南卡交換修課-Internationa Business 台灣經濟實力綜評講稿

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Good Afternoon everyone, my name is Cynthia Chen. My country report is Taiwan which is my home town.

P.2

As u can see this is Taiwan. It’s like a potato and compare to China, it is incredibly small. The population is 23.5 million and it is 14thousand square miles. GDP: 1.1trillion, the right side is some basic information, like GINI, unemployment rate..

p.3

1.Taiwan ranks 11^th , r) and the highest rank compared to other years.. Taiwan is a mostly free country.

 Overall score has increased 3.8% since 2013

P.4

The rule of law

1.        property rights are well-protected. We think that’s because the Ministry of The Interior(內政部) regulates Supplemental Regulations on Law of Eminent Domain(土地徵收管制機制)

Moreover, Taiwan also enact Supplemental Regulations on Spatial Planning Act (國土計畫法) promote the aboriginals’ land rights

2.        the Government integrity criteria comes from regulating the Anti-Corruption Informant Rewards and Protection Regulation(獎勵保護檢舉貪污瀆職辦法) (內政部於2016年建置土地徵收管理機制，強化保護民眾財產權)
(同年修正國土計畫法，推動原住民土地權利的回復)

(廉能政府的部份我們在去年制定了獎勵保護檢舉貪污瀆職辦法)

3.        The judiciary is independent, p.5

The government size

1.      Government spending has amounted to 19 percent of GDP, and budget deficits have averaged 3 percent of GDP..(過去3年我國政府支出佔GDP比率18.7%，及政府預算赤字佔GDP比率2.9%，我國公債佔GDP比率38.3%。)

2.     the Tax burden is heavy (政府稅收占總產出(GDP)比率(租稅負擔率)12.3%)

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The regulatory efficiency

1.     The business freedom criteria ranks 4^th as of last year. The Ministry of The Interior(內政部) thinks that’s because we promote a reform according to Doing Business. (我國推動世界銀行經商環境評比改革)

2.     And then the labor freedom isn’t good because work hours are not flexible enough. (我國勞工雇用缺乏彈性)

3.     The monetary freedom has risen from last year due to a good monetary policy and stable price.(我國貨幣政社與物價穩定)

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open markets

1.     The rank of trade freedom is declining slightly because some agricultural imports face additional barriers. (我國平均關稅率1.9%，以及數項農產品進口面對較多非關稅貿易障礙)

2.     And then the investment freedom is declining as well because foreign investment is screened, and investment in some sectors is restricted.

(我國外資審核程序以及外資投資業別限制有關)

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Ranked at the 11th place

Getting electricity and dealing with construction permits both have high ranking, which r in 2^nd and 3^rd places respectively.

On the other hand, getting credit and trading across borders r lower. They are in 62^nd and 68^th places.

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The graphic is the comparison of eastern Asian pacific region. The competition is fierce in this area. Taiwan still remains in the second place, slightly lower than South Korea, although we all get 99 plus points in total.

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Let’s focus on getting electricity. Taiwan made getting electricity easier by eliminating site inspections and reducing the time required for getting an electricity connection through a simplified procedure for obtaining excavation permits  

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As for dealing with construction permits, Taiwan is fairly efficient. We can obtain a permit in less than 100 days, fewer than the average of OECD high income countries and Eastern Asian Pacific countries  

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As for the global competitiveness, Taiwan ranks 14^th. The graphic is our rank over ten years. It is steady.

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They r made up of three subindex: basic requirements and Efficiency enhancers and innovation and sophistication factors The first one ranks 14^th and the following are 16^th and 17^th respectively.

基本需求排名14，另外兩個為16及17

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In the form is the comparison of Eastern Asian Pacific region. We can see that Taiwan is the only one has a subtle progress.

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Taiwan ranks 21st, one of the most prosperous countries in the world. Among the index, safety & security has the highest rank, rank 6^th, while governance and personal freedom are relatively weak rank 36^th and 31^st respectively

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Strengths:

1.     Taiwan is in the center of the Asia Pacific area, so it is convenient if you want to trade with other eastern Asian countries, especially China.

