Preview

Economic Expansion

Powerful Essays
Open Document
Open Document
1283 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Economic Expansion
Economic Expansion

1. Briefly describe Hong Kong’s economy (background, GDP, growth rate, etc.), (20 points)
Everything about Hong Kong tells the story of trade. With beginnings as a small rocky island full of fishing villages, Hong Kong has grown to become one of the largest cities of trade and finance in the world. Hong Kong had a GDP of $325.8 billion USD in 2010, which represents a 6.8% growth from the previous year (“Economy: Hong Kong”, 2011). This growth is a nice change from the 2.7% loss in GDP the previous year from the world financial crisis (“Economy: Hong Kong”, 2011). With exports totaling $388.6 billion, and imports totaling $431.4 in 2010, Hong Kong ranks as one of the top 20 countries in the world in both categories (“Economy: Hong Kong”, 2011). With only 3.7 million people in Hong Kong’s labor force and such a large GDP, it’s not a surprise that its unemployment rate is only 4.3%. 2. Briefly identify and explain three methods intended to encourage economic growth for the typical firm in Hong Kong. (25 points) In July of 1997 Hong Kong was handed over from the British rule to the People’s Republic of China. Although Hong Kong is officially part of the PRC it is still very autonomous, and considered a special administrative zone until July 2047 when it will fully become part of the Chinese state (Jenkins, 2008). This merger between Hong Kong and Mainland China led to the passing of the Closer Economic Partnership Agreement in 2003. This agreement allowed imports of Hong Kong origin to enter into Mainland China tariff free, as well as vice versa (Commerce People 's, 2003). The strategy to closer align Hong Kong to Mainland China has been a huge boon for both nations. Another method used to promote economic growth is keeping too much government intervention out of the markets, sometimes called laissez-faire. Many changes have taken place over the past decade, yet Hong Kong is still considered the freest market in the world.



Citations: in APA format (20 points) Commerce People 's Republic of China , (2003). Mainland and Hong Kong closer economic partnership arrangement [PDF Document] Retrieved from http://www.tid.gov.hk/english/cepa/files/main_e.pdf Economy: Hong Kong. (2011, July 5). Retrieved July 6, 2011, from https://www.cia.gov/library/publications/the..factbook/geos/hk.html Economy: Singapore Jenkins, B. (2008). Hong Kong advantage. License! Global,11(7), 22-24. Kurtenbach, E. (2011, January 27). China ups minimum wage as inflation persists. Retrieved July 7th, 2011, from http://www.chinapost.com.tw/business/asia/asia-china/2011/01/27/289231/China-ups.htm Labor costs Posner, M. . (2010, November). Selling to Singapore. Credit Management, 44-45. Savage, V., Huang, S. , & Chang, T. . (2004). The Singapore river thematic zone: sustainable tourism in an urban context. Geographical Journal, 170(3), 212-225. Singapore tourism board. (2009). Retrieved July 10, 2011, from http://www.singaporemirror.com.sg/co_singtourism.htm Wingrove, N

You May Also Find These Documents Helpful

  • Better Essays

    Canadian Chamber of Commerce, ebrary, I., & Canadian Electronic Library (Firm). (2010). Canada-china: Building a strong economic partnership. Ottawa, Ont: Canadian Chamber of Commerce.…

    • 1541 Words
    • 7 Pages
    Better Essays
  • Better Essays

    A “Race to the Bottom”

    • 1303 Words
    • 6 Pages

    1The Chinese government rejoiced on the occasion of gaining World Trade Organisation membership in November 2001. There was an expectation in Peking that once the country became integrated into the world economy, it would be on the right track to attain economic prosperity. There might be some bumps along the way: some industries and agriculture would suffer, affecting employment, but as a whole, it was predicted, China would gain. Employment has been a major concern in China, and the government’s best sell was that foreign investment would increase and the labour-intensive manufacturing sector would gain: according to one estimate, 2.8 million additional jobs in textiles and 2.6 million jobs in the garment trade, as the constraints of quotas for garments and textiles end 1.…

    • 1303 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is the first free trade agreement ever concluded by the Mainland of China and Hong Kong since 2003. CEPA opens up huge markets for Hong Kong goods and services, greatly enhancing the already close economic cooperation and integration between the Mainland and Hong Kong. It is also a win-win agreement, bringing new business opportunities to the Mainland and Hong Kong. For Hong Kong, It provides a window of opportunity for Hong Kong businesses to gain greater access to the Mainland market. It also benefits the Mainland as Hong Kong serves as a perfect "springboard" for Mainland enterprises to reach out to the global market and accelerating the Mainland's full integration with the world economy. As the supplements’ titles imply, we can generally conclude that the major features of 11’s and 12’s will be deepening the liberalization of trade in services and boosting access to Mainland market for Hong Kong service industries respectively.…

    • 2111 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Hong Kong industries and facilities were moved to mainland on 1990s. It makes Hong Kong lost the aim focus on engineering industry. According to large number of workers and low production cost advantages in China. Besides Hong Kong, China also attracts another country and develops their industry. It makes china industry growth up fast.…

