Transaction costs are the key elements of production decisions in the business market. Today, the tea market relies on importing large amount of tea to support the inadequacy of the domestic tea market. However, there are controversial issues that associated with the tea market in which many manufacturers claim that they use local resource as their raw material to produce their products. In this study, we will discuss the relationship between the quantities of tea that imported from foreign and the tea surplus of Taiwan in tea market.
The main purpose of this study is to analyze the relationship between the quantities of tea that imported from foreign and the consumptions in the tea market which is also related to the tea surplus in Taiwan. In order to understand the imported resources between the tea market in Taiwan, we will focus on green tea, oolong tea, and black tea in the study.
