Business Environment

Topics: International trade, Capitalism, Trade, Economy, Market economy, Market / Pages: 9 (2017 words) / Published: Mar 9th, 2013
Chapter 1 Hong Kong’s Business Environment

Think it over (p. 2)

1 Arguments for: lower costs (e.g., rent and salary), larger space for expansion, and a better living environment for workers, which makes it easier to recruit overseas staff.

Arguments against: high relocation costs, poor communication network, restricted flow of information, far from China’s market, increase in transportation costs, difficult to hire skilled labour.

2 When considering relocation, students should weigh the benefits against the costs. They should consider the business nature of an international publishing company and the characteristics of Hong Kong’s business environment.

To an international publishing company, information and manpower are two major assets. Freedom of the press and productive manpower are essential for its long-term development.

The Hong Kong government allows a free flow of information. The mass media in Hong Kong enjoy a high degree of freedom. Firms can obtain information from any source and distribute information freely. Coupled with advanced information and communication technology, it is easy for the publishing company to gain access to fast and comprehensive information.

On the other hand, Hong Kong can provide the publishing company with a skilled and hardworking labour force. The company can then respond to the changing environment rapidly. Hong Kong also has laws protecting intellectual property rights. This is very important for a publishing company. Therefore, despite the high rental, it might be reasonable for the firm to keep its regional headquarters in Hong Kong.

(or any other reasonable answer)

Try This Activity

A1 (a) In 1980, Hong Kong was a manufacturing centre. More than half of employees (54.7%) worked in the secondary sector (which was dominated by the manufacturing industry). In 2006, Hong Kong served as a business and services centre. Of those employed, 90.9% worked in the tertiary

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