to accept this job? Or does your company have any policies for you to solve or overcome these issues?. 1. As every country has been recruiting talents from around the world, are there any factors that influence your job selection?. 2. What are the issues that need to be solved urgently when you are dispatched to work in China? And what are the factors which will decide if you remain in the assignment or not?. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 22. i n U. v.

(32) Chapter II. Globalization in Taiwan and China. 2.1 Economic Globalization Originally, when people. 立. 治政 talked about “globalization,” 大. it was mainly from the. point-of-view of the economy.1 Economic globalization is one of the major features of the. ‧ 國. 學. present world and it has a very important influence on the 21st century’s international. ‧. economic trade patterns. 2 Indeed, economics is the main power driven “globalization.” “Economic globalization” is the main content and expression of “globalization.”3 “Economic. y. Nat. io. sit. “globalization” is a historical process, the result of human innovation and technological. n. al. er. progress. It refers to the increasing integration of economies around the world, particularly. Ch. i n U. v. through the movement of goods, services, and capital across borders.4 “It is the process of. engchi. increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market.”5 This term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also. 1. 2. 3 4 5. Le-Xian Fang, “The Multidimensionality of Globalization Connotation: Debate and Reflect,” Forum of World Economics & Politics, Vol. 2, 2010, p. 68. Wei-Ping Huang, “The Study of the New Pattern of International Trade and Cross-Strait Economic Trade Cooperation under the Conditions of Economic Globalization,” Forum of Globalization and Cross-Strait Exchange, 2006, p. 20, http://webcache.googleusercontent.com/search?q=cache:d8Ha_H7gsdMJ:ct100.chihlee.edu.tw/ezfiles/11/101 1/img/107/paper1-11.doc+&cd=1&hl=zh-TW&ct=clnk&gl=tw Le-Xian Fang, op. cit., p. 68. IMF, “Globalization: A Brief Overview,” May 2008, http://www.imf.org/external/np/exr/ib/2008/053008.htm Tim, Riley, Year 12 Economics (Tim Riley Publications Press, 2005), p. 9. 23.

(33) broader cultural, political, and environmental dimensions of globalization.”6. Nobel laureate Joseph E. Stiglitz defines economic globalization as “the closer integration of the countries and peoples of the world which has been brought about by the enormous reduction of costs of transportation and communication,7 and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent) people. across. borders.”. 8. “Economic. globalization. is. the. increasing. economic. interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital.. 政治大. 9. “Economic. globalization promotes the international division of labor and in cross-border cooperation on. 立. IT design, production, and management.” 10 If we were to offer a summary, economic. ‧ 國. 學. globalization would be the “integration of national economies in the international economy through trade, direct foreign investment (by corporations and multinationals), short-term. ‧. capital flows, international flows of workers and humanity generally, and flows of. er. io. sit. y. Nat. technology.”11. n. al. Cand 2.2 Economic Globalization h ethe World i ngch. i n U. v. Economic Globalization is much related to the global countries’ integration of what is ultimately the result of world development of productive forces. “And the driving force is that pursuit profit and gain competitive advantage and strives for economic development.”12 6 7. 8 9. 10. 11 12. IMF, op. cit., “Globalization: A Brief Overview,” http://www.imf.org/external/np/exr/ib/2008/053008.htm J. E. Stiglitz, Globalization and Its Discontents (New York: W.W. Norton and Co. Press, 2002), p. 9. Wei-Ping Huang, op. cit., p. 20. J. E. Stiglitz, op. cit., p. 9. Rakesh Mohan, Joshi, International Business (New Delhi and New York: Oxford University Press, 2009), p. 4; Wei-Ping Huang, op. cit., p. 20. Tse-Kang Leng, “Economic Globalization and IT Talent Flows across the Taiwan Strait,” Asian Survey, Vol. XLII, 2002, p. 249. J. Bhagwati, In Defense of Globalization (UK: Oxford University Press, 2009), p. 103. Fu-Lin Pan and Ling-Xia Wu, “Proceedings of the 2010 International Symposium -Technical Innovation of 24.

