Taiwan is an island country located off the southeastern coast of China with a population of over 23 million people. It has a capitalist economy that was formerly guided by the government but is now driven by foreign trade, especially in electronics and other high-tech industries. Taiwan has a highly educated workforce and relies on research and development to drive its economic growth. The country has a large textile industry, including production of nylon 6,6, which was invented in the US and is now a major Taiwanese export.

1. Taiwan
Taiwan
Cayla O’Connor, Jayla Moore, Melissa Stober,PhuongNguyen, and Natalie Sereseroz

2. Demographics
• Capital: Taipei
• 13hrs ahead of Washington, DC
• Location: Eastern Asia – Southeastern coast of China
• slightly smaller the Delaware and Maryland combined
• Climate: Tropical with a monsoon season June to August
• Terrain:
– East – mostly mountains
– West – flat to gently rolling plains

3. Political Climate
• Government: Multiparty Democracy
• Economy: Capitalist economy with gradually decreasing
government guidance of investment and foreign trade.
• Foreign trade is the engine powering Taiwan’s economy.
• Military: Large military establishment
• Legal System: Civil Law system
• Language: Mandarin Chinese
• Religion: 93% Buddhist
• Population: 23,071,779

4. Political Climate
•Age majority in Population: 73% of
15-64 years old
• GDP – per capita: $35,700
• Industry Sector(textile, electronics, and consumer products): is 36% of
the labor force
• Exports: #17 in the world ($273 billion)
• Culture: blend of Chinese, Japanese, and western influences The United
States the 3rd largest trade partner of Taiwan, China being the first
• Developed Economy
• Taiwan relies on its transformation to high technology and service–oriented
economy.

5. Labor Laws
•World Trade Organization (WTO) in
Jan. 2002 and reduced about 4,500
tariffs
•Labor Laws protect the rights of
workers and addresses labor issues like
workers welfare, gender equality, labor
management relations, safety and
health.
• Labor Insurance act: insurance coverage to employees in the private sector,
like industrial workers including workers in the textile area
• Labor Standards law: defines wages, contracts, and outlines the rights and
obligations of workers and employers.
– Prescribes working hours, work leave and employment of women and children.
– Offers protections against unreasonable work hours and forced labor
– allows workers the right to receive compensation for occupational injuries and layoffs.

6. Labor Standards
•Employers can not make an employee
who is already employed somewhere
else perform work for them. Employers
must have worker record cards which
include main and background
information of employees
• Employers must provide a safe and clean workplace
• Wages must be paid twice a month unless otherwise specified and
cannot fall behind basic wage. Overtime is paid between 1/3-2/3 of the
normal rate.
• May not exceed more then 84 working hours for 2 weeks with one
regular day off and at least a 30 min break for 4 continuous work hours
• Children under 15 are prohibited to work and between 15-16 can not
work more then an 8 hour day

7. Firms in Taiwan
• Invista
•Rhodia
•Dupont
•Solutia
•BASF
•ASAHI

8. Trade Regulations
• Tax Value of 5% applied on the Cost, Insurance Freight
value (CIF)
• Port charge of .5% applied to CIF + Duty + Value-Added
tax (VAT) for shipments by sea
• U.S.-Taiwan Trade and Investment Framework
Agreement (TIFA)
– Trade regulation on produce
– Often regarded as an important step toward FTAs

9. Nylon 6,6
• Invented American organic chemist Wallace
Hume Carothers
• In 1935 Nylon became the world’s first silk
substitute.
• Today it is used in soft goods that require high tensile
strength, resilience, and abrasion resistance.
• Price point- $1.70-$1.73/lb market price.

10. Characteristics
of Nylon 6,6
• Nylon 6,6 is the strongest of all nylon
• Abrasion Resistance
• Low friction coefficients
• Lightweight
• Windproof
• Stretchy
• Colorfast
• Resistance to Organic substances like oils and alcohols

11. Interesting Facts
• Nylon 6,6 was initially developed in order to replace silk
stockings during World War II. Silk was used for parachutes
for soldiers
• Nylon was the world’s first thermoplastic- a plastic that is
liquid when heated to melting point then turns solid when
significantly cooled.
• 70% of the suppliers of world famous Athletic Brands come
from Taiwan

12. Foreign Presence
• With the use of foreign direct investment, many foreign firms have
expanded manufacturing and Research and Development operations to
Taiwan.
• Firms in Taiwan reap the benefits of tax incentives implemented in the
early 1980s by the Executive Yuan in order to encourage Taiwan’s
economic growth. Rising labor cost ushered in the era of Research and
Development in the Synthetic textile industry.
• The Taiwan Miracle

13. So, Why Taiwan?
•Link Between East and West
coast
• Taiwan acts as an intermediary to facilitate long term
relationships with the foreign buyers and various
manufacturers.
• Taiwan's Free Trade Zone is the most competitive and has
already established production bases in countries all
around the world.
• Highly efficient customs system, strong manufacturing
capabilities, and a B2B infrastructure
• Newer Technology
• Increased focused on Research and Devlopment

14. So, Why Taiwan?
Region Aim Tax Operating Authority Businesses
Taiwan Global operational 17% Private, single Import, export, storage,
management window labeling, in-depth
processing and
manufacturing
Singapore Logistics 17% Private, single Export
window
Korea The central 22% Central or local Storage, sales, simple
government processing
Mainland Center of 25% Local government Processing,
China commodities and manufacturing, and
gatherings international trade
Japan International 30% Local government Processing and
interaction manufacturing