Group 2PGDM - A

Selwin D’Souza (11)Reemal Prabhod (20)Shikhar Sodhani (53)

INTERNATIONAL BUSINESS – COUNTRY COMPARISONISRAEL & TAIWAN

Country Profile

TaiwanCapital – TaipeiMajor Language-MandarinMajor Religion – BuddhismCurrency –New Taiwan DollarGovernment- Unitary semi-presidential constitutional republicPopulation-23,519,518GDP(PPP) Total- $1.147 trillion Per Capita- $48,703GDP(nominal) Total- $588.334billion Per Capita-$24,985Gini Index-33.6HDI-0.882Time Zone-National Standard Time (UTC+8)

IsraelCapital – JerusalemMajor Language- Hebrew, ArabicMajor Religion – IslamCurrency – New shekelGovernment-Unitary parliamentary republicPopulation-8,541,000GDP(PPP) Total-$297.046 billion Per Capita-$34,833GDP(nominal) Total-$311.739 billion Per Capita-$35,556Gini Index -42.8HDI -0.894Time Zone-IST(UTC+2)Summer-IDT(UTC+3)

TaiwanTaiwan lies 180 km off the southeastern coast of mainland ChinaBoundaries-North- East China SeaEast- Philippine SeaSouth- Bashi Channel of the Luzon Strait South-west- South China Sea

IsraelIsrael is at the eastern end of the Mediterranean SeaBoundaries-North-east-SyriaEast- Jordan and West BankSouth-west-Egypt and the Gaza Strip

Geographical Location

TaiwanTaiwan lies on the Tropic of Cancer and its general climate is marine tropical.IsraelThe climate varies from a Mediterranean climate along the coast to desert climate in the south

Climate

Tectonics and SeismicityTaiwanMajor Seismic faults in Taiwan have produced major quakes .The seismic hazard map for Taiwan shows 9/10 of the island as highest rating (most hazardous).IsraelDestructive earthquakes leading to the loss of life strike about every 80 years.

Natural Resources

Taiwan Israel0

5000

10000

15000

20000

25000

30000

35000

40000

36193

20770

Total

Country Size (s.q km)

Thailand Limestone, marble, coal, petroleum and natural gasLeading export-Electronic equipmentLeading Import-Plastics

IsraelPotash, copper ore, natural gas, phosphate rock, magnesium bromide, clays and sand.Leading export-Cut diamondsLeading imports-crude oil and raw material.

HistoryIsrael• 1948-The state of Israel is founded.• 1956-The Sinai campaign• 1967-The six day war• 1973-October War• 1977-1979-Egyptian Israeli peace• 1982-Lebanon Invasion• 1987-First Intifada• 1993-Oslo agreement• 2000-Second Intifada• 2005-Gaza Withdrawal• 2006-Lebanon war• 2008-Democratic,prosperous,but still on a knife edge.

HistoryTaiwan• 1941-World war II in the Pacific• 1943-Cairo Declaration• 1945-Potsdam declaration• 1945-UN is formed• 1949- People’s republic of China is founded• 1955-ROC-USA mutual defense treaty comes into force• 1971-Republic of China is expelled from the UN.• 1972-PRC & USA promulgate "Shanghai Communiqué“• 1978-ROC is notified by USA of impending break in diplomatic relations• 1979-PRC & USA promulgate Second Communiqué.• 1979-Taiwan Relations Act takes force• 1980-ROC - USA Mutual Defence Treaty is cancelled• 1982-PRC & USA promulgate Third Communiqué• 2000-Democratic Progressive Party comes to power

Government Type :

Unitary parliamentary republic

Unitary semi presidential republic

Judicial System: English common law,civil law and Jewish law.

Taiwan is a civil law country. The emphasis of the legal system is placed on statutes rather than case law.