(34) What this has been bringing to the world are “the globalization of production activities, the gradual formation of world’s multilateral trading system, the increasing integration of countries’ finances, the investment activities of corporations throughout the world, the flourishing development of multinational corporations and the globalization, the multimedia network over the world characterized by globalization and individual.”13 The impacts of economic globalization to trans-national management include the interdependence of national economies; the reinforcement and emergence of concepts to facilitate trade power, trans-national management systems, optimization and adjusting their respective economies to. 政治大 the theory of international investment companies gradually become more integrated. 立. become more closely linked with businesses becoming active participants. Trade theory and 14. ‧ 國. 學. Economic globalization creates opportunities for trans-national management, but at the same time, it also has some negative effects. The acceleration of economic opening between. ‧. countries strengthens the linkages between those national economies, but it also increases. y. Nat. sit. business cycle instability risks and the risks accompanying foreign investment and business. n. al. er. io. environment uncertainty. For instance, the opportunities and challenges of coexistence with. i n U. v. Chinese enterprises and the resulting imbalances of economic development can be. Ch. engchi. aggravated. Enterprises will face greater competition and stress. To China, trans-national management is an important step to greater participation in globalization, but is also a way to avoid the associated disadvantages.15. Economic globalization also forms another global division system. Since World War II, the global economy has been developing rapidly; the globalization of trade leads to enterprises from around the world to be always expanding outward. To break the trading. 13 14 15. Industrial Transformation and Structural Adjustment,” Analysis of Transnational Management of Chinese Enterprises under the Background of Economic Globalization, 2010, p. 481. Ibid. Ibid. Ibid. 25.

(35) barriers between countries, there has been the emergence of various regional and international economic organizations, such as the European Union (“EU”), the North American Free Trade Area (“NAFTA”), the Asia Pacific economic cooperation and the emerging Trans-Pacific Strategic Economic Partnership Agreement (“TPP”). Thus every country’s dependence on foreign trade must decrease. Trans-national cooperation along inter-enterprise and investment pattern lines will decide industry’s competitiveness.16 The global economic manufacturing system has resulted in an “OEM basement” in South-East Asia, especially China.17. 政治大. As part of the process of globalization, enterprises can divide manufacturing processes. 立. to choose the most appropriate countries or areas to conduct manufacturing which leads to. ‧ 國. 學. even more extreme competition between enterprises.18 The competition doesn’t only occur between countries and enterprises, but also between workers. Workers make up the group. ‧. which is ultimately the most affected and make the most sacrifices under this arrangement.19. y. Nat. sit. Under this economic globalization, capital flows across borders freely, which brings more. n. al. er. io. choices to enterprise and capital owners. Therefore, enterprises or capital owners can choose. i n U. v. to manufacture in the areas which have low costs of manpower coupled with low trading. Ch. engchi. barriers. In fits and starts and unevenly it ultimately further develops the economy and creates more aggregate employment opportunities.20. 16. 17. 18. 19. 20. Cheng-Tai Huang, “Under the Globalization, Cross-Strait Economic and Trade Policy and Taiwan’s Competitiveness,” 2001, http://old.npf.org.tw/PUBLICATION/TE/090/TE-R-090-015.htm Tsu-Lung Chou, “Economic Flows across Strait, Globalization and Restructuring Imagination of Taiwan’s Economic Areas,” 2006, p. 5, http://web.ntpu.edu.tw/~choutl/Referred%20paper-chinese/Referred%20paper-Economic%20flows.pdf Alice Lin, “The Effects of Economic Globalization on Workers’ Rights in Taiwan, 2000-2008,” 2009, http://www.npf.org.tw/post/2/6323 Shih-Wei Pan, “Economic Globalization and Union’s Movement- Taiwan Experience (Not Finalized),” 2008, http://www.npf.org.tw/post/2/6323 Alice Lin, op. cit., “The Effects of Economic Globalization on Workers’ Rights in Taiwan, 2000-2008,” http://www.npf.org.tw/printfriendly/6323 26.

(36) Table 2.1 States Dependence on Foreign Trade Unit: % Year Country Whole world U.S.A British France Italy. 1970. 1980. 1998. 28 11 45 31 -. 39 17 43 36 39. 45 25 55 51 51. Canada 43 45 81 Australia 26 43 Japan 20 25 23 Korea 37 63 94 Taiwan 40 95 96 Singapore 370 306 Hong Kong 181 147 255 Thailand 49 83 Indonesia 43 42 103 Philippines 33 139 India 11 25 Brazil 19 18 Note: Dependence on foreign trade＝（Export＋Import）/ GDP. Source: Council for Economic Planning and Development, Taiwan Statistical Data Book.. 立. 政治大. ‧. ‧ 國. 學. er. io. sit. y. Nat. 2.3 Economic Globalization and Taiwan. Two of the mainly external forces to affect Taiwan’s development are globalization and. n. al. Ch. the cross-strait political and economical relations.. engchi. v i n UThe trend of economic globalization. 21. promotes regional economic integration in East Asia. Taiwan’s main national business model and policies are export-oriented and Taiwan has been aggressively committed to internationalization and economic liberalization, which strengthens economic and trade relations between partners and industrial division (specialization). The result is interdependence between cross–strait partners. Over past few years, cross-strait political relations have been tense and seemed to not ease, which leads to concerns of marginalization on economic aspects, especially since Taiwan wasn’t allowed to join the FTA (Free Trade. 21. Tsu-Lung Chou, op. cit., p. 2. 27.

