Abstract

Mass transportation system could no longer satisfy consumers’ transportation needs after the economic development of Chinese Taipei and the subsequent dramatic improvement of living standards. Even though the government has been actively developing mass transit systems in metropolitan areas, the more and more fully developed highway systems have made motorcycles and automobiles two of the major alternatives as consumers’ transportation choices. The competition within the two industries, respectively, is therefore intensified over the years; and the situation could only get more heated than ever after Chinese Taipei becomes a member of the World Trade Organization. Mergers, acquisitions, strategic alliances, and other competitive behaviors that might be in direct conflict with the Fair Trade Law would all occur. The purpose of this project is therefore two-fold. One is to maintain the long-term development of the automobile and motorcycle industries under a fair and balanced competition environment; and the other is to avoid any possibility of international sanctions after Chinese Taipei being a member of the WTO. This project will first study the history of the competitive situations within the two industries and the competitive behaviors of the domestic automobile and motorcycle makers in order to analyze and predict domestic automobile and motorcycle makers’ possible strategic moves. Finally, the Fair Trade Law will be applied to see what interactions should be initiated between automobile and motorcycle makers and the government.