...The Classical Chinese Art Fund The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 2 The Classical Chinese Art Fund Content Page 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? 1.2. Investment Profile of the Fund 1.3. Rationale: The China Factor 1.4. Investment Approach and Strategies 1.4.1. Growth Strategies 1.4.2. Risk Management Strategies 2. Market Analysis 2.1. Art Segmentation 2.1.1. Chinese Calligraphy 2.1.2. Chinese Paintings 2.2. Major Players 2.3. Demand and Supply Analysis 3. Role of Public Institutions and Regulatory Policies 4. The External Competitive Environment 4.1. Correlation between Chosen Sector and other forms of Investment 4.1.1. General Outlook of the Art Fund 4.1.2. Comparative Analysis of the Fund and Other Art Investment Funds 5. Prospective Investment Portfolio of Art Works 6. Conclusion • Appendix The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 3 The Classical Chinese Art Fund 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? The Classical Chinese Art Fund is an investment fund approach that capitalizes on the valuable asset class of Classical Chinese Art, specifically Chinese paintings and calligraphy art pieces. Chinese paintings and calligraphy art works are considered ...
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...strategy till the late 1990s. With the improved business prospects in the Chinese logistics industry, the intensified rivalry between FedEx and UPS reached its peak gradually. Following Chinese entry into the World Trade Organization (WTO), FedEx and UPS continuously implemented various new services and agreements to grab Chinese logistics market. Obviously, these strategies helped both companies increase their revenues significantly so both companies expected to gain more market share in the future. Entering and Expanding Services Network At first, FedEx commenced its operation in China in 1984 by means of joint venture while UPS entered into China through an agent partnership relationship. FedEx partnered with multinational companies in China to build service network thus FedEx focused on building infrastructure and distribution centers in the first decade of its operations in China. Though joint venture provided FedEx with greater opportunities that are inaccessible through other strategies, it brought much higher investments and risks. On the contrary, an agent partnership relationship saved UPS from high risks. Unlike FedEx, UPS followed a low investment approach through cooperation with Sinotrans. Besides less risk, this strategy also contributes to establishing the image of local company for UPS. Secondly, both FedEx and UPS started to expand its presence in China after entering Chinese logistics market. FedEx launched its air services and distribution centers continuously...
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...rule (1949 – 1979), China had an autakrick economy i.e. it prohibited foreign investment & restricted foreign trade. * China’s policy also reflected its historical belief that contact with foreigners tended to corrupt its politics and harm its culture. Still, in order to ahead of the other countries economically, China enacted the Law on Joint Ventures using Chinese and Foreign Investment in 1979. * Since then, China has experienced a dramatic rise in FDI. The largest recipient of FDI among all developing countries, and it ranked second to the United States for FDI inflows since 1993. * By mid – 2002, total FDI in China had exceeded $700 billion and was invested in nearly 4, 00,000 ventures. * Japan, Taiwan, US are China’s most important sources of FDI. * China is world’s third largest country in area and largest in population, which makes it attractive to market-seeing FDIs. * It modified their practical aspects on trade by steadily adopting the principles of free trade. * China restricted imports & let foreign investors propose their preferred mode of entry by giving stringent criteria i.e. each foreign investment application should determine whether the investment was in the best interests of China – whether it helped in capital formation, promoted exports, created jobs, or transferred technology. * All FDIs had to go through an extensive process of the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) or provincial –...
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...China's market reforms and accession to the WTO has led to its economy growing rapidly, to the point where it is now the fourth largest on earth, and is expected to be in the top two within the next decade (Business Monitor International, 2006). As a result, China's SMEs are now facing an economy flooded with foreign capital, and with a more open economic climate than in previous years, but also a much more competitive economy, where many of their previous practices are no longer relevant. This piece aims to examine the effect of these changes on the strategies of Chinese SMEs by first examining the role of the SME in the economy, then analysing the strengths and weaknesses of the Chinese SMEs, and the opportunities and threats that have arisen from China's WTO membership. The piece will then examine Chinese SMEs from a strategic perspective, and the impact the the WTO membership has had on said strategies. Finally, the piece will give strategic recommendations for Chinese SMEs that wish to take advantage of the opportunities that WTO membership offers, and also for those SMEs that wish to avoid the challenges it poses. The Role of SMEs in both the International Perspective and the Chinese Perspective Academics have long realised that small and medium enterprises grow to become the major corporations and businesses of the future (Davis et al., 1985). As a result of this view, greater attention has been given to the role of small and medium sized enterprises (SMEs) in contributing...