President -Reuven Rivlin Prime Minister- Benjamin Netanyahu

Head of government

Administrative Divisions

three metropolitan areas: Tel Aviv metropolitan area Haifa metropolitan area and Beer Sheva metropolitan area

Political and legal system

President -Tsai Ing-wenVice-President -Chen Chien-jen Premier- Lin Chuan Vice Premier- Lin Hsi-yao Speaker -Su Chia-chyuan Deputy Speaker- Tsai Chi-chang

ROC retreated to Taiwan in 1949, its claimed territory consisted of 35 provinces, 12 special municipalities, 1 special administrative region and 2 autonomous regions.

Intellectual and property rights

Taiwan• Intellectual Property Rights in Taiwan are well protected. However, as an important trading

country, Taiwan is required by trading partners to establish a legal framework which is in line with IPR treaties. Therefore, in practice, Taiwan's IPR regulations are in line with American/ EU laws.

Israel• In recent years, Israel has taken stronger, more comprehensive steps towards protecting IPR

and the government acknowledges that IPR theft costs rights holders millions of dollars per year, reducing tax revenues and slows economic growth. Israel's present copyright law is based on the United Kingdom Copyright Act of 1911, with subsequent amendments. Protections include the exclusive right to (a) copy or reproduce the work; (b) produce, reproduce, perform or publish translations; (c) publicly perform plays or novels; and (d) make recordings of literary, dramatic or musical works

Political RiskISRAELPolitical Risk: Moderate• Benjamin Netanyahu won early elections and a

fourth term as Israel’s prime minister in March 2015 after disbanding the previous government that still had two years left to serve.

• The coalition government has a slight majority in parliament at 66 out of 120 seats. While able to pass legislation, coalition partners are more likely to pressure Netanyahu for support of their special interests.

• Recently there has been greater sectarian outreach that include plans to invest approximately USD 3B to improve infrastructure in Arab villages.

• In the near term, key areas for the government include further progress with privatization of the economy, tax reforms, lowering the public debt burden and improving competition.

• Security concerns remain a key government priority. These concerns include instability in the West Bank, Hamas, Hezbollah, Iran and Syria.

TAIWANPolitical Risk: Low• The pro-independence Democratic Progressive Party

(DPP) won the January 2016 election, winning both the presidency and a majority in Parliament. Now President Tsai wants to continue to maintain a strong relationship with China, hoping to bring about increased trade and economic opportunities.

• Though President Tsai plans to work with Beijing, being a member of the DPP and at odds with China, could lead to future sanctions and travel bans from China. Chinese tourists account for 50% of total tourism revenue, so sanctions could be detrimental to the economy.

• Protests over various domestic issues are common, with most of the protests being relatively peaceful. Taiwan does not face any substantial threat from foreign terror groups and there is a low likelihood of international conflict.

• President Tsai will likely focus on domestic issues, including restructuring Taiwan’s economy, reducing levels of income inequality and reforming both the pension system and the judiciary.

Political Risk

ISRAEL TAIWAN

ISRAEL TAIWAN

Economic RiskISRAEL

Economic Risk: Low• Israel’s skilled labor force and high standards of

living continue to attract foreign direct investment. However, income inequality in Israel is among the highest in the advanced world.

• The Israeli economy faces several headwinds including significant security risks, political instability and high levels of debt. Weaker global growth, most notably from Europe, could place downward pressure on the export industry. There are, however, several positive factors for the economy including an educated workforce, a diverse economy and a healthy banking financial sector.

• The country is highly reliant on imports of energy and food, as it is poor in natural resources. The lower oil price environment has helped to improve external balances and kept inflation at historic lows.

TAIWANEconomic Risk: Low• Taiwan is a small island economy that has strong

economic, political and historical ties with Hong Kong, Macau and Mainland China. It is an export-oriented economy, making it particularly vulnerable to fluctuations in global demand.

• The government remains supportive of increasing foreign direct investment levels through corporate tax breaks and other business-friendly practices. Taiwan ranks highly at 11th in the World Bank’s 2016 Doing Business survey. However, bureaucracy and corruption are obstacles to conducting business in Taiwan.

• Taiwan’s labor force is one of the worlds most well-trained and educated. The government hopes to increase labor force participation rates to offset a demographic shift towards an aging population.

