Taiwan in 2005


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Case Details:

Case Code : ECOA133
Case Length : 19 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : Taiwan
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction

Known as the silicon valley of the East, Taiwan's progress in the past 30 years had been remarkable. A small country with a population of 23 million, Taiwan imported nearly all of its energy, most raw materials and various manufactured goods and agricultural items. Despite these disadvantages, the country had emerged as an economic powerhouse.

Taiwan's educated work force, advanced infrastructure and a highly business friendly environment made it an excellent place to invest. Taiwan enjoyed a GDP (PPP) of $24,500 billion and a per capita Gross National Product (GNP) of $14,267 in 2003.

The Taiwanese model of development had become a case study for many developing countries. Taiwan attracted special attention during the Asian currency crisis of 1997-1999, when countries like South Korea with large diversified conglomerates were affected. Taiwan not only handled the crisis successfully but its economy also showed robust growth.

In the past 10 years, privatization and liberalization had gathered momentum. The Taiwanese authorities had been reducing tariff and non-tariff barriers as part of the country's accession to the World Trade Organization (WTO). Restrictions on financial institutions were gradually being lifted...

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