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...can thus effectively integrate its domestic market as well as explore landlocked neighbouring markets through exports. Completion of CPEC is likely to improve Pakistan’s economic, commercial, and geostrategic environment. As the proposed Chinese investment more than doubles all foreign direct investment in Pakistan since 2008, it will attract international investors in Pakistan. This will help to improve the perceived external image of the country, an image that is not always in line with current situations and tends to be more negative than merited by actual conditions and one that causes a psychological obstacle to the flows of foreign...
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...DEAL .................................................................................................................. 18 The Literature on Chinese Outward FDI ................................................................................................................ 19 Page 1 of 36 © 2012 Factiva, Inc. All rights reserved. Economics for Everyone: Going Global–FDI Fables–FDI in Multibrand Retail Economics for Everyone: Going Global–FDI Fables–FDI in Multibrand Retail India Infoline News Service 5,801 words 2 May 2012 Indiainfoline News Service INFOIN English Copyright © 2012. Indiainfoline Ltd. FDI- Foreign Direct Investment Context: NEWS FDI in multi-brand retail to go ahead,TNN (TIMES OF INDIA) Govt says committed to multi-brand retail FDI FE BUREAU Aviation FDI: Cautious, Centre set to take allies on board, BUSINESS STANDARD India has been ranked at the third place in global foreign direct investments in 2009 and will continue to remain among the top five attractive destinations for international investors during 2010-11, according to United Nations Conference on Trade and Development (UNCTAD) in a report on world investment prospects titled, 'World Investment Prospects Survey 2009-2011' released in July 2009. A report released in February 2010 by Leeds University Business School, commissioned by UK Trade & Investment (UKTI), ranks India among the top three countries where British companies can do better...
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...at an amazing speed since it carried out reform and open-door policy in 1978. Construction industry is playing a leading role in the rapid Chinese economic development. At the same time, China has also worked hard to encourage overseas investors to expand their investment in the construction industry. With its development over the years, China has established a legal system for governing construction activities. To participate in such a major market in the world, it is important to understand the legal system governing it and the impact of China’s joining the World Trade Organization. The Chinese construction laws and practice are still very different from the international norm. If foreign participants are to make a success out of doing business in China, they must understand the Chinese way of life. Particularly, they must prepare to adapt to an environment where new rules are created as circumstances and situations change. Keywords: Construction laws, legal system, construction industry, China, foreign investment, foreign designers and contractors, World Trade Organization (WTO) Introduction China has been developing at an amazing speed since it carried out reform and open-door policy in 1978. The rapid economic development in China has resulted in many construction activities and has nourished one of the largest construction markets in the world (Sjoholt, 1997). During the “Eight Five-Year Plan” period (1991–1995), the total production of the construction industry was valued...
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...issues in the ever-changing business world since the early 1980s. Huge amounts of foreign investment poured into China during this period primarily because of China's huge market, plentiful cheap labor, and rapid economic development (Davies, 1998; Luo, 1998; Shi, 1998; Sun & Tipton, 1998; Wang & Ralston, 1995). From 1980 to 1988, the number of foreign-joint ventures approved in China increased from 348 to 15,955, and the amount of foreign capital pledged increased from $1.7 million to $28.2 million (Pomfret, 1991). The foreign investment in China totaled $27.5 in 1993 and that amount rose to $37.5 billion by 1995. At present, there are over 318,000 foreign funded companies in China with the total amount of realized foreign investment from 1978 to 1998 totaling $250 billion (Shi, 1998). While the interest in investing in China is worldwide, two major investors are the U.S and Taiwan (Pomfret, 1991; Shi, 1998; Sun & Tipton, 1998; Walker, 1996; Wang & Ralston, 1995;). What is also interesting to note is that while almost all U.S. companies investing in China are large multinational corporat ions, many of the investors from Taiwan are small and medium-sized companies (Business Week , March 29, 1993; Wang and Ralston, 1995; Xu, 1996). U.S. small and medium-sized businesses seem uncertain about investing in China or, more likely, they are uncertain about how to invest in China. Is the Chinese market profitable or just a peril? This is a question that the Washington Post found on...
