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  • Topic: Hong Kong, Mainland China, Tsim Sha Tsui
  • Pages : 3 (878 words )
  • Download(s) : 55
  • Published : April 4, 2013
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The Political Environment

 | Hong Kong is located in location in Asia east central and with a rapidly growing Mainland China as its hinterland, the Hong Kong Special Administrative Region is an international business, trade and financial hub. Building on its traditional free market economic policy, Hong Kong has developed into a modern, vibrant and cosmopolitan services economy, underpinning the role of the city as a global business platform.Political environment Since 1997, Hong Kong has been started the “One country, two system” policy. Hong Kong remains the authority of administration, legislation and judiciary. Under this policy, the political stability in Hong Kong is relatively high. Also, Hong Kong prosecute free to import duties and tariffs . The capital movement in Hong Kong is free. Following the establishment of ICAC, the level of corruption in Hong Kong remained low for the past 30 years.Political FactorsThe political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. The direction and stability of political factors are a major consideration for managers on formulating company strategy. Political factors define the legal and regulatory parameters within which firms must operate. Also, it may limit or benefit the firm they influence. For example, Hong Kong have different laws such as insurances and minimum wages laws covering employees, and so on. There are also often differing rules regarding product testing and safety. Legal environmentHong Kong is famous for its simple tax system. The tax rate in Hong Kong isrelatively low. It does not only apply to local companies, but also foreign companies.Besides, the legal system in Hong Kong is transparent and effective. It enhances the general investing atmosphere in Hong Kong. Also, some studies found that Hong Kong has a good record in adhering to some employment ordinance, showing that the law protects employees in Hong Kong. Based...
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