Trade

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Taiwan has a very dynamic capitalist economy with a continual decrease in government control and guidance. Exports, which is generally contributed by electronics and machinery generate about 70% of Taiwan's GDP growth. This rather heavy dependence upon exports causes the country to be very vulnerable to many economic downturns. Free trade agreements have increased over the years in East Asia, but so far Taiwan has excluded from this economic integration. One disadvantage for Taiwan is that it is a small island with not a whole lot of natural resources. Taiwan is very dependable upon their exports to bring in revenue for the country, but it is also important for Taiwan to be on good terms with countries like China, Japan, and the United States so they could import many other goods and resources.