Abstract

Trade between Taiwan and the U.S. has grown dramatically in recent years. By 1985, Taiwan had become the sixth-largest trading partner of the U.S. In the first quarter of 1985, the U.S. for the first time surpassed Japan as Taiwan's number-one trading partner. Many U.S.-owned companies now operate in Taiwan or have joint business ventures with Taiwanese companies. The growing penetration by multinational corporations (MNCs) has led the Taiwanese Government to experiment with policies intended to protect and control economic activity on the island. The article presents a study which reveals many similarities in managerial beliefs and attitudes, and a clear trend toward convergence on some contrasting management issues. These findings point to a generally positive impact of cultural adaptation or resocialization on the American and Chinese managers of U.S.-owned companies and joint ventures in Taiwan. But they also point to several issues that may need special attention from MNCs that wish to remain productive and competitive in any foreign business environment.