StudentShare solutions
Triangle menu

Chinese Economy - Case Study Example

Not dowloaded yet

Extract of sample
Chinese Economy

China has embraced SEZs because of their varied economic activities (Wei, 47). They embrace a number of economic activities including manufacturing, tourism, real estate development, agriculture and commerce.
EPZs and SEZs are different in that EPZ are industrial estates whilst SEZ are industrial townships with fully developed infrastructure. Other differences include; there is no minimum export performance stipulation for SEZ units unlike EPZ and retention of a hundred percent export earnings by SEZs which are restricted to seventy percent in EPZs. Custom and central expurgate processes are simplified in SEZs, and EPZs are usually found in countries with a market economy whereas SEZs are located in transition economies.
There are a number of similarities between them which may include among others; conditions under which EPZs and SEZs operate are almost the same, tax exemption is given to investors, they cover large tracts of land, both contribute to the overall economy of the country and offer employment to thousands of residents.
Lianxiang Company (Lenovo) was founded in 1984 in Beijing. Then, there were over 100,000 personal computers in China. Lianxiang Company's most crucial initial success was to recognize the importance of coming up a Chinese character computer system permitting 1.3 billion Chinese to enter the computing age. Using the brand name Legend, Lianxiang enabled the conversion of English software into Chinese characters. It later changed its name to Lenovo.
Lenovo owes much of its achievement to its ability of establishing a legal domicile and increasing its capital in Hong Kong. Lenovo got its initial finances from the Chinese Academy of Sciences but from then it on secured all of its investments from Hong Kong. In 1988, it received US $116,000 from the Hong Kong-based Corporation, China Technology to invest in a joint venture and later went public on the Hong Kong Stock Exchange. To that extent, Lenovo became a Foreign Invested Enterprise (FIE). As an FIE, Lenovo was capable of operating in greater regulatory space and with more autonomy. Chinese laws then provided a more liberal operating space for foreign-registered companies. It should be noted that Lenovo is ran and managed by Chinese but co-owned by foreign investors (Shan and Elfring 74).
Lenovo's story illustrate an astounding period in China's modern history as an era of authoritarian, economic and political policies which gave way to a friendlier economic systems. Lenovo is often publicized as a product of China's unusual business environment. In 2004, Lenovo acquired IBM, proving a positive of China's fertile entrepreneurial environment and rising competitiveness. World-sourcing is the secret behind the success of Lenovo. Lenovo believes not in outsourcing but world-sourcing. Another reason for Lenovo's success is that their products persistently aim to provide the best services to their consumers.
3. Explain the concept of comparative advantage between two countries.
Comparative advantage occurs when a nation has a margin of superiority in the ...Show more

Summary

Export Processing Zones (EPZ) are generally considered to be like the "free ports". A Special Economic Zone (SEZ) can be described as a geographical region that has its own economic laws that are more liberal than a country's typical economic laws. Many SEZs have characteristics of bonded zones, export processing zone or free trade zones and provide special incentives, including tax exemption or reduction to investors.
Author : shanahangrady
Chinese Economy Case Study essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Chinese Economy Case Study"
with a personal 20% discount.
Grab the best paper

Related Essays

Google in China Case Study
China has a unique culture that influences business that operates in its environment. Firstly, China has an open policy on internet investment and usage. The policy allows Google China to compete with other domestic and international competitors targeting the Chinese market.
3 pages (750 words) Case Study
Style of Chinese Negotiation
Many western companies are considering the formation of joint ventures in China, in view of the great potential they offer for a vast market for their products and the availability of cheaper labour force. Nonetheless the existence of differing management styles between Chinese partners and foreign investors create problems in the negotiation of business deals and formation of the joint venture arrangements.
14 pages (3500 words) Case Study
Chinese Economy Master Case Study
While the community centred world continued to work on the planned economies, the west went the free economy way. Whereas, the planned economies suffered a major set back when the Russian economy fell taking with it many of the planned economies as well, the free market economy kept on improving on its performance.
10 pages (2500 words) Case Study
Chinese Medicine: Case study

The author states that the patient’s illness dates back to a diagnosis of colorectal cancer in June 2007. This diagnosis followed a history of prolonged constipation for many months. The colorectal cancer was treated with hemicolectomy and ileostomy. Following the surgery, these symptoms started and had persisted for 7 months now.

6 pages (1500 words) Case Study
Google in China Case Study
The policy allows Google China to compete with other domestic and international competitors targeting the Chinese market. Due to the speedy growth of the Chinese economy, the government encourages investment in communication and communication infrastructure. This
3 pages (750 words) Case Study
Case study of China
The loss of 3.5 million of jobs in manufacturing was increasingly blamed on China by the politicians, organized labor in the United States and other pundits. The financial crisis across the globe actually
2 pages (500 words) Case Study
Integrated Case Study Analysis
Over the years, the company has grown to become the largest home appliance maker and actually launched operations to the overseas markets in the 90s. The formal marketing strategy by the company was rolled out in the year 1997 when the CEO announced his goal,
24 pages (6000 words) Case Study
Case study of HRM in China
The deep-rooted traditional culture and value systems have formed and transformed the process of Chinese HRM and along with the increasing global
5 pages (1250 words) Case Study
Environmental- Economics Case Study
In this particular case, the problem has been an issue since the effects of global warming started to be felt in many parts of the world. In essence, it describes the time when no particular rules were placed about the usage of energy and the
2 pages (500 words) Case Study
Environmental economy case study
This water is being used in many of the activities, which includes irrigation, household, animal watering and gardening etc. in the
2 pages (500 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation