Business Environment in Hong Kong

1
Lecture 1

• Business Environment in Hong Kong

2
What is a Business?

• All commercial industrial activities that seek
  profits.
• Profit Revenues - Costs

3
Why Study Business?

• The impact of business dominant role in our
  lives
• Career choice
• More knowledgeable, a better-quality decision can
  be made

4
Factors of Production

• Natural resources
• Labour
• Capital
• Entrepreneurs
• Newer perspectives tend to include
• Physical resources
• Information resources

5
Key activities of business

• Develop new ideas
• Raise start-up operating capital
• Obtain raw materials, goods, services
• Hire, train, manage employees
• Maintain accounting records

6
Key activities of business

• Analyze market opportunities
• Produce goods services
• Market goods services

7
Business Environment in HK

• Ranked the worlds freest economy
• Government support for High technology
• Informational services
• Evolution into a services centre
• Close relationship with mainland in trade
  investment

8
The service economy in HK

• More than 90 of GDP derived from services.
• Nearly 87 of all jobs in services sector.
• The worlds 9th largest exporter of services,
  second only to Japan in Asia.
• Financial centre third largest stock market in
  Asia.
• Most popular tourist destination in Asia.

9
Cooperation and Coordination with China

• Transform to a knowledge-based economy, speeding
  up the free flow of talent
• A cosmopolitan city and become the international
  financial services centre for China
• Chinas accession to the World Trade Organization
  (WTO) creates more favourable environment for HK
  companies

10
Cooperation and Coordination with China

• Gaining advantages from CEPA (Closer Economic
  Partnership Arrangement)
• Citizens in major cities of China are allowed to
  visit HK individually, that should revitalize
  tourism and retail industries
• Further trade liberalization (CEPA V)

11
Cooperation and Coordination with China

• Development of Pearl River Delta region, the
  so-call Pan PRD concept

12
Homework

• Visit the following websites
• http//www.info.gov.hk/hkecon
• http//www.gov.hk/tc/business/businessmainland/cep
  a/index.htm
• http//cepa.hktdc.com/cepa_index_chi.aspx
• http//www.tid.gov.hk/tc_chi/cepa/index.html
• http//www.cepachina.net/
• Prepare tutorial questions for discussion