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The Comparison of Strategies with Strengthening Competitiveness of Agricultural Product Markets between R.O.C. (Taiwan) and Germany
Title: The Comparison of Strategies with Strengthening Competitiveness of Agricultural Product Markets Between R.O.C. (Taiwan) and Germany. Objective: There are some purposes of this project. On the one hand, it is to understand and to analyze the current competitiveness of agricultural product markets with respect to the competition strategies adopted by R.O.C. and Germany. On the other hand, this project is to compare these strategies in terms of competitive advantages and disadvantages based on the current competitiveness. Finally, this project will draw some policy implications for R.O.C. government (especially to COA) and for some specific industries with respect of market access after joining WTO. Executing Institute: 1. Department of Marketing, National Chung Hsing University, Taiwan, R.O.C. 2. Department of Agricultural Economics, National Chung Hsing University. 3. Bonn University, Germany. Abstract: R.O.C. (Taiwan area) will be the member of WTO at the end of 2001. By WTO rules, Taiwan must adopt the market access to import agricultural products, so as to induce more competition for domestic products on imported products. The de facto case is that COA has been adopted some agricultural projects involving with strengthening competitiveness of domestic products since mid-1997. These projects are divided into three kinds, i.e., to reduce costs of production and marketing, to lighten the government burden of compensation aids for imported damages, and to segment markets, with respect to strengthen competitiveness. Germany is the member of WTO for a long time. Based on Agenda 2000, the agricultural reform continues the process of market and environment orientation in the agricultural sector, strengthening the competitiveness of domestic agricultural on international markets. There are some changes in the underlying conditions for the German food industry. These changes include the dimentions of internationalisation of the markets, changes in the food trade, harmonisation of legal conditions, changes in food demand, and changes of political conditions. The competitiveness of the German food industry plays an important role for the further development of the value-added chain Important advantages are the excellent endowment of production factors, the good infrastructure, the large home market with high purchasing power and demanding and sophisticated consumers, the good domestic image of German food, and the existence of competitive suppliers in the related and supporting industries. Disadvantages for the German food industry are high labour costs and social security charges combined with rigid labour market regulations and small wage differentiation, deficits in the strategic orientation and strategic marketing in the food industry, structural deficits with respect to the size of companies, plants, and farms, and high taxes and public charges. This project will employ the concept of the elements of competitive advantage developed by Porter, M. E. in 1980 and 1985, in order to carry out the purposes mentioned above. ProspectAfter joining WTO Taiwan's agricultural sector will face more competitive in terms of domestic agricultural on international markets. Germany has some experiences with enchanceing competitiveness after joining GATT/WTO. To date, Germany still adopts some strategies to strengthen the competitiveness of domestic agricultural products on international markets. This project hopes to draw some lessons from Germany experiences to give some policy implications from the point of view of strengthening the competitiveness of Taiwan agricultural products on international markets.
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