Taiwan’s Neighboring Countries
Taiwan lies to the south of the China Sea and north of the Philippines. This island nation is 110 miles away from China’s Southern East Coast. The Taiwan Strait, also known as the Formosa Strait, separates it from the mainland. The wealth of Taiwan comes from its well-educated citizens. Many of them relocated from Mainland China to Taiwan.
Consumer Base, Benefits and Strengths in the Market
Part of the Republic of China: Taiwan is well known for petroleum and iron refineries. Steel armaments and machinery production are among the goods and services Taiwan offers.
Following the placement of President Chen Shui-bian and his subsequent retirement, Taiwan has been experiencing political instability. Regardless, economic experts predict the country’s economy will expand.
Not many countries around the world recognize Taiwan as a nation. The ones that do include Guatemala, Haiti, The Marshall Islands, and Vatican City.
Taiwan – born out of political separation: The country experienced hostility from world superpower countries. The nation’s international business community – for various reasons – stopped trading. So, Taiwan failed even to raise capital.
Despite those economic challenges, Taiwan has a high per capita GDP. In fact, their GDP per capita numbers that are only exceeded by Japan and South Korea.
For several years, Japan was the manufacturer of low cost, high-quality items. Some of those items include consumer electronics, home appliances, and manufacturing components. Then Japan ran into a problem. This situation is known as the Middle Income Trap. In essence, they were becoming too wealthy. So after a while, low-cost manufacturing was no longer their domain.
Taiwan was ready to take up Japan’s former domain and prepared to do low cost manufacturing a decade before mainland China. Mainland China wasn’t even on international companies’ radar as a place to do business. China got a headstart, especially since it had the right workforce. But multinational companies were always interested in Taiwan. Foxconn, IBF, and Sony corporation started a collection of well-known companies. HTC ACER and ASUS are all headquartered in Taiwan and sell products all over the world.
Taiwan has built up one of the Strongest current account surpluses of any nation. Their huge foreign currency reserve further helps with this. They were able to exchange money with other countries to assist with their trade. At the same time, they were able to track their currency, ensuring it remained competitive.
The Gateway of Southeast Asia
Most international tourists travel to Taiwan for pleasure purposes. The country has several historical destinations and adventurous journeys.
The New Southbound Policy facilitated the union between Taiwan and Southern Asia. That union that has – so far – been beneficial. It is the signature of President Tsai Ing-Wen’s foreign policy. President Tsai plans to help sustain the status quo of cross-Strait relations. The main goal of the New Southbound Policy is to “Bid farewell to past dependency on a single market.”
Taiwan’s yearns to diminish sole economic reliance on mainland China. That was essential to prior administrations’ southbound policies.
Taiwan grew between the years 2002-2008. In 2008 Taiwan rose to 10.4 billion. Nonetheless, that does not outmatch mainland China, whose growth was incomparable. As the promotional plan on Yuan’s website says it best. “The essence of the New Southbound Policy is to forge a new and mutually beneficial model of cooperation and create a sense of economic community”.
Rule of Law
The Taiwan Rule of law aims to nurture the study of Taiwan’s Legal evolution. Another goal is to promote a popular and academic understanding of Taiwan’s achievements. The nation lived under Martial Law for over thirty years. The Martial law ended when a new president (President Chiang Ching-Kuo) came into power on 15 July 1987. The legal landscape of Taiwan has transformed since Martial law ended.
About Market Research in Taiwan
SIS International conducts Qualitative Research, Quantitative Research, and Strategy Research in the Taiwan market. Methods include Focus Groups, Social Media Interviews, and Surveys. Contact us now for a consultation to find out how we can help you expand your business.