Hon Hai Precision Industry is a global electronics contract manufacturing company having its headquarters in Taiwan. The Company focuses on the fields of heat transfer, material science, wireless connectivity, green manufacturing process and nanotechnology (Hon Hai/Foxconn Technology Group). Besides, the Company is also providing planning as well as an electronic-supplying mechanism for computer programming services, development of computer software, and chain management (Hon Hai Precision on the Forbes Global 2000 List). Generally, the company manufactures electronic and electronic components, printed circuit boards and components together with computer chips. Besides, the company is also providing electronic manufacturing services. Hon Hai has becomes a highly dependable partner for combined-creation, combined-development, manufacturing, assembly together with after-sales services to the worldwide computer, communication as well as consumer electronics leaders (Ahmed and Alain 44).
Financial Statements
Figure 1 showing Income Statements of Hon Hai Company
Source: Hon Hai, Taiwan Ratings
Figure 2 showing Comparative Analysis of Financial Position of Hon Hai Company
Source: Hon Hai, Taiwan Ratings
Figure 3 showing Assets of Hon Hai Company
Source: Hon Hai, Taiwan Ratings
Figure 4 showing Liabilities of Hon Hai Company
Source: Hon Hai, Taiwan Ratings
Figure 5 showing Cash Flows of Hon Hai Company
Source: Hon Hai, Taiwan Ratings
b. Benefits and Drawbacks for the Trade Relationship
The trade relationship between Taiwan and Canada has enhanced foreign direct investments in both countries, enhanced commercialization of innovation through joint research in science and technology, promoted exchanges in education and youth, boosted multilateral cooperation through APEC (Asia-Pacific Economic Cooperation) that have led to establishment of free trade plus economic liberation and indigenous cooperation through culture, policy and economic development programs (Ahmed and Alain 38). However, this trade relationship has led to job insecurity where some people have lost their jobs due to the migration of firms to either country (Soesastro 174).
c. Trade Relationship
The trade relationship between these countries led to a situation where both countries do business with each other. There is a trade of products and services Taiwan export and import to and from Canada respectively.
d. Import and Export Statistics
Figure 6 showing Taiwan’s export to Canada in 2017
Source: Hon Hai, Taiwan Ratings
From figure 6 it is clear that top export of Taiwan to Canada is electronics. Hon Hai Precision Company being in that field is an active contributor to that US$1.3 billion.
e. Trade Barriers
Canada and Taiwan are members of the APEC which promotes free trade between them. The trade between Taiwan and Canada experiences no barriers in terms of tariffs or taxes.
Works Cited
“Hon Hai Precision on the Forbes Global 2000 List.” Forbes, Forbes Magazine, www.forbes.com/companies/hon-hai-precision/.
“Hon Hai/Foxconn Technology Group”, www.foxconn.com/GroupProfile_En/GroupProfile.html.
Ahmed, Sadrudin, and Alain d'Astous. "Canada Taiwan differences in product-country perceptions." International Journal of Commerce and Management 25.1 (2015): 38-51.
Soesastro, Hadi. "APEC: an ASEAN perspective." From Apec to Xanadu: Creating a Viable Community in the Post-cold War Pacific. Routledge, 2016. 174-194.
