Professional Documents
Culture Documents
1
Through the following simulation game, students may have a better
understanding of the reasons for trade, international division of labour
and the conditions for trade to take place among countries.
Dear students:
Why do countries trade with each other? Is trade really mutually
beneficial? Is free trade really beneficial to everyone involved? Lets
find out the answers together through a simulation game!
Guidelines:
Divide into two groups of around 18-20 students. Students of each group become
Grouping
the people of Womm Republicand Hamm Stateletrespectively.
The people of both countries will go through two rounds of production under the
Game Rules instructions given by their governments, record the outputs and discuss whether
they should trade with their neighboring country.
Products to be
Garments, bead strings
produced
These two countries are self-sufficient, while garments and bead strings are the products that their
people need most in their daily life. Therefore, the governments wish to start production
immediately!
2
Through this part of the activity, students may have a good understanding of
productions in the countries when they are self-sufficient.
Note:
Manpower should be equally allocated. Half of them should produce garments
and half of them should produce bead strings. All people must produce goods
in accordance with the design made by the government and no personalised design will be allowed.
The products will go through a final quality control process, by which only those meeting the
specification given by the government will be counted.
Form teams of 4 people, and each team will have the following tools:
Garment Production Team Bead String Production Team
Scissors x 2 Fishing line x 1 roll
Glue x 1 Beads in different colours
Garment paper mould (A4) x 4 Paper ruler x 2
Heart -shaped paper mould (A4 Orange in Sample of bead string x 1
colour) x 1 (Note: It will be faster to use fishing
Sample of garment x 1 line rather than needle and thread)
Output of
Round 1
Production
3
Summary:
Calculate the total outputs of garments and bead strings of Womm Republic and Hamm Statelet
when they are self-sufficient.
Output of Garments Output of Bead Strings
Womm Republic
Hamm Statelet
Suppose the people of Womm Republic and Hamm Statelet wish to enhance their living quality.
Can you suggest any method, with resources remain unchanged, to increase the total outputs of
garments and bead strings of the two countries?
4
Through this part of the activity, students may understand the
productions of countries when they are self-sufficient.
Note:
Manpower should be equally allocated. Half of them should produce garments and half of them
should produce bead strings. All people must produce goods in accordance with the design made by
the central government. No personalised design will be allowed. The products will go through a final
quality control process, by which only those follow the specification given by the central government
will be counted.
Form teams of 4 people, and each team will have the following tools:
Garment Production Team Bead String Production Team
Scissors x 3 Needle and thread x 1box
Glue x 2 Beads in different colours
Heart-shaped paper punch x 1 Paper ruler x 1
Garment paper mould (A4) x 4 Sample of bead string x 1
Orange paper x 1 piece
Sample of garment x 1
Number of
Participants
Output of
Round 1
Production
5
Summary:
Calculate the total outputs of garments and bead strings of Womm Republic and Hamm Statelet
when they are self-sufficient.
Womm Republic
Hamm Statelet
Suppose the people of Womm Republic and Hamm Statelet wish to enhance their living quality.
Can you suggest any method, with resources remain unchanged, to increase the total outputs of
garments and bead strings of the two countries?
6
Suggested answer:
Suppose the people of Womm Republic and Hamm Statelet wish to enhance their living quality.
Can you suggest any method to increase the total outputs of garments and bead strings of the two
countries, with resources remain unchanged?
The countries may focus on the production of products that they have competitive advantage or with
lower costs of production compared to that of the other countries. Womm Republic may try to
specialise in the production of bead strings, while Hamm Statelet in garments to increase the total
outputs of garments and bead strings. They may then reallocate their products through trade to
enhance the consumption and quality of living of their people.
Therefore, we suggest there should be division of labour in production between the two countries,
then both of the countries can enjoy more outputs through trade.
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Activity Worksheet 2: Round 2 Production
Activity of Womm Republic
Note:
According to the conclusions in Worksheet 1, you need only to specialise in the production of bead
strings in this round.
All people must produce goods in accordance with the design made by the central government. No
personalised design will be allowed. The products will go through a final quality control process, by
which only those follow the specification given by the central government will be counted.
Form teams of 4 people, and each team will have the following tools:
Bead String Production Team
Fishing line x 1 roll
Beads in different colours
Paper ruler x 2
Sample of bead string x 1
Summary:
Calculate the total outputs of garments and bead strings of Womm Republic and Hamm Statelet
when there is international division of labour.