Economic Risk

ISRAEL TAIWAN

Financial RiskISRAELFinancial System Risk: Low

• The Israeli insurance industry is regulated by the Ministry of Finance’s Capital Markets, Insurance and Savings Department.

• Historically, the Israeli government has had a very high level of involvement in the economy; however, major reforms have been taking place over the past few years.

• Competition in the banking system could be improved. According to the IMF, five locally owned banks account for approximately 95% of total assets. The two largest groups account for over 60% of total assets.

• The housing market continues to be a concern. Prices have increased in recent years due to low interest rates and a lack of supply. The IMF believes the housing sector is overvalued by approximately 30%.

TAIWANFinancial System Risk: Low

• The Insurance Bureau, a branch of the Financial Supervisory Commission, is the main insurance regulator.

• Corporate taxation levels are in line with the rest of the region The corporate tax rate is currently 17%.

• While Taiwan is vulnerable to global market conditions, it does have large foreign exchange reserves and monetary flexibility that provides a cushion against any potential negative economic shocks.

• Taiwan has too many banks in relation to the size of the market, which in turn has led to extreme competition and low profitability. The government has endorsed mergers and international expansions within the banking sector.

Financial RiskISRAEL TAIWAN

Taiwan - Tariff & Non Tariff Barriers• Taiwan's average nominal tariff rate is 8.2 percent• In accession talks, Taiwan has agreed to lower its average tariff rate to

5 percent• These tariff concessions will ultimately impact 3,470 industrial

products and 1,021 agricultural products.

• Sectors tariffs remain important barriers to trade• Automobile• Agriculture• Textile• Industrial Tariffs

Taiwan - Tariff & Non Tariff Barriers (Imports)

Sector Tariffs Tariff Barriers (%) Non Tariff Barriers (%)

Automobile (After WTO Accession) 16 10

Auto Parts 10 5

Agriculture 50+ (On Meat Products) 20

Textile and Apparel Planned to lower down than 10* 3

Industrial Tariffs 10 4

Israel – Import RegulationsFree import

• 250 cigarettes or• 250 grammes of other tobacco products• 1 Litre of spirits• 2 litres of wine• 250 ml of perfume• Legal gifts valued up to 125 USD

Prohibited

• The Ministry of Agriculture in Israel states that “Importing plants and plant products into Israel, either commercially or in passengers’ personal baggage, is subject to permission by the Plant Protection and Inspection Services (PPIS) of the Ministry of Agriculture”. Additionally,” Permits are required for importing fresh produce, plants, plant products, seed, propagation material, and biotic material.” • Any cats, dogs and other animals being imported will require a written statement declaring that they have owned the pet for more than 90 days prior to beginning their flight, a general health certificate from the country of origin and a rabies vaccination certificate. Pets coming from the UK will require a rabies vaccination after no more than 5 days inside the country.

Restricted

• Illegal drugs• Weapons, Explosives and ammunition• Knives and deadly weapons• Plant and plant products – unless permission has been obtained• Soil• Milk and Dairy products• Fresh Meat and meat products• Games of chance and gambling machines• Cordless telephones with a range of up to 900 MHz• Counterfeit money and goods• Pornographic material

Israel – Export Regulations

Prohibited

• Dogs and cats less than 3 months old are restricted from entering the country• Antiquities and items of great cultural significance will require a special permit from the Israel Antiquities Authority in order to leave the country.• Fresh meat, bananas and pineapples; fruit and vegetables from the African continent, especially South Africa are also restricted without appropriate permission.• Religious material being imported for the purpose of preaching is expressly prohibited.

