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[綜合討論] [DSE]You are not alone - BAFS篇 (10/2更新#31+32 Business environment)

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 樓主| 發表於 10-2-2013 08:32:26 | 顯示全部樓層
本帖最後由 小雪冰 於 10-2-2014 19:19 編輯

Hong Kong's business environment

大綱
I. Role and Importance of Business in Hong Kong Economy
II. Recent Development and Characteristics of Hong Kong Economy
III. External Factors Affecting Business Decision
IV. Hong Kong’s Economic and Business Relationships with Mainland
V. Economic Policies and General Business Practices in Mainland
VI. Impact of Globalization on Business
VII. Roles of Major International Trade Organization

詞彙
1. Detrimental 不利
2. Bloc 陣營 e.g. Trading bloc is a group of countries having a trade agreement with an aim to remove trade restriction between them.

試題分佈
HKDSEPP A2012 A2013 APP B2012 B2013 B
I
II
IIIQ1 Q2 (6M)
IV Q11Q22
V
VI Q10
VII Q12


中三概念 Types of Production
ProductionEconomic activities of:
PrimaryExtracting resources directly from the nature
SecondaryManufacturing Production Process:
Raw materials (from primary) → Semi-finished products
Raw materials (from primary) → Finished products
Semi-finished products (from secondary) → Finished products
TertiaryProviding services to customers

自製筆記
I. Role and Importance of Business in Hong Kong Economy
1. Providing Employment Opportunities
● Firms (tertiary sector) demand workforce for their business operation
→ create new employment opportunities
2. Producing Income / Production of Goods and Services → Improvement of Living Standard
● HK people earn most of their income by providing services(high value-added) to local &foreign customers
→ promote HK’s economic growth +↑living standard of HK people
● High quality goods & services + more consumption choices
→ improve living standard
3. Earning Foreign to Pay for Imports
● HK lacks natural resources + arable land + technology + skills
→ import foodstuff + fuel + consumable durables + capital goods
● HK earns foreign exchange from providing trading services + services to tourists→ pay for import
4. Serving the Mainland
● HK helps Mainland enterprises (private + SOEs) raise capital + manage assets
→ facilitate economic development in China
5. Raising Government Revenue
● Business sectors → land sales + profit tax + stamp duties (property & stock transaction) → government revenue

II. Recent Development and Characteristics of Hong Kong Economy
A. Recent Development of Hong Kong Economy
Four Pillar Industries
1st: Trading and Logistic
E.g. import & export trade, freight transport & storage services, postal & courier services
2nd: Producer and Professional Services
E.g. legal, accounting, information technology, advertising, engineering, architectural, surveying
3rd: Financial Services
E.g. banking, insurance, securities brokerage, fund management
4th: Tourism
E.g. retail trade, restaurants, hotels, transport services
Knowledge-based economy
→ More education & training opportunities
→ Improve quality, productivity & competitiveness of labour

B. Characteristics of Hong Kong Economy
1. Lack of Primary Industries
● HK lacks arable land + natural resources
→ Primary sector is insignificant
2. Dependence on External Trade
● Value of trade is serval times GDP of HK
3. Concentration on Tertiary Industries
● >90% labour force in tertiary /service (commercial + social+ personal) sectors
→ ↑ importance
4. Free Trade
● Laissez-faire Policy:
1. Government should minimize interference on market
2. Market forces determine allocation of resources
● No foreign exchange control + trade barriers (tariffs + imported goods quotas)
→ Exchange goods & services freely in market
5. Simple Taxation
(未有筆記,歡迎發送短消息提供)
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 樓主| 發表於 10-2-2013 08:32:29 | 顯示全部樓層
本帖最後由 小雪冰 於 10-2-2014 19:21 編輯

Hong Kong and the global economy

I. External Factors Affecting Business Decision
1. Economic Factors
● Most important
● Affect overall consumption & investment in economy
● Stable economy attracts firms Vs unstable economy increases business risks + deters investment
2. Technological Factors
● Improve productivity of workers + facilitate business communication + ↑ competitiveness
● Lower communication + transport + production of goods & services
● Affect production & distribution of goods & services
3. Physical Factors
● Affect economic development + attract investment
4. Cultural Factors
● Affect tastes & preferences of consumers
5. Social Factors
● Affect supply & productivity of labour + demand of goods & services
6. Political Factors
● Confidence in making investment
7. Legal Factors
● Confidence in making investment + property protection + fair competition

