In this article, the author uses Taiwan’s annual macro-economic data in 1985–2004 (source: Social Science Research Center of National Science Council and the Central Bank of Taiwan) as well as the first-order autoregressive model to explore the influences of international trade, international direct investment, international securities investment and the transnational work force on per capita income, income distribution and the unemployment rate. The major findings are as follows. First, the outward FDI may raise average national income, but would increase the unemployment rate and enlarge the gap between the rich and poor; second, foreign labour contributes to Taiwan’s economic growth; and third, international securities investment has no significant impact on Taiwan’s economy. The policy recommendation is as follows: Taiwan should make great efforts to participate actively in the process of economic globalization.