Output of Garments Output of Bead Strings
Womm Republic
Hamm Statelet
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Activity Worksheet 2: Round 2 Production
Activity of Hamm Statelet
Note:
According to the conclusion in Worksheet 1, you need only to specialise in the production of
garments in this round.
All people must produce goods in accordance with the design made by the central government. No
personalised design will be allowed. The products will go through a final quality control process, by
which only those follow the specification given by the central government will be counted.
Form teams of 4 people, and each team will have the following tools:
Garment Production Team
Scissors x 3
Glue x 2
Heart-shaped paper punch x 1
Garment paper mould (A4) x 4
Orange paper x 1
Sample of garment x 1
Number of Participants
Output of Round 2
Production
Summary:
Calculate the total outputs of garments and bead strings of Womm Republic and Hamm Statelet
when there is international division of labour.
Output of Garments Output of Bead Strings
Womm Republic
Hamm Statelet
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Activity Worksheet 3: Discussion after
Round 2 Production Activity
1. Review the whole process of the activity. What are the conditions for trade to take place?
- Each country has its own competitive advantage in the production of certain product, it may due
to reasons, such as amount of resources, tools owned or amount of talents who are good at
- Trade must be mutually beneficial. If any one of the party involved cannot gain from trade, it
Guidance Note: Teacher may simply apply the output data from the production activity for the
following calculation and analysis if the outputs meet the expected results.
2. Answer the following questions with reference to the following context and data.
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a. What are the changes in the total outputs of garments and bead strings of the two counties with
international division of labour?
Both of the outputs of garments and bead strings had increased by 15 units.
b. If both countries distribute the outputs with international division of labour equally. Explain
how Womm Republic may benefit from the trade compared to that of self-sufficient situation.
Womm Republic Amounts of Garments Amounts of Bead Strings
Outputs when self-sufficient 5 20
Amounts available for consumption
(self-sufficient)
Outputs with international division
0 40
of labour
Amounts available for consumption
(with trade)
Benefits from trade
c. Based on the above information and what you know, what are the benefits of international
trade?
- Countries involved in trade may have access to more products and enhance quality of living of
their people.
(Note: Teachers may further explain to students that countries may have access to more products
in terms of quantity and variety through trade. The learning activity has its limitation that it
only describes the benefit from trade in terms of more quantity. In the real world, however,
- Through specialization in production, countries involved in trade may enhance their production
efficiency while they may be able to produce higher quality product through practice makes
perfect.
- The two countries may promote cultural exchanges and introduce new technologies through
trade.
Note: The term competitive advantage is used instead of comparative
advantage throughout the module so as to avoid touching on the theoretical
Economics concept, which is not required for the junior form students.
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Discussion Activity: Problems Caused By Trade
3. Read the comments of the following persons. What are the harmful effects caused by trade?
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- Under international division of labour, the country will specialise in production of certain
products. Meanwhile, other businesses that are less competitive could be disappeared in
competitions.
- Under international division of labour, labour engaged in the industries in downturn will be
unemployed as they didnt have the skills required for the new business.
- Consumers would prefer to buy lower price imported goods from overseas. Therefore, some
local cultures would be eroded by these imported goods and even disappear.
- The country will centralise the resources to produce certain products in order to exchange for
other imported goods. If there is any obstacle to trade, we may not be able to import goods from
other countries, there will be a great impact on the living of the people.
: What is Trade?
Trade is an activity where a buyer and a seller are involved to exchange products or services in the
market. In modern world, the buyer in a trade will usually pay money to the seller for goods or
services. The buyer and the seller in a trade may be an individual, an institution or a country. With
technological advancement, trade may be taken place at a global or multinational level with the
support of global logistics and internet. A country will specialise in its production of goods that they
have competitive advantage. It makes good use of its resources and the benefit of mass production so
as to increase its total output and enhance economic efficiency.
Benefits of Trade
Through trade, production unit may specialise in the production of goods in accordance with their
own competitive advantages. Generally, there are three benefits of trade:
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1) Enhancing production efficiency: Through trade, a country produces products that it has
competitive advantage. They do not need to produce all goods. They will have specialisation in
production and production efficiency will be enhanced.
2) Providing more choices for consumers: Through trade, a country may obtain more variety of
goods. So, consumer can have more choices.
3) Fostering economic development: Through trade, countries have to compete in the market. They
have to improve product quality or production technology for competing customers. This will foster
economic growth and economic development.
