TAIWAN

This research assess the implications for international management of foreign direct investmentùboth inward and outwardùinvolving the Republic of China (Taiwan). The focal period of this assessment is 1993-1997. The foreign direct investment into and out of Taiwan during this period is presented in Table 1, which may be found below on this page.

Foreign Direct Investment: Taiwanù1993-1997

Source: Economist Intelligence Unit, 1997.

As the data presented in Table 1 indicate, Taiwan's outward forward direct investment far exceeds the country's inward foreign direct investment. A part of this difference is explainable by what has been termed Taiwan's "check book diplomacy" (Organization for Economic Cooperation and Development 117). An important part of this difference, however, is explainable by the policies of the Taiwanese government that discourage direct foreign investment in Taiwan (Pierson 1170). The target regions for Taiwan's outward direct foreign investment and the source regions of Taiwan's inward direct foreign investment are identified in Tables 2 and 3, respectively, which may be found below on this page.

Target Regions for Outward Foreign Direct

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ernment and the economy's private sector follows much more closely the Japanese model than it does the American model. Taiwan has typically been successful in maintaining a balance between its imports and exports (World Bank 236). Further, the country typically imports a minimal amount of food products, as it is, essentially, self-sufficient agriculturally. The country is a leading producer of both rice and sugar. In manufacturing, the country makes an effort to produce that which it consumes. It has, however, been widely accused of violating international patents and copyrights in its production for domestic consumption. While Taiwan typically maintains a near trade balance overall, the country, nevertheless, had often developed trade imbalances with specific countries (International Monetary Fund 168). Taiwan typically experiences significant and unfavorable trade balances with: (1) Japan, upon whom it depends heavily for both consumer and industrial products; and (2) both Kuwait and Saudi Arabia, on whom it depends for most of its energy requirements. Conversely, Taiwan typically enjoys significant trade surpluses with the United States, the Federal Republic of Germany, and Hong Kong. In the case of both the United St
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Approximate Word count = 1480
Approximate Pages = 6 (250 words per page)