Regional economic cooperation and integration do have important security dimensions and implications. This is because economic cooperation and integration may be driven by the desire to reduce the likelihood of political or military conflict between the states involved. SADC and COMESA were founded on this basis. The economic regionalism has also the self-protecting response with security overtones to economic globalization. By working together in regional groups, states can help to protect markets and industries in their region, increase their competitiveness in the global economy and strengthen their hand in global economic forms such as the World trade Organisation (WTO).
Developed countries did not just become a great country. They need strategies to make that happens. One of their strategies is to work with other countries and support each other to gain benefits of other countries. Having a trading activity with other countries is an example to this. Known as “export-import”, this kind of activity brings a lot of benefits of the countries that are getting involved such as access to technology, health, and education.
It is worth noting that the FDI distribution in China has been largely lopsided and this can be attributed to the imperfect and primitive legal regime . Additionally, the main reasons have been that some investors, especially from the US and MNCs countries, are a bit laidback due to concerns about the security and stability of their investments. Moreover, the Chinese from overseas (especially those living in Hong Kong) may employ linguistic as well as cultural links to keep contractual costs and information at bay. The overseas Chinese are known to contribute smaller amount of FDI compared to the non-ethnic ones. This can be attributed to the fact that the overseas Chinese have medium to small-sized firms.
Hofstede portraits the Chinese as relatively high in power distance, eager to avoid conflicts, generally collectivistic and usually long-term orientated, the long-term orientated must be mainly because of guanxi. Redding, Seagrave and Hamilton said that the Chinese tend to do business between themselves and use the Bamboo network of Chinese enterprises as an example, intra-cultural relationships acknowledge to outgrowth superior business successes yet there are other authors that consider this to be only a theory and that Chinese actually do not work with other Chinese companies since they are the competition. Business Environment in China The protection of Intellectual property is a very popular problem that China faces due to the amount of people in the country that the government is not able to control, and for companies that operate in a global market the protection of IP is a very important matter, so this may influence in the decisions of companies while considering to enter the Chinese
Due to this issue, conflicts between Starbucks regarding the system might occur. China is a country whereby status matters a lot to an individual, if Starbucks or its partner were to get into a dispute with any of the politician, they might face problems in operating smoothly in
Lantau Island is the largest outlying island of Hong Kong with 70% of undeveloped area, but along with the completion of several mega constructions in the coming future, such as the Hong Kong-Zhuhai-Macau Bridge (HZMB) and the third runway of the Hong Kong International Airport, the development of Lantau has stirred up the tension with local residents again. According to the suggestion of Lantau Development Advisory Committee, the Lantau will be positioned as a multi-purpose hub of the Greater Pearl River Delta (GPRD) region, including international transport, logistics and trade, also an important natural wealth of Hong Kong. Additionally, the central waters would be designed as a strategic growth area with a new metropolis. Precisely, the Northern Lantau, which covering most of the major facilities in Lantau as Hong Kong International Airport, Disneyland and AsiaWorld-Expo ,will be used for leisure and economic development to offer high end services, tourism and entertainment activities and business functions. The Eastern Lantau is planned to reclaim more artificial islands for developing one
The final reason for the increase of conflicts between civilizations is economic regionalism. This economic regionalism reinforces civilization-consciousness that was discussed earlier, but it will only succeed when it is applied to a common civilization. For example, “Common culture is clearly facilitating the rapid expansion of the economic relations between the People’s Republic of China and Hong Kong, Taiwan, Singapore, and the overseas Chinese communities in other Asian countries” (Huntington, 28). Similarity in culture can help civilizations overcome differences in ideology. However, the stronger ethnic or religious identity can also create a divisive outlook.
Local manufacturers must become more competitive or may run out of business with less limited trade. Capital investment:Trading blocks could also attract capital investment if non-member countries decide to establish subsidiary operations inside blocks in order to avoid the payment of inport tariffs. It should be clear that the primary motivation for the establishment of a trading block is the expansion of market opportunities which in return leads to economies of scale in production, greater volumes of competatively priced goods sold, and higher profits for members of the
Batam Island is one of the largest islands in Riau Island Province and there are 329 islands around the territory of the Batam city. Batam is one of the popular tropical holiday destinations in South East Asia among tourists and famous as the oil rich province. The area of Batam Island is 415 sq. Km. Due to the demand of space and progress of investments, the Batam Industrial area was expanded with the inclusion of two other islands, namely Rempang and Galang.
Second, through FDI, host countries increase the surplus of capital account and help to improve or rectify the trade balances. Thirdly, as developing host countries have lower rates of capital accumulation and thus FDI provides an opportunity to support domestic investment to increase economic