Strategies for Taiwan in the face of the changing trading environment in the Pacific Rim

The trading environment in the Pacific Rim is changing rapidly. Taiwan faces several challenges in the area. First, world trade is becoming more competitive. Numerous countries have adopted export-led growth policies. Second, the formation of APEC presents another challenge to Taiwan. APEC has the possibility of evolving into a free trade area. Third, the creation of WTO brings a new dimension to the conduct of trade between nations as trade barriers are reduced around the world. Finally, the formation of NAFTA poses another challenge for Taiwan.;This study recommends that Taiwan should: (1) Diversify its export markets; (2) Seek entry to WTO; (3) Promote free trade through APEC; and (4) Increase investments in Mexico.;The policy analysis method is utilized to find policy alternatives for Taiwan to address the trade challenges in the Pacific Rim. Policy options are analyzed for their ability to satisfy the criteria of political feasibility, economic feasibility, and goal satisfaction.