BM01 - Hong Kong Business Environment (archives) Flashcards
How does the government help improve HKers’ competitiveness? (ROLE OF GOVERNMENT)
- Provide infrastructure + education + training + technology
- ⬆️ labour productivity
- ⬇️ average cost
- ⬆️ competitiveness
What are some examples of economic factors that affect business decisions?
- tax rate
- interest rate
- exchange rate
What aspect of business decision do economic factors affect?
The overall consumption + investment in an economy
How do technological factors affect business decisions?
- ✅ new technology
- ⬇️ production cost + ⬆️ new business opportunities ➡️ ‼️affect the production and distribution of goods and services‼️
What are some examples of technological factors that affect business decisions?
- Research and development (R&D)
- Information and communication technology (ICT)
- Transport technology
How do physical factors affect business decisions?
A favourable physical environment attracts investments
What are some examples of physical factors affecting business decisions?
- Geographical location
- Weather conditions/ climate
- Natural resources
- Infrastructure
- Transportation networks
How do socio-cultural factors affect business decisions?
- Population structure (eg. Age distribution, gender ratio) ➡️ labour supply
- Language ability + education level ➡️ labour productivity
- Tastes and preferences ➡️ business decisions need to suit tastes and preferences of target consumers
What are some examples of political and legal factors affecting business decisions in HK?
-Sound legal system
What are the two types of consumer durables?
- Consumer goods
- Producer goods
Why are factories allowed to relocate to the Mainland in the early 1980s?
Open-door Policy in 1978 ➡️ attract foreign investment
