(National Council on Economic Education) But some countries like Hong Kong plays an intermediation role for the trade of land lock countries such as China. Hong Kong acts as an entrepot for China. Hong Kong supplies semi-manufacturing goods as well as raw materials to Mainland China by importing from rest of the world. In exchange, it re-exports the manufactured goods from China to rest of the countries of the world. (Schoen, 2010) The two basic theories of trade flows are the absolute advantage and comparative advantage. Absolute advantage believes that a country should only produce those things which it can by using least possible resources. The absolute advantage China has in comparison to Hong Kong is China’s low-paid workers who are very beneficial in production of labor-intensive goods. Hong Kong comparatively have high cost of living due to which people of Hong Kong are hardworking. However, sometimes the effects of comparative advantage theory outweigh Absolute advantage as countries focus on goods with least opportunity goods as mentioned above. In this situation, a country with a comparative advantage can export same goods to a country in which the later country have an absolute advantage. Hong Kong does have a major comparative advantage over Mainland China in Publishing Industry, Demonstration Industry, Cultural Experience tourism industry and Child rearing industry. (Liu) China, being the leader of low-priced manufactured goods obviously does have a comparative advantage over Hong Kong because of its cheap labor. These labor-intensive processed goods allow China to produce almost anything from house hold products to daily usage goods, and clothing, electronic items etc. Almost all day to day products are manufactured by China today. (Oblad, 2009) Both the governments of Hong Kong and China should encourage the development of those industries in which they have a comparative advantage so that their exports should flourish and trade among them would increase. China should rely on its clothing industry, low cost electronic items and daily products from battery cells to laptops to sell them at a cheap rate to Hong Kong and attract people from there as Hong Kong relatively has a high cost of living as compared to Mainland China. (China Global Trade). The Government of Hong should play a proactive role in development of Demonstration Industry as Hong Kong does have an advantage over China in this sector. People from China can visit Hong Kong for Demonstrations for human rights, etc. and in exchange Hong Kong can take rent from Chinese people for these demonstrations. There are a lot of books which are not allowed to be published in Mainland China and thus Hong Kong can produce these books with its growing Publishing Industry. Also, the people of China can have as many children they want in Hong Kong as there is no restriction as such one-child-policy of China in Hong Kong. The Government of Hong Kong will take care of raising the child but Chinese do have to pay fees obviously. The cultural experience tourism industry also offers to Chinese the books, newspapers, movies, and websites that are banned in China. Thus both the countries could benefit by focusing on their comparative advantages (Xanga. 2012). The Government
Trade Patterns in China and Hong Kong 05-17-2012 Trade Patterns in China and Hong Kong Countries all around the globe traded with each other since the pre-historic period. Why do they do so? All the countries have varying capital, human, and natural resources and also they have diverse ways of combining these resources…
In the Hong Kong clothing retail industry, there are several difficulties with getting the correct alternative for working hours. The workers currently in the industry are expected to work for longer periods of time with little compensation. This is causing a lack of stability with those who earn a specific living and with the ability to have the right amount of time for family and extra activities.
With the constant consumption of these resources at an alarming pace, depletion of natural resources is becoming a very renowned term. Retaining the planet’s vitality is proportional to the resources we conserve. The pattern of resource consumption in China is such that it is consuming resources like farmland, water and timber with twice more frequency than their efforts directed towards these resources’ renewal for development purposes.
Beginning as a fishing village, trading ground and salt production site, it later evolved to a military port of tactical importance and ultimately an international financial centre which has one of the best worlds Gross Domestic Product per capita, supporting around 33% of the total foreign capital flows to China (Carroll, 2007).
Wellness through Leisure for Hong Kong.
Leisure pertains to the part of human experience with its individual advantages such as freedom of choice, creativeness, gratification, pleasure and increased indulgence and happiness (Sivan and Ruskin 1). It involves inclusive forms of expression or interest whose components are as frequently tangible in nature as they are rational, social, imaginative or spiritual (1).
The city is one of the most highly populated areas in the globe. Approximately seven million people used to stay in Hong Kong of which 95% of total population is ethnic Chinese and rest 5% belongs to other ethnic group. Geography Hong Kong is located on the east of Macau.
This paper primarily focuses on comparison of various major economic factors, that characterizes development patterns in China and the United States. These economic factors identified for comparison include labor force, household income, poverty line, unemployment, currency exchange rates, GDP per capita, exports, GDP, imports and others.
In other words, the problem is one of perennial overspending or of living beyond one’s means. Usually the problem arises because it is politically difficult to lower the demand for expenditure growth and to raise revenue to match government’s tendency to spend more and more.
The paper "Economy of Hong Kong" aims to analyse the economy of Hong Kong because the country has been very successful in terms of its economy and modernization. In fact, it is one of the leading countries in Asia. In many aspects, Hong Kong succeeded in developing its economy – tourism, financial market, and trade.
The import and export sector in among the most internationalized industries in the globe and the associated activities such as sourcing and merchandizing assist in the exchange of goods through the international borders while supporting international trade and enabling the effective utilization of worldwide resources.
The question that always runs in the people mind when they talk of Hong Kong is that, is Hong Kong a de facto country or the country part of the mainland China. Hong Kong and China share various resources and some of their constitutions are much similar and also they are
15 pages (3750 words)Research Paper
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