...725 Book Reviews The New Silk Road: How a Rising Arab World is Turning Away from the West and Rediscovering China BEN SIMPFENDORFER Basingstoke, Hampshire, and New York: Palgrave Macmillan, 2009 201 pp. $42.00 ISBN 978-0-230-58026 doi:10.1017/S030574101000072X The New Silk Road is an insightful, concise (173 pages of text), and thoroughly readable book. The focus is not on energy investments and flows or on government policy, but on business and cultural strands of the Sino-Arab relationship. As a China economist for both JP Morgan and RBS in Hong Kong, and with years of residence in the Arab world, Simpfendorfer has written a book which is rich in detail and cogent in diverse interesting arguments. It is a pleasure to read. The thesis is that we are witnessing the re-emergence of an old but long-lapsed economic and cultural relationship between China and the Arab world. Prior to about 1600 the “silk road” was a major axis of the global economy. Now it is reviving and that revival is an important part of the “global re-balancing” that is underway. Global re-balancing is defined to mean a diminution of the relative economic and cultural role of the West (Europe and the US) and growth of non-Western areas, like China and the Arab lands. The major manifestation of Arab rise, according to Simpfendorfer, has been the massive transfer of wealth to Arab oil producers in the 2000s as oil prices rose due, in large part, to increased demand by China and India. Simpfendorfer believes...
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...China and New World Order Based on what you have learnt in this course, what kind of world order do you think we have now and to what extent a new world order is shaped by the rise of China? In what aspects is the rising China changing the existing world order? World order has a variety of definitions. In general, it refers the pattern of relations between states, behaved according to a set of institutional rules and principles. It changes over time when great powers rise and fall. Suggested by George Modelski, the Long Cycle Theory believes a war will emerge after the rising power threatens the original hegemony and might replace the existing world order. The challenge posed by the rise of China to the western dominance is felt worldwide as her second largest economic status. A question has been asked by an American scholar John Ikenberry – “Will China overthrow the existing order or become part of it?” This essay aims at introducing the current world order and investigating how it has been changed with the inclusion of China. One of the two major types of world order is the Westphalia order which is based on the modern state system. It is the concept of authority on the territory that the sovereignty of states and the fundamental right of politics is self-determined without any intervention from other states in internal affairs. This system highly respects the territorial integrity of states and the legal equality between states that is no matter the size of a country...
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...China is called ‘The New Economic Giant’ for three reasons. Firstly, its economy has doubled in size every eight years. Secondly, China now has the largest sustained GDP growth in history. Thirdly, China controls 3% of the world’s oil reserves. A centrally planned economy is an economic system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses. In 1986, China introduced an ‘Open-Door Policy’ to overseas investment. It allowed China to transform into a more capitalist economy, allowing individuals to accumulate wealth by producing goods and services without State interference. This allowed China to rise as an economic superpower. Car ownership is expected to jump from 16 cars per 1000 people in 2002, to 267 cars per 1000 people by 2030. By 2020, China is expected to have 140 million private cards on the road, which is more than the USA. An increased number of cars and rapid urbanisation will lead to an increase in energy demand therefore, increasing China’s energy requirement. The problem with increased number of cars and rapid urbanisation is that China doesn’t have the required resources and therefore will rely upon importing oil to meet the requirements. China’s dependence in imported oil is expected to 60%, which raises issues about China’s long-term energy security. China is still largely an agricultural society and 60% of the population lives in rural communities, and 45% of the workforce is employed...
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...www.GetPedia.com History of China: Table of Contents q q Historical Setting The Ancient Dynasties r r r Dawn of History Zhou Period Hundred Schools of Thought q The Imperial Era r r r r r r First Imperial Period Era of Disunity Restoration of Empire Mongolian Interlude Chinese Regain Power Rise of the Manchus q Emergence Of Modern China r r r r r r Western Powers Arrive First Modern Period Opium War, 1839-42 Era of Disunity Taiping Rebellion, 1851-64 Self-Strengthening Movement Hundred Days' Reform and Aftermath Republican Revolution of 1911 q Republican China r r r Nationalism and Communism s Opposing the Warlords s Consolidation under the Guomindang s Rise of the Communists Anti-Japanese War Return to Civil War q People's Republic Of China r r Transition to Socialism, 1953-57 Great Leap Forward, 1958-60 r r r r r Readjustment and Recovery, 1961-65 Cultural Revolution Decade, 1966-76 s Militant Phase, 1966-68 s Ninth National Party Congress to the Demise of Lin Biao, 1969-71 s End of the Era of Mao Zedong, 1972-76 Post-Mao Period, 1976-78 China and the Four Modernizations, 1979-82 Reforms, 1980-88 q References for History of China [ History of China ] [ Timeline ] Historical Setting The History Of China, as documented in ancient writings, dates back some 3,300 years. Modern archaeological studies provide evidence of still more ancient origins in a culture that flourished between 2500 and 2000 B.C....
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...2. Dealing with China: An Insider Unmasks the New Economic Superpower As President George W.Bush’s Treasury secretary from July 2006 through January 2009, Henry Paulson was the president’s leading policy adviser on both domestic and international issues. He is well know to the world at the time of the financial crisis in US. Henry Paulson has made over 100 trips to China and developed intimate relationships with China’s political elite, including Presidents Hu Jintao and Xi Jinging as well as its banking giants, most notably the industrial and Commercial Bank of China’s chairman Jiang Jianqing. Therefore, he has a depth knowledge about China’s economy and still been watching China’s emerging economy until now. In his new book, he describes China’s recent rise to global supremacy and the challenges that lie ahead. He also points out that China is American’s most important economic partner and that how to corporate intelligently to make both nations benefit in the future. In the United States, banks and capital markets are more stable and better capitalized than they were in the financial crisis 2008. As changing in government regulators and American banking system, US still the largest and richest economy, with a normal GDP more than twice the size of China. But according to Paulson, he warns “It’s not a question of it, but when, China’s financial system, particularly the trust companies, will face a reckoning and have to content with a wave of credit losses and debt restructuring”...
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...skin care and so on. In 1973, L’Oréal purchased Synthelabo to pursue its ambitions in the pharmaceutical field. Later on, Synthelabo merged with Sanofi in 1999 to become Sanofi-Synthelabo, which merged with Aventis in 2004 to become Sanofi-Aventis. In the same year, L’Oréal acquired Yue Sai. L’Oréal also purchased The Body Shop in 2006 and acquired major Chinese beauty brand Magic Holidings in 2014. Timeline of L’Oreal Group II. Current Situation and Major Issues 1. Current Situation 1) Global market: L’Oréal is the world’s largest cosmetics company, with worldwide sales of €19.5 billion in 2010. 2) Chinese market: * L’Oréal is the second largest beauty and skincare player in China and No.1 in the luxury segment. Five of its brands, including Lancôme and Maybelline New York, are No.1 in their respective categories. * However, the acquired Chinese brand- Yue Sai does not perform well. a. No substantial profit b. Barely improved sales 2. Major Issues * L’Oreal wants to expand its market share in China’s cosmetics market but it meets some specific problems on...
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...political, geographical and economic factors, we should know how to take advantages from other countries to maintain competitiveness to gain success in the global marketplace (Rothenberg LE 2003). GARSON Corporation is one of the most famous automobile accessories companies in Japan and it already expanded its business to United State as the first step of internationalization. In this report, we are going to explore the possibilities of expanding business in China. The report includes the analysis of the existing automobile accessories market in China, and the country analysis from different perspectives is used to see if China is a good environment to expand the business in it. It is then recommended with the internationalization process, market entry strategy, human resources management strategy in investing in China. All the analysis can help GARSON to confirm its move to investing in China as its 2nd country for business expansion. It also raises some points for GARSON to pay attention to when investing in China. 1. Company Background GARSON Corporation is an automotive accessories company which is originated in Japan. It is established in July 1990 and is dedicated to research and development of high-grade automobile accessories and advocates a luxurious and high-quality life with cars. GARSON has established cooperation with Swarovski Company in Austria, which is almost the pronoun of luxury crystals. With the partnership of Swarovski, all of the GARSON products...
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...was the explorer with more achievements why do we not celebrate his accomplishments? Zheng He was the far more advanced explorer who with the help of all of his technological advances was able to explore new lands. Money was a huge contribution to how the fleets came to be so powerful and stand out from the rest. The rout he traveled on was the farthest and longest of all the other explorations of that time. That makes it very significant and unlike other traditional explorations. How advanced China was for it is time made sea travel easier for explorers. The Chinese has the compass, the map, and the astrolabe to help find their way and know what direction they where heading in. All of these are essential sea traveling tools and you could not choose one or the other or else you would get lost. China was also one of the largest working countries, which meant more workers and more production. All of China is extra manpower was why they were able to create so many fleets. It was also were a large portion of their crew on the ship came from....
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... A company’s success in a new country primarily depends on the mode of entry it opts for. The mode of entry affects the decisions which a company has to make, when facing challenges 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...
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...fall of the Qing dynasty 1911-12? This essay will be looking at how much of a contribution the spread of revolutionary beliefs in China had in the fall of the Qing Dynasty. In order to determine the importance of this I will therefore also be looking at other factors such as, foreign interference, double tenth and the inability to change. I believe it is partially accurate to say that the spread of revolutionary beliefs was important in the downfall of the Qing Dynasty; however it wasn’t necessarily the most important factor. This can be determined from the effects of Sun Yatsen’s anti-government movement in China. Initially, the extreme need for revolution and reform stemmed from Cixi’s need and desire for conservatism. Her oblivious attitude towards the failure of the government angered many people and essentially gave reformers the ammunition to spread their own beliefs. As previously mentioned, Sun Yatsen was one of the people who felt strongly about changing the way things worked in China. He was particularly open minded and due to his education abroad had adopted a Westernized style of thinking. Thus, Yatsen attempted to modernise and regenerate China by removing foreign control and reasserting their unique character and greatness by forming the revolutionary alliance in 1905. Within this, his greatest belief was that the only way in which China would be able to modernise was if they became a republic, so his party formalised this concept as the “Three Principles of the People”...
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...Name: Hajimusa Nazirov Course: International Business Data: 07.04.2013 Google in China Problem statement- The first I want to give some information about Google. Google Inc. is an American multinational corporation specializing in Internet-related services and products. These include search, cloud computing, software and online advertising technologies. Most of its profits derive from AdWords. Google was founded by Larry Page and Sergey Brin while Ph.D. students at Stanford University. Together they own about 16 percent of its stake. They incorporated Google as a privately held company on September 4, 1998. An initial public offering followed on August 19, 2004. Its mission statement from the outset was "to organize the world's information and make it universally accessible and useful"and its unofficial slogan was "Don't be evil". In 2006 Google moved to headquarters in Mountain View, California. Rapid growth since incorporation has triggered a chain of products, acquisitions, and partnerships beyond Google's core search engine. It offers online productivity software including email, an office suite, and social networking. Desktop products include applications for web browsing, organizing and editing photos, and instant messaging. The company leads the development of the Android mobileoperating system, and of the browser-only Google Chrome OS for a specialized type of netbook known as a Chromebook. Google has moved increasingly into communications hardware: it partners...
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...on China. Who doesn’t like great tasting Coffee? One must contend that when it comes to a good cup of coffee, Starbucks has it figure out. The company has come a long way from when it was first founded in Seattle, Washington in 1971. Starbucks vision to become a global player in the coffee business has been at its forefront. The company went public in 1992 and hasn’t looked back since. It seems that anywhere you go; you are a few minutes away from a Starbucks. The company aggressively campaign to become the coffee leader in the United States. It’s not hard to imagine that Company executives believed in market saturation in order to dominate the market place. Now, there is a much need for Starbucks to span outside the United States and it is looking into global markets to keep its expansion plans. The best choice is the overpopulated country of China. China seems to be a hot destination for many U.S. based businesses. Starbucks sees the vision of huge profits if it becomes successful in penetrating the Chinese market. When Starbucks looks at China as a new venture, it has to think of many different variables. The Chinese government can be a very difficult partner. The Chinese culture is much different from the Western culture Starbucks officials are used to. The geographic barriers that it faces must be studied as well. Aneki.com lists China as the 4th largest country in the world (9,596,960sq km) with lots of its population located in remote rural areas. However, China being...
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...IKEA IN CHINA INTRODUCTION TO IKEA HISTORICAL CHAIN OF IKEA BRIEF INTRODUCTION OF IKEA IN CHINA IKEA entered China in 1998 through a joint venture and started its first in Shanghai. This was followed a store in Beijing in 1999. Since 1980s, several economic trade and investment reforms have enabled the growth of furniture industry in China by 2004, Chinese furniture production was $24 billon and its exports were $7 billion. CONCEPT: SIMPLICITY IS BEAUTY. YI JIA-COMFORTABLE HOME Q1: WHAT MAKES CHINA AN ATTRACTIVE LOCATION FOR IKEA TO INVEST IN? Market: emerging market; small to high size market; customer quality is low but shows an increasing trend Competition: intensity of rivalry is strong; facing some entry barriers; bargaining power is high; a longterm profitable business Country market & industry opportunities Resources: raw materials from China Incentives: declining of the duty rate Q1: WHAT MAKES CHINA AN ATTRACTIVE LOCATION FOR IKEA TO INVEST IN? ? 1. 2. 3. Political The reform of China since 1980?s Entered through a joint venture In 2005, first wholly owned store in Guangzhou.(China entered WTO in 2001) Q1: WHAT MAKES CHINA AN ATTRACTIVE LOCATION FOR IKEA TO INVEST IN? ? 1. 2. 3. 4. 5. Economical Emerging market Basic need updated to sophisticated wants New market space for newcomers Cheap labour cost Wood industry (top supplier) Q1: WHAT MAKES CHINA AN ATTRACTIVE LOCATION FOR IKEA TO INVEST IN? Social 1. Updating of the basic needs(urbanisation) 2. Large...
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...VanillaLemon Article Review and Analysis ----The Secret of Starbucks’ Success in China The current event article I found tells about the successful marketing strategies that the Starbucks Corporation takes to enter into the market of China, and simultaneously the problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premium coffees with a superior level of customer service and at a premium price, around the globe. Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object (Isidro, 2004). Based on the stateside success, Starbucks begins to expand its international market. Additionally, the current coffee consumption of China is much lower than the average level in the world, therefore a huge commercial space existing there. Starbucks realizes this great development potential, hence it hopes to make China becomes the largest international market except U.S. in the future. However, this is a big challenge for Starbucks Corporation, and therefore the article analyzes the SWOT and 4Ps strategies of Starbucks by taking this entering into China’s market as an example. Besides, the article also summarizes the major problems...
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...A. Executive Summary: The Zhong-Lian Knitting Company Chinese Joint Venture (JV) is facing trouble among its two owners that have different objectives. American based Heartland Spindle is looking for higher profits and a move to higher quality clothing markets in the USA while Suzhou First Textile Company, the Chinese partner, is looking to enter the domestic Chinese market and expand its manufacturing capacity through job growth, in line with local government pressures. My recommendation is to first focus on what is best for the JV given its situation and opportunities – which is to grow through acquisition and focus on expanding its current clothing products into the Chinese Domestic market. From that analysis with the implied 4% ROI, Heartland should to exit the JV and invest in entities that better meet its needs and expectations in countries that are more attractive to its needs. Finally in the future Heartland should be more careful when entering into JV agreements so that all parties have an appreciation for cultural differences, a common understanding of objectives and directions that are embedded in the JV agreement. Note – the Executive Summary is one area that is repetitive of other sections given its nature. B. Industry Dynamics: The Zhong-Lian Joint Venture (JV) is currently manufacturing clothing for the US mass market, a strategic group within the overall apparel industry (versus high end fashion brands). Their clothing is sold through retailers such as Walmart...
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