...PESTLE Analysis of China 2012: Lucintel Forecasts Robust Growth for Chinese Economy despite Eurozone Crisis PESTLE Analysis of China 2012: Lucintel Forecasts Robust Growth for Chinese Economy despite Eurozone Crisis Irving, TX (PRWEB) June 21, 2012 -- China’s economy has experienced a strong annual GDP growth rate of 10% during the last five years. It is expected to continue its growth momentum and surpass the US in GDP by 2020. A high rate of savings, abundant and increasingly skilled labor, healthy export business, and potential urban growth is likely to drive the Chinese economy to sustained growth during 2012-2017. Lucintel, a leading global management consulting and market research firm, performed a Political, Economical, Sociological, Technological, Legal, and Environmental (PESTLE) analysis of China and presents its findings in “PESTLE Analysis of China 2012.” As indicated in the study,foreign direct investment (FDI) has proven to be the driving force for China’s ongoing economic growth. The large and expanding market of China is attracting leading multinationals, encouraging local innovators, allowing domestic manufacturers to produce low-cost products, and permitting formation of industry clusters and business groups. Successive governments’ focus on reform processes and simplification of China’s tax law and FDI procedures makes China an ideal destination for investment and growth. The report also indicates that large-scale production diminishes production costs, leading...
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...A Study on Leverage and Firm Investment: Chinese Evidence Master of Science Thesis Huijie Bao Program Economics of Innovation and Growth Royal Institute of Technology (KTH) June 2010 Supervisor: Börje Johansson ABSTRACT This thesis focuses on the relationship between financial leverage and investment in Chinese listed firms. There are two novel aspects embraced here. One is choosing a marginal version of Tobin’s q instead of average q with Chinese data. Another one is taking the financial sector in to consideration. The research covers all sectors in the Chinese stock market. Main outcomes are listed below. Leverage imposes negative effects on investment, especially on non-state owned firms. Like Financials, Manufacturing and other highly regulated sectors, the inverse impacts of debt are week as well. However, marginal q fails in proof under the specific environment of the Chinese capital market which is still immature. High-leveraged firms experienced reverse influences of marginal q on investment. To sum up, over-debt financing indeed blocks the sustained investment. Relatively speaking, state owned firms in China suffer less since they are supported by the government and have fewer restrictions. Key words: financial leverage, marginal q, gross investment and state owned firms 2 ACKNOWLEDGMENTS Firstly, I would like to express my strong gratitude to my supervisor, Prof. Börje Johansson, whose profound knowledge, guidance and patience, greatly enhanced...
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...xM&A Law Firm LEGAL GUIDE TO DOING BUSINESS IN CHINA CONTENT I. OVERVIEW ...................................1 II. FORMING A COMPANY IN CHINA ................................................................2 III. MERGERS AND ACQUISITIONS ................................................................8 IV. TAXATION ...................................12 2011.05 Address: 13th/14th F, Huamin Empire Plaza 726 West Yan An Road, 200050 Shanghai,China Tel: (8621) 52370950 I. OVERVIEW This guide provides foreign investors an overview of the laws and regulations governing business in mainland China. After 30 years law making and reform, in 2010s, China has already promulgated a body of written statutes governing commercial affairs, including company management, employment, making contract etc. There exists an even larger body of implementing regulations and circulars issued by governmental authorities. The law in China often evolves in a piecemeal fashion, with certain regulations applicable experimentally only in certain geographic regions or with the issuance of temporary “interim” regulations that nevertheless have the force of law. The written statutes and regulations are often pitched at a relatively high level of generality, leaving significant discretion to implementing officials. Questions of law are resolved generally directly by the administrative agencies in charge of enforcing those laws, rather than by the courts. V. EMPLOYMENT AND LABOR LAW ......................
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... Amy Chua, author of ‘Battle Hymn of a Tiger Mother’, wrote a memoir in 2011 to help and try to explain how a tiger mother raises her children. Tiger mother parenting bases its methods on ancient parenting styles. It is understood that in Asian culture, parents assume their children are born strong and meant to be successful, whereas in Western culture, parents assume fragility and that their children need to be given several chances to overcome and obstacle. Tiger mothers take it upon themselves to place certain pitfalls within their children’s path, as a way of teaching them problem solving strategies (Chua, 2011). The Wall Street Journal published the article “Why Chinese Mothers Are Superior” based on Chua’s work. The article contains excerpts from Chua’s memoir, and made the plea that strict Chinese upbringing was superior. This was further recognized in a poll from the Wall Street Journal website, where the majority of poll takers voted that the strict Eastern parenting method was far better than the pushover Western parenting method (Wall Street Journal, 2011). There is also scientific tests to prove this theory. When children are taught to master an academic subject, they feel a higher sense of self-esteem and confidence (Marano, 2008). In a study done by Hara E Marano, children who are overprotected in the wrong ways during childhood tend to be riddled...