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...Foreign 99 Chapter III Direct investment by China in Latin America and the Caribbean A. Introduction Since 2008, China has become one of the world’s largest sources of direct investment. These flows first reached significant levels in Latin America in 2010, when it is estimated they surpassed US$ 15 billion. Chinese companies have in fact burst on the scene in the region so recently that several of the biggest projects were still being finalized in early 2011, or had only just been put into operation. Most investments have been made in natural resource extraction, but over the medium term this is expected to diversify into other sectors such as manufacturing and infrastructure construction. Paradoxically, there is a lack of data on this extremely important phenomenon, which poses a constant problem for policymakers and analysts studying Chinese foreign direct investment (FDI). Appraisals of the possible opportunities and challenges presented by this increased investment flow therefore tend to lack supporting empirical evidence. The aim of this chapter is to make some progress on this issue, at least as far as investment in the region is concerned. A variety of sources have been consulted, including investment announcements in the media and interviews with Chinese company managers and Latin American and Caribbean government authorities. Despite the evident limitations of this kind of material in terms of data quality and reliability, this course of action does provide...
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...For years, the amount of outward investment from China had been small compared to investment into China. The main reasons for this are rooted in China’s history and politics. From 1949, when the Communist regime of the People’s Republic of China began, through 1979, there was virtually no outward FDI from China. This was partially due to political obstacles, as the regime was not recognized as the official government of China by many companies until the late 1960s or early 1970s. However, the main reason was that the government promoted a policy of economic self-sufficiency. It chose to “focus on internal development and did not want to rely on imports or take risks in foreign markets” (China Goes Global pg. 2). After the 1979 reform program, the economy opened up gradually and Chinese firms were allowed to invest abroad under certain restrictions. However, the legacy of looking inward persisted throughout the 1980s and 1990s. Firms remained financially weak and outward FDI was not a government priority. There were few Chinese companies that had developed an international presence, brand, or reach. New big players in China were relatively weak, due to their lack of experience and exposure in international markets, or in market economies in general. There are many reasons why firms invest abroad. The first is to overcome trade barriers. Governments often regulate international trade to raise revenue and pursue other economic policy objectives. Moving production...
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...trade and foreign direct investment has been an important component in the growth of China, particularly in industry. Joint ventures in China produce advantages for the partners. China is the world’s largest and most rapidly growing developing country, it is very important to learn the advantages of Joint ventures in China. I will discuss two types of Joint Ventures and how to establish Joint Ventures (JV). Joint ventures include Equity Joint Ventures (EJV) and Contractual Joint Ventures (CJV). Then, I will introduce why foreign investors should invest in China. There are three reasons for this. And in the end, I will emphasize the advantages of joint ventures in China. There are five advantages about it, which all create benefits for partners. So China is a worthy nation to invest. Keywords: advantages, joint ventures, China, partners, invest, investment Outline Thesis： Joint ventures in China produce advantages for the partners. Because China is the world’s largest and most rapidly growing developing country, it is very important to learn the advantages of Joint ventures in China. I. Background about the development of joint ventures in China II. Two types of joint ventures A. Equity Joint Ventures (EJV) B. Contractual Joint Ventures (CJV) III. Why invest in China A. Globalization B. Huge market and population C. Improved investment environment IV. Advantages ...
