During the last 15 years China has received between US $60-100 billion in FDI projects annually and represent over 4 percent of GDP compared to that of India whose inflows from FDI have been approximately US $5 billion and less than 1 percent of GDP (Bosworth & Collins, 2008). China’s inflows are incredibly extensive to agree that has not been attained by any other developing economy. Cheap labour and a potential huge domestic market have made china he preferred investment destination of foreign companies (Kumar & Worm, 2011). And with all of these FDI, access to global markets is promoted and bring the accumulation of technology and management skills (Bosworth & Collins, 2008). China’s success involving FDI is partly due to the policies surrounding it.
If only one percent of its population participates in the New Economy, China will provide a market of more than 13 million potential customers for Internet businesses around the world. Today, China has approximately 22.5 million Internet users, according to a survey released by the China Internet Network Information Center. Although nongovernmental organizations and foreign agencies have questioned the accuracy of these figures, none have disputed that China has the largest Internet user population among all countries in the Asia-Pacific region. While the Chinese market is attractive, developing Internet business in China is not easy and can be frustrating at times. Due to the different political, social, economic and cultural conditions, foreign investors face significant barriers to establishing Internet businesses in China.
According to China Internet Network Information Center (CNNIC)¡¦s 2005 report, 94 million internet user and half of them are using broadband connection. China now has 4 internet-based companies listed in NASDAQ. As they reported profit since the SMS business introduced in 2002, many economists think there will be an internet technology boom in China again. IT industries in developed countries now are facing both challenge and opportunity since many mergers and acquisition happened in west countries from Chinese maker. That what will happen in China on internet technology in the next 10 years will affect every international business around the world.
India has been able to keep a competitive edge by keeping the supply of IT professionals high. India supplies more than double the number of computer science graduates than any other country (Askari and Chatterjee, 2003). In other words, they are able to provide highly skilled, low paying IT professionals with a grasp of the English language. It is estimated, by 2008, that India will employ $77 billion dollars of the global IT market. But as salaries in India have gradually increased, other countries have been competing with their low salaried IT professionals.
The country is approximately 60% self-sufficient, taking only 7.5% of it imports from the U.S. With a low inflation and unemployment rate (1% and 2.5% respectively), Switzerland is positioned to be a powerhouse in the world's economy. The Swiss economy earns approximately 50% of its corporate earnings from exports, of which, about 70% are destined for the EU market (The World Factbook, 2007). Switzerland is also one the world's most prosperous countries in terms of private income. In 2003 the median household income in Switzerland was an estimated $54,000 (U.S.), 26% higher than the 2003 U.S. median income of $43, 000. They also consistently rank high on quality of life indices such as high concentrations of computer and internet usage per capita, high insurance coverage per individual, and high health care rates.
In the 1980’s, China underwent rapid economic growth and now most of its economic activities are in the primary and secondary sector such as the mining and construction. With its vast population (which helps provide cheap labour) China has been abl... ... middle of paper ... ...o’s death, the government realized that Mao’s policies were inadequate and unsustainable in the real world the “… success of Japan, South Korea, Taiwan, Hong Kong and Singapore […] may have led to the People’s Republic of China to believe that it can have similar success by modifying its system” (Tisdell 9) In conclusion, the population and economic activity are interrelated. With a large population, such as China’s manufacturing, mining, construction, agriculture is the dominant economic activity because the population is big bringing cheap labour and cheap production cost. Whereas if the population is small, very likely that quaternary activities such researchers, consultant groups would be the dominant economic activity. In all, population and economy are one in the same … one cannot exist without the other.
The reverse is true in Poland. Poland reported that foreign companies contribute less than 40% of the total foreign funds for R&D, mainly because of funding from the EC and other international bodies. (OECD, 2013) In recent years, government agencies have distributed more than 40% of OP IE funds to large companies for technological innovation through capital investment (Kapil et al., 2013). Technology absorption in Poland, bu... ... middle of paper ... ...1.4% during 2008-2012. The above average innovation performance of Hungary is due to its high performance (third-best in the EU) in contribution of medium and high-tech product exports to the trade balance.
Revenue of Chinese commercial banks heavily depends on NIM (net interest margin) which is the difference between the interest incomes. However, to become global financial players, commercial banks should diversify revenue source. Private banking business is fee based service, so it makes good fee revenues. In the past few years, the average profit margin of United States private banking business was over 30%, and the average annual earnings increased by 12%-15%, which were far better than the traditional retail banking business' profitability. The profit margin of Chinese private banking is almost half of the United States because Chinese HNWIs have not been familiar with private banking fee.
But business like Flamingo Furniture also make decisions on how to sell their product. I found it a little strange that a company based in New York would choose to sell their products on a Chinese website. It has worked in their favor though. China has a population of 1.4 billion people. That’s a little more than a billion people compare to the U.S. On top of that 668 million people in China use the internet or more than double all the people in the U.S. (Wieczner, 2015).
It also found that approximately two thirds of all companies which have web sites had less than 100 employees. The Internet has become attractive to smaller companies because it enables them to reach a widespread audience with as impressive presence as that created by much large companies. At the same time, most of the major corporations see enough potential to invest significant dollars over $500,000 per company in the category of 1000 employees and more. II. Security Problems The security problem... ... middle of paper ... ...curity infractions are by insiders and the figure is comparable or higher for credit card and commercial fraud), * Continued hacking (systems will need to evolve as hacking eats away at current technology - the process is iterative and never-ending), * Social engineering (without proper security awareness training, organizations will continue to be susceptible to costly social engineering attacks), * Malicious code (this will continue to impose overhead on all open network systems and is likely to prosper in enhanced functionality environments such as Java and OLE, the Microsoft Internet Safe Code Initiative notwithstanding), * reliability and performance (problems with backbones and DNS servers are common at the moment and most current dial-up PPP connections are notoriously unreliable and slow, which will probably not improve until there is widespread use of ISDN)