2) Less competitive industries will be displaced: For industries that are less competitive, as their
production cost are higher than that in other countries, these industries can hardly exist in the
domestic market due to the competition of the imported products. Many of these industries are
embedded with local cultural heritage which would then be affected.
3) Unfair Trade affects social stability: In terms of national power, there has been a large gap
between countries due to historical and economic reasons. Those powerful countries may set the
terms of trading agreements in their own interest and harm the interest of the disadvantaged
countries. Such trading relation would widen the gap between the rich and the poor, which
destabilises the global community.
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Worksheet (2): Common Trade Protection Policies and
their effects on different stakeholders
1. Recently, many people of Hamm Statelet have joined a street protest, as they have lost their jobs
after trading with Womm Republic. The livelihoods of the people were seriously affected.
Suppose you were the Director of the Trade Development Department, what measures would
you take to deal with this issue?
_________________________________________________________
_________________________________________________________
_________________________________________________________
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2. In order to ease the discontent of the people, the Director has established an ad hoc committee
to study the practices of other countries before making decision. The committee members have
visited some countries and have studied a number of cases. With reference to the following
information, match the cases with the relevant trade protection policy.
Case 1
The US government provides cotton farmers with a subsidy of around US$4 billions every year to
help them to install huge mobile sprinklers and advanced tractors for maintaining the
competitiveness of exported cotton. This measure may secure the attractive yield of cotton of the US
every year and lower the global price of cotton. Meanwhile, this measure causes harmful effects to
the livelihood of 11 million cotton farmers in West Africa and directly cut the number of rivals.
Case 2
In order to protect the local automobile industry in Brazil, the Brazilian government has imposed a
tax on imported cars at a rate of 55%, which eventually led to an increase of 25% in the prices of
imported cars. Following the implementation of the new tax policy that aims to protect the local
automobile industry, consumers preference for buying imported cars slumped and the sales of local
mobile industry increased.
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Case 3
Hong Kong became the leading exporter of garment and textiles in the 1970s. The garments made in
Hong Kong had taken a large market share in the US for their low price and high quality. In order to
protect the domestic garment industry, the US government had decided to impose an import quota on
garments made in Hong Kong. The import quota on textiles and garments was abolished on 1
January 2005. Following the abolishment, textile products and garments from Hong Kong can be
freely imported to markets like the US, EU, Canada,etc.
Case 4
The US government imposed a trade embargo against Cuba in 1962 to attain its political objective
against the Cuban government. Enterprises in the US were not allowed to trade with Cuba.
Meanwhile, economic sanctions were imposed on Cuba. Cuba simply could not sell sugar, which is
its major output and source of income, as a result of these sanctions. During the 50 years embargo
period, the Cuban government provided daily necessities to its people through rationing due to the
tight supply of goods. The situation remained the same until October 2000, when the U.S. President
Clinton allowed the sales of US agricultural goods and medical supplies to Cuba for solving its food
shortage. However, the US government did not announce to lift the embargo entirely.
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Challenge
The Director of the Trade Development Department of Hamm Statelet has not made any decision
after studying the trade protection policies in other countries. He hopes that the proposal adopted can
attain the following objectives in addition to improving the quality of life of the people of Hamm
Statelet. With reference to the trade protection policies mentioned in the previous two pages, what
are your suggestions?
Students should assess the policies with reference to the priority list so that they may have a better
understanding of the effects of different trade protection policies and make reasonable suggestions.
3. After careful consideration, the Director of the Trade Development Department of Hamm
Statelet has decided to advise the Hamm Government to impose an import quota on bead strings
from Womm Republic with immediate effect. Following the implementation of an import
quota, the monthly exports of bead strings from Womm Republic to Hamm Statelet has been
limited to 50.
After implementing the import quota for three months, the Director has interviewed the general
public for collecting their views on this policy. Analyse the comments of the people carefully. What
are the effects of this policy to different stakeholders?
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Following the import quota, the quality and style of the imported
bead strings become better than before. However, the quantity of
imported bead strings reduced and the price increased.
Consumers are forced to buy more local bead strings now!
Black Pearl
Bead string buyer
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It seems that the implementation of an import quota on
bead strings would have nothing to do with me. However, I
am worried that Womm Republic will revenge and
impose a high tariff on our exported garments. The
government should also protect our interests!!
