Country report Hong Kong
1. Introduction
Hong Kong, with only 1100 ㎢ land, is regarded as the one of the most success country in global market. Although, to be exact, Hong Kong is the special administrative regions of China and isn’t independent country, because of the agreement ratified when Hong Kong was returned from U.K in 1998, Hong Kong is given high autonomy from mainland china by owning individual law system and, then, is seems as the virtually independent country in international business and economics; many international organization, such as the World Bank, World Economic Forums and World Heritage Organization investigate the country apart from China . Under the policy called “”One country, Two systems”, the country has free trade economy system based on laissez-faire policy since it was governed by UK and the preferable geographical location as the connection point of East and South-East Asia, Asia to Europe and Middle East, attracts foreign investment and business to Hong Kong. In this paper, I firstly mentioned about brief history of Hong Kong and the current economical situation and future prospect.
2. History of Hong Kong
Hong Kong played important role as transit point of global trading to connect European countries and Asian countries: mainly China since middle of 18th century. However, at this time, Hong Kong was the just transit point which connect Eropean and Chinese (Asian) market. However, after the embargo against China because of its sending of troop to Korean War in 1951, the export to China severely declined and Hong Kong start economic transferring from just transit point to high value-add trading point. In addition, once the flexible currency rate system started in 1973, Hong Kong emphasized attract foreign trade by allowing free capital flow and preferential taxation system; this policy attracted huge FDI from investment from foreign country and Hong Kong become the biggest stronghold of financial business in Asia for companies from Europe and U.S
Hong Kong, with only 1100 ㎢ land, is regarded as the one of the most success country in global market. Although, to be exact, Hong Kong is the special administrative regions of China and isn’t independent country, because of the agreement ratified when Hong Kong was returned from U.K in 1998, Hong Kong is given high autonomy from mainland china by owning individual law system and, then, is seems as the virtually independent country in international business and economics; many international organization, such as the World Bank, World Economic Forums and World Heritage Organization investigate the country apart from China . Under the policy called “”One country, Two systems”, the country has free trade economy system based on laissez-faire policy since it was governed by UK and the preferable geographical location as the connection point of East and South-East Asia, Asia to Europe and Middle East, attracts foreign investment and business to Hong Kong. In this paper, I firstly mentioned about brief history of Hong Kong and the current economical situation and future prospect.
2. History of Hong Kong
Hong Kong played important role as transit point of global trading to connect European countries and Asian countries: mainly China since middle of 18th century. However, at this time, Hong Kong was the just transit point which connect Eropean and Chinese (Asian) market. However, after the embargo against China because of its sending of troop to Korean War in 1951, the export to China severely declined and Hong Kong start economic transferring from just transit point to high value-add trading point. In addition, once the flexible currency rate system started in 1973, Hong Kong emphasized attract foreign trade by allowing free capital flow and preferential taxation system; this policy attracted huge FDI from investment from foreign country and Hong Kong become the biggest stronghold of financial business in Asia for companies from Europe and U.S
Cited: CIA World Factbook, Accessed August 21, 2012. https://www.cia.gov/library/publications/the-world-factbook/geos/qa.html Hiroshi Inagaki, 2012, The Economic Forecast of Hong King after 15years from the return) IMF World Outlook Database, 2012, Accessed August 21, 2012. http://www.imf.org/external/ns/cs.aspx?id=28 Mariko Tanigaki, 2001, The Economic Movement of Hong Kong http://www.mof.go.jp/pri/research/conference/zk051/zk051j.pdf World Heritage Organization, 2012, Economic Freedom Index