...supply even we a steep interest rate. contrast that with the sale in august of 20 billion yuans, which is 20 billion in us dollars, of paper by China in hong Kong;s fledgling offshore market. the yield was miserly yet there were bonds for sale. This tale of two bonds auctions is a parable for the contrasting fortunes of near stagnant rich economies and fast growing emerging markets. twenty of the 82 econmics covered in the back pages of the Economist grew by 3% or more in the year to the latest quarter. only two, of these, Austria and Sweden, are from the traditional group of rich ones, such as Taiwan and Hong Kong. The IMF's the latest forecast is that emerging economies will grow by more than 6% in 2011 and 2012. But growth in the rich world is likely to be below 2%. The other half lives is the rotters economic news over that summer and depending euro-zones mess mean it is easy to forget that countries that now account for half the worlds output and most of its population are doing rather well. that is the focus of my special report on the world economy. But it is equally easy and unwise to think that cupid and trouble-free growth in the emerging economics is assured for years to come. It seems almost churlish to question the outlook for emerging markets after the great strides they have made China and India are twice as rich as they were a decade ago taking millions out of poverty. Nor is the good news confined battered the rich world...
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...Japan’s Economy Feels the Sting of China’s Slowdown InternationTradeNews November 18, 2015 Website: InternationalTradeNews.com TOKYO — In its small way, Tsutomu Nyuwa’s metalworking shop in Yasugi, Japan, has been feeding the economic boom 700 miles away in China. Many of the precisely machine-tooled gears, bearings and other components turned out by Mr. Nyuwa and his 14 employees end up on Chinese work sites, in the engines of the giant earthmovers that have powered China’s breakneck pace of construction. But with Chinese growth now slowing, Mr. Nyuwa’s business is slumping — along with the rest of the Japanese economy, which data released on Monday showed is in recession again.Japanese equipment makers like Komatsu, Kubota and Hitachi Construction Machinery are selling fewer excavators and bulldozers in China and, in turn, are buying fewer parts from manufacturers like Mr. Nyuwa. Orders from the construction sector are off 40 percent this year, he estimates. “It’s definitely come back down to earth, and we feel it,” Mr. Nyuwa said of the Chinese market. Japan, more than many other developed countries, needs everything to go right for its economy to grow. Its population and work force are shrinking. Once-big industries like consumer electronics are retrenching under pressure from lower-cost rivals. Prime Minister Shinzo Abe won power three years ago on a promise to accelerate Japan’s economic metabolism, but despite some notable successes — joblessness is low and many...
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...CASE: MATTEL AND TOY RECALLS Toy Industry Our presentation started with the industry introduction. Based on the case, toy industry was growing if we compared the results with the previous year. In 2007, the global toy market was around $71 billion business. Though 36% of the market was on the hands of North America, the growth pace was slower than Asia. Especially in China and India it was estimated that market would increase 25% more than previous year. The toy industry in USA had about 880 companies. Dominant players were Mattel, Hasbro, RC2, JAAKS Pacific, Marvel, and Lego. Moreover, big retailers were entering to the market under their own brand names creating threat for existing toy companies. Toy market categorized many segments in USA market, among them infant/preschool toy segment was the largest and stagnant. Noticeable growth occurred in youth electronics and video games. Production of the toys concentrated in China with 60%. Company Information Mattel, Inc. founded by Harold Matson and Elliot Handler at a garage in 1944. The company name was generated by using letters from founders’ last and first names. Mattel’s first products were picture frames and doll house furniture. Barbie doll was introduced in 1959 and Ken product followed it. With these products, Mattel guaranteed its growth. Hot Wheels product established Mattel’s position as an industry leader. Company’s products were organized in 3 different business groups: Mattel Girls & Boys Brands, Fisher Price...
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...Trend in Business in China Wendy He ENG 211D JLU University Lambton College April 5, 2012 2 Trend in Business in China China joined as a formal member country of World Trade Organization (WTO) in 2001 and the way to join it also had many hardships. Chinese government knows that it is very important to join it for Chinese business to have some brand new opportunities. The only problem is joined as the developed country or as a developing country. China is a developing country has not enough ability to afford the responsibility of the developed country. For fear of too many extra duties, Chinese government decided to join as a developing country. The right decision brings a watershed situation for Chinese business. There was a huge financial crisis was sparked by the US subprime crisis in 2008. China also was influenced a lot and many private enterprises were bankrupt. Chinese government has made some useful adjusting policies to deal with these troubles in national business and in the end of 2008 the economic growth rate of China was also had 9%. We can know that the business in China is going to be more and more global and luxuriant. 3 New Business in China All of counties have its own business around the world. This economic interdependence relationship brings both challenges and opportunities to these countries. Because...
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...Need a quick revision on your knowledge of 5000-years of Chinese history? I suggest picking up Adeline Yen Mah’s China: land of dragons and emperors. Having first read Adeline’s compelling autobiography Falling Leaves a while ago, I was surprised to see her publish a book on China’s history for children ( ‘big’ children like myself included:)). ‘I bring you gifts from China: treasures more enchanting than pearls, more precious than jade. Among these pages you will find tales of dragons and emperors, battles and love affairs….’ excerpt from ix And so begins a 234-page journey though each of China’s dynasties, Qin, Han, Tang, Song, Yuan, Ming and Qing. I especially liked the section where Adeline highlights the most famous person in a particular dynasty – useful for readers who remember have trouble fitting names to dynasties e.g. which dynasty was the famous historian Sima Qian (司马迁) from*? The book is also laced with handy information on things like the invention of matches, to the origins of the moon festival (中秋节). By the end of the book i was left wanting more. A future consideration might be for Adeline to turn this book into a full-length history text for students preparing to study China history. Well, to prove that the book is not just for children :) - my dad started reading the book a day after i finished, quite a feat considering that he hardly has time to finish the newspapers. SB rating 3.5/5 *(Ans: the Han...
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...(Hint: Not Africa) 7. What is the primary problem when companies try to define ethics? Why it is hard to decide what is ethical? 8. What are the criticisms of MNC’s? Why are they criticized? 9. What are the dimensions of sustainability? 10. What are the factors that contribute to globalization? Lessening of trade barriers, increased flow of goods and services, capital, labor, and technology around the world. The rise of developing countries such as China and India and technological advances. 11. For small and medium businesses what is the most likely way they impact globalization? 12. What are the 3 dominating currencies in the world economies? 13. What are the three trade blocks that are doing the most business? 14. What does the book say for China exportation success? 15. In Chapter 1, what makes India attractive and competitive? (Hint: Infrastructure) 16. What are the biggest reasons that if you are a big company in China that you will have trouble competing? 17. What is approvability? 18. Why do companies use secrecy agreements, non-competitor clauses? 19. What are the policies of tariffs and quotas? Protectionism 20. Related to dumping (hazardous), is it New, Old, Increasing, and/ decreasing?...
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...This evolutionary approach, and the Agile design processes that support it, is built into the fibre and psyche of web companies. They don't think in terms of long-term detailed plans; they think in terms of stimulus and response. This is a dramatic change in the history of business. In the past, the nimble companies were always the little ones. The larger your company, the more it valued planning and the long-term view. Google is one of the first very large tech companies ever to pride itself on rapid response rather than rigid planning. On top of this quick-turn bias there's the cultural training of Google's senior management. Most big companies end up being run by professional managers who came up through business school or finance, where they get trained in the rhythms and personality of traditional big business. They learn a shared vocabulary and set of values that are very familiar and comfortable to investors. By contrast, Google is completely controlled by engineering PhDs. They speak the language of science rather than business, and they're contemptuous of the vague directional platitudes and reassuring noises made by modern finance and marketing I think most reporters and analysts don't understand how fundamentally different the engineering mindset is from traditional business thinking. It's a very distinct paradigm, unfamiliar to most people who haven't studied science. One key element of the engineering mindset is the use of scientific method: you encourage a Darwinian...
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...Case 2: CHINESE MERCANTILISM Text 1. Chinese New Year China has become a major financial and trade power. But it doesn’t act like other big economies. Instead, it follows a mercantilist policy, keeping its trade surplus artificially high. And in today’s depressed world, that policy is, to put it bluntly, predatory. Here’s how it works: Unlike the dollar, the euro or the yen, whose values fluctuate freely, China’s currency is pegged by official policy at about 6.8 yuan to the dollar. At this exchange rate, Chinese manufacturing has a large cost advantage over its rivals, leading to huge trade surpluses. Under normal circumstances, the inflow of dollars from those surpluses would push up the value of China’s currency, unless it was offset by private investors heading the other way. And private investors are trying to get into China, not out of it. But China’s government restricts capital inflows, even as it buys up dollars and parks them abroad, adding to a $2 trillion-plus hoard of foreign exchange reserves. This policy is good for China’s export-oriented state-industrial complex, not so good for Chinese consumers. But what about the rest of us? In the past, China’s accumulation of foreign reserves, many of which were invested in American bonds, was arguably doing us a favor by keeping interest rates low — although what we did with those low interest rates was mainly to inflate a housing bubble. But right now the world is awash in cheap money, looking for someplace to...
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...intense competition between the automotive producers keeps the prices down. By 2020 the profits are going increase by almost 50% in the automotive industry and the main source of these profits would be the emerging market of India and China. Through driving force analysis I came to conclusion that these are the factors that serve as the driving force in the global automotive industry. a. The convolution of the automobile and building cost pressures: There is an extensive range of modular system in the market and the public keep demanding for better and better systems for lower price. The customers are prioritizing their choice of car based on low emissions. The government is also tightening the regulation which is another add on to the troubles for the automotive industry. Customer’s demand and the government policy require investment in R&D. Price that are already prevailing in the industry are going to be flat so huge investment on research and development may have adverse effect on the profit of the company. b. The ongoing diversion of the market – With changing time there are alteration in the supply and demand and also the portfolios of the automobiles. The market for small vehicle is becoming big, the aftersales market specially in china is becoming huge. So the automobile industries also have to make alterations in their policies. c. Digital demand- The customers are seeking for a product that offers safety, ease of use and also is not exorbitant. The customers...
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...Letter to Editor of Xin Hua News. Dear Editor, What would happen to a child with no parents to take care of them during their childhood? Nowadays in China, many children are living in the countryside without their parents. The Chinese economy is rapidly growing, causing a big income inequality between the urban areas and rural villages. More and more people from the countryside are moving to the cities to work. However, their children have to stay in the rural area because their parents cannot afford to raise them in the city. Normally, these parents come back home once a year and stay for less than one week. So, children hardly have any time to spend with their parents during their childhood. According to a recent survey, there are more than 61 million (equal to the whole population of the United Kindom) stay-at-home children in China. 57.2% of them are taken care of by one of their parents, but for 42.8% of them, both parents are absent. Of the children living without their parents, 79.7% of them are taken care of by their grandparents,13% are cared for by the parents’ friends or relatives, and for 7.3% of them it is not known who is taking care of them. As we all know, an adult’s care is important to children. Without parents to take care of them, the mental health status of the stay-at-home children may be a big hidden trouble in the future. Some people think these children still have grandparents or relatives taking care of them. However, their grandparents also need to do...
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...12/3/14 Poverty in China FRIDAY October seventeenth was China's first official “Poverty Alleviation Day”, a yearly assembly of "discussions and pledge drives", intended to rally deliberations to battle hardship. Obviously, because of China's quick financial advancement, the nation as of now assuages a great deal of destitution every day: a year ago the quantity of rustic poor fell by 16.5m or in excess of 45,000 individuals every day. However that still left 82.49m individuals stuck in country lack of sanitization toward the end of 2013, as indicated by official measurements. A few places in China are more awful off than they look. Their "luxurious city structures" mask devastated populaces, as per Xinhua, the state news office. Different parts of the nation are less poor than they let on. They would prefer not to be expelled from the rundown of "destitution stricken regions" due to the support and different profits they would relinquish. China's neediness is, in this way, a matter of some controversy and perplexity. In reality, China itself may not be as poor as its official media assume. Xinhua reports inaccurately that China's official destitution line is lower than the World Bank's worldwide standard of $1.25 a day. By that global standard, claims an alternate state-supported daily paper, the nation still has more than 200m destitute. In referring to that discouraging measurement, it echoes a discourse in June by Li Keqiang, China's chief, in which he said that "in...
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...Advantage and disadvantage of entrance exams to universities in China and US As we all know, students who want to go to college must take exams which are called “entrance exams to Universities”. College entrance exams are considered to be the unique approach that the students are admitted by the colleges, and a significant factor that determines a student’s future development. They’re even regarded as one of the turning points in their lives. The similarity of the college entrance exams in China and that in the Western countries is that they are both the ways of selecting students for the colleges. Well, it's a must door for all the Chinese senior students to the higher education. It may be considered to be too exam-oriented, or too narrow and strict to the students, however it has last for decades. It is actually useful in choosing talented people. To take an even spectacular example, in order to get a good result, students must be hard working, considerable, insistent and knowledgeable, and these, are just what the society needs. In total, everything exists has a reason. I think the exam is workable in some way, but can still be improved. In China, more than half students take exams on June 17th and 18th, in China. In that day, many students march in the classroom to wait for the examinations. Whatever the weather is hot, they full of confidence and stress to write down their answers. Even though they are ill and cannot give up the test, for they cannot live up to...
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...is a script of "Chairman Ma" which aired on Sept. 28, 2014. Lara Logan is the correspondent. Howard Rosenberg, producer. By now you've probably heard of Alibaba, the Chinese Internet giant that's able to reach millions upon millions of previously unreachable Chinese consumers. The company went public this month on the New York Stock Exchange and became one of the most valuable in the world and Alibaba is just getting started. Everything about the Alibaba story is unconventional. Beginning with its founder, Jack Ma, who gained global celebrity status these past 10 days, as his image became ubiquitous on business news channels and media outlets across America. We got to know Jack Ma before the onslaught, beginning over a year ago in China, where he talked with us about his relationship with the Chinese government, and his unorthodox business philosophy, which surprisingly, gives shareholders almost no say over how he runs the company. Jack Ma: If you want to invest in us, we believe customer number one, employee number two, shareholder number three. If they don't want to buy that, that's fine. If they regret, they can sell us. Lara Logan: In the U.S., the shareholder is usually first. Jack Ma: Yeah. And I think they were wrong. The shareholder, good. I respect them. But they're the third. Because you've take care of the customer, take care of the employees, shareholder will be taken care of. Ma's unconventional view didn't stop Wall Street from pouring $25 billion...
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...Is production important? For many years it has been common sense in mngmt to consider production as sth that is not strategic, can be easily outsourced, not relevant if it does not give competitive advantage compared to your competitors --> but we have now China, which is the "plant of the entire world" --> recent interview of new CEO of Apple: he was asked why he was producing in China (main supplier is Foxcon) and don't come back to US! But it is impossible: even if we decided to go for it, it would be impossible, since the supply chain for electronic products is in China --> no suppliers, no technology! Now also India is getting a larger and larger part of the manufacturing activity . It seems to be a good solution that we do not deal anymore with production and we are a more virtual company, which controls custumer relationship, marketing, innovation and product design - enough to be competitive, but all the rest can be outsourced --> same model of IBM, which at the beginning was a manufacturing company (40 years ago), but now they are manufactured in China --> Lenovo, Thinkpad brand. Now they are more a consulting and service company - "virtual company". Video: Interview with a consultant --> mutual outsourcing: analyze the idea of outsourcing and if it is true that a company can forget about production. Idea of Foxcom outsourcing the innovation process to Apple to build the Ipad --> reversal of our usual view. It is not Apple the owner of the...
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...leadership when necessary. If leaders are making big mistakes, they need to step down anytime necessary. But if current leaders are leading their organizations to make significant progress, they need to stay in power for the sake of their organizations’ continuous progress. New leaders can bring new ideas, innovation and other important resources to their organizations, which are important for the success of organizations. By the 1980s, Haier Group had debt of over CNY ¥1.4 million and suffered from dilapidated infrastructure, poor management, and lack of quality control. The company was on the verge of bankruptcy. Zhangruimin, the saver of Haier Group, introduced the sense of quality to its members by smashing 76 faulty refrigerators in front of everybody. The company started turning around in late 1980s with Zhangruimin’s disciplined management. As an avid reader of western and Japanese business, he brought Haier into international competition after cooperating with Germany Liebherr Group. This has been one of the most told stories where a new innovative leader saves an almost bankrupted company. Under some extreme circumstances, those in power might need to step down before the end of their due time. Chairman Mao held leadership from the establishment of China till his death in 1976. Later in his leadership, he started becoming obsessive of power and started ‘culture revolution’, which brought disastrous results to china. During the Culture Revolution, many intellectuals...
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