Economy Laos lost nine-tenths of their currency's value against the US dollar in 1997 during the Asian currency crisis. A report from the Asian Development Bank states that even if absolute poverty incidence has halved, the distribution of private household expenditures has become more unequal in Laos. Because a large portion of the Lao population don't have the required education, skills, and experience for jobs outside the agriculture sector, foreign businesses who invest in the country usually bring their own foreign staff with them. This creates a deeper unemployment problem. Healthcare Approximately 44% of children suffer from stunted growth and 27% are severely underweight.
China China is currently a highly developing nation, the technological advantages and novelties of the Chinese impact the whole globe. It population structure is similar to level 3 demographic transition, although the birth rate is decreasing due to the incentive of the government who had implied the one-child policy. The nation is strong and has a large workforce, even though the poverty in rural areas is still quite high the government is constantly fitting the issues with both poverty and overpopulation. The amount of youthful population doesn’t allow to observe a decline in population in China in 2016, although it is predicted that after 2030 the population of China will start to decline unless the one-child policy is cancelled. Even though the one-child policy has certain benefits thus solves the problem with overpopulation, on the other hand the cultural preferences of the nation is making it hard especially for women.
At that period of time, Hong Kong was used as a free port for the trade in China only. Like the other colonies, the social needs of the people were neglected and the policies implemented were out of the benefit of the British government instead of the local interest. Local community and the charitable organisations were the major sources of welfare. Xu (1993) analysis that the population growth in Kong Kong in 1841to 1941 was a mechanical increase. The population was mostly the new immigrants from the mainland China owing to the labour shortage for economic development in Hong Kong and the labour surplus in China.
This approach suits even more in countries with developing economy such as China. Since most MNEs are originated in the developed countries, usually they lack the necessary experience and knowledge about local market, political or economic challenges and uncertainties of host country. If MNE has some experience in the host countries through other projects, then it possible to handle local challenges. Whereas, if MNE entrants the host country for the first time, the conditions will not be very beneficial. Hypothesis 1: Joint venture with local automobile company can help to handle with different kind of Institutional pressures in China.
Korean total tax revenues are only 26% of GDP, especially low on labor. And they cause social spending low(11%). Sweden's tax-benefit system decreases its poverty rate by 80%, contrary to 18% of Korea. (‘What Do You Do When You Reach the Top?’) According to these statistics, their tax rates are low and its benefit system has not been able to reduce poverty in Korea. One says, "Increasing tax rate also reallocates resources across sectors toward their highest-value economic use, resulting in increased efficiency and potentially raising the overall size of the economy."
This was why Sport Shoe Inc. had decided to manufacture in Pacific Rim. Reason 1 Lower Wages One of the main reason Sport Shoes Inc. manufactured in China is because of low wages given to workers. China is home to approximately 1.35 billion people, which makes it the most populous country in the world. The law of supply and demand tells us that since the supply of workers is greater than the demand for low-wage workers, wages stay low. Moreover, the majority of Chinese were rural and lower-middle-class or poor and until the late 20th century when internal migration turned the country's rural-urban distribution upside-down.
After the reformation of state owned enterprise in 1979, a Duel-Priced System was introduced whereby the state-owned industries were allowed to sell their product higher than the plan quota (1981: Dual-track Price System). When the owner can sell their product above the plan quota and market price, it will avoid shortages that always happened in Mao’s era. Besides that, when China implemented the Industrial Responsibilities System, it allows the state-owned enterprise to manage their owned product. It was the first time in China since Kuomintang takes power where the private sectors can manage by themselves and the result, the percentage of the industrial output increase a lot (Brandt, 2008, p. 10). Besides that, Deng also introduced the Special Economic Zone that gives investors the chance to invest without the interference of the state government (Brandt, 2008, p.
By 2010, it had fallen 0.507 – an substantial drop. This was largely due to the rise of Asia – and primarily China – as a global superpower. In the same timeframe, China’s GDP per capita rose from 271.6 to 4560.5 , and Africa experienced a similar – though reduced – period of per capita GDP growth, driven by lowering birthrates and increasing economic growth. By comparing this growth to that of developed countries, the value of this data becomes apparent. Between 2000 and 2010, Sub-Saharan Africa has maintained a per capita GDP growth rate higher than North American for all but one year, and Europe for every single year.
Since 1985, an export tax rebate policy was executed to enhance the competitiveness of China as an export country. In addition to the originally low-priced land, and the cheap labor force, because of the large population, China becomes the ideal place of building factories. Therefore, the foreign companies minimized their cost while avoided pollution problems could be brought by the production process. Now, the factories’ negative influence on environment started to shown as the form of air
Today, as many as 150,000 families are estimated to earn less than $1,500 a month. (Caritas Singapore, 2014) Income inequality has increased negative feelings towards the wealthy and foreign talents amongst people, especially those from the lower income families. This is because the poorer households often feel and associate the rich and foreigners as the cause of their state. Such dissatisfaction has been evident all over the internet, social media, at speeches held at the Speaker’s Corner and even in daily conversations. The author feels that income inequality is bad for Singapore as it has undoubtedly caused unhappiness and increasing social discrimination within the