Global Economic Essay
2a) Global real estate companies bring both positive and negative impact to the local market. On one hand, they encourage local economic development. As more real estate investments will be brought to the local economy, the capital inflow to the country, which can be used for country development, will increase. There will also be more choices of real estate projects for the local market, better decisions could be made for local development.
On the other hand, global real estate companies extend the geographical reach and offer a complete service to assist people all over the world in acquiring profitable property investments, the demand for local real estate market increases. It leads to the inflation of real estate which the price of local real estate increases sharply. For example, real estate prices in China rose by 11.7 percent in June, 2011, which was a double-digit growth that made some economists called it a “real estate bubble.”
Global real estate companies also outsourced sophisticated real estate and hospitality services. It caused keen competition among the market. Some local real estate firms that are less competitive may be adversely affected. Moreover, global real estate companies cause the Homogenization Problem. Since they create standardized levels of services potentially, it leads to standardized levels of expectations and an importation of external culture. For example, Orange County in Beijing, makes China as a replica of Southern California. Houses in Orange County were all built in American-style and designed by Southern California architects. Also, the architecture of the Venetian Macao is modeled on the Venetian in Las Vegas, which is a replica of the historic city of Venice in Italy.
2b)“Faux residences” represent the physical transportation of a culture and lifestyle. When “faux residences” are set up in some culturally distinct regions, they influence the lifestyle of the inhabitants. For instance, Shangri-La – Traders Hotels in
On the other hand, global real estate companies extend the geographical reach and offer a complete service to assist people all over the world in acquiring profitable property investments, the demand for local real estate market increases. It leads to the inflation of real estate which the price of local real estate increases sharply. For example, real estate prices in China rose by 11.7 percent in June, 2011, which was a double-digit growth that made some economists called it a “real estate bubble.”
Global real estate companies also outsourced sophisticated real estate and hospitality services. It caused keen competition among the market. Some local real estate firms that are less competitive may be adversely affected. Moreover, global real estate companies cause the Homogenization Problem. Since they create standardized levels of services potentially, it leads to standardized levels of expectations and an importation of external culture. For example, Orange County in Beijing, makes China as a replica of Southern California. Houses in Orange County were all built in American-style and designed by Southern California architects. Also, the architecture of the Venetian Macao is modeled on the Venetian in Las Vegas, which is a replica of the historic city of Venice in Italy.
2b)“Faux residences” represent the physical transportation of a culture and lifestyle. When “faux residences” are set up in some culturally distinct regions, they influence the lifestyle of the inhabitants. For instance, Shangri-La – Traders Hotels in