(37) Agreement).22. With the trend of globalization, the biggest and most direct effect on industry is the Taiwanese industrial investments in China which further causes more outward-facing tendencies in Taiwanese industry. The effects on Taiwan’s economy include “capital drain” and “industry hollowing-out.” This hollowing-out of industry leads to: 1) structural imbalance of the labor market in Taiwan;23 2) A new Taiwanese trans-national industry economic network connection and development model. The Taiwanese manufacturing system has expanded to South-East Asia and China via this trans-national production network;24 3). 政治大. A new global labor division that has created and sustains Taiwan’s primary model of. 立. “Receiving orders in Taiwan and producing overseas.”25. ‧ 國. 學. Ultimately, this has led to structural imbalances in the labor market in Taiwan. During. ‧. the process of the hollowing-out of industry, the original mass employed population have. sit. y. Nat. been released from labor-intensive subcontractors and haven’t been completely reabsorbed,. al. er. io. due to the changed needs for basic levels of manpower in emerging industry. Unskilled labor. v. n. has had the most difficulty finding new employment or switching jobs.26. Ch. engchi. i n U. The Taiwanese manufacturing system expands to South-East Asia and China via the trans-national production network. Since 1987, the social, economic and political environment has been changing; local production costs have been increasing in Taiwan which makes Taiwanese enterprises continue to move more of their manufacturing lines to South-East Asia and China. Simultaneously, the low cost of Chinese real-estate, together with 22. 23. 24 25 26. Ai Wei, “The Strategic Choice of Cross-Strait Economic and Trade Relations under the Economic Globalization,” Haixiainfo, Vol. 217, No. Jan., 2009, p. 8, http://www.haixiainfo.com.tw/217-7409.html Cheng-Tai Huang, op. cit., “Under the Globalization, Cross-Strait Economic and Trade Policy and Taiwan’s Competitiveness,” http://old.npf.org.tw/PUBLICATION/TE/090/TE-R-090-015.htm Tsu-Lung Chou, op. cit., p. 4. Tsu-Lung Chou, op. cit., p. 5. Cheng-Tai, Huang, op. cit., “Under the Globalization, Cross-Strait Economic and Trade Policy and Taiwan’s Competitiveness,” http://old.npf.org.tw/PUBLICATION/TE/090/TE-R-090-015.htm 28.

(38) low-cost labor create a closed loop of value to Taiwanese manufacturers.27. In this trend of more globalization, Taiwan has some advantages that can’t be easily replicated by other countries, since: 1) Taiwan and China have the same culture and come from the same ethnicity, the international trans-national enterprise is not as easy for others to enter and negotiate investments in the Chinese market; 2) Technological development in the United States relies on cooperation with Taiwan on technology, brand marketing and production experiments; 3) Most private Taiwanese enterprises invest in and can apply China’s huge market and work force to promote and change their own industrial structure. 28. 政治大 As an effect of the “hollowing-out” of industry, more and more Taiwanese citizens 立. ‧ 國. 學. travel to China for work. 29 The Taiwanese government’s policy of paying attention to technology and belittling traditional industry, for instance the food industry, the textile. ‧. industry, and so on is becoming serious enough that traditional industries have been moving. sit. y. Nat. to China and domestic unemployment problems are even further exacerbated.30 People who. n. al. er. io. travel to China for work mostly have high educations, which accounts for 58% of that traffic.. v. Most of them work on Electronic Parts and Components Manufacturing, Leather,. Ch. engchi. i n U. Communication Equipment Manufacturing, Computers, Electronic and Optical Products Manufacturing and the like. These industries all have major Taiwanese enterprises that invest in China. The Electronic Parts and Components Manufacturing is the main industry to make these changes at a large scale. We can’t ignore Chinese influences on Taiwanese talent (workers).31 As many Taiwanese industries continue to hollow-out domestically and hire and 27. 28. 29. 30. 31. Ping-Lung Hsin, “The Impact of Taiwanese Labor Market from Globalization,” p. 5, www.cy.gov.tw/dl.asp?fileName=0113010254471 Ping-Lung Hsin, op. cit., “The Impact of Taiwanese Labor Market from Globalization,” p. 10, www.cy.gov.tw/dl.asp?fileName=0113010254471 Ping-Lung, Hsin, op. cit., “The Impact of Taiwanese Labor Market from Globalization,” p. 11, www.cy.gov.tw/dl.asp?fileName=0113010254471 Ping-Lung Hsin, op. cit., “The Impact of Taiwanese Labor Market from Globalization,” p. 13, www.cy.gov.tw/dl.asp?fileName=0113010254471 Ping-Lung Hsin, op. cit., “The Impact of Taiwanese Labor Market from Globalization,” p. 10, 29.