...combines core module theories and empirical case study to analyze HSBC’s strategy. In the first part, this essay will demonstrate how the strategy of HSBC changed, and compare the strategies before and after the accession to the WTO. The second part will discuss advantages and disadvantages of concentrating on rural areas and emerging markets. The influence of financial crisis, future opportunities as well as threats will be analyzed at last. 1. HSBC’ strategy and China accession to the WTO 1.1. The reason for changing strategy Down the decades, HSBC’s has grown and adapted their strategy from localization to globalization for China in order to react to the changes of economic reform and financial liberalization. HSBC differentiates its strategy from those competitors by describing the unique characteristics which is ‘The world’s local bank.’ Due to this position and strategy, HSBC is involved directly and indirectly in China's modern economic development and reform. HSBC’s strategy in China changed for several reasons. First, HSBC had an insight that emerging market will be the center of their development strategy. It always has an insight of the trend of global economic and focuses on the long term return including the increasing role in the global economy and increasing profitability. Second, China had a huge undeveloped market with the largest amount of potential customers. HSBC found...
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...these changes of HSBC’s China strategy, it may be instructive to examine how banking environment and police of China changed over the years. Upon China’s accession to the WTO, foreign bank were allowed to enter China’s bank sector. HSBC seized the tremendous opportunity to strengthen its presence in China. This essay will begin by examining the evolution of HSBC’s Strategy in pre-WTO and post-WTO China. Next, It turned to analyse the impetus to these changes of HSBC’ China strategy. In the following part, this essay will introduced the background of HSBC expanding in China’s rural areas and evaluated this strategy from advantages and disadvantages aspects. Having presented the HSBC’s presence and strategy in China, the paper then analyses HSBC’s operating in other emerging markets with the evidence from India and Argentina. Moreover, the data and facts will be provided to evaluate the operation of HSBC during the recent world economic crisis. The further research about the reasons that Asian was identified by HSBC for future opportunities will be presented followed. The final section presents some conclusions and relates those to the operation of international business to provide some advice. Prior to the WTO accession, China’s market was not open up to foreign competition. In China’s centrally planned economy, the function of the state commercial banks was misplaces as a social function...
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...1. Introduction The World Trade Organisation (WTO) was formally made in January of 1995, and essentially supplanted the General Agreement on Tariffs and Trade (GATT), which had been in power subsequent to 1948, a couple of years after the Second World War (Study.com, 2015). The WTO is a multilateral establishment charged with directing rules for exchange among 145 official member countries. The United States and different members partaking in the Uruguay Round of Multilateral Trade Negotiations (1986-1994) required the arrangement of the WTO to encapsulate the new trade disciplines received amid those transactions (Wto.org,. 2015). This essay will firstly evaluate the roles of the WTO and then the challenges the World Trade Organisation face in the world economy and these how challenges are addressed. 2. The Role of the WTO in the Global Economy The World Trade Organisation exists to encourage the implementation, administration and operation, and additionally to facilitate the goals of the WTO agreements (Ruttley, P., Macvay, I. & George, C., 1998). Beyond this general purpose, the WTO has four particular functions. Firstly, to provide a meeting for arrangements among its members concerning their multilateral trade cognations in matters dealt with the accedences in the Annexes of the Marrakech Agreement for both current matters and any future understandings. The WTO may withal provide a forum for further negotiations among its members concerning their multilateral...
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...Executive Summary This report briefly assesses the World Trade Organisation (WTO), and in particular, the Doha Round, which has been the longest running trade liberalization round in the history of the GATT/WTO era. Launching in November, 2001 in the wake on the September 11 Terrorist attacks on the USA, it had the explicit aim to conclude a broad deal to facilitate development through trade and thereby better integrate the more disadvantaged into the global economy. The conclusion of the Doha Round however has been much harder to conclude than any other trade round in the history of the WTO for many reasons that will be highlighted below. Table of Contents I Executive Summary 1 II Introduction 3 III The World Trade Organisation 3 IV Other Rounds of the World Trade Organisation 3 V The Doha Round 4 Negotiations: geographical indications —multilateral register for wines and spirits 4 TRIPS, biological diversity and traditional knowledge (Doha paragraph 19) 4 Geographical indications — ‘extension’ 4 VI Problems With Concluding the Doha Round 4 The Single Undertaking Method: 5 Changed Geopolitical Situations: 5 Trade Liberalisation and Non-agricultural Market access (NAMA): 5 Agriculture: 5 VII Conclusion 6 VIII References 6 II Introduction The effort to launch a new round of multilateral trade negotiations in the late 1990s was turbulent in two ways. First, the WTO, with its broader mandate became a focal point for protests against globalization...
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...The Three Views and WTO Globalization has extended the opportunities available for economic growth leading to extensive lobbying amongst world financial institutions. The high influence of exchange rates has also extensively affected business transactions. The price of commodities, air fare tariffs, foreign exchange levels and export and import licenses have been affected across world markets. The World Bank, major banking institutions, World Trade Organization and UN agencies have converged to control the world markets from various levels due their extensive consultations and economic persuasions on vital financial matters. The economic control by these organizations has also lead to political and social influences amongst various nations across the world. Most countries’ sovereignty has been weakened especially amongst third world countries has they depend on financial support from these organizations for their financial stability (Gregory, 2000). The three main economic principles, economic liberalism, nationalism and structuralism can be used to analyze the functioning design and operation of WTO. Let us look at each of these perspectives and how they can be used to explain design of WTO: Economic liberalism, a principle that supports laissez faire economics also greatly values private property in production. It analyses the specific institution that produce a certain commodity e.g. wine production in Italy. The principle refutes the intervention of governments in...
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...The Three Views and WTO Globalization has extended the opportunities available for economic growth leading to extensive lobbying amongst world financial institutions. The high influence of exchange rates has also extensively affected business transactions. The price of commodities, air fare tariffs, foreign exchange levels and export and import licenses have been affected across world markets. The World Bank, major banking institutions, World Trade Organization and UN agencies have converged to control the world markets from various levels due their extensive consultations and economic persuasions on vital financial matters. The economic control by these organizations has also lead to political and social influences amongst various nations across the world. Most countries’ sovereignty has been weakened especially amongst third world countries has they depend on financial support from these organizations for their financial stability (Gregory, 2000). The three main economic principles, economic liberalism, nationalism and structuralism can be used to analyze the functioning design and operation of WTO. Let us look at each of these perspectives and how they can be used to explain design of WTO: Economic liberalism, a principle that supports laissez faire economics also greatly values private property in production. It analyses the specific institution that produce a certain commodity e.g. wine production in Italy. The principle refutes the intervention of governments in...
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...International Business Introduction Although the World Trade Organization (WTO) was formed in 1995, its predecessor, General Agreement on Tariffs and Trade (GATT) was formed in the 1947. The occurrence of the World War II proved the failure of the World War I’s Versailles Treaty. This made the finance ministers at the Bretton Woods Conference to create a new international monetary system that would be a backing in implementing the post-war reconstructions, stabilizing the economic condition and bring peace. Two prominent international economic institutions were established by the Bretton Woods Conference during the post-war period: International Monetary Fund (IMF) and the International bank for Reconstruction and Development (the World Bank). The International Trade Organization (ITO) was the third economic institution formed to overcome the unfavourable environmental factors generated because of the beggar-thy-neighbor tariff policies of the 1930s. This paper has discussed about the formation of GATT and its objectives associated with international business. Chinese WTO has been considered to present trading policies, settlement and business development. General Agreement on Tariffs and Trade The formation of General Agreement on Tariffs and Trade was fulfilling the objectives of its establishment to a great extent. Tariffs on manufactured products showed a fall of about 6.4 per cent, from a trade-weighted average of about 35 per cent before the framing of GATT in 1947...
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...CHAPTER 4: Quick Study 1 1. Q: Define economic system. What is the relation between culture and economics? A: An economic system consists of the structure and processes that a country uses to allocate its resources and conduct its commercial activities. A nation’s economy tends to express individual or group values as reflected in its history and culture. However, no economy is focused entirely on the group at the expense of individuals or vice versa. 2. Q: What is a centrally planned economy? Describe the link between central planning and communism. A: A centrally planned economy is one in which a nation’s government owns most of the land, factories, and other economic resources and plans nearly all economic activity. Karl Marx popularized the idea of central economic planning in the nineteenth century while promoting his belief in communism. Marx argued that market economies cannot be reformed—governments must be overthrown and economies replaced with more equitable “communist” systems. 3. Q: Identify several factors that contributed to the decline of centrally planned economies. A: Factors included: (1) failure to create economic value, (2) failure to provide incentives, (3) failure to achieve rapid growth, and (4) failure to satisfy customer needs. 4. Q: Describe China’s experience with central planning, and the challenges it faces. A: China always reserved a place for private initiative even in the early days of its implementation of communism in 1949...
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...Analysis of the emerging market in China Introduction Nowadays, with the financial crisis sweeping the globe, the emerging market is to be concerned by more and more countries. China as one of BRICs country has an impact on economic, trade and political in the world. This paper will talk about the emerging market--China from some economic factors, social factors and political factors, also analysis why China play an important role in the world. And what is the relationship between China and the international environment? Global overview and introduction to China When China awakes, it will shake the world. -- Napoleon Bonaparte The people's republic of China (PRC) which located in east Asia continent, and on the western shore of Pacific Ocean, which is the third largest country with 9,596,960 square kilometres. With the vast land, the land boundary of some 22.800 kilometers also have many neighbor such as Russia, North Korea, Vietnam, Laos, Pakistan, Afghanistan, Nepal, Tajikistan, Mongolia. At the same time, the mainland coastline measures about 18,000 kilometers with a flat topography, and there are many excellent docks and harbours, most of them are ice-free all year round (Jinyan, 2005). Most place of China all belong to the north temperature zone. Clear for seasons which suit for people to habitat. In addition as a big country with a vast territory, the nature...
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...refused construct definition and concluded with implications for research and practice. INTRODUCTION A United States Weakens under the weight of endless bipartisan bickering and decline of social and civil infrastructures, that either India or china will assume economic dominance on world stage. They ultimately emerge the top economic power by the year 2030? The recent deterioration in Western economies and the rapid economic growth in emerging economics are shifting global industrial centre of gravity away from north Atlantic and raising importance of natural resource-poor Asian economies in World output and trade. The old Generation x-ers by moving out of work and their golden years, by Millennials are fully entrenched and influential in global economic cycle. 2030 as points are in reference? The pivotal year in history which is the largest demographic group in world history, the baby boomers, they have nearly depleted Social Security trust fund and will shifted away from global economic stream. The turn is increasing the demand for exports from natural resources-rich economies. The continuation of process begun in Japan in 1950’s and followed by Korea and Taiwan from late 1960s by some Southeast Asian Countries. Recently it has involved for more populous China and India. The earlier Northeast Asian group represents 3 percent of world’s population and rapid industrial growth was accommodated by rest of world without much difficulty, by including primary product markets...
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...the Meeting The usual disclaimer applies. India’s Trade in 2020: A Mapping of Relevant Factors Introduction India's trade has generally grown at a faster rate compared to the growth of GDP over the past two decades. With the liberalization since 1991 in particular, the importance of international trade in India’s economy has grown considerably. As a result the ratio of international trade to GDP has gone up from 14 per cent in 1980 to nearly 20 per cent towards the end of the decade of 1990s. Given the trends of globalization and liberalization, the openness of Indian economy is expected to grow further in the coming two decades. The more exact magnitude of India's trade in 2020 and its proportion to India's national income would be determined by a variety of factors. Many of these factors are in the nature of external shocks and are beyond the control of national policy making. One illustration is the recent surge in the crude oil prices in the international market to unprecedented levels that have impacted the country’s imports in a significant manner. In addition, the implementation of various WTO agreements are...
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...Interesting post. While agree with specific points in your discussion, there are a few that I disagree with. With the largest capital reserves in the world, People's Republic of China is a credible threat on numerous fronts, however; PRC is only an emerging regional power with a fragile economy. At the same time, the threat that PRC poses is somewhat exaggerated by our own Congress. The war hawks on capitol hill, namely the neo-conservatives, are notorious for ensuring that the U.S. always has a credible enemy or rival (PRC is not yet an enemy)...and if one is not emerging on the horizon, then one will be "created". This has alot to do with insuring that the Military Industrial Complex (MIC) continues to thrive. The MIC accounts for more than 42% of global military sales. With that being said, PRC of course looks like an 800 pound gorilla, but the country has some mounting weakness that will begin to compound over time, and will invariably threaten PRC's economic & social reform programs...which could lead to numerous fault lines within its own borders. 1. PRC is an export economy: With the global recession still in full stride, the unemployment rate between the G8 and BRIC-M countries is hovering at approximately 8%. The rates are vastly more dismal for the rest of the world (CIA World Factbook). Therefore, the global demand for Chinese manufactures has declined dramatically, thereby, leading to the layoff of tens of millions of Chinese citizens. If the country’s...
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...FTA: South Korea & The EU | | | Table of Contents Executive Summary 2 Introduction 4 International Trade between South Korea & the European Union 6 A Macroeconomic Analysis of South Korea 6 The Free Trade Agreement between South Korea & the EU 6 International Trade between SK & EU 9 Other FTA Examples of South-Korea 10 World Trade Organization (WTO): Position regarding Bilateral Agreements 11 Conclusion & Recommendations 14 References / Endnotes 15 Appendices 17 Executive Summary This report analyzes trade relations between South Korea, one of the four Asian dragons, with the European Union, which has the largest nominal GDP and GDP PPP in the world. South Korea's industrialization, urbanization and GDP are rapidly growing mainly because of its comparative advantage in manufacturing and exporting of technological goods, its political centralization also supports a clear coordination and effectiveness of laws reforms. However, its aging population, low fertility rates, recent decline in FDIs and unresolved political disputes with Democratic People's Republic of Korea should be amended in order to increase consumer confidence and improve its international potential. South Korea's main partners are the United States of America and the European Union. The EU-South Korea Free Trade Agreement (2011) offers, among other things, preferential import duties and liberalization in trade of services via provisions for intellectual...
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...Bus 162 Team 7: HSBC in China 1. How has HSBC adapted its global strategy to operate in China, both before and after China’s WTO accession? Answer: Prior to the WTO accession negotiations, China’s banking industry operated as a cog in China’s centrally planned economy. The banks adhered to directed lending practices from the government and in turn created some of China’s most successful enterprises, but also supported thousands of other inefficient and unprofitable stateowned enterprises. This practice left state commercial banks with massive amounts of debt that was largely unrecoverable and hordes of nonperforming loans. In 1865, HSBC was founded to finance the growing trade between Europe, India, and China. HSBC rapidly expanded by opening agencies and branches across the globe, but maintained a distinct focus on China and the Asia-Pacific region. By the 1880s, the bank issued banknotes and held government funds in Hong Kong, and also helped manage British government accounts in China, Japan, Penang, and Singapore. After World War I and II, HSBC turned to dramatic expansion through acquisitions and alliances in order to diversify. The bank moved its headquarters in 1993 to London from Hong Kong and continued its global acquisition strategy. In December 2001, China finally acceded to the World Trade Organization (WTO). A number of policies were immediately implemented such as foreign banks were allowed to conduct foreign currency business without any market access restrictions...
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...ECONOMICS II THE ACCESSION OF SAUDI ARABIA TO THE WTO ANALYSING THE FUTURE CHALLENGES SUBMITTED BY: AKANKSHA PRAKASH I.D.NO.: 1785 IIND YEAR B.A.LL.B. {HONS.} TABLE OF CONTENTS RESEARCH METHODOLOGY___________________________________________________________2 INTRODUCTION_________________________________________________________________________3 THE ACCESSION OF SAUDI ARABIA TO THE WTO: AN ANALYSIS OF THE FUTURE CHALLENGES____________________________________________________________________________4 • Objectives________________________________________________________________________4 Diversification of the economy______________________________________4 Development of modern infrastructure________________________________4 Access to Foreign Direct Investment (FDI) and modern technologies________4 Enhancement of purchase power of the population_______________________4 Employment Generation___________________________________________5 Maximization of competitive advantage in petrochemicals________________5 Open Access to international Market__________________________________5 Open Access to international Market__________________________________6 Integration of Saudi Arabia’s economy with the global economy____________6 • Reforms__________________________________________________________________________6 Foreign Investment_______________________________________________7 Trade in Goods___________________________________________________8 ...
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