Day 3 in Taiwan: Lecture in National Taipei University, Visit American Chamber of Commerce in Taipei, Visit Tamkang University

In the morning we visited National Taipei University where we had a lecture on Taiwan’s economy. Taiwan is one of the high performance Asian economies with high growth rate, low inflation and low unemployment rates. As for 2007, the GDP rate equals to 5.7%, 1.8% inflation, and 3.9% unemployment. Economists in Taiwan care about GDP per capita because it’s the best single indicator for welfare measure. People in the countries with high GDP per capita enjoy a better life. Unlike the US, Taiwan is relatively small economy and thus the domestic demand is less important as it is in the US. Taiwan sells more to foreigners than it buys from them. Taiwan relies more on foreign demand. Trade is important to small open economy like Taiwan.

Then we visited American Chamber of Commerce in Taipei. ACC is a non-profit, non-partisan business organization. It’s dedicated to promoting the interests of international business in the Republic of China. ACC has become the largest, most effective business organization in Taiwan. They provide an opportunity for participation in industry-specific committee meetings, chamber-wide monthly luncheons, executive educational programs and information-packed conferences and symposiums. However, their annual fees are high and due to the current state of the economy, their business is struggling.

Visiting Tamkang University was probably one of the best moments in Taiwan. We actually had to participate in one of the classes. It was the first time when I actually got a chance to meet Taiwanese students, who were very friendly and welcoming. It was a management science class where we had a case and five questions. The answers had to be to be presented in class. Even though we talked about everything but the assignment, I was very happy to meet them and share my first impressions of Taiwan. When it was time to present…….Yes, I was the one in front of about a hundred people, presenting… Surprisingly, after I got up there after other two people, the class got quite and they actually listened to what I was saying. Also, after four people presented, there was a vote…and I WON! It was a very memorable experience.

Then we had a TKU campus tour and Tansui tour. We were broken down into groups of 3-4 people and 4 TKU students that were with us. Mee, Monzir, and I got the best group ever! I was very impressed with their English language and how approachable they were. We spent the whole evening together, going around campus, going to the night market and just having a lot of fun. People in Taiwan are very friendly and I never really felt as an outsider. Even though I cannot speak Mandarin, they could still understand what I wanted…Unlike in the US, most people in Taiwan are not only friendly, but also helpful and they actually try to understand, even if it takes time and patience. That was the day when I fell in love with Taipei and its people…I would definitely come back to visit, or even consider being an expatriate there…

I almost forgot: we tried a lot of weird food at the night market. That was a great experience and I think in order to learn and respect different culture, trying its food is one of the best ways to learn, especially while interacting with locals who make you try stuff. I have to say I would never do it on my own.

Day 2 in Taiwan: National Taipei University, Hsinchu Science Park, and Elite Semiconductor Company

We had a campus tour at the National Taipei University. TPU is regarded as one of the best universities in Taiwan, particularly in the education of law, business, public administration and social science.  We had a class where students and Master of Marshal arts showed us some of the self-defense moves.

After the entertainment, we got an insight of Chinese calligraphy. I even learned how to write my name:

After all the fun stuff, we had a lecture on Taiwan's high tech industry. Taiwan is a major cog in the worldwide supply chain: In total, it is the world's largest supplier of electronic devices. Taiwan is good at Contracts equipment manufacturing, electronics manufacture service, original equipment manufacture, and original design manufacturing. Taiwan is also good at providing integrated services, turnkey solution of cellular phone, and Atom System-on-Chip Microprocessors for Intel. When it comes to holding inventory, companies have a short product lifecycle, long production time, fluctuated demand, uncertain supply, rush orders, and proliferation of products.

Nominal GDP grew by 127.2 % between 1990 and 2006. The value of inventory increased by 78.4% during the same time period. Inventory costs as a percent of GDP declined from 17.9% in 1990 to 14.1% in 2006. The absolute value of inventory increased during this time period, but it decreased as a percentage of GDP.

In electronic industry some of the inventory is being kept. The reason is that batching economies or cycle stocks arises from three sources: procurement, production, and transportation. Scale economies are often associated with all three, which can result in the accumulation of inventory that will not be used or sold immediately. There is also a safely stock due to uncertainly which all organizations are facing. On the demand side, there’s usually uncertainty in how many customers will buy and when. On the supply side, there might ne uncertainty in obtaining what is needed from suppliers and how long it will take for the fulfillment of the order. Another reason to keep stock is the time/in-transit and work-in-process stocks. There are also seasonal stocks. Seasonality can occur in the supply of raw materials, in the demand for finished goods, or in both. Seasonality can greatly impact transportation.