2.     Trade freedom and business freedom Trade is important to Taiwan, so we have free trade and business environment.

3.     property rights are well protected. The law is transparent and judiciary system is trusted by people.

4.     Macroeconomic environment is relatively good

5.     Taiwan is an efficient place.

6.     it is easy to go to other cities in Taiwan.

7.     As for Safety & security, Taipei ranks the 3rd safest city in the world.

8.     Health and primary education. It is easy to see the doctor and we have National Health Insurance and has a 9 year obligatory education which will be further in the near future

9.     Higher education and training, we have many universities and relatively low fees and higher-skill labors in some areas.

財產權受到保護 經商自由 申請許可(? 電力取得 安全 醫療照護

高等教育與訓練

Weaknesses:

1.     Tax burden is higher than before

2.     and the government has high budget deficits

3.     As u know Taiwan is an island. The economies of scale isn’t big.

4.     Therefore we need to protect our Agriculture.

5.     And as for our international situation, there aren’t many countries that have FTA with Taiwan, while South Korea which has quite similar advantages as Taiwan, they make FTA with other countries actively.

6.     And Taiwan has fewer and fewer democratic relationships with other countries. Most countries use satellite offices to communicate with Taiwan. Banama just disconnected with us recently which had the longest relationship with us.

7.     We lack places in many international organizations. It makes Taiwan less international.

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ACC ANALYSIS

Absolute advantage:

We are in the central Asia Pacific area which is a good place to set a company for international business in Eastern Asia.

Taiwan is a safe place

Mandarin is our mother tongueMany people speak Mandarin nowadays. It would help in doing business.

社會安全 位居亞太樞紐

Comparative advantage:

IT industries are relatively good, especially the semiconductor area

Easy to access China’s market. China gives Taiwanese companies some favorable conditions. Though it has high risks for us as well.

And if the company wants access to China’s market, I think Taiwan is a good starting place as we have some advantages like transparent laws and mature market.

Higher education and training labors. Many people have high educational background in Taiwan.

IT產業 製造業悠久(? 高教育訓練

Competitive advantage:

We have a transparent regulatory environment

And Taiwan is a fairly efficient place. We care whether the government or the company deals with things fast and treat customers nicely.

Upgrade our industry. Taiwan has a small economic scale We can’t help but upgrade our industries in agriculture and manufacture areas to the delicate ones and shift the traditional ones to the other areas with lower labor payments

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threats:

1.     Taiwan has low birth rate and an aging population. It’s such a heavy burden to take care of children here. And is about to be an aged society in the next couple of years. Social walfare would be a challenge for us too.

2.     Taiwan isn’t a labor friendly market which may cause brain drain. Laborers in Taiwan need to work long hours, high pressure and small salaries.

3.     We have uncertainty of future relationship with China. As China gets stronger and more powerful, we are more weak in International stage and isolated.

4.     We are excluded from the Association of Southeast Asian Nations

Opportunities:

1.     Younger generations are more innovative and brave to break the rules. There are many social movements these couple years, like sunflower movement (The students declared that ruling party’s lawmakers had violated legislative procedures.) The service trade agreement isn’t passed until now. And fighting for legalizing same-sex marriage, which just passed this year.

2.     The government makes effort on e-government and communicating with citizens. We are ranked 10^th of e-government, the same as England.

3.     Uncertainty of future relationship to China is also an opportunity for us. It depends on whether we make good use of it or not.

4.     New Southbound Policy is a way to break our dilemma in international situation. Through the policy, we establish deep relationships with southern eastern Asian countries and trade with them南進政策

Reference
Economic Freedom
 National Development council
https://www.ndc.gov.tw/News_Content.aspx?n=114AAE178CD95D4C&s=7F41B0B768E381AE
http://www.heritage.org/index/country/taiwan
Ease of Doing Business
http://www.doingbusiness.org/data/exploreeconomies/taiwan-china#getting-electricity
Global Competitiveness
http://reports.weforum.org/global-competitiveness-index/competitiveness-rankings/
https://www.ndc.gov.tw/News_Content.aspx?n=114AAE178CD95D4C&s=64E3A5C7FB422E67
Prosperity
http://www.prosperity.com/download_file/view_inline/2833
SWOT
Overseas Compatriot Economy Yearbook