...Economic Status of China The Google definition of an economy is the wealth and resources of a country in terms of the production and consumption of goods and services. When looking at China from an outsider’s perspective the first three words that come to mind are innovative, growth, and mass-production. This is because over the last thirty years, Chinese economic growth in Gross Domestic Profit (GDP) has been a steady 8 to 10 percent making it the second largest economy in the world after the United States. China’s economy has been the envy of many nations and it will continue to grow and serve as a key player in industrial production. This research paper will discuss China’s current economy by looking at its advantages and disadvantages during its development. According to IndexMundi.com, a website that offers an economic overview of china’s economy as of 2012, in 2010 is when China became the world’s largest exporter. China is rapidly becoming a dominant world power. Its economy grew fascinatingly fast and they now have the second largest economy in the world. Even though this growth is very remarkable, China still faces a lot of issues. A major issue is that of the urban rural disparity gap. With a population of 1.3 billion, China is still considered a developing country. “China’s gross national income per capita of $4,940 ranked 114th in the world; and over 170 million people still live below the $1.25-a-day international poverty line”(The World Bank). The year 2005 proved to...
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... On the other side, China belongs to Asian continent, which represents 60.5% of world population and on average has 1.3% rate of annual population increase. Sweden, as a third largest country by area in European Union, has population of 9,220,986 with current population growth rate of 0.79%, while China has population of 1,325,000,000 and population growth rate of 0.55%. At the current growth rate Chinese population grows approximately by 7.6 million every year. Ten years ago population growth rates in Sweden and China were different. Sweden had 0.131% growth rate, while the growth rate in China was at 0.708 %. This statistics implies that the growth rate over the last ten years has increased in Sweden and decreased in China. In China, growth in population and rapid development of industrialization led to loss of cropland and caused decrease in food production. Amount of land that was supposed to be used as cropland decreased as people converted it for housing or for other types of industrialization. Unavailability of education was another factor that encouraged early marriage and increased fertility rates. In addition, the economic benefit of having children was considered and played important role. Children were given jobs and they contributed to family income. Population growth has impacted water availability. Fast urbanization reduced the amount of water for irrigation and increased water pollution. For instance, Yellow River in China is so polluted with...
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...tax over the Next 5 Fiscal Years from 2015 to 2019 by 40% in Asia. In the past three years, HSBC Holding plc’s profit before tax was 18,680, 22565, and 20649 million dollars respectively. Asia’s profit before tax was 14,625, 15853, and 18030 million dollars respectively. This proportion of Asia’s profit was as high as 78.3%,70.3%, and 87.3%. Therefore, i can believe that HSBC bank’s major profit from Asia. [1] Table 1 shows the profit before tax of geographical regions [pic][2] Why we has goal in Asia? According to the above table, we can see that Asia had the extremely high profit before tax compared to other parts of world. Also, Asia is the region which has the largest number of developing countries in the world. Such as China, India, Indonesia, and Malaysia. Especially, with China’s economic reform deeply, there has more investment opportunities will emerge. Why we hasn’t goal in Middle East and North Africa? We also can found Middle East and North Africa had a continued momentum of increased. But, we still made a decision we hasn’t goal in Middle East and North Africa. There has two reasons, the first reason is there has low level of economic. The second reason is local political instability increases investment risk. Strategic Options and choices In order help HSBC Holding plc to meet the goals and objectives, three strategies, expansion in China, restore customer confidence, product and service development in the next five years. Below are the...
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...Dear fellow shareholders, What a year. Despite many challenges faced by the company, we have been successful in maintaining our position as the leading cell phone manufacturer in the world. The company’s subsidiaries in China, Japan, Israel and France face many economic challenges ahead. The challenges faced and the steps taken to solve those challenges, have been explained in the report. We start by mentioning next year’s inflation rate and then forecasting the spot rate one year from today. This will give us an idea about how the various concerned currencies are relatively moving to one another. The effects of these movements are explained country wise later in the report. The inflation rates forecasted for next year are as follows, Country | Inflation rate | U.S.A | 2.3%[2] | China | 1.89%[1] | Israel | 0.44%[3] | France | 0.62%[4] | Japan | 2.5%[5] | UAE | 3.11%[10] | Current spot rate (as of 10/06/2014) | Dollar | Renminbi | Shekel | Euro | Yen | Dollar | --- | 6.1408 | 3.6794 | 0.7928 | 109.14 | Renminbi | 0.1628 | --- | 0.5993 | 0.1291 | 17.7776 | Shekel | 0.2717 | 1.6686 | --- | 0.2155 | 29.6735 | Euro | 1.2613 | 7.7459 | 4.6403 | --- | 136.9863 | Yen | 0.0091 | 0.05625 | 0.0337 | 0.0073 | --- | Forecast spot rate (as of 10/06/2015) | Dollar | Renminbi | Shekel | Euro | Yen | Dollar | --- | 6.1161 | 3.6125 | 0.7797 | 109.353 | Renminbi | 0.1635 | --- | 0.5875 | 0.1274 | 18.004 | Shekel | 0.2768 | 1.7021 | --- | 0.2158...
