Page 1 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Ph.D. of Business Administration Candidate ： Tong, Jone-Ye 22 nd February 2009

Page 2 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Overview of This Presentation The purpose of this Presentation is to present the overall study and conceptual networking development of the Thesis: “Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation” by using an integrated and extracted present. This Presentation will use 5 Sections to demonstrate Problem and its Background; Theoretical Framework; Methods of Research; Presentation/Analysis/Interpretation of Data and Conclusions /Recommendation of the Thesis. Duration of this Presentation will be 20 minutes.

Page 3 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 1: Problem and its Background - 1 Problem Identified  The importance of international trade can be recognized upon the countries’ dependency on external trade. upon the countries’ dependency on external trade. Currently, the economy of almost all nations in the world Currently, the economy of almost all nations in the world is connected with international economy. The economic is connected with international economy. The economic dependency among different countries increases, thus dependency among different countries increases, thus international trade issues become more complicated. international trade issues become more complicated.  Taiwan is an island country, and according to the Economy Statistics, external trade dependency of Economy Statistics, external trade dependency of Taiwan is high, and has increased rapidly. over 100% Taiwan is high, and has increased rapidly. over 100% for four years (102.67% in 2004, % in 2005, for four years (102.67% in 2004, % in 2005, % in 2006 and % in 2007) and total volume % in 2006 and % in 2007) and total volume of external trade reached $465.7 billion USD in of external trade reached $465.7 billion USD in 2007.

Page 4 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 1: Problem and its Background - 2  With regard to increasingly complicated trade issues, the direct and immediate acquisition of correct information, direct and immediate acquisition of correct information, such as immediate international economic development such as immediate international economic development and the policy of the government, would result in the and the policy of the government, would result in the planning of proper operational directions. planning of proper operational directions.  Taiwan government has actively promoted e-government and network-based framework, But for e-government and network-based framework, But for those who are not familiar with e-network application, those who are not familiar with e-network application, the process is complicated and cannot acquire the the process is complicated and cannot acquire the information on time. There is currently the lack of information on time. There is currently the lack of classification, assessment and integration and immediate classification, assessment and integration and immediate providing from governmental or private organizations. providing from governmental or private organizations.

Page 5 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 1: Problem and its Background - 3  International economic organizations have evidently expended in recent years for supporting sustainable expended in recent years for supporting sustainable development of regional economy. development of regional economy.  There is only few scholars have probed into the specific regulations of some economic organizations, and there is regulations of some economic organizations, and there is the Lack of complete and systematic study, the Lack of complete and systematic study, generalization and framework in Taiwan. generalization and framework in Taiwan.  Lack of websites can systematically provide intelligence information (including trade regulations of global and information (including trade regulations of global and regional economic organizations) for trade operators in regional economic organizations) for trade operators in Taiwan. Taiwan.

Page 6 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 1: Problem and its Background - 4 Problem Solution  To build systematically construct effective international economic intelligence knowledge and intelligence economic intelligence knowledge and intelligence information supply of strategy in Taiwanese government is information supply of strategy in Taiwanese government is the solution. the solution.  Select main target markets (U.S., Europe, ASEAN 10, Japan, Hong Kong and China) where Taiwan has 92% Japan, Hong Kong and China) where Taiwan has 92% gross export value and gross import value 79.2%, and identify gross export value and gross import value 79.2%, and identify economic organizations of these countries (WTO; OECD; economic organizations of these countries (WTO; OECD; NAFTA; FTAA; EU; ASEAN and APEC ). NAFTA; FTAA; EU; ASEAN and APEC ).  Collect “Trade Policy” and “Regulation Execution” of these Economic Organizations and the “Measures” of Taiwan Economic Organizations and the “Measures” of Taiwan Government, and then, transformed them into an information Government, and then, transformed them into an information structure by hierarchical framework. structure by hierarchical framework.

