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GLOBALIZATION IN CHINA

Ashley Anusha a/p Devaraj Fiona Chu Ng Wai Yee Lim Kuok Sing 0907JT88341 0904JH87886 0904JH87816 0901JP86656

1.What is Globalization?
Philip G. Cerny statesGlobalization is defined here as a set of economic and political structures and processes deriving from the changing character of the goods and assets that comprise the base of the international political economy in particular, the increasing structural differentiation of those goods and assets. (para.9)

Why Do We Need Globalization?



Reactive or Defensive Trade barriers Customer demands Globalization of competitors Regulations and restrictions Proactive or aggressive Growth opportunities Economies of scale Incentives Resource assess and cost savings

Positive Impacts of Globalization


Living conditions (measured by broader indicators of well being) have improved significantly virtually all countries Increased understanding of cultures around the world. Access to larger markets

Negative Impacts of Globalization


Tends to focus on short-term gains over longterm benefits. Income gap between high income and low income has grown wider is a matter for concern. Increase destruction of the earths environment.

Internal Tourism Bodies Responsible for policy development?


CTCCDevelop International travel market by promoting China to the world and promoting foreign destinations in China Plan & Coordinate development in tourism development policies supervise implementation and guide regional tourism

CNTA-

2. International Tourism Bodies Responsible for policy development?


UNWTO- Responsible to field of tourism Promotes as a driver for
economic growth, inclusive development, environmental sustainability and tourism policies worldwide

WWF- Stop Illegal Wildlife Trade


PATA-Development of the Asia Pacific travel and tourism industry UNESCO- Set the internationally agreed development goals, underpin all UNESCOs strategies and activities.

WTO
Dealing with Trade rules Trade negotiations, Implementation and Monitoring, Dispute Settlement, Building Trade Capacity China is a member of WTO since 11 December 2001 China has moved to a position as the world's thirdlargest trading nation, up from sixth when it entered the WTO in 2001 Chinas tourism industry will take up 8.6% world market share- worlds top tourism industry 2020

3. How Globalization help to develop tourism sector in China?

Foreign Direct Investment Rising Exports Manufacturing of products & services


Entertainment Facilities:
Beijing Universal Studios, Disneyland Shanghai
Create hospitality jobs Boost income tourism facilities

Business Facilities:
MICE China International Exhibition Center
Business Tourists, Indirect Promotion of China as a tourist destination

Development Of Infrastructure Chinas newly developed bullet train since last year Dec is the worlds fastest bullet train, World Record Breaking speed

in Tourist Arrivals in Tourist Receipts

Development in Technology Direct Fast Booking, web-based travel agency product. HUBS1 Central Reservation Systems (CRS). Direct access to thousands of hotels in China

4. IMPLICATION OF GLOBALIZATION CHINA

Trade Liberalization Free Trade Policy

WHAT Trade Liberalization


Removal or deduction of restriction/ barriers for the free exchange of goods between nation. Example, duties and surcharges, licensing rules, quota and other requirements and the ease of this process often refers to as promoting free trade.

HOW Globalization & Trade Liberalization


Globalization usually driven by a push towards the liberalization of trade. Sachs and Warner (1995) states concluded that open economy has grown 2.5% faster than close economy. (para. 1) By adopting the liberalization policies many developing countries have integrated their economy with the global economy.

CHINA Trade Liberalization


Decisions of state council to rebate the indirect taxes that reduce profitability of exporting supporting rapid growth of China foreign trade. By China entering WTO at December 2001 transform China into a more open emerging market economy. Chinas commitment to liberalize its distribution system is broader than any other WTO member has made. Manufacturing, service sector will increase.

TECHNOLOGICAL ASPECT

Zhongguancun

WHAT- Zhongguancun,Beijing
Chinas Silicon Valley 1st state-level hi-technology industrial development zone. Leader of China's hi-tech industry in the 21st century.

GLOBALIZATION-Zhongguanchun
Existed in 1980s. Chen Chunxian envisioned the tech-hub He came up with the idea for a Silicon Valley in China after he visited the U.S. as part of a government-sponsored trip. Nearby with top chinese IT colleges and universities. Co-op with Silicon Valley California

HOW-Trading liberalization-CHINA
China will participate in the Information Technology Agreement (ITA) eliminating all tariffs on products such as computers, telecommunications equipment, semiconductors, computer equipment and other high technology products.(para.11) China Business News (2012)

International Trades
Lenovo company is founded in Zhongguangcun, Beijing. Now, globally, Lenovo products and companies are around the world. Where else, foreign companies like Google, Intel came into Chinas Zhongguangcun. Fair competition amongst the local IT companies for more creative and innovative ideas for next products

Impacts- Trade liberalization- China


PROs More advanced infrastructures, facilities and products in China through trading hi-tech products from overseas. Combination of both Western Technology and Easterns Technology to produce better products for locals and foreigners. Trading in other sectors lowered down because technology gain more profit to China

CONs Less foreign imports of hi-tech products to China as Chinas did not have high intellectual property rights. Producing unwanted hi-tech products and trade to overseas Lower quality of Technology products trade overseas creates bad image for China

ECONOMIC ASPECT

WHAT Made In China


Recongnizable label due to China developing manufacturing industry MIC- on a wide range of goods from clothings, to electronics

GLOBALIZATION & CHINA


Global financial crisis -products of China US good quality and cheap in price. Made In China advantage - cheap labor to create the products. Due to that, the number of "one dollar shops increase.

ECONOMIC ASPECT- Trade Liberalization MADE IN CHINA


On January 1999, Ministry of Finance announced tariff reductions -1041 commodities -manufacturing sectors such as forestry, textile and toys. After joining WTO in December 2001- increase in impact of China due to the branding of Made In China that played an important role in this process

HOW- CHINA-US
US China trade relationship become significant for past decade. China imports are found nearly in every shelf of US store. The imports goods are inexpensive to feed the US consumers.

WHY - US Treasury Securities link to Trade Liberalization


China trade surplus with US has increase. US Treasury Securities remain the safest investment in the world. Trade surplus is denominated in US dollar easier to keep fund in dollar and avoid losses if were to convert into Yuan. China owns U.S. Treasuries is related to the intentional manipulation of its own currency, the Yuan. China currency manipulation is essential maintain a significant edge in global trade

IMPACT OF Trade Liberalization CