Study On The Localization Of Overseas SMEs: Theoretical Approaches And Empirical Study Of South Korean SMEs In Shandong China

The study on the development of small- and medium-sized enterprises (SMEs) has becoming the worldwide hot topic in recent years. A large number of SMEs exist not only in developed countries but also in developing countries, contributing to more than 50% wealth in a country and even in the whole world. On the other hand, with the deepening of globalization process, SMEs are facing great pressure from tense international competition. One of the ways that SMEs can adopt to develop persistently in the new situation is to go global, which proves a good method to turn severe competition into positive development. The transferring of SMEs can not only improve their own strength, but bring prosperity in local economy in the alien milieu as well. International SMEs adopt localization strategy for various reasons, such as to decrease the cost of production, to meet the need of local consumers and so on. But the localization strategy brings benefit as well as problems to SMEs and the host country. This study focuses on the issues in the SMEs localization process, and takes South Korean SMEs in Shandong as an example to characterize such problems.The study is divided into five parts. In the first chapter, problems are brought out and preparatory theories are presented. The definitions of SMEs and multinational corporations are introduced. On the bases of industry transfer theory, the theory of localization is presented too. In the second chapter, the situation about the industry transfer of international SMEs in China is analyzed in detail, including the modes of investment and the locating areas. The third chapter involves in the introduction of the process of international SMEs localization in China, the influence on Chinese economy of SMEs localization and the characteristics of SMEs localization in China.The forth chapter takes South Korean SMEs in Shandong as an example. By reviewing the history of South Korean SMEs industry transfer to Shandong province, its obvious function in increasing employment, expanding export, improving the international revenue and expenditure is pointed out. What's more important, the corresponding, feasible countermeasures against all sorts of questions existing in the course of South Korean SMEs localization in Shandong in put forward in this chapter. In chapter five, the corresponding measures and suggestions as to the problems of international SMEs appeared in the process of localization are offered for reference.