Page 7 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 2: Theoretical Framework - 1 Findings from Related Studies  The dependence on e-information on international trading operation is increasing rapidly in Taiwan: operation is increasing rapidly in Taiwan: * Internet prevalence of overall industry in Taiwan has grown; * Internet prevalence of overall industry in Taiwan has grown; * Most of small and medium enterprises have used broadband * Most of small and medium enterprises have used broadband Internet; Internet; * Acquiring economic information through Internet is still the * Acquiring economic information through Internet is still the key relied on by international trade managers, since it is key relied on by international trade managers, since it is convenient, immediate, diverse and cheap; convenient, immediate, diverse and cheap; * Encounter the difficulties, is the key words, excess data * Encounter the difficulties, is the key words, excess data searched, charge of membership of the websites, incomplete searched, charge of membership of the websites, incomplete information or slow renewal, insufficient language information or slow renewal, insufficient language proficiency, and difficulty in the use of the database proficiency, and difficulty in the use of the database interface. interface.

Page 8 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 2: Theoretical Framework - 2  Economic information with “intelligence knowledge” can be applied to corporate operational strategy, andIntelligence applied to corporate operational strategy, and Intelligence Information is critical in competitive international trade Information is critical in competitive international trade market. market.  Japanese firms are the evidence that they could quickly grew from the 60s to 70s and entered the U.S. marketapplied from the 60s to 70s and entered the U.S. market by applied competitive intelligence knowledge. competitive intelligence knowledge.

Page 9 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 2: Theoretical Framework - 3 Concept for Framework Development  Focus on the acquisition, management and application of two-way information of international trade, and collected the information on information of international trade, and collected the information on the target markets and their economic organizations, and the the target markets and their economic organizations, and the interactive trade information, from the view of practical interactive trade information, from the view of practical international trade. international trade.  Define “Economic Factors” in accordance with “Static” and “Dynamic” characteristics of trade interactive information, and “Dynamic” characteristics of trade interactive information, and provide hierarchical numbers to show their levels to form the initial provide hierarchical numbers to show their levels to form the initial conceptual framework. conceptual framework.  Identify Economic Factors for foreign trading environment: General Institute; Anti Dumping; Dispute Settlement Meeting; Agreement Institute; Anti Dumping; Dispute Settlement Meeting; Agreement on Trade-Related Investment Measured; Agreement on Trade- on Trade-Related Investment Measured; Agreement on Trade- Related Aspects of Intellectual Property Rights; Investment and Related Aspects of Intellectual Property Rights; Investment and Competition; Environment; Development. Competition; Environment; Development.  Identify Economic Factors for Domestic trade operations: Agriculture; Non-agricultural products; Service industry trade. Agriculture; Non-agricultural products; Service industry trade.

Page 10 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 3: Methods of Research - 1 Intelligence Knowledge Development Literature and Study Review International Economic Knowledge for domestic trading operators Measure Economic Knowledge in terms of Trading Factors Information Supply Strategy Yes No Can it be interpreted via Taiwan e- environment effectively? Regional or global economic groups or organizations that mostly relate to Taiwan international trade business

Page 11 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Information Supply Strategy Section 3: Methods of Research - 2 External Trading Factors Internal Trading Factors Foreign Environment Domestic Environment Economic Factors Conceptual Information Networking Demonstration Conceptual Information Networking (WTO) Level 1: Agreement Level 2: Agreement Items Under Level 1 Level 3: Industry classification Level 4: Agreement Items Under Level 3 Level 5: Description of Articles or Agreement Items of Level 4 Trading Factors Foreign Economic Factors (Static):Domestic Economic Factors (Dynamic): Level 1: Domestic measures with respect to Level 1 Foreign Economic Factors. Below Level 1: Domestic measures with respect to correspondent Foreign Economic Factors below Level 1.

Page 12 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 4: Presentation, Analysis and Interpretation of Data - 1 Input of the StudyProcess of the StudyOutput of the Study Literature and Study Review International Economic Knowledge measured in terms of: 1. Degree of dependence on foreign trade in Taiwan; 2. Main target markets of export and import of Taiwan; 3. Trade Policy and Regulation Executions of main export and import target markets of Taiwan; 4. Strategy measures of Taiwan Government with respect to external economic variations of main export and import target markets of Taiwan; 5. Dependence of Internet applications in Taiwan industries; 6. Current Trade e-environment in Taiwan. 1. Information infrastructure of trading is the base of development of international trade strategy and promotion of international trade application in the current complicated and changeable environment. 2. The direct and immediate acquisition of intelligent international trading information is needed for Taiwan trade operators.

