Regional Focus Flashcards
(49 cards)
Why did China fail (until 1950) to react adequately to the Western technological Challenge?
, mainly because the ideology, mindset and education system of the bureaucracy promoted an ethnocentric outlook, indifferent to developments outside China
weil die Ideologie, Denkweise und das Bildungssystem der Bürokratie eine ethnozentrische Ausrichtung förderten, die gegenüber Entwicklungen außerhalb Chinas gleichgültig war.
Show the development of the China GDP
1820 –> 1913
- in 1820 the GDP had accounted for 32% of the world GDP
- by 1913, it had declined dramatically to only 9% of world GDP
- in this periode the economies of Europe and the US surged ahead
China’s current economy
5 Problems
- real estate bubble
- stock market bubble
- municipal dept
- excess capacity (cheep credit, boost from governement)
- capital flight
China
major exports
and
imports
major exports:
- computers, broadcasting equipment, telephones
major imports:
- crude petroleum, intergrated circuits, iron ore, gold, cards
Name the 3 biggest reason “why foreign companies fail in China”
- Not understanding the market and culture (consumer behaviour, internet, …)
- Picking the wrong / ingnoring the right local Partner
- not playing nice with the government
China:
How many companies fail and withdraw from china in 2 years?
48% of foreign corporations fail an withdraw from china within two years
China:
Top 5 Business Challenges for foreign Companies?
Survey
- Inconsistenc regulatory interpretation and unclear laws
- rising labour costs
- regulatory compliance risks
- shortage of qualified employees
- increasing chinese protectionism
China:
Which advantages do the chinese companies have over the foreigner?
- cost advantages
- price
- government and other guanxi
- unethical behaviour
China:
Which advantages do the foreigner companies have over the chinese?
- brand
- product
- technology
- marketing and sales
China:
Outlook for Business Opportunities
ZF
− Over 50% of Swiss, EU, and US companies stated an intention
to increase investments in China in 2017.
− China once again ranks as a top investment priority for
Swiss firms, with 57% of managers of Swiss subsidiaries
considering China to be a top 3 investment priority, in contrast
to 48% in 2016.
− Foreign SMEs are expecting higher profits in substantially
greater numbers than last year.
− Testament to the ability of Western companies of all sizes to
compete and succeed in China.
− All but american managers are looking optimistically towards
the next five years (election of D. Trump may have caused a
more cautious response).
China:
Explain “Guanxi”
“Guanxi] describes a relationship that is established between people or organizations with the aim of obtaining personal advantages.
„[Guanxi] beschreibt eine Beziehung, die zwischen Menschen oder Organisationen mit dem Ziel aufgebaut wird, sich persönliche Vorteile zu erschleichen
India:
The DISadvantages of being a grey economy
- Roughly 90% of India’s economic activities happen in the informal sector: not listed, unorganized, poorly capitalized on, not taxed, legally unprotected
- 9 in 10 workers are estimated to work in the grey economy (the finance ministry of India thinks the figure may be lower)
- Businesses in the informal sector employ two-thirds of all manufacturing workers, at far lower pay than in those in the formal sector
- In the World Bank’s “Ease of doing business” annual report, India ranks at a miserable position of 172th out of 190 for paying corporate taxes
India:
Facts of the onverburdened judiciary
- A relatively weak executive and slow parliament are a large burden on the judicial pillar
- India’s judiciary is opaque, slow and understaffed:
- There are only 14 judges per million people (USA: 107 per million)
Thousands of unfilled judicial job positions, including 31 judgeships in the Supreme Court
- approximately 30m legal cases pending,
- 6m of which have been stuck in the courts for five years or longer
- 2/3 of the 400,000 inmates in Indian prisons are yet to be convicted of any crime
Result: the combination of an overburdened judiciary with widespread corruption, the Indian citizen deeply distrusts the country’s judiciary
India
Digital Transformation
Grafik
India:
Electronic Payments
Facts
- Early 2017: almost none.
January 2018: over 150m transactions per month - The Indian taxman should love it: electronic transactions leave a digital trail that makes it harder to do business informally
- The government should love it too: less corruption and better criminal prosecution
India:
How many unbanked people?
estimated 233 million
India:
How many non-cash transactions in % of all transactions?
22%
but might overtake cash transactions in 2020 –> rise of digital payment
Middle East:
Facts About the Arab League
Founded 1945 –> 22 Country memebers (Egypt, Saudi, Quatar, Kuwait, Iraqu, Syria…..)
Middle East:
Arab League
Grafik
Middle East:
6 UN Languages
Grafik
Middle East:
Gulf Cooperation Council
Facts?
is a regional intergovernmental political and economic union established in 1981 and consisting of:
Kuwait, Bahrain, Quatar, Oman, Saudi Arabia, United Arab Emirates
Objectives:
- Similar regulations: religion, finance, trade, customs, tourism, legislation, administration
- fostering scientific / technical progress of the miliatry
- encouraging cooperation of the private sector
- strengthening ties between their peoples
- establishing common currency
Middle East:
Geopolitical importance is coming from:
- Geopolitical position: connected to 3 continents, Chokepoints & energy routes.
- Demography: Pyramid, youth (jugend) and migration
- Democracy and stability: Index
- Conflicts and military spending
- Natural Resources: Position (routes), oil and energy, minerals, tourism, manpower.
- Scarcities (Mängel): Water, Food, knwoledge societies
- Discussion: reasons behind Arab Springs and the economic costs of it.
Middle East:
Strait of Hormuz
Facts?
- The Strait of Hormuz is the world’s most important oil Chokepoint; about 30% of all global seaborne-traded oil cross the strait (17/59 mb/d).
- More than 85% of the crude oil that moved through this chokepoint went to the Far-East (Osten Asiens)
Middle East:
Air traffic density?
- By 2034, the fleet of passenger and freighter aircraft in the ME region will treble: 2,950 aircrafts.
- The total aircraft movements to and from and within the ME region (36 airports) is estimated to increase to 2,346,000 in 2025.
- Aircraft movements in the ME region will go up 5.2 per cent annually by 2030
- Gulf airports are expected to handle 450 million passengers by 2020.