Hong Kong Economy

Hong Kong Economy

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Hong Kong Economy

Reference

• Highlight how changes in culture, politics, critic boarder trade and investment have impacted Hong Kong
  1. Due to colonization of Hong Kong by the British, the culture transformed and switched to urbanization as well industrialization where the people changed from being rural farmers to being urbanized, industrialized and service oriented. This also altered the initial family responsibility pattern where the man was a bread winner to having a couple cost share depending on the bills and finances. The culture also changed from families staying together to families getting divorce. The change in culture became an advantage to Hong Kong since the population and resources could be controlled.
  2. Politics, after the colonial period have not yet stabilized in Hong Kong since they appoint leaders who are not popular and have no interests in Hong Kong’s economy. It has impacted Hong Kong in losing clients in both the tourism and economic sector because of political protests.
  3. Cross boarder trade was made effective in that an agreement was made and a supplement was signed to expand liberalized market, investments and trade between the nearby countries. Currently, products from Hong Kong can be imported to China’s mainland.
  4. Investments in Hong Kong favors foreigners thus providing a convenient environment for direct markets. The service industries have the largest investment stock.
• Briefly review the country’s economic history, current status, future potential impacts
  • Hong Kong has been identified as a place with a good geographical location for economy. During the colonial era, it was identified as the most important economic and financial centers worldwide. The services and retail had increased diversification.
  • After the colonial period, the government decided to set some laws and regulations which were meant to establish a convenient environment for economic growth in Hong Kong.
  • Currently, the government has granted access to the private sector to the main sector where a license is not required to carry out any business. A company is thus required to carry out a business in Hong Kong.
  • The Hong Kong government however has not restricted any form of investment or financial plan despite it’s size.
  • Hong Kong has had great sceneries that attract tourists, but the current protests have made tourists cancel their trips and have had delays in the stock exchange market. The retail sales have also been disrupted by the political protesters resulting to poor economic growth.
  • Hong Kong has potential impacts to foreign investors because of their very low taxes and their absent tariffs.
• Explain five to seven advantages and opportunities for your country vis-à-vis growth, expansion, import and export opportunities, positive impact on US economy, etc
  • Hong Kong offers direct investments thus this makes it the largest source of investment overseas. Most of it’s projects are usually funded and they usually are aimed to benefit Hong Kong’s interests. This thus will enable the US take on projects and finance to improve their economy.
  • The economy of Hong Kong has it’s’ momentum gradually improving. This leads to an increase in it’s exports as well as imports annually. Thus the United States has an advantage in importing and exporting some products from Hong Kong.
  • Hong Kong being one of the largest in trading economy makes it built on trade. It’s airports are usually busy with imported and exported containers. Thus this gives room for growth.
  • Hong Kong is diverse in that it gives opportunity to investors. It offers a direct investment for foreigners as well, giving the US opportunity to make business with them and at the same time Hong Kong have the opportunity to have dollar rates stable.
  • Hong Kong has firm foundation in the business world as it has for the economic connections which create an opportunity for the main land. If Hong Kong partners up with the United States then the imported products from the United States can be marketed on the mainland, thus boosting their economy.

  Education and Economic Growth by Erick A Hanushek

  Economic History of Hong Kong by Catherine R Schenk, University of Glasgow