Black Ian
Local garment
exporter
According to the comments of these five people of Hamm Statelet, do they support the import quota
imposed on the bead strings from Womm Republic by their government? What are the reasons for
their opinions?
Black Pearl
Object Increased price and reduced choices
(Bead string buyer)
Mr. Black
(Local bead string Support Less competition from foreign countries
manufacturer)
Black Bull
Support Secure local employment
(Local worker)
Dark Plum
Sales drop because people spend less on imported
(Beading string Object
goods as the price increases.
importer)
Black Ian
Worried about revenge measures imposed by foreign
(Local garment Object
countries on his products.
exporter)
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Challenge
Faced with the trade protection policy by Hamm Statelet, what would be your ways to deal with it
if you were a government official of Womm Republic?
Revenge measures
Negotiation/cooperation
Import tariff: It refers to the duties imposed on certain imported goods for raising the prices of
imported goods and protecting the similar local products.
Guidance notes: Countries may also impose export tariff in order to restrain the
volume of export of certain essential raw materials.
Import quota: It refers to the limit on quantity of imports for the purpose of protecting the products
produced domestically.
Export subsidy: It is a financial subsidy for some exported goods with an aim to support the local
exports in the competitive global market.
Embargo: It refers to a restriction imposed on the imported goods of foreign countries. A country
may restrict the import of particular goods due to its sub-standard in areas such as health, safety and
environmental protection. The embargo may even be extended to all products from a certain country.
These four trade protection policies are different in terms of flexibility. Among them, import tariff
and export subsidy are relatively flexible. The former one can earn more tax revenue, while the later
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one can help to provide more trade opportunities. On the other hand, import quota and embargo are
of a lower flexibility. The maximum limit for imports has been fixed beforehand. Also, the imported
goods must meet certain specified standards before they could be imported. Accordingly, the
government may have a greater control on the imported goods. A government may implement
appropriate trade protection policies according to its different policy objectives.
Effects on local producers: trade protection policies may help to reduce the competition facing the
local producers, protect local industries and create more job opportunities for those industries.
Effects on local consumers: the price of a product made in overseas countries may rise due to the
difficulty in importing it. As a result, consumers will have to pay more to buy the goods and have
fewer choices.
Effects on local importers: local importers may have to buy overseas products at a higher price.
That could lead to a higher operating cost and thus lower competitiveness. So, their revenues will
decrease as local consumers may spend less on imported goods.
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Worksheet (3): An Overview of Trade of Hong Kong
After investigating the situation in Hamm Statelet, the Hong Kong Government also wants to look
into its present situation of trade, including the trading of goods and services, for seeking ways for
trade development. The Chairman of the Hong Kong Trade Development Council has invited you to
analyse the situation and give advice.
HK$ million
Imports
Domestic exports
Re-exports
Source: The Census and Statistics Department of the Hong Kong Government
1. With reference to Source 1, describe the trends of imports, domestic exports and re-exports in
Hong Kong between 1980 and 2010.
According to Source 1, there had been rising trends in the imports and re-export between 1980
and 2010, while the domestic export edged up between 1980 and 1995, but then declined
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: Calculation of Merchandise Trade Balance
Merchandise Trade Balance is the difference between the values of total exports (including domestic
exports and re-exports) and total imports of a country (territory) in a period.
Value of Total
Merchandise Value of Total Value of Total
= Domestic Exports of + -
Trade Balance Re-exports of goods Imports of goods
goods
(Revenue) (Revenue) (Expenditure)
A deficit in merchandise trade balance means that the total imports is greater than the total exports in
the territory. On the contrary, a surplus in merchandise trade balance means that the total exports is
greater than the total imports in the territory.
2. The table below shows the information of Hong Kongs external merchandise trade between
2002 and 2010. Read carefully and answer the following questions.
(HK$ billion)
Year 2002 2004 2006 2008 2010
Imports 1,619 2,111 (a) 2600 3,025 3,365
Domestic
131 126 135 91 (e) 70
Exports
Re-exports 1,430 (b) 1893 2,327 2,733 2,962
Merchandise
(c) -58 -92 -138 (d) -201 -333
Trade Balance
a. Fill in the above blanks based on the equation on top of this page.
The Merchandise Trade Balance of Hong Kong is always less than zero. It means
that there has been a trade deficit in Hong Kongs merchandise trade for the years. It
reflects that the revenues from domestic exports and re-exports have been
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3. Based on question 2 and your knowledge of Kong Kongs economy, explain for the situation of
Hong Kongs Merchandise Trade Balance in the past two decades.