外在因素之舉隅 (歡迎發送短消息提供更多)
1. Economic Factors
WagesCharges
Inflation RateForeign Exchange Rate
Interest RateEconomic Growth
Purchasing PowerPrice Level
Money SupplyNational Income
Economic PoliciesTaxation
2. Technological Factors
TelecommunicationICT
Research & Development
3. Physical Factors
Geographical DispersionNatural Environment
InfrastructureTransportation
ClimateNatural Resources
LocationLand
4. Cultural Factors
Tastes & PreferencesValues
LifestylesReligion
5. Social Factors
LanguagePopulation Density & Size
AgeGender
Income GroupImmigrants
Race / NationalityEducation
6. Political Factors
Political StabilityPolitical System
Policies (except economic)
7. Legal Factors
Laws & RegulationLegal System
Consumer ProtectionLabour Protection


II. Hong Kong’s Economic and Business Relationships with Mainland
1. Flow of Goods and Services / Trading Partner
● Mainland: HK’s largest trading partner
● Mainland: important market for HK’s exports
● Mainland: largest sources of HK’s imports & re-exports
● HK: service centre for Mainland
● HK: provides financial & business services to individuals & enterprises in Mainland
2. Flow of Investment / Sources of Capital
● Mainland: private & stated-owned corporation establish subsidies & invest in HK
● HK: major source of foreign direct investment in Mainland & funding centre for Mainland
● HK: provide fund raising & management services to individuals & enterprises in Mainland
3. Flow of People
● Individual Visit Scheme
→ No. of Mainland visitors↑↑
4. Flow of Information
● HK: region communication & information centre
→ collect & disseminate information about economic & finance condition of Mainland
5. Economic Cooperation
● The Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA)
Objectives:
- To reduce or eliminate barriers on substantially all trade in goods between in Mainland & HK
- To achieve free trade in services through reduction or elimination of substantially all discriminatory measures
- To promote trade and investment facilitation

III. Economic Policies and General Business Practices in Mainland
A. Economic Policies in Mainland
1. Special Economic Zones and Coastal Port Cities
● 5 SEZs: different economic laws
→ attracting foreign + HK + Macau investment
E.g. Shenzhen, Zhuhai, Shantou, Xiamen, Hainan
● 14 Coastal Port Cities: preferential treatment to foreign
→attract foreign investment
2. Enterprise Reforms
Market-oriented Reforms: no price controls
→ improve productivity of industrial enterprises
→ Rapid in prices & corruption
Company Law: allow to raise capital by issuing shares on stock market
→ SOEs restructure into joint-stock enterprises
3. Financial Reforms
Foreign Exchange Certificates: allow foreigners to use renminbi as exchange medium
State-owned Bank Reforms: improve financial position & management
Currency Peg: renminbi peg to foreign currencies e.g. US dollar
4. Entry into WTO
● Join in 11/12/2011
→ reduce trade barriers & open up markets
→ provide more opportunities for HK firms
● Put pressure on SOEs
→improve productivity
→complete with foreign enterprises

B. General Business Practices in Mainland
1. Guanxi
● A set of personal connections which help a firm or a person gain advantages when doing business
→ obtain approval from government officials
2. Corruption
● No ICAC
→ Government officials ask for / accept favours & bribes from businessmen
3. Business Ethics
● Unethical practices
E.g. toxic / banned materials, smuggling, poor working & living environment for workers, pollution
4. Flows of Capital and Information
● Foreign exchange controls
● Careful in collection & dissemination of sensitive information

IV. Impact of Globalization on Business
Drivers(推動全球化的成因) → Globalization → Impacts(全球化帶來的影響)
謹記以全球化的方向作答題目 e.g. Globalization promotes free trade
Increased trade protectionism is not an impact of globalization on business sector.
1. Keen Competition
● Volume of international trade↑
→ greater mobility of protection factors
→ face competition from foreign firms
2. Internet Flow of Capital and Information
(未有筆記,歡迎發送短消息提供)
3. Global Sourcing and Outsourcing
● Advances in ICT
→ utilize information from Internet to buy inputs from lowest-cost suppliers + outsource production process
● Obtain + produce + sell in different locations
→ supply chain management + production
→ satisfy customers
4. Technology Transfer
● ↓ production costs
→low price
● Improve production techniques + labour productivity
→ workers’ income ↑
5. Expanding Markets
● Making products affordable for more customers
→ expand market for consumer products
● Easier to sell products around world
→ explore new market in other countries
● Reducing cultural distance
→ ↑ demand for products

V. Roles of Major International Trade Organization
1. World Trade Organization (WTO)
● Ensure rules of international trade are correctly applied & enforced
Minimise national trade barriers
Mediate national trade disputes
Help developing countries with skills & infrastructures needed to expand their trade
2. Asia-Pacific Economic Cooperation (APEC)
Support sustainable economic growth & prosperity in Asia-Pacific region through free & open trade & investment
Trade & investment liberalisation
Business facilitation
Economic & technical cooperation
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 樓主| 發表於 10-2-2013 08:32:31 | 顯示全部樓層
本帖最後由 小雪冰 於 15-2-2014 17:49 編輯