    • 969 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Miyagiwa, K. F. (1986): “A Reconsideration of the Welfare Economics of a Free-trade Zone,” Journal of International Economics, 21, 337–350. Naughton, B. (1996): “China’s Emergence and Prospects as a Trading Nation,” Brookings Papers on Economic Activity, 27, 273–344. ——— (2007): The Chinese Economy: Transitions and Growth, Cambridge, MA: MIT Press. Olley, G. S. and A. Pakes (1996): “The Dynamics of Productivity in the Telecommunications Equipment Industry,” Econometrica, 64, 1263–1297. Panagariya, A. (1992): “Input Tariffs, Duty Drawbacks, and Tariff Reforms,” Journal of International Economics, 32, 131–147. Schminke, A. and J. van Biesebroeck (2011): “Using Export Market Performance to Evaluate Regional Preferential Policies in China,” Center for Economic Studies Discussion Paper 11.33, Katholieke Universiteit Leuven. Standard Chartered Bank (2007): “On the Ground, China,” Standard chartered research paper. Wang, J. (Forthcoming): “The Economic Impact of Special Economic Zones: Evidence from Chinese Municipalities,” Journal of Development Economics. Wang, Z. and Z. Yu (Forthcoming): “Trading Partners, Traded Products, and Firm Performance: Evidence from China’s Exporter-Importers,” The World Economy.…

    • 14710 Words
    • 59 Pages
    Powerful Essays
  • Best Essays

    In past 10 years, Hong Kong has faced 3 times of economic recession. In 2003, Hong Kong faced SARS impacted the GDP in 2003 Q2 drop to -7.5% & finally turned back to positive GDP until 2004 Q1. In 2008, United State’s financial crisis turned to world-wide financial crisis. Hong Kong started to recorded negative growth of GDP until 2009 Q4. Now we are facing the downtrend of GDP due to the Europe’s national debt crisis. Our HKSAR Financial Secretary forecast Hong Kong’s GDP growth is 1–3% in next year, which down from over 6% of 2011. During the economic recession time, most of the companies show defensive posture, try to minimum their spending to keep them survival. However, some companies take these changes to increase investment & spending. They believed that during the economic recession, they can get a better opportunity for investing & spending, they can use less cost to expend their business as many others are in the defensive position. As the result, they will gain much more growth when the economy recovery is come.…

    • 3524 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    Hong Kong Port - Facts

    • 2292 Words
    • 10 Pages

    HONG KONG : THE FACTS The Port Hong Kong is fortunate in having a sheltered natural harbour, which provides good access and a safe haven for vessels calling at the port from around the world. The port has always been a key factor in the development and prosperity of Hong Kong, which is strategically located on the Far East trade routes and is in the geographical centre of the now fast-developing Asia-Pacific Basin. In terms of tonnage of shipping using its facilities, cargo handled and the number of passengers carried, Hong Kong is one of the major ports of the world.…

    • 2292 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Liberal Studies ies

    • 577 Words
    • 3 Pages

    Nowadays, as Hong Kong become more international, the economy of Hong Kong has moved into top gear. Hence, the materialistic wants of Hong Kongers will be boost at the same time since the purchase power of citizens will increase, while the economic development of Hong Kong keep boosting.…

    • 577 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Milk Powder Case Study

    • 1326 Words
    • 6 Pages

    Hong Kong’s relationship with the Mainland is complicated by a lot of baggage. Many residents came to Hong Kong fleeing the upheavals of China in the 1950s and 1960s. The blood links to the mainland are deep. Some worked to help China stand up as it adopted an open-door policy, They made a good living in the process. Then, as China opened to the world, it was Hong Kong entrepreneurs who give it substance with investment.…

    • 1326 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Hong Kong is currently under the rule of the PRC as a special administrative region, with the practice of ‘One country, two system’. Hong Kong exercises capitalism under the rule of the British government and thus continues its practice after the handover. Hong Kong is closely located to mainland, showing her essential role in the economic coordination. The number of cross-boundaries cooperation has been increasing steady, and today, Hong Kong and mainland develops an inseparable relationship in terms of political, economical and social aspect.…

    • 4336 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    If we strike the right balance, there is ample scope for a continued mutually beneficial trade partnership between Europe and China. Political leaders on both sides should continue to argue for open economic engagement. Europe should continue to offer open and fair access to China's exports and to adjust to the competitive challenge, while pursuing policies to support those bearing the burden of economic adjustment at home. China itself should reciprocate by strengthening its commitment to economic openness and market reform. It should strengthen legal protection for foreign companies and the enforcement of this protection and reject anti-competitive trading practices and policies.…

    • 437 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Hong Kong is the freest and stable economic market, the whole economic market seems to be controlled by the corporation, so that Hong Kong Government no need to spend so much money for it but have more money to care about the social welfare to fix the social problem. But as more and more serious social problems, Hong Kong Government mostly aim on the poor people and neglect the middle bourgeoisie.…

    • 1721 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    * From planned economy to free market powerhouse: The post - Mao era ( 1976 onwards )…

    • 6789 Words
    • 28 Pages
    Powerful Essays
  • Best Essays

    While the economic growth of many other countries may be at a standstill, China’s economic growth is expanding at a great pace and is considered one of the world’s fastest growing economies. One of the main factors that fuel China’s fast economic growth was the release of Hong Kong to China from Great Britain in 1997. The second factor was Deng Xiao Ping’s “Open Door Policy” which is the opening of free trade with other countries in which it was originally a closed trade country and greatly reform China in the area of agriculture, industry, science and technology changing the country into a modern industrial nation. The third factor was population control with its one child policy which help improved the method toward feeding its population.…

    • 1877 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Asia Pacific Essay

    • 2838 Words
    • 12 Pages

    Several governments have played a leading role in upgrading technologies in the Asia Pacific. The government of Hong Kong has applied a different strategy than other countries Asia Pacific, which is called laissez-faire. The Government of Hong Kong has confidence in the free market economy. It indicates confidence in the doctrine of the free market. Hong Kong's approach was more passive and general than in other countries.…

    • 2838 Words
    • 12 Pages
    Powerful Essays