This study takes an Institutional and Evolutionary Economic (IEE) approach to exploring the Taiwan lobby in the United States. This IEE approach encompasses many fields and borrows theory from diverse disciplines. These range from evolutionary psychology, political economic thought, organizational theory, economics, history, to other helpful tools in understanding economics and institutions. My study starts with some preliminaries, a history of the U.S. and Taiwan, an extensive survey of literature in the field, then dives into the exploration of U.S. arms sales to Taiwan 1950-2010. It should be here stated that, to my knowledge, this is the first time such a time span has been tackled on the issue anywhere in international academia. What is so fortuitous is the fact that the Taiwan Relations Act was adopted in the middle of this 60-year timeframe, giving my study the ability to compare two 30-year timeframes. I then put this into the context of the Taiwan lobby while putting the Taiwan lobby in the context of arms sales. The four lobbies explored are: 1) The U.S.-Taiwan Business Council, 2) TECRO, 3) AIT and 4) FAPA. These institutions are explored from the: 1) individual, 2) structural and 3) structure of interaction perspectives. My main drive is to understand the structure and structure of interaction of the Taiwan lobby and to apply this with a practical understanding for a student of management. I offer my own model about what makes a lobbyist successful in his art, craft and business.

In recent decade, Taiwan Business involvement in China is one of the key factors for China¡¦s gearing economic development, under the inevitable economic globalization. Taiwan enterprises play an important role in international division of labor for most of them possess competitive advantages including expertise in international trading and strict control on cost which in turn helps facilitating the rapid growth in the Greater China economic region. China is experiencing large amplitude of economic acceleration fed by the huge internal demand triggers off an investment boom from within and from the outside world. Many Taiwan enterprises encounter difficulties in financing through banks in China, while headquarters in Taiwan are also bounded by the stated law that Taiwan investment in China cannot exceed a maximum of 40%. In 2004, CEPA was signed between Mainland China and Hong Kong. This provides a solution for Taiwan enterprises to finance through Hong Kong¡¦s capital market and brings about the Mainland China business to be more internationalized. Since then, Hong Kong becomes a channel for Mainland China enterprises to finance themselves internationally. As a result, Mainland China not only attracts tremendous cash flows globally, it also enhances its market scale through favorable transaction and P/E rate. Simultaneously, more and more Mainland China and Taiwan enterprises are listed in the Hong Kong stock market. The decision to choose a right place to list a company has deep and profound influence. Every enterprise conserves its strategic correctness by every means, when such decision is to be made. Yet, the operation of a capital market is clearly a complex and the difficulties are further intensified by numerous mediating and intermediating factors. Therefore, it is significant for Taiwan enterprises to achieve an optimum that may well synchronize with its long term business development and business operation strategy within its macro business web. This research is going to study the Hong Kong stock market from past bibliographies and documents. In addition, by implementing comparative research method, this research is going to compare the Hong Kong and Taiwan stock markets in various areas: 1)The history and the structure of the securities markets in Hong Kong and Taiwan 2)The condition of securities transaction in Hong Kong Exchange and Clearing Limited and Taiwan Stock Exchange 3)The condition of Taiwan enterprises becoming a listed company in Hong Kong and Taiwan 4)The underwriting system of IPO in Hong Kong and Taiwan Through collective discussion, this paper will induce crucial factors affecting Taiwan enterprises to choose a place for public offering. The result was that large scale Taiwan enterprises prioritized international capital involvement as the most important factor while small and medium size Taiwan enterprises emphasized on the ability to finance and to re-finance. To apply, this research also includes case studies on three Taiwan enterprises list in Hong Kong, ranging in different scales. The case study will investigate why these enterprises chose Hong Kong for public offering and what were the factors concerned. The conclusion and suggestions provided by this research would serve as a reference for Taiwan enterprises to choose a right place for public offering; it is also a reference for the newly commenced Taiwan Government Administration to improve the economy, with the hope to create a favorable investing environment to pull back Taiwan or other enterprises to be listed in Taiwan.