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...the 1900s, when China had lost several wars against foreign countries and Japan, they threatened the Qing dynasty to sign several unfair treaties, such as extraterritorial rights and immunities from the Qing dynasty’s law. China was just like nonexistent country because foreign countries were each ruling different parts of China. At the fall of the Qing dynasty, a long drought followed by several floods and aggression by foreign countries [History.com Staff. 2009]. People were suffering from hunger, unfair rights and poverty. As a result, there was hatred and xenophobic reactions among the Chinese. Qing Empress Dowager Cixi declared a war on 8 nations. [History.com...
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...October 2010 Research China Fighting a defensive war In the militaristic language of the currency war, important battles are looming ahead in connection with the G20 meetings. China will, in our view, be fighting a defensive war and will make a tactical retreat in order to avoid a devastating war that it might have to fight alone and where everybody loses in the end. Hence, China will probably maintain current momentum in the appreciation of the yuan in the coming months to convince its G20 partners that it is fulfilling its promise from the previous G20 meeting to gradually increase the yuan’s ‘flexibility’. The outcome of the G20 meetings is unlikely to be a comprehensive agreement with a firm commitment from China and other Asian countries to let their currencies appreciate in a co-ordinated fashion, even though this would be the most positive outcome for the global economy. The current inflation in China and the weak US dollar suggest that China will let the yuan appreciate by about 7% annually. We expect a large part of this appreciation to be front-loaded in the next three months to maximise the political payoff for China. The market currently discounts a 3.5% appreciation over the next 12 months. Hence the appreciation pace of the yuan is expected to be substantial in the coming months. It will probably be enough to ease political tensions between the US and China and will prevent punitive legislation against Chinese imports. With China expected to maintain the...
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...production expenses, and administrative service fees. Vietnam has been viewed as a potential alternative for U.S companies seeking to establish a lower-cost manufacturing capacity. The increasing costs of labor in China and rising Chinese taxes on foreign enterprises has forced many U.S firms to expand its long-term operations in Vietnam. Within the last five years, Vietnam had become a more popular off shoring network than China and India. Vietnam has the second-highest gross domestic product growth after China and now the third-largest offshore network destination in Southeast Asia. The Vietnamese labor pool consisted of an estimated 80,000 plus IT graduates. More than half of Vietnam’s population is under 25 years of age, and 83 percent of all graduates are science-based. “More foreign direct investment means fewer programmers available. To cope, his firm has shifted some work to Vietnam…” (Economist 72) Outsourcing software development is the driving economic force of emerging companies. Offshore development may include software programming, web design, website, application testing, and more. China and India had been the popular industry leaders in offshore development, but despite their mutual market share in software development, Vietnam is quickly emerging as the next hotspot destination...
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...CHINA VS. ENGLISH AS A SECOND LANGUAGE Communication is the activity of transmitting information. Lafayette College (2012) estimates that there are about 6,500 living languages in the world, and Mydans, Seth (2007) state that in terms of globalization, business, and technology, English is the most common language worldwide. According to the Graddol, David (2006), an estimate of 2 billion students worldwide were studying English in 2010. English is actually considered the official global language; it is the official language spoken by the world’s dominant economy, the United States, many commonwealth countries, multinational firms, top universities, and the scientific community. In 2005, the consulting group McKinsey warned China because less than 10 percent of its college graduates did not have the prerequisites to get a job in multinational corporations, primarily because they could not speak English. As we know, China’s economy and industry is growing by leaps and bounds. According to Economy Watch (2010, June 30), the country is ranked second by their nominal GDP, and although the country seems to be in its best moment, the communication barrier will be an obstacle that could slow down the growth process in the near future. China needs to increase its English speaking population in order to keep its economy growth rate, to improve the education and quality of life of the next generation, and to increase and enhance the tourism sector of the country. According to Eurasian...