Forms of business ownership

大綱
I. Major Forms of Business Ownership
II. Pros and Cons of Different Forms of Business Ownership
III. Comparison of Characteristics of Small and Medium Enterprises and Multinational Corporations in Hong Kong

詞彙
Synergistic Effect 協同作用

試題分佈
HKDSEPP A2012 A2013 APP B2012 B2013 B
IQ20Q12Q1, Q5
II Q7a(4M)
IIIQ26

自製筆記
I. Major Forms of Business Ownership
(麻煩先下載此圖 再放大查看)


5. Joint Venture
● Nature
- contractual agreement
- formed by 2 or more companies cooperate in developing particular project
- specific time frame (terminated after project completed)
● Operation
- each party contributes own capital + assets + technology
- assets belong party who own them
- each party not responsible for liabilities of other parties
● Control: All party but not domination

6. Franchising
● Nature
- network of interdependent business relationships
- allow share brand identification / successful operation method
● Franchisor: Owner of a trade mark / patent
● Franchisee: Sole proprietor / partnership / limited company
(Paying fees to franchisor for use of trade mark / patent / operation method)
● Operation
- franchise agreement signed
- franchisor granted right to franchisee
- franchisee follow franchisor’s strict requirements
- franchisee needs to pay royalty i.e. part of gross sales to franchisor

II. Pros and Cons of Different Forms of Business Ownership
可用相同數字的重點比較
AdvantagesDisadvantages
Sole Proprietorship
1. Low set-up costs
2. Efficient and flexible operations
3. Close relationship with customers
4. Close relationship with employees
5. Low profit tax rate
6. Easy transfer of ownership
7. Not need to disclose financial info.
8. Owner enjoy all profit
9. Unlimited liability
10. Heavy workload
11. Lack of specialization and skills
12. Lack of continuity
13. Lack of capital sources(4th)
14. Competition from large business
15. Heavy burden of unavoidable costs
16. Difficult to get bank loans
Partnership
5. Low profit tax rate
11. Division of labour
13. More source of capital(3rd)
15. Sharing business risk
17. Better chances of promotion
2. Lower operational efficiency
9. Unlimited liability (X limited partners)
12. Lack of continuity
18. Conflicts on decisions
Private Limited Company
7. Not need to disclose a lot of info.
9. Limited liability
12. Has continuity
13. Easier to raise capital(2nd)
14. Large in scale
19. Better control
20. Less accounting costs
2. Lack of operational efficiency
5. Higher profit tax rate
6. Difficult to transfer shares
Public Limited Company
6. Easy to transfer shares
9. Limited liability
12. Has continuity
13. Easier to raise capital (1st)
14. Large in scale
16. Easier to get bank loans
21.Separation of ownership & management
2. Lack of operational efficiency
5. Higher profit tax rate
7. Need to disclose a lot of information
19. Less control
22. Easily affected by external factors
Joint Venture
11. Shared expertise
13. More capital
14. Economies of scale
15. Sharing risk
23. Easier entry into new markets
24. Synergetic effect
25. Lower production costs
18. Disagreement among partners
26. Leaking of information
27. Loss of autonomy
Franchisor
14. Dominate market
25. Lower production costs
19. Difficult to control quality
28.Image & reputation damaged by only 1  franchisee
Franchisee
3. Close relationship with customers
17. Reduced promotion cost
23. Easier entry into market
29. Training and financial support
1. High initial capital
8. cannot solely own profit
27. Low degree of autonomy
Government Departments
13. Financial support by government
14. Economies of scale
25. Lower operation costs
30. Reasonable prices to public
31. Easier access to updated information
2. Low degree of efficient & flexibility
32. cannot respond to public needs
33. Increase burden of taxpayers
34. Not run on commercial basis
Public Corporation
13. Financial support by government
14. Economies of scale
25. Lower operation costs
30. Reasonable prices to public
31. Easier access to updated information
2. Low degree of efficient & flexibility
32. cannot respond to public needs


III. Comparison of Characteristics of Small and Medium Enterprises and Multinational Corporations in Hong Kong
CharacteristicsSMEsMNCs
Firms’ SizeSmaller
Manufacturing:
<100 employees
Non-manufacturing:
<50 employees
Larger
>1 country
Forms of OwnershipSole Proprietorships
Partnerships
Private Limited Companies
Public Limited Companies
Source of CapitalFewerMore
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 樓主| 發表於 10-2-2013 08:32:34 | 顯示全部樓層
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