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A GLOBAL COUNTRY STUDY REPORT ON TAIWAN IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University Batch : 2010-12 MBA SEMESTER III/IV Shri Sunshine Group of Institutions MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad April, 2012 1 INDEX NO Particulars Page No. 1 Economy Overview of Taiwan 4 1.1 Demographic Profile of the Taiwan 5 1.2 Economic Overview of the Taiwan 8 1.3 Overview of Industries Trade and Commerce 12 1.4 Overview Different economic sectors of Taiwan 13 1.5 Overviews of Business and Trade at International Level 18 1.6 Present Trade Relations and Business Volume of 20 different products with India 1.7 PESTEL Analysis 22 2 Industry/ Sector/Company/Product/Service/New venture 25 specific study 2.1 Introduction of the selected Company / Industry / Sector 41 and its role in the economy of Taiwan 2.2 Structure, Functions and Business Activities of selected 56 Industry / Sector / Company 3.1 Comparative Position of selected Industry / Sector / 74 Specific Company / Product with India and Gujarat 3.2 Present Position and Trend of Business (import / export) 89 with India / Gujarat during last 3 to 5 years 4.1 Policies and Norms of selected country for selected 96 2 Industry/company for import / export including licensing / permission, taxation & Policies and Norms of India for Import or export to the selected country including licensing / permission, taxation etc 4.2 Present Trade barriers for import / Export of selected 106 goods 5.1 Potential for import / export in India / Gujarat Market 115 5.2 Business Opportunities in future 122 5.3 Suggestion & Conclusion 132 6 Plagiarism Test Report 141 3 Background of the Country In 1895, military defeat forced China to cede Taiwan to Japan. Taiwan reverted to Chinese control after World War II. Following the Communist victory on the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government using the 1947 constitution drawn up for all of China. Over the next five decades, the ruling authorities gradually democratized and incorporated the local population within the governing structure. In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist to the Democratic Progressive Party. Throughout this period, the island prospered and became one of East Asia's economic "Tigers." The dominant political issues continue to be the relationship between Taiwan and China - specifically the question of Taiwan's eventual status - as well as domestic political and economic reform. 1) Demographic Profile of the Country Population Size This article is about the demographic features of the population in Taiwan, including population density, ethnicity, education level, health of the populace, economic status, religious affiliations and other aspects of the population. The population in Taiwan was estimated in July 2011 at 23,188,087 spread across a total land area of 35,980 km, making it the sixteenth most densely populated country in the world with a population density of 641 people per km. During the 20th century the population of Taiwan rose more than sevenfold, from 3.04 million in 1905 to 22.3 at December 31, 2000. This high growth was caused by a combination of factors, very high fertility rates up to the 1960s, and low mortality rates, and a surge in population as the Chinese Civil War ended, and the Kuomintang forces retreated, bringing an influx of two million soldiers and civilians to Taiwan in 1948 - 1949. Consequently, the natural growth of Taiwan was very rapid, especially in the late 1940s and 1950s, with an effective growth 4 rate as high as 36.8 per 1,000 during 1951-1956. Including the Kuomintang forces, which accounted in 1950 for about 25% of all persons on Taiwan, immigration of mainland Chinese (now approximately 13% of the present population) at the end of the 1940s was a major factor in the high population growth of Taiwan. Some official government statistics for the period, including those reported on this page, do not seem consistent with the known size of the Kuomintang influx. Net migration rate During 2004-2010 Taiwan's migration rate was positive. On average the annual net migration amounted to 22,000 people during that period, which is equivalent to a rate of 1.0 per 1000 inhabitants per year. Age structur e Age 1980 1990 2000 2010 range 0-14 32.1% 26.9% 21.2% 15.65% years 15-64 63.6% 67.0% 70.2% 73.61% years 65 years 4.3% 6.1% 8.6% 10.74% and over Sex ratio At birth: 1.1 male(s)/female Under 15 years: 1.09 male(s)/female 15-64 years: 1.03 male(s)/female 65 years and over: 0.99 male(s)/female 5 Total population: 1.04 male(s)/female (2010 est.) Ethnicity (Overview) Officially, the population of Taiwan consists, of which 84% identify as Taiwanese included Hakka, while 14% are mainlanders Chinese, 2% are aborigines. A confounding factor is intermarriage