Restricted

• Illegal drugs• Weapons, Explosives and ammunition• Knives and deadly weapons• Plant and plant products – unless permission has been obtained• Soil• Milk and Dairy products• Fresh Meat and meat products• Games of chance and gambling machines• Cordless telephones with a range of up to 900 MHz• Counterfeit money and goods• Pornographic material

Taiwan – Import RegulationsFree import

Allowance for over 20 (or over) year olds. No information available about allowance for under 20 year olds.• 200 cigarettes • 25 cigars• 500g of tobacco• 1L alcohol (regardless of the amount of bottles)• Personal articles that have been owned and used by the passengers abroad up to the value of NT$10,000 for each piece or set.• Combination of personal articles (new items) or gifts up to the value of NT$20,000

Prohibited

• Narcotics and other restricted substances that are for other than medicinal purposes (please note-death penalty applies for drugs smuggling) • Pornography • Any publication propagating Communism• Counterfeit items or tools for producing such items• Gambling articles, lottery tickets and others gabling tokens• Copyright infringing items • Soil, plants and animals (except pets) and products thereof from countries which Taiwan has temporarily or permanently considers a health hazard • Fresh, frozen, salted and boiled marine products • Fresh fruits• Weapons and ammunition, explosives and chemical and biological weapon as well as imitation guns (PLEASE NOTE –death penalty applies for bringing weapons and ammunition)• Endangered species and products thereof unless accompanied by permission. For more information and contact details please contact Bureau of Animal and Plant Health Inspection and Quarantine or contact CITES for permission.• Antiquities and other culturally important items

Restricted

• Pets - health certificate required along with complete and valid inoculations. Contact nearest embassy or the Bureau of Animal and Plant Health Inspection and Quarantine.• Plants, foodstuff and seeds - health certificate required. Contact nearest embassy if you are planning on transporting any foodstuff. • Medication (please contact the nearest embassy or mission to make sure they are allowed)Currency• Gold - declarable, if exceeding value of US$ 20,000 permission required the Ministry of Economic Affairs Bureau of Foreign Trade • Foreign currencies – declarable regardless of amount• Bearer Negotiable Instruments (cheques, money orders, drafts etc.)- declarable when equals or exceeds US$ 10,000.• Local Currency New Taiwan Dollar – up to NT$60,000, any exceeding amounts requires permission from the Central Bank of China• Renminbi/ Yuan (currency of People’s Republic of China) - up to 20,000,- any amount above that needs to be declared and will be placed in bond and will be returned upon leave.

Taiwan – Export RegulationsProhibited

• Pornography • Narcotics and other restricted substances that are for other than medicinal purposes (please note-death penalty applies for drugs smuggling) • Any publication propagating Communism• Counterfeit items or tools for producing such items• Gambling articles, lottery tickets and others gabling tokens. • Copyright infringing items • Weapons and ammunition, explosives and chemical and biological weapon as well as imitation guns (PLEASE NOTE –death penalty applies for bringing weapons and ammunition)• Endangered species and products thereof unless accompanied by permission. For more information and contact details please contact Bureau of Animal and Plant Health Inspection and Quarantine or contact CITES for permission.• Antiquities and other culturally important items

Restricted

Currency• gold - declarable, if exceeding value of US$ 20,000 permission required the Ministry of Economic Affairs Bureau of Foreign Trade • foreign currencies – declarable regardless of amount• Bearer Negotiable Instruments (cheques, money orders, drafts etc.)- declarable when exceeds US$ 10,000.• Local Currency New Taiwan Dollar – up to NT$60,000, any exceeding amounts requires permission from the Central Bank of China• Renminbi/ Yuen (currency of People’s Republic of China) - up to 20,000,- any amount above that needs to be declared and will be placed in bond and will be returned upon leave.

Openness to and Restrictions on Foreign Investment - Israel• Israel is open to foreign investment, and the government actively encourages and supports the inflow of foreign

capital.• There are few restrictions on foreign investors, except for parts of defense or other industries closed to outside investors on national

security grounds. Foreign investors are welcome to participate in Israel's privatization program.

• Investments in regulated industries (e.g. banking, insurance), however, require prior government approval. Investments in certain sectors may require a government license. Other regulations may apply, though usually on a national treatment basis.

• In late 2014, Israel's cabinet approved a privatization plan which would allow the government to issue minority stakes of up to 49% in state-owned companies on the Tel Aviv Stock Exchange over a three year period estimated to increase government revenue by USD$ 4.1 billion. The plan aims to sell stakes in Israel's electric company, water provider, railway, post office and some defense-related contractors.

