Generalizes on the best strategy to enter the market, e.g., visiting the country; importance of relationships to finding a good partner; use of agents.
Most new-to-market exporters entering Taiwan begin by finding a local partner to serve as an agent, distributor, and/or representative. Agents and distributors are the most common partnerships used by foreign firms to gain their initial foothold in Taiwan. The majority of Taiwan firms are small- and medium- sized enterprises (SMEs) that are active in trading and manufacturing, offering a large pool of prospective trading partners that can capably represent U.S. companies in Taiwan.
Taiwan’s banking and international remittance systems are well developed, and there are not any foreign exchange regulations that would significantly hamper a U.S. exporter from receiving payment for goods shipped and services provided. Irrevocable letters of credit (L/Cs) are widely used, and L/Cs from leading Taiwan financial institutions are typically confirmed by U.S. banks.