between these ethnic groups - to the extent that it is doubtful whether the term "ethnicity" can be used at all. Languages Overview: Mandarin Chinese (official), Taiwanese (Min), Hakka dialects Almost everyone in Taiwan born after the early 1950s can speak Mandarin, which have been the official language and the medium of instruction in the schools for more than four decades. The Mandarin spoken in Taiwan has minor differences from that spoken in mainland China, South-east Asia and other regions of the world. The majority speak a dialect form of Min Nan (Southern Fujianese language), commonly referred to as Taiwanese, which was the most common language. The ethnic Hakka have a distinct Hakka dialect. Between 1900 and 1945 Japanese was the medium of instruction and could be fluently spoken by many of those educated during that period. Chinese romanisation in Taiwan uses both Hanyu pinyin which has been officially adopted by the central government, and Tongyong pinyin which some localities use. Wade-Giles, used traditionally, is also found. On Kinmen (Quemoy), the language spoken is also Min Nan. On the Matsu Islands, the Foochow dialect, a Min Dong (Eastern Fujianese) dialect, is spoken. The most widely spoken Taiwanese aboriginal languages today are Amis, Atayal, Bunun, and Paiwan. 6 Religion The Geert Hofstede analysis for Taiwan is almost identical to the model for China. Long-term Orientation is the highest-ranking factor. As with other Asian countries, relationships are a primary part of the culture. Individualism is the lowest ranking. Like the Chinese, the Taiwanese are a collectivist society. The Taiwanese migrated to Mainland China starting in AD 500. Taiwan has a population of approximately 20.5 million. The official language is Mandarin Chinese. Most businessmen speak and understand English. It is governed by a multiparty republican system. Taiwan is often referred to as Nationalist China. Although the Taiwanese practice a variety of religions the culture is strongly influenced by Confucianism. About 93% of the population can be considered religious believers, most of whom identify themselves as Buddhists or Taoists, Christian 4.5%, other 2.5%. Fertility rate The fertility rate of Taiwan is one of the lowest fertility rates ever recorded in the world in historical times. It reached its lowest level in 2010: 0.90 children per 7 female. In 1980, the rate was still well above replacement level (2.515), but it dropped to 1.88 in 1985, 1.81 in 1990, 1.78 in 1995, 1.68 in 2000, 1.12 in 2005. 2) Economic Overview of the Country Taiwan now faces many of the same economic issues as other developed economies. With the prospect of continued relocation of labor-intensive industries to economies with cheaper work forces, such as in China and Vietnam, Taiwan's future development will have to rely on further transformation to a high technology and service-oriented economy. In recent years, Taiwan has successfully diversified its trade markets, cutting its share of exports to the United States from 49% in 1984 to 20% in 2002. Taiwan's dependence on the United States should continue to decrease as its exports to Southeast Asia and China grow and its efforts to develop European markets produce results. Taiwan's accession to the WTO and its desire to become an Asia-Pacific "regional operations center" are spurring further economic liberalization. Real GDP growth 2000 2001 2002 2003 2004 2005 2006 2007 5.8% -1.7% 5.3% 3.7% 6.2% 4.7% 5.4% 6% 2008 2009 2010 2011* 0.7% -1.9% 10.8% 5.4% Manufacturing has long been overtaken by the service sector in terms of contribution to GDP. In 1999, the service sector contributed the biggest slice of GDP at 64 percent, with industry accounting for 33 percent, and agriculture 3 percent. 8 The service sector is thriving and shows promise of further growth as the spending power of the population increases. By the end of 1995, the growth of the service sector exceeded that of the agricultural and manufacturing sectors by more than 60 percent and has continued to do so. The different businesses that fall under the service sector in Taiwan are: finance, insurance, and real estate; commerce, including wholesale and retail business, food and beverages, and international trade; social and individual services; transport, storage, and telecommunications; commercial services, including legal, accounting, civil engineering, information, advertising, designing, and leasing; governmental services, and miscellaneous others. The agricultural sector to GDP has been steadily declining since the 1980s when Taiwan's government shifted the focus of its economic strategy to industrialization. Few of the younger generation are willing to work in the agricultural sector, preferring to pursue better opportunities in the other sectors.
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