• There is no screening of foreign investment and no regulations regarding acquisitions, mergers, and takeovers that differ from those that Israelis must follow.

• Israel continues to attract foreign investment, especially in healthcare, information technology, and other capital-intensive industries. OECD countries account for the majority of capital inflows into Israel and the United States is the largest supplier of FDI for Israel.

• The World Trade Organization conducted its fourth and latest trade policy review of Israel on October 31 and November 1 2012. In the past three years the Israeli Government has not conducted any investment policy review through the Organization for Economic Cooperation and Development (OECD) or the United Nations Conference on Trade and Development (UNCTAD).

Openness to and Restrictions on Foreign Investment - Taiwan• Promotes inward FDI to overcome the self imposed public debt ceiling. A network of science and industrial parks,

export processing zones, and free trade zones aims to expand trade and investment opportunities by granting tax incentives, tariff exemptions, low-interest loans, and other favourable terms.

• Taiwan maintains a negative list of industries closed to foreign investment for reasons the authorities assert relate to national security and environmental protection, including public utilities, power distribution, natural gas, postal service, telecommunications, mass media, and air and sea transportation

• With the goal of developing Taiwan into a start-up hub in Asia, Taiwan launched an entrepreneur visa program allowing young foreign entrepreneurs to remain in Taiwan if they raise minimum funding of NTD 2 million (USD 66,000).

• Taiwan has initiated rules to enable intellectual property (IP) rights holders to use IP as collateral in obtaining bank loans, and this and other rules would apply to foreign investors.

• Taiwan runs a Small and Medium Enterprise Credit Guarantee Fund to help SMEs obtain financing from local banks.  Foreign firms may pay a fee to obtain a guarantee from the Fund.  Taiwan’s National Development Fund has set aside NTD 10 billion (USD 330 million) to invest in SMEs.

• The Statute for Industrial Innovation provides the legal basis for offering tax credits for companies’ research and development (R&D) expenditures.  MOEA also runs several research and development subsidy programs.  MOEA’s current target industries for investment are offshore wind energy, logistics, electric passenger and cargo vehicles, information services, mobile broadband services, digital content, semiconductor equipment, biotechnology, and electronic materials. 

•  Taiwan sets foreign ownership limits in certain industries, such as a 60 percent limit on direct foreign ownership of wireless and fixed line telecommunications firms, and a 49 percent limit on direct foreign investment in that sector. 

• Screening of FDI includes an assessment of the impact of proposed investments on a sector’s competitive landscape and protection of the rights of local shareholders and employees.  Screening is also used to detect investments with unclear funding sources, including PRC-source capital.

• Taiwan’s Fair Trade Act was enacted in 1992.  Taiwan’s Fair Trade Commission examines business practices that might impede fair competition.

Israel – FDI TrendsForeign Direct Investment in Israel is expected to be 18400.00 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Foreign Direct Investment in Israel to stand at 7580.56 in 12 months time. In the long-term, the Israel Foreign Direct Investment is projected to trend around 22100.00 USD Million in 2020, according to our econometric models.

Taiwan – FDI Trends

Foreign Direct Investment in Taiwan is expected to be 827.27 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Foreign Direct Investment in Taiwan to stand at 1036.61 in 12 months time. In the long-term, the Taiwan Foreign Direct Investment is projected to trend around 1032.93 USD Million in 2020, according to our econometric models.

Israel - Capital Markets and Portfolio Investment• Up to 70% of credit in Israel is issued to a handful of individuals and corporate entities, some of whom own

controlling interests in banks. Furthermore, the primary profit centers for banks are various consumer banking fees, i.e. credit is given on preferential terms.

• Legal, regulatory, and accounting systems are transparent and conform to international norms, although the prevalence of inflation-adjusted accounting means that there are differences from U.S. accounting principles.