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...wider regional matters than simply fiscal issues. Another feature is that regional government is encouraged to be economically self-contained in order to develop faster than other region after the reform started. Moreover, another feature is that each regional government, especially those special economic zones are competing with other region by attracting more Foreign Direct Investment in order to get more incentive and promotion from the central government. Without all these above features, China’s reform practices and performance would be substantially different from what has happened in the past 30 years. Although China is highly decentralized economically, it is neither a de jure nor a de facto federal state because of the backbone of China’s RDA regime, the Chinese Communist Party. CCP makes the RDA regime fundamentally different from a federal system by constituting China’s non federal status and. “The Chinese constitution has been amended during the reforms, reflecting the changes of Chinese political and economic institution. However, both the pre-reform version and the latest version of the Constitution stipulate that regions have no inherent power and regional power is granted by central authorities. The central government is empowered to delegate power to regional and also to...
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...cheap labor. In 2009, US foreign direct investment was north of $3.6 billion dollars from $2.8 billion in 2008. However, US companies are still facing issues with piracy and intellectual property rights once setting shop in China. Assistant Secretary for the Economic and Business Affairs Jose Fernandez said, “One US Company was the victim of Chinese hackers who stole technology that costs $1 billion and 20 years to develop. After theft of its technology came to light, another company lost 40% value in a single day and *4% within five months.” US companies have seen their businesses go from millions to zero in a matter of a few months. Inadequate protection of these issues will continue to cost US firms and employees billions of dollars each year. One recent case that has hit the US officials is the creation of 22 illegal Apple stores that resembles an Apple store that sells counterfeit products. Often, US firms specializing in biotechnology, nanotechnology, and telecommunications are major piracy targets. Before the technology even hits the production line, another Chinese business has copied and boxed cheaper versions of the same product. Washington and Obama have been hounding Chinese officials to buckle down on copyright infringement, intellectual property piracy, and counterfeiting. The US officials have filed formal complaints with the WTO and US trade Representative Susan Schwab has announced more complaints will be filed. Chinese officials have responded that these filings...
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...AFRICAN POVERTY Duncan Kennedy* Abstract: African extreme poverty is probably a function (although not solely) of the balkanized post-colonial geopolitics of Africa. It is also probably a function (although not solely) of the income distribution generated by a typically perverse African political economy, through its effect on the allocation of resources to development. As between these two causes, the second is probably much the more important. This reinterpretation puts considerably more of the blame for African poverty on the Western great powers than does the “poverty trap” analytic that is a common contemporary way of thinking about the African economic situation. INTRODUCTION This essay, which really is an essay rather than a sustained scholarly encounter with the problem, proposes an alternative to the “poverty trap” analytic for understanding extreme poverty in sub-Saharan Africa. The poverty-trap idea is well instantiated by the following quotation from Jeffrey and Lisa Sachs, and it is common among liberal Western commentators on African economy. For the world’s poorest people, daily life is a struggle for survival, with millions of impoverished people each year losing that struggle to famine, disease, environmental catastrophes, and violent conflicts that arise in conditions of extreme deprivation. . . . One basic point, not always remembered, is that impoverished countries lack their own budgetary resources needed to supply vital—indeed life-saving—services such...
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...Brazil: Leading the BRICs? Brazil has experienced great integration into the global economy over the past decade, which has been a result of significant growth in exports and reinforcement of the country’s weight in international trade negotiations. Brazil is the third strongest economy of the BRIC group (Brazil, Russia, India and China) and is the leading economic power of the South America. Brazil’s president (Cardoso) initiated accession to the World Trade Organization (WTO) in the mid-1990s. Brazil plays an active role within the WTO and a constructive role in the development of economic and trade associations. The accession of Brazil to WTO, its success in the organization and its important leadership position in the Group of Twenty, made it play a major role in the multilateral trade negotiations. Its position in favor of the Doha round brought about the realization of ambitions for development. Brazil’s actions in the World Trade Organization definitely serve the country’s long-term economic goals. The bilateral and regional trade agreements, promoted by Brazil, can complement the multilateral system by reinforcing the integration of the markets and strengthening the role of trade in economic growth. This is why Brazil should work through another round of WTO sponsored agreements. The WTO cotton dispute between Brazil and the United States reveals how some countries may strangle others by their strategic trade policy. It also shows the importance of Brazil’s...
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...want to work on is to find what I really want to do in the future as my career. I am currently a sophomore majoring in Accounting and to be honest, I am not pretty sure about what I want to do for living As long as I am considering right now, there are three possibilities for me as for my career—work in an investment bank as an analyst, work as an author in china. As for being a author, the very first reason is that I love to express my opinions through languages. Indeed I started thinking about being an author when I was in my first year of undergraduate. I was mostly motivated by the book, The Seventh Day, written by Chinese famous journalist Hua Yu. In that book, He expresses his opinions about political, social and economical events though relating fictions life after the death of the main charter. Therefore, I was motivated by his several sentences, hoping to become an author so as to perform my own values in Chinese writing filed. The major difficulty so far that get in the way for me to be a an author here is still the language barrier. The reason is that I did not get the formal training for this. For now, I accept American education, and totally stop accepting any Chinese stuff. In addition, I spend lots of time working on do my Finance and Accounting class, so I don’t have more time to consider my interests or my life goal. Although I had been taking several writing classes since I came to Case two year ago, there are still a lot of times I don’t know how to freely write...