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...40 Focus on healthcare 46 Brands and the emerging consumer in 2015 62 Brazil: Steady decline continues 64 China: A life online 66 India: New government, strong consumer 68 Indonesia: An under-penetrated market 70 Mexico: Structural potential, cyclical hurdles 72 Russia: Dark clouds gather 74 Saudi Arabia: The petro-dollar 76 South Africa: Reduced optimism 81 About the survey 83 Imprint / Disclaimer For more information, please contact: Richard Kersley, Head of Global Securities Products and Themes, Credit Suisse Investment Banking, richard.kersley@credit-suisse.com Michael O’Sullivan, Chief Investment Officer UK & EMEA, Credit Suisse Private Banking & Wealth Management, michael.o’sullivan@credit-suisse.com COVERPHOTO: ISTOCKPHOTO.COM/XAVIERARNAU, PHOTO: ISTOCKPHOTO.COM/ALIJA 78 Turkey: Subdued but stable EMERGING CONSUMER SURVEY 2015_3 Editorial We are delighted to publish the fifth edition of the Credit Suisse Research Institute’s “Emerging Consumer Survey.” To undertake the project, we have again partnered with global market research firm Nielsen, which has conducted on our behalf nearly 16,000 face-to-face interviews with consumers across nine key emerging economies – Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, Turkey and South Africa. We have built a unique and accessible multi-year database profiling the fortunes and intentions of these key consumers. The ambition of our series of studies has...
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...McKinsey Consumer & Shopper Insights Meet the 2020 Chinese Consumer McKinsey Insights China McKinsey Consumer & Shopper Insights March 2012 Meet the 2020 Chinese Consumer Yuval Atsmon Max Magni Lihua Li Wenkan Liao The authors gratefully acknowledge the assistance of their colleagues: Molly Liu, Cherie Zhang, Barry Liu, Rachel Zheng, Justin Peng, William Cheng, Glenn Leibowitz, Joanne Mason. 5 Contents Introduction 1. China at a turning point 2. Getting the basics right: changing demographics Mainstream consumers driving income growth Aging population Postponed life stages Increasingly independent women 3. Understanding the mainstream consumer: new spending patterns Growing discretionary spending Aspirations-driven trading up Emerging senior market Evolving geographic differences 4. Understanding the mainstream consumer: behavioral patterns The still-pragmatic consumer The individual consumer The increasingly loyal consumer The modern shopper 5. Preparing for the 2020 consumer: implications for companies Strategic imperatives Growth enablers Conclusion 6 8 12 13 17 18 18 20 21 22 23 24 26 27 27 28 29 34 35 37 37 Introduction Meet the 2020 Chinese consumer 7 Most large, consumer-facing companies have long realized that they will need China’s growth to power their own in the next decade. But to keep pace, they will also need to understand the economic, societal, and demographic changes that are shaping consumers’...
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...General Motors China It seems General Motors has been able to successfully come out of a difficult patch of declining sales that continued through most part of the year 2015 in China. The last two reported months i.e. October and November have given GM China reason to smile as the combined retail deliveries rose 15 % and 14 % year on year respectively. In the nine months through September 2015, General Motors and its joint ventures sold a total of 2,492,428 vehicles in China at an average of 276,936 vehicles per month. But in October the sales figure was up at 327,037 and in November it was 346,671. During the first 11 months of 2015, retail sales by GM and its joint ventures in China increased 4.1 % on an annual basis to a record 3,166,791...
