Taiwan’s political system According to Chen ( np ), Taiwan has developed by using mercantilism which proposes the economy is inferior to politics. Economics is looked at as a way of escalating state power therefore national interest takes priority over the market place. Wealth and power are corresponding contending objectives and economic dependence on other states should be completely evaded. Mercantilism believes that economic action is and should be subsidiary to the major goal which is to build a strong state. Economics is a political tool whereby ones state’s loss is another state’s gain. Recent mercantilist way of thinking has led to the successful development of East Asia states not excluding Taiwan. Patterns of globalization Arguably, Taiwan has adopted a transformationist pattern of globalization. From the 1970’s Taiwan in its efforts to escape from the colonial divisions of labor and forge economic development, it majorly emulated Japan. It adopted an export-oriented industrializing approach, carving out markets for itself in the world economy. Furthermore, Taiwan’s nation state has been evolving, especially political democratization, with the state been a catalyzer. The winners and losers in Taiwan can be represented through the NIE perspective. Taiwan contends that globalization is the vital driving force following main economic, cultural, social political changes in the population of the world today. The new world order “architecture” is advancing looking at the general outcome of directly intertwined activities leading to change in various fields for example, technology, governance, communication just to mention but a few (Castles 24). Global cities and competitive advantage of Nations According to Kwok (163), Taipei, the capital city and the largest city in Taiwan has become one of the global cities through the production of high technology and its components. In reference to China Economic News Service, Taiwan is now one of the creditors of economy, which holds one of the world’s largest foreign exchange reserves. The GDP per capita in Taipei is US$48,400 making it the second highest in Asia following Tokyo and 13 th among world cities. Taipei holds the industrial area of Taiwan, which holds both secondary and tertiary sectors. This shows that not only is Taiwan a developed nation but its capital city is one of the global cities in the world today showing that Taiwan is not only developed as country but also its cities are developed as well (Castles (24). Taiwan products can not enjoy monopoly rent although they have a huge market share this is because competition ion Taiwan itself is quite stiff and the fact that there are other cheaper goods flooding the markets from foreign countries makes the situation worse. Most Taiwan industries belong to individual families and efficiently thoroughly supervised, hence there is no motivation as both the owner and manager are like minded and their thoughts and goals are the same. This most certainly why, Taiwan firms and industries have been enabled to act in response and fine tune fast to the ever changing competitive advantage (Fitzgerald 104). Taiwan and non-polarity According to Chen, Taiwan’s liberal foreign policy is an effort by the country to fine tune itself to the