After the lecture we visited Hsinchu Science Park. Science parks are established to introduce high-tech industries and attract talent to Taiwan, promote the upgrading of Taiwanese industries, balance regional development and drive national economic development. One of three science parks existing in northern, central and southern Taiwan, the Hsinchu Science Park(HSP) is primarily focused on semiconductors; meanwhile, the Central Taiwan Science Park is focused on aviation, precision machinery, and optoelectronics, while the Southern Taiwan Science Park is focused on optoelectronics. Consequently, each of these science parks possesses its own respective core technological advantages.

Regarding the overall performance of the Park in 2004, 335 of the 384 Park companies were domestic companies while 49 were foreign. The total revenue of the six main industries reached US$32.5 billion, representing a growth rate of 27% in 2004. Accumulated paid-in capital was US$32.2 billion.

Regarding new investment, 48 applications from new companies were approved in 2004, representing total capital of US$1,290 million. Meanwhile, regarding applications for increased investment, 55 companies applied for investment, totaling US$2,159 million.

Additionally, 97 Park companies were listed on the TAIEX and OTC markets at the end of 2004. Furthermore, Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), United Microelectronics Corporation (UMC), and Macronix International Co., Ltd., were also listed on the American Depository Receipts (ADR) Market. (2)

The next activity was a Visit to Elite Semiconductor (ESMT) where we had a lecture about the products and overall performance of electronic companies doing business in Taiwan.

 

 

 

Day 1 in Taiwan - Taipei city tour

Our first experience in Taipei was the MRT. The Taipei MRT is one of Taipei's most significant achievements. The subway provides a safe, convenient, comfortable and appealing transportation to the most populated areas of

 Taipei. With an MRT route map, foreign visitors can travel anywhere in Taipei. 

All the stations are translated in English, as well as announcements. The MRT makes Taipei one of the modern cities in the world.

In the morning we first went to Taipei 101. Taipei 101 is currently the world's tallest building - if you count its massive 60-foot spire. The design of Taipei 101 represents Chinese culture. Both the building's interior and exterior incorporate the Chinese pagoda form and the shape of bamboo flowers.

Next we went to the food court located in the building. I think that was the best food court we’ve been to. I have also tried a popular pearl milk tea, which is commonly known as bubble tea. This drink is popular in many parts of the world, but I never had a chance to try I until now.

After our wonderful meal, we went to the National Palace Museum. It has a collection of over 650,000 pieces of ancient Chinese artifacts and artworks, making it one of the largest in the world. One of the main treasures in the museum was the Jadeite Cabbage, which I didn’t find very appealing. The unique part was when looking closely, you can see a large and a small grasshopper will appear camouflaged in the leaves. The ruffled semi-translucent of attached leaves is due to the masterful combination of various natural color of the jade to recreate the color variations of a real cabbage. (1)

In the evening we all went to one of the most crowded night markets in Taipei - Shilin night market, which had the nastiest bathroom I’ve ever been to :) I wish I didn’t go to the bathroom first, because I couldn’t really eat anything afterwards. The only food I tried was stinky tofu. No wonder they call it stinky, it has a very odor which might make you puke at first. The odor of stinky tofu is said to resemble that of rotten garbage or manure. Surprisingly, the taste is kind of mild.  There are many variations of tofu and I have to say I kind of like it with other food. Stinky tofu can be eaten cold, steamed, stewed, or most commonly, fried. People here say the more it stink, the grater it tastes… 

Getting ready...

Yesterday I was making a list of things I need to take with me. I travel overseas every summer, but this is the first time I’m writing an actual list! I’ve never been to Japan or Taiwan, so I’m not sure what I’m going to take with me. All I know is that I should make it less weighty so I can carry it without any problems. I actually ended up buying a different suit case! I’ve already had six of them at home, but none of them worked- it was either too big/small, or too heavy. So now I have seven of them! Also, due to the current H1N1 pandemic, I got a few surgical masks, just in case… :) I was reading some international news and almost everyone wears a mask at the airports, especially at the international once; and China is using an infrared scanning process to check for passengers with a fever. Regardless of that, I’m still very excited about this trip. This should be a wonderful learning opportunity.