Page 13 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Input of the StudyProcess of the StudyOutput of the Study Economic /Trade statistics /analysis in Taiwan on different countries from 1996 to Participation of Taiwan and related economic nations in regional or global economic Groups or organization. (This Study, Chapter 3 Table 3.1 to Table 3.3, Chapter 2 Table 2.1 to Table 2.4, Figure 2.1 to Figure 2.3) Information supply strategy described in terms of: External Trading Factors:  Economic/Trading information of economic groups or organizations;  Trade policy of economic groups or organizations;  Trading Agreements of economic groups or organizations. Internal Trading Factors:  Government trading policy/action;  Government protection policy/action;  Government assistance policy/action;  Government reward policy/action; Main Taiwan target markets:  U.S.;  Europe;  ASEAN 10;  Japan;  Hong Kong;  China. Trade Policy/Regulation Execution in economic organizations of Main Taiwan target markets and the “Measures” of Taiwan government:  WTO;  OECD;  NAFTA;  FTAA;  EU;  ASEAN;  APEC. Section 4: Presentation, Analysis and Interpretation of Data - 2

Page 14 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 4: Presentation, Analysis and Interpretation of Data - 3 Input of the StudyProcess of the StudyOutput of the Study Economic Analysis on Taiwan’s Participation in WTO Multilateral Trade Negotiation Strategy (91MOEABOT002) Identify Economic Factors in terms of: Foreign:  General Institute;  Anti Dumping;  Dispute Settlement Meeting;  Agreement on Trade- Related Investment Measured;  Agreement on Trade- Related Aspects of Intellectual Property Rights;  Investment and Competition;  Environment;  Development. Domestic:  Agriculture;  Non-agricultural products;  Service industry trade. Influences of economic factors and classification /Chapter 2 Table 2.1, (Chapter 4 /Table 4.1)

Page 15 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 4: Presentation, Analysis and Interpretation of Data - 4 Input of the StudyProcess of the StudyOutput of the Study This Study (Chapter 4) Classify the influence scales of Economic Factors by hierarchical relationship and constructed the framework Hierarchical symbols of WTO factors, Chapter 2 Table 2.2, (Chapter 4/ Table 4.2) This Study (Chapter 5) Collect, plan and integrate Intelligence Knowledge with respect to Economic Factors, and demonstrate the Pilot Economic Factor Framework Design. Influence scale and classification of domestic and foreign economic factors, Chapter 2, Figure 2.1 and Figure 2.2, (Chapter 4/ Figure 4.1 and Figure 4.2) Conceptual Networking design/ Appendix 2, (Chapter 5 and Appendix 1 to Appendix 7).

Page 16 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation Section 5: Conclusions and Recommendation - 1 If international trade intelligence information can be effectively collected and applied through a Supply System of “International Economic Information” and “Governmental Measures” to allow Trade Operators to be more flexible and Companies would certainly grow in the current complicated and changeable environment. Conclusions

Page 17 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation  In this Study, the “Conceptual Networking for International Trade Operation” is only a small part of the overall Trade Operation” is only a small part of the overall economic information in terms of practical trade. In order economic information in terms of practical trade. In order to fulfill overall trading demands, it must rely on to fulfill overall trading demands, it must rely on government, private organizations, or institutes with government, private organizations, or institutes with sufficient manpower and resources. sufficient manpower and resources.  Based on the “Conceptual Networking for International Trade Operation” with normalized “risk International Trade Operation” with normalized “risk management mechanism”, this Study provides a complete management mechanism”, this Study provides a complete application framework for domestic companies of application framework for domestic companies of international trade or related firms to reduce risk and have international trade or related firms to reduce risk and have highly flexible operation and management, and will be their highly flexible operation and management, and will be their direction of future studies. direction of future studies. Recommendation Section 5: Conclusions and Recommendation - 2

Page 18 International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation End of Presentation Tong, Jone-Ye International Economic Intelligence Knowledge and Information Supply of Strategy in Taiwan: Basis for the Development of Conceptual Networking for International Trade Operation