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...Beijing Jeep Co. and The WTO 1 In May 2000, the Beijing Jeep Corporation, Ltd. (BJC) faced one of the most challenging periods of its relatively short. China is going to entry into the World Trade Organization (WTO) In order to join the WTO, China had to agree to liberalize its financial markets. It also had to allow for more foreign investment in firms engaged in electronic commerce, entertainment, travel and tourism and other industries. In addition, trade tariffs had to be reduced on a wide range of agricultural and manufactured products – including a reduction in the tariffs on imported automobiles from one hundred per cent to twenty-five per cent by 2006 that would lower the entry barriers to Chinese automotive industry. The company had also spent many years cultivating relationships with senior government officials–what the Chinese refer to as guanxi–to help it achieve its objectives. And since over forty per cent of its product’s content was produced in China, BJC had operated as a local manufacturer under heavy protection from imports for all of its short life. The political and economic climate in China was still undergoing a major transformation begun in 1978. China planned to achieve ‘socialist modernization’ through economic reform and opening up to the outside world. Jeep was the second most recognizable foreign brand name in China, The situation was particularly attractive for Jeep as China was perhaps the world's...
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...Strategic Analysis (required to develop an apt strategy), Strategy Formulation (process of transferring the analysis into a plan – intended strategy); and, Strategy Implementation (process of putting plan into action – realized strategy). The purpose of this assignment is to develop a comprehensive strategic plan for an Organization for its mission and vision to achieve goals. We have chosen ChinAfrica Magazine for this very purpose. ChinAfrica Magazine was first published in 1988 in English and French edition. Its paper version was suspended in 2001 due to internal financial problems; and, the new English monthly magazine was re-launched in October-2009. Their existing website is in English, Chinese, and French; thus, catering to a range of population. The English version of the magazine has 68 pages and French edition has 16 pages. As evident from the magazine issue, the primary purpose is to further enhance and promote mutual understanding between Chinese and African counterparts, their respective cultures, ideology, business avenues, etc. Hence, this magazine works as a medium of exchange of information between the two...
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...Joint venture From Wikipedia, the free encyclopedia For other uses, see Joint Venture (disambiguation). This article is written like a personal reflection or opinion essay rather than an encyclopedic description of the subject. Please help improve it by rewriting it in an encyclopedic style. (April 2010) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2010) A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares. In European law, the term 'joint-venture' (or joint undertaking) is an elusive legal concept, better defined under the rules of company law. In France, the term 'joint venture' is variously translated as 'association d'entreprises', 'entreprise conjointe', 'coentreprise' or 'entreprise commune'. But generally, the term societe anonyme loosely covers all foreign collaborations. In Germany, 'joint venture' is better represented as a 'combination of companies' (Konzern).[1] With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a...
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...Some use Yahoo for its easy use of dictionaries and profile search. Furthermore, Naver is a Korea’s search engine and it is a predominant search engine that is used by Korean population. Naver is not only used for web search but also used for many e-commerce and e-business such as shopping online and doing business online. Korea is very well-known for its high IT quality, thus, many companies and businesses are making enormous profits through this search engine. Last but not least, Baidu was launched in 2000 by Robin Li in Beijing China. Baidu is a Chinese search engine, thus it is used by Chinese people for most cases. Baidu is the number one search engine in China that is used by Chinese search population. Baidu offers data and information like encyclopedia services and searches discussion forum. Chinese use Baidu for everything on a daily basis. Other people say that Baidu is a Chinese version of Google. In addition, 70% of Chinese population would use Baidu for their search...
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...A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares. In European law, the term 'joint-venture' (or joint undertaking) is an elusive legal concept, better defined under the rules of company law. In France, the term 'joint venture' is variously translated as 'association d'entreprises', 'entreprise conjointe', 'coentreprise' and 'entreprise commune'. But generally, the term societe anonyme loosely covers all foreign collaborations. In Germany,'joint venture' is better represented as a 'combination of companies' (Konzern)[1] On the other hand, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-venturers". The venture can be for one specific project only - when the JV is referred to more correctly as a consortium (as the building of the Channel Tunnel) - or a continuing business relationship. The consortium JV (also known as a cooperative agreement) is formed where one party seeks technological expertise or technical service arrangements, franchise and brand use agreements, management contracts, rental agreements...
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...PepsiCo and PepsiCo Greater China About PepsiCo PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo’s people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo’s promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. In recognition of the continued sustainability efforts, PepsiCo was named for the fourth time to the Dow Jones Sustainability Index of the World (DJSI World) and for the fifth time to the Dow Jones Sustainability Index of North America (DJSI North America) in 2010. In 2011, PepsiCo is ranked as the No. 1 company in the Dow Jones Sustainability Index (DJSI) Food and Beverage supersector. PepsiCo is also named the beverage sector leader for the third consecutive year. ...
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