Hong Kong....Occupy Central Demonstrations....

texx1 said:

In an ideal closed system, all three must work together in order to create a good prosperous environment for trade to develop. In actual cases each firm makes its own reward and benefit analysis. When it comes to China, foreign firms have taken the risk of more ambiguous legal protection in order to reach out to a market of 1.3 billion.

And let's not forget ambiguous legal environment has also created massive profit for foreign firms. For example GSK made billions taking advantage of corruption in China until it was caught and fined only 489 millions.

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Brumby said:

The concept is much more than just removing cost because of shrinkage. I remember in a documentary I saw a few years ago and the comments about how efficient the government regulation in HK was and it was a benchmark for world's best practice. It was reported that you can register a business in HK within a day requiring one form to be filled. I don't know how far that is true. In contrast, they said of a particular state in the US (I forgot which) which requires 6 weeks before they can start a business. A business community and innovation can thrive or get suffocated by a system.

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texx1 said:

The competition of gateway is important for the people working in those gateways. The economic pie for China as a whole might be growing, but the benefit of the pie might not have been shared equally by workers in their respective gateways.

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texx1 said:

Yes the concept is much than just cost. But cost is a component. Also Chinese system despite its inadequacy has created many successful stories. For example Alibaba

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Brumby said:

Taking advantage of corruption is not a sound business model. Sooner or later chickens will come home to roost. The problem is there is a price for the country to be had and the bill might be shocking.

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texx1 said:

I agree, but I used that as an example to illustrate when profit is concerned, a good legal framework can be both a blessing as well as a curse. Taking advantage of corruption is not a sound business model, but the fact is GSK made a net profit on it.

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Brumby said:

The end doesn't justify the means.

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Brumby said:

Yes despite the inadequacy. Imagine what the potential is without the inadequacy.

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Brumby said:

Conceptually it also mean that the benefit to the gateway is also growing.

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