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...The Chinese Economy The People's Republic of China is the world's second largest economy after the United States. It is the world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China became the world's top manufacturer in 2011, surpassing the United States. For 2010, inbound foreign direct investment into China surpassed $100bn for the first time, and investment overseas by Chinese companies in non-financial sectors totaled $59 billion. The country's per capita GDP (PPP) is $7,518 (IMF, 93rd in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. China and the Political Economy of Global Engagement In many respects it was not until 1992 that China really began to engage with the global economy in a significant way. In an inspection tour of development in southern China in 1992, Deng Xiaoping praised the emergence of proto-capitalist practices in open areas and called for further opening. Following Deng’s exhortations, the CCP declared in October 1992 that China now had a ‘socialist market economy’—the ideological battle appeared to have been won, and this victory was given further force when 1993 saw more FDI flood into China than in the preceding 14 years of reform put together. A trade deficit in 1992 was turned into surplus as exports doubled in the...
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...like those of marketing and production strategies. The mode of entry also decides the control a company has on the operations in the new market, and the way investment and the revenue is divided between the parent and the collaborated company. There are different modes through which a company can enter China; the main ones have been briefed below: Representative Office: The simplest way for a company to establish in China is through opening a representative office in China. The representative office acts as a bridge between the foreign company and its business partners in China. It gives the company a platform to conduct market research, make business contacts, manage product promotion and manage other activities for the parent company like making travelling arrangements for its company representatives. Compensation Trade: Manufacturing companies who want to outsource their production usually have a compensation trade agreement with firms in China. Usually a barter system is followed in which the parent company gives machinery to the Chinese and the Chinese produce the product for the company. This type of agreement needs compliance with the Foreign Trade Authority. Due to the rising interest of the Chinese government in attracting the foreign companies towards China, there is an array of ways a foreign company can collaborate with a Chinese company to form a joint-venture. Most widely used joint-venture modes are : Cooperative Joint Venture: Under the CJV type of collaboration...
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...American Airlines Foreign Direct Investment Plan University of Phoenix June 8, 2009 American Airlines Foreign Direct Investment Plan American Airlines has decided to expand operations into the greater China market. A thorough analysis of the marketplace has taken place and the final remaining detail that needs to be defined is the airlines strategy for the foreign direct investment (FDI) that will be required to service successfully the Chinese travel market. While much of the expansion into the China market will leverage local resources, direct investment in the Chinese infrastructure will be needed. As such, the FDI analysis will focus on the expansion of airport facilities, airport and city ticket offices and a reservation center. The structure of the FDI analysis will include an executive summary of American Airlines overall China strategy, modes of entry and associated risks, funding of the initiative and contingency plan should the airline need to change strategies mid implementation. Executive Summary American Airlines and American Eagle (firms owned by AMR) serve some 250 destinations in approximately 40 countries including destinations in Europe, the Americas, and Asia-Pacific. The combined aircraft of both carriers comprise of 900 airplanes with 625 of those being jets. On any given day the airline transports 270,000 passengers on approximately 3,300 flights to over 170 destinations worldwide. Additionally, American Airlines is part...
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...Foreign Direct Investments: Volkswagen’s Entry Strategy in China’s Car Market 21/1/2013 Content Page Table of Contents Abstract 1 Introduction 1 Literature review 2 Volkswagen rational for China – Dunning’s Eclectic Paradigm. 4 Conclusion 6 References 7 Abstract China is one of the most attractive destinations for Foreign Direct Investments in the world. It is first destination for Inward FDI among developing countries (WTO, 2012). China has developed second world’s largest car market after U.S.A. and has been the largest car producer in the world since 2008. German company Volkswagen (hereafter VW) is the world’s second largest motor vehicle manufacturer after Toyota Motor (CNN, 2012) and the biggest manufacturer in Europe. VW is one of the earliest investors and the biggest foreign car maker in China with 15% of market shares. This report, by applying relevant theories, such as Dunning’s eclectic paradigm or Hymer’s internationalization theory, will explain why VW Company decided to invest in China through joint venture rather than acquisition or Greenfield investment. Introduction Chinese car industry, as well as many other branches, is very young, although dynamic and fast growing. In 1978 Chinese government introduced policy of open doors which allowed foreign companies to invest and operate in China. Since then car sector has developed rapidly from an infant to a mature industry. Moreover, Chinese government provides various...
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