Globalization and Corporate Financial Decision-Making: A Multi Dimension of Industry, Market and Institutional Influence

Zhixuan Sun

2025

Abstract

This study investigates how industries in China, Japan, and the United States respond to the U.S. reciprocal tariff policies, focusing on manufacturing, retailing, and services. Using a comparative case study method, it explores financial decision-making through the lenses of Pecking Order Theory, Trade-Off Theory, Net Present Value (NPV) Method, and Real Options Theory. The findings show that Chinese manufacturers are shifting operations abroad and adopting flexible investments, while retailers emphasize internal financing and national branding. In services, firms like Aliyun balance debt to maintain financial stability amid geopolitical risks. Japan, though less directly impacted, is relocating production, diversifying supply chains, and leveraging third-country trade agreements to maintain U.S. market access. The U.S. aims to restore industrial strength but faces inflation and retaliation. Government responses, including subsidies and regional trade negotiations, play vital roles. The study concludes that financial strategy under globalization is deeply shaped by industry characteristics and national policy and offers theoretical insights for managing uncertainty. Future research is encouraged to explore firm-level case studies for greater depth.

Paper Citation

in Harvard Style

Sun Z. (2025). Globalization and Corporate Financial Decision-Making: A Multi Dimension of Industry, Market and Institutional Influence. In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI; ISBN 978-989-758-792-4, SciTePress, pages 321-327. DOI: 10.5220/0014353600004718

in Bibtex Style

@conference{emiti25,
author={Zhixuan Sun},
title={Globalization and Corporate Financial Decision-Making: A Multi Dimension of Industry, Market and Institutional Influence},
booktitle={Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI},
year={2025},
pages={321-327},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014353600004718},
isbn={978-989-758-792-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI
TI - Globalization and Corporate Financial Decision-Making: A Multi Dimension of Industry, Market and Institutional Influence
SN - 978-989-758-792-4
AU - Sun Z.
PY - 2025
SP - 321
EP - 327
DO - 10.5220/0014353600004718
PB - SciTePress