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.
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