Import: As Hong Kong is short of natural and productive resources, it has to import a lot of
goods from overseas for people to consume. Therefore, the total imports have been rising.
Export: Service industry has become the pillar of Hong Kongs economy due to the ongoing
Source: The Census and Statistics Department of the Hong Kong Government
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1. Compare the figures of 2003 and 2010. What is/are the change(s) in Hong Kongs total imports
of goods?
Source 2 shows that there was an increase in Hong Kongs imports of goods.
The value of goods imported from the mainland increased most during this period. However, in
terms of percentage increase in the value of imported goods, Singapore out performed other
countries.
2. With reference to the above chart, which country/territory is the biggest supplier for Hong
Kong?
3. Hong Kong is a place with limited land and natural resources but accommodating a population
of over 7 million. Source 3 reveals that foodstuffs only account for 4% of the total imports of
2010 when both capital goods and raw materials and semi-manufactures account for over 30%.
Why?
Hong Kong has limited land and natural resources. Its true that we have to import a large
amount of foodstuffs to meet the needs of the large population. On the other hand, Hong Kong
has to import large amounts of raw materials, semi-manufactures and machineries for producing
exportable goods and services in order to earn foreign exchange. Moreover, with close
economic ties between Hong Kong and the mainland, certain imported raw materials and
production. With massive imports for domestic use and re-exports, the value of imports of
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Source 4 : Total Exports of Goods to Main Destinations of
Hong Kong in terms of value for 2003 and 2010
Source: The Census and Statistics Department of the Hong Kong Government (2011)
4. Which countries / region are the two main destinations of Hong Kongs exports of goods?
5. Compare the figures of 2003 and 2010. Which country/region has a marked decline in imports
of goods from Hong Kong? Explain the reason(s).
The USA. The US has switched to other lower-cost locations for importing the goods needed.
Some lower-cost locations are the mainland of China and Southeast Asian countries.
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: What are the trends and present situation of
Hong Kongs trade in services?
Source 5 : Total Exports and Total Imports of Services between 1980 and 2010
Source: The Census and Statistics Department of the Hong Kong Government
Note: The information in Sources 5, 6 and 7 have not considered the change made by the
Census and Statistics Department on the implementation of the new international standards in
September 2012. As the incorporation of the new revised estimation methods is still in
progress, the information above has not taken into account the change accordingly.
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: Calculation of Balance of Invisible Trade
The balance of invisible trade is the difference between total value of exports of services and total
value of imports of services of a country (territory) in a period.
Balance of invisible trade = Total value of exports of services Total value of imports of services
(Revenue) (Expenditure)
Invisible trade deficit means that the total value of imports of services is greater than the total value
of exports of services in the territory. On the contrary, an invisible trade surplus means that the total
value of exports of services is greater than the total value of imports of services in the territory.
1. Calculate the invisible trade balance for the following years and indicate whether they are deficit
or surplus.
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2. With reference to the above table and Source 5, describe the trends of invisible trade of Hong
Kong between 1990 and 2010.
There had been a rising trend in the values of invisible exports and invisible imports between
1990 and 2010. Moreover, the balance of invisible trade surplus had been increasing over this
period.
3. According to Source 6, which country is the main destination for Hong Kongs exports of
services? Suggest one possible reason for that.
According to Source 6, the mainland of China is the main destination for Hong Kongs exports
of services. It is because Hong Kong is close to the mainland and they have frequent exchange.
Moreover, many Hong Kong firms have established their production lines in the mainland
4. According to Source 7, which two service groups are the most important pillars of present
invisible trade of Hong Kong? What are the industries included in these service groups? Give
one example for each group.
Merchanting and other trade-related services and transportation services groups are the two
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: Why is external trade important to Hong Kong?
Based on the above analysis, we can see that Hong Kong has frequent trade with all parts of the
world. Comment the overall situation of Hong Kongs external trade and what kind of production do
we enjoy competitive advantage. Why is external trade important to Hong Kong?