• In the case of publicly traded firms where ownership is widely dispersed, the practice of "cross-shareholding" and "stable shareholder" arrangements to prevent mergers and acquisitions is common, but not directed in particular at preventing potential foreign investment.

• Hostile takeovers are a virtually unknown phenomenon in Israel, given the high concentration of ownership of most firms.

• Israel has no laws or regulations regarding the adoption by private firms of articles of incorporation or association that limit or prohibit foreign investment, participation, or control.

• Israeli banks have all been privatized except for Leumi, with 6 percent of shares remaining in the hands of the State of Israel.

Taiwan - Capital Markets and Portfolio Investment• Taiwan’s banking sector is healthy, and banks are tightly regulated.  The sector’s non-performing

loan (NPL) ratio has remained below one percent since 2010, with a sector average of 0.23 in December 2015.  Capital-Adequacy Ratios (CAR) are generally high, and several of the island's leading commercial lenders are government-controlled, enjoying implicit state guarantees.

• To promote the asset management business in Taiwan, starting May 2015 foreigners holding a valid visa entering Taiwan were allowed to open an NTD account with local banks, replacing the previous dual-identification (passport and resident card) requirements. 

• Taiwan authorities generally welcome foreign portfolio investment in the Taiwan stock market (TAIEX), with foreign equities investment now accounting for 37% in the TAIEX capitalization.

• in addition to the offshore banking unit that has been in operation since 1983, Taiwan launched offshore securities and offshore insurance units, hoping to attract a broader investor base. 

• Foreign portfolio investors are not subject to foreign ownership ceiling except in a limited number of industries.  There is no investment quota for offshore portfolio investors. 

• Payments and transfers resulting from international trade activities are fully liberalized in Taiwan.  A wide range of credit instruments, all allocated on market terms, are available to both domestic- and foreign-invested firms. 

• Taiwan’s capital market is mature and active.  As of the end of 2015, there were 874 companies listed on the Taiwan Stock Exchange, with total market trading volume of USD 703 billion (including transactions of stocks, TDRs, exchange traded funds (ETFs), and warrants).

Porter’s Diamond for Israel

Porter’s Diamond for Taiwan

Taiwan• Corning• Microsoft• IBM • DuPont• 3M• Dell

• Facebook • Apple • Google• Intel• Hewlett Packard• Barclays Bank

Israel

Intel’s market entry strategy into Israel• In 2011, the Israeli government offered Intel $290 million to expand in the country. As a

condition, Intel would employ 1,500 more workers in Kiryat Gat and between 600–1000 workers in the north.

• On October 1, 2011, Intel reached a deal to acquire Telmap, an Israeli-based navigation software company. The purchase price was not disclosed, but Israeli media reported values around $300 million to $350 million.

• In July 2013, Intel confirmed the acquisition of Omek Interactive, an Israeli company that makes technology for gesture-based interfaces, without disclosing the monetary value of the deal. An official statement from Intel read: "The acquisition of Omek Interactive will help increase Intel's capabilities in the delivery of more immersive perceptual computing experiences." One report estimated the value of the acquisition between US$30 million and $50 million

• n March 2014, it was reported that Intel would embark upon a $6 billion plan to expand its activities in Israel. The plan calls for continued investment in existing and new Intel plants until 2030. As of 2014 Intel employs 10,000 workers at four development centers and two production plants in Israel

• So Intel Market strategy was through Merger and Acquisitions.

Dell’s Market entry strategy into Taiwan• The island has an abundance of relatively low-cost engineers, many of

them returnees from the U.S., and strong connections to Silicon Valley. The Taiwan government stimulated the high-tech industry with tax and venture capital incentives. The country has a deeper technical and industrial base than its Southeast Asian neighbors. Taiwan’s entrepreneurs have been much more adaptable than its competitors in Japan and Korea to the rapid change and short product cycles in the computer industry.• Dell set up Dell Taiwan ltd as a subsidiary for laying out its

manufacturing firms in Taiwan.

Taiwans Gloabal competitiveness is 5.3

Israel Gloabal competitiveness is 5

Taiwan’s global companies• In total, there were 41

Taiwanese companies on the 2013 Forbes Global 2000 list. Collectively, the companies had a combined market value of $433.4 billion, with $1.403 trillion in assets; generating $530.2 billion in revenues and $27.7 billion in profits.

Strategic rationale for Taiwan• Electronics :Hon Hai Precision, Taiwan Semiconductor, Quanta Computer are the major global companies and their domain

is electronicsThe main sector of Taiwan is electronics and Taiwan should promote them up by giving them subsidies and tax rebate.

• Innovation and Intellectual Property Rights (IPR): Taiwan’s focus on “knowledge-intensive industries” has made it a global leader in promoting and protecting innovation. It is the third most entrepreneurial society according to the Swiss IMD Business School and ranks at the top of global indices for innovation and R&D expenditure. At the same time, Taiwan has actively taken measures to protect and encourage innovation by strengthening IP laws, assigning an IP Protection Police Squad, and dedicating a functioning IP court in July 2008. This is a strong parameter for a foreign company to invest in Taiwan.

• Government Procurement: Taiwan has been party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA) since December 2008. This has opened government procurement to international bidding by firms from other GPA members, including the United States, and covers over 30 ministries and commissions, in addition to Taipei City and Kaohsiung City governments, and numerous schools, universities, hospitals, and state-owned enterprises.

• Information Technology (IT): Taiwan is on the leading edge of IT development and commercialization across industries. Today Taiwan is helping generate billions of dollars in investment in cloud computing services, spending hundreds of millions of dollars to construct wireless, smart grid, and other green technologies, and continuing to lead the way on hi-tech innovation and manufacturing. So it has to look at should give benefits to the in house IT companies and promote policies for them

• Agriculture: Taiwan is the United States’ sixth largest export market for agricultural products, especially wheat, corn, soybeans, and meat. These agricultural exports, which amount to $3.0 billion annually, comprise 30% of Taiwan’s agricultural import demand and make Taiwan the world’s largest per capita importer of American farm products. This dependence on US must be shifted because it is losing a lot of money in this way. Other markets for importing must be looked into and agriculture within the country must be promoted.

Israel’s global companies• In total, there were 10

Israeli companies on the 2013 Forbes Global 2000 list. Collectively, the companies had a combined market value of $70.4 billion, with $460.7 billion in assets; generating $78.7 billion in revenues and $4 billion in profits.

Strategic rationale for Israel• Microsoft-Cisco-Motorola-Intel-Siemens-Phillips-Medical, IBM, Comverse, ECI Telecom, Keter Plastic, Iscar, Netafim,

Amdocs, Orbotech are just a few of the worldrenowned multinational companies that have already chosen to invest in Israeli technology.

• Entrepreneurial Spirit: Israeli entrepreneurs are driven to be the next global success story like Checkpoint and Teva Pharmaceuticals. Israel is one of the largest centers in the world for start-up enterprises. So they should promote startups by giving them exemption from taxes

• Track Record: Israel`s track record has captured the attention of the global investment community. Foreign direct investments grew from $600 million in 1993 to nearly $15 billion in 2007 with total Venture Capital investments since 1993 exceeding $11 billion International rating agencies have consistently sustained Israel`s credit ratings and reaffirmed their confidence in Israel`s economy. So it continue to be consistent so that its attractiveness for foreign investors increases

• Always Innovating: Israel has the highest rate of research and development investment per GDP in the world. Deeply committed to nurturing entrepreneurship and innovation, Israel`s many high tech incubators support young companies with over 200 active projects, and over 735 graduate projects in the last few years. So it should also look for venture capitalists from foreign companies for these incubator centres to promote the transfer of knowledge and wealth.

• Top Academic Education: With one of the most highly educated workforces in the world, it`s no surprise so many profitable innovations come from Israel. Israel enjoys the highest ratio worldwide of engineers in the workforce, and the highest ratios in the world of university degrees and academic publications per capita. So it should look at attracting more MNE’s for the employment of such engineer graduates.