Business and Economic Strategies in Taiwan, from 1970s to Present
Taiwan has grown over the last half century from a poverty stricken nation to an economically-stable country and this has seriously caught the attention of some developed western countries. The country has had one of the largest populations lavishing in poverty over the years but through hard work from its people as well as the government’s commitment, its economy boasts as one of the fastest growing not only in Asia, but also globally. To achieve this economic and business growth, Taiwan has concentrated mostly in two sectors: agriculture and industrial growth. It’s therefore important to evaluate the strategies adopted by this country to achieve this economic stability and shift from a poverty stricken nation to a modern and growing economy.
Economic strategies
The strategies adopted by the Taiwan government that contributed significantly to its growth include available labor, resources and creation of a conducive environment for investment.
Changing the industries from light to heavy
The light industries mostly concentrate on the production of goods for the day-to-day use while the heavy industries concentrate on the production of exports and long-term products that are beneficial to the economy (Booth 29). After the privatization of some government-run industries, the private sector embarked on developing the heavy chemical industries by slowly increasing the funding offered to them while reducing the money allocated for the light machinery. This resulted into increased funding to education institutions to encourage for innovation and originality in production (Yusuf and Nabeshima 99).
Opened doors for investment
Only the self-sufficient and self...
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...adopted to maintain stability and social ethics for observing law and order (Ash and Greene 61). Through the legislative governance, the investors became free to invest as restrictions for trade were eliminated and this catapulted the revenues in foreign exchange to match that of developed countries. Although it encountered some problems during its transition, the investment opportunities it bore helped project the economic growth to its current position of among the fastest growing economy (Chakrabarti 71).
In conclusion, the success of this country was influenced by the external environment as well as the domestic stability. The international communities created options for free trade and it’s these options that helped in Taiwan’s economic growth. The domestic influences include social stability and harmony, education for all, hard work and, stable government.
A major factor that advantaged the early growth was free enterprise. This system allowed individuals and private firms to own the means of production including land, machinery, and the work place. The people were able to decide how they can make a profit and determine business pra...
In States vs. Markets, Herman Schwartz presents two economic development strategies that have been employed by late industrial developers in order to either take advantage of existing comparative advantages or facilitate rapid industrial growth through state intervention and provision in order to gain a competitive foothold in world markets. Schwartz demonstrates how China was able to employ elements of these development strategies to generate capital from an abundant rural labour supply in order to pursue industrial development and attract foreign investment through economic reform starting in the late 1970's.
Kuo, Wen H. "Democratization And The Political Economy Of Taiwan." International Journal Of Politics, Culture & Society 11.1 (1997): 5-24.Web. 09 Feb. 2014.
Having thrown open its doors to capitalist investment and expanded at a miraculous rate over the past three decades, China has now surpassed Japan to become the second biggest economy in the world. Since the early 1980s, China's economy has metamorphosed from a centrally planned syst...
...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)
be the increase in jobs. Creation of new jobs will take place in the manufacturing
Few concerns have surfaced in economy that plays a vital role in agriculture and therefore in economic development. Developing countries and more even, LDC’s, are dependent on agriculture for income for the population. But achieving good agriculture means that many things have to change within these countries self. Good transportation is need in these countries and more often than not the infrastructure doesn’t allow this to happen and transporting agricultural goods are more expensive for these countries, thus these countries need capital and investments to further their outputs and inputs to gain bet...
China and India both have ponderous bureaucracy systems created by history and tradition. Since the opening of China’s market to foreign investors in 1978 and India in 1991, they have been gradually moving from centrally planned economic system towards decentralisation. However, besides their continuous movements in order to provide businesses a better environment, significant problems still exist.
Without a successful business strategy put in place the company would fail and be unable to compete with competitors. There would be on way of knowing what resources are required. No planning for the future of the business. If there are no targets set out to achieve there would be no way of measuring how successful the company has been.
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
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In this essay we look in-depth on how government strategies and economic policy play a crucial role in the success of High Performance Asian Economies (HPAEs) during 1960 to 1990 (World Bank 1993).There are eight countries within HPAEs: South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia and Japan. Its economic development has significantly rise that it was name ‘East Asia Miracle’ (World Bank, 1993).
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Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
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