A deficit in merchandise trade balance and a surplus in the balance of invisible trade have always
been recorded. It suggests that Hong Kong has competitive advantages in providing services rather
than in the production of goods. External trade is important to Hong Kong because it exports goods
and services which it has competitive advantages to earn foreign exchanges and imports goods
(including foodstuff, consumer goods, raw materials and semi-manufactures) at a lower cost (i.e.
costs of producing the goods domestically is higher than the prices of the imported goods) to meet
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Worksheet (4): Challenges facing Hong Kongs
External Trade and the Ways to Deal with them
Economic structure of Hong Kong has shifted towards increasingly service orientated, Hong Kong is
currently an important hub for trading of services. However, there are many challenges facing Hong
Kongs external trade. Read the information below carefully. Analyse the problems facing Hong
Kong and give some suggestions for improvement.
The competition in port facing Hong Kong is mainly due to the rapid development of ports in the
mainland. In recent years, ports in Shanghai and Shenzhen reached a rapid growth of nearly 30% per
year in their container throughput. Together with the Yantian Port in Shenzhen, which is close to
Hong Kong, have posed great challenges to Hong Kong. With a rapid development of the maritime
sector in the mainland, Hong Kongs re-exports and exports will be adversely affected.
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: Global Economic Environment
Hong Kongs economy is likely to be affected by the external environment. Hong Kongs exports
are adversely affected by the recession of the global economy. European debt crisis, economic
problems in the USA and the slowdown of the mainlands economic growth reduce Hong Kongs
exports. The economic prospect is even worse than that during the financial turmoil in 2008.
According to a survey conducted by the Hong Kong Trade Development Council in 2012 for Hong
Kong manufacturers and traders, most respondents thought that Hong Kongs performance in export
orders is disappointing. Reasons that had been suggested by most of the respondents are as follows:
Weak purchasing power among target markets(e.g. Western Europe, the USA) 89%*
The products are not competitive 87%
Fierce competition from industry players 83%
Change in demand or market structure, or other reasons 60%
Source: News roundup (2012), HKTDC (Hong Kong exporters seeking solutions in tough times.
14 June, 2012)
According to data published by the Travel Industry Council of Hong Kong, the Hong Kong Tourism
Board and the Consumer Council during 2011, 3,344 complaints were received from tourists visiting
Hong Kong. These complaints were mainly related to shopping, accounted for 2,325 cases (70% of
the total number of complaints). These scandals will scare off potential tourists.
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In view of the present difficult business environment of Hong Kong, an economist of the Hong Kong
Trade Development Council (HKTDC) responded that as the production cost has been rising, Hong
Kong manufacturers can relocate their production bases to lower-cost locations. Moreover,
manufacturers may also launch new products and enhance the quality of the products to stand out in
the competitive environment.
In addition to enhancing products quality, Hong Kong exporters may also strengthen their marketing
in exploring new markets, particularly the mainland of China and emerging markets. Many Hong
Kong companies have developed good relationships and trust with importers from all parts of the
world.
Furthermore, as more and more businesses have been negotiating with the clients and manufacturers
directly, Hong Kongs role for intermediaries diminished. Though Hong Kong merchants are facing a
tough time, they have been actively seeking better material suppliers and providing more
value-added services on the other hand. For example, Hong Kong merchants help overseas clients in
inspecting goods produced by manufacturers and supervising the manufacturing schedules.
Source: HKTDC (Hong Kong exporters seeking solutions in tough times, 14 June 2012,);
(Overview of Import and Export Trade Industry in Hong Kong, 9 May, 2011)
34
Summarise the information in Source 1 to Source 3. What are the problems facing Hong Kongs
external trade? With reference to Source 4 and to your own knowledge, give some suggestions for
improvement.
35
shipping industry. This can enhance Hong Kongs status as an important trading centre in the world.
Trade and its related industries can attract professionals from all parts of the world. By attracting
talents, Hong Kong may enjoy stronger economic growth and develop into a diverse and
international city.
Challenges facing Hong Kong and the ways to deal with them
1. Enhance its efficiency.
Hong Kong cannot compete with other cities in terms of price as its production and operating costs
have been very high. Therefore, Hong Kong has to enhance quality of services, efficiency and
productivity or strengthen the promotion of creativity to compete with other territories. Offer goods
or services that are not available in other territories and strengthen training of local talents may also
help to keep the competitiveness of its trading industries in the world market.
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Concept Map of World Trade
Common trade
WTO
protection policies
EliminateReduce trade
Reach trade Import tariff
barriers
agreements Import quota
Export subsidy
Embargo
The effects on
Challenges
competition from ports
and cities in the mainland
and other territories
Ways to improve the situation
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38
Heart-shaped punch Scissors & Glue
39
40
(should be orange in colour)
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