This paper investigates the adjustment and relocation processes within two Taiwanese manufacturing sectors, namely footwear and textiles. These sectors serve as examples of industries that initially receive developmental support during early growth stages, become
crucial contributors to the local economy, and subsequently encounter challenges when growth decelerates. Taiwan, often regarded as a "late-developed" country, faces the unique predicament of confronting issues typically associated with both developed and developing
nations due to its rapid economic transition and industrialization within a relatively short time frame. While Taiwan has made remarkable progress in transitioning from an agricultural society to a highly industrialized and technologically advanced nation, it must navigate
numerous obstacles, including concerns about unfavorable policies impeding access to globally dynamic regions. In addition to high-tech industries, traditional sectors like footwear and textiles in Taiwan face mounting pressure to relocate their production facilities offshore. Rising labor costs and labor shortages in Taiwan further exacerbate this challenge. This research aims to analyze the adjustments and relocations undertaken by these sectors in response to the evolving economic landscape. By understanding the experiences of these industries, it seeks to shed light on the complexities and potential solutions for Taiwanese traditional relocated industries, which have overcome initial development barriers but now seek sustainable long-term growth amidst rising wages, increased government regulations, and currency appreciation.
Keywords: Relocation, Taiwanese manufacturing sectors, late-developed country, traditional industry, footwear, textiles, local economy, labor costs, technology integration, rising wages

Abstract 3
ACKNOWLEDGEMENT 4
CHAPTER 1: INTRODUCTION 6
1.1 Research Background 6
1.2 Research Questions 7
CHAPTER 2: LITERATURE REVIEW 9
2.1 What is Relocation? 9
2.2 Theoretical Approaches and Relocation 10
2.3 Technology in a Modular Industry 12
2.4 Modular Industry Integral Links: Being Essential 13
2.3 Viewing the Taiwanese Government’s Policy and Economy 15
2.3.1 Taiwan’s Politics and Economy during the 1980s and 1990s 15
2.3.2 Taiwan’s Labor Market 18
2.4 Taiwan Relocated Textile and Footwear Industries 19
2.4.1 A Brief History of Taiwan Textile and Footwear Industries 19
2.4.2 Emergence and Growth in China and Southeast Asian Countries 21
2.4.3 Dependent Technology in an Integral Industry 23
CHAPTER 3: METHODOLOGY 25
3.1 Research Procedure 25
CHAPTER 4: CASE STUDY FINDINGS AND DISCUSSION 26
CHAPTER 5: IMPLICATION AND CONCLUSION 33
5.1. Summary of Key Findings 33
5.2 Theoretical perspective on relocation plan for labor cost growth in Taiwan 33
5.3 Implications 34
5.4 Recommendations for Taiwanese Textile and Footwear Industries 35
APPENDIX 36
REFERENCES 61

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