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...China may boast a 5,000-year-old culinary tradition, but when it comes to fast food, Western-style outlets rule. For this you can thank -- or blame -- changing consumer tastes, and the breathless expansion plans of chain restaurants, which are eager to grab a bigger slice of the country's estimated annual $29 billion fast-food market. For two decades the battle for the modern Chinese stomach was fought between two American giants: McDonald's, the world's largest fast-food chain, and Yum Brands Inc., which operates the KFC and Pizza Hut brands in China. Yum, which arrived in China in 1987 (three years before McDonald's), has always stayed ahead of its rival -- going by both the number of restaurants and consumers' awareness of the brand. In 2005 the two titans were joined by another American stalwart, Burger King, the world's second-largest burger chain. In April Burger King had only 12 outlets on the mainland, including nine in Shanghai. But after this cautious start, the company is pushing ahead with a faster store rollout: In June it announced plans to open between 250 and 300 outlets in China over the next five years, including another 10 restaurants in Shanghai. As in other markets, 90 percent of them will be franchised and one-tenth owned by Burger King. For comparison, KFC has more than 2,200 outlets in some 450 cities and McDonald's has 950 outlets. Airport eateries will also be vital. Some 200 of Burger King's 11,500 outlets worldwide are...
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...Intensive situation of manufacturing industry in china China is the largest exporter and the second largest importer in the world. There became the largest manufacturing country in the world, overtaking the U.S. in 2010. This has raised debate that whether China has lost edge as world’s factory. In recent years, the average income in China has steadily gone up as China’s labor cost has grown by over 60 percent since 2009. However, Vietnam’s labor cost is 40 percent of that in China, while in Bangladesh and Myanmar labor costs are as little as one-fifth of China’s labor cost.9 Other factors are also contributing to foreign manufacturers’ profit decline in China, such as: the appreciation of the Renminbi, variability of various local tax rates, stricter regulations on environment protection, as well as government’s policies towards a more service-based economy. In addition to cheaper labor cost, some Southeast Asian countries have put more effort into attracting foreign investment, such as lowering or exempting import tariffs on equipment required by manufacturing activities. However, unsettled political situations, undeveloped infrastructure, unskilled workers, incomplete industry chain systems, and a smaller domestic market in the Southeast Asian countries remain the biggest concerns for foreign investors. Throughout the years, China is still remains competitive manufacturing base while some foreign manufacturers moved out and relocated to Southeast Asia. Many foreign manufacturers...
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...manufacturing facilities, create a design cycle, and maintain a level of customer service. It’s a very complicated process and the company is always forecasting what they want to be doing next year at this time. The first step in logistic planning is to develop a relationship with a freight forwarding company like Ceva, Expeditor’s, or UPS. It is a very important decision choosing which company one should partner with to move your freight. We’re talking international freight from the Eastern Hemisphere which is where most of the manufacturing is being done. An organization can set it up for any hemisphere, but that is where most goods are manufactured. This is the Asian block – China, India, Vietnam, Korea and Japan. Different freight forwarders will have shipping lanes they manage and where they’ve partnered with airlines, like Korean or British Airways, American Airlines rates are set based on the current cost of fuel surcharges, generally charged by weight and box size. Organizations have to determine an optimal box size to use when going to the air. Freight forwarders exist because they bring many customers together; shipping freight from the same location of departure to the same location of arrival. They split the freight out to the different customers once it arrives in the United States. Next, is to determine where manufacturing facilities are and how you want to move the freight to the port of departure. These would include Shanhigh, Hong Kong, Hoochiman City, wherever...
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...Overview of the company 5 Economic 7 Current Issue 7 Responding the suicide case in China in economic aspect 7 Current economic issue in Foxconn 7 Future opportunities and risk in Asia region 8 Opportunities 8 Risk 9 Recommendation 10 Political 10 Current Issue 10 Suicide case on political aspect 11 The relationship with China and Taiwan 11 Future forecast 12 Opportunity 12 Risk 13 Recommendation 13 Social 14 Current Issue 14 Current social issues in Foxconn- Suicide Case 14 DISCUSSION ON LABOR, HUMAN RIGHTS AND OHS 15 Future Opportunity and Risk 18 Opportunity 18 Risk 18 Recommendation 18 Environment 19 Current issues 19 Future opportunities and Risks 19 Opportunity 19 Risks 23 Recommendations 24 Conclusion 25 Reference 26 Executive summary This report provides the current economic, political, social and environmental issues, future opportunities and risks, and recommendations for Foxconn. There were a series of suicide incidents happened in Foxconn around 2010 which puts the company under the spotlight. The huge net deficiency in 2010 is the biggest issue in economic part. The political issues involved the tense relationship between Taiwan and China which have impacts on trades. The social aspect of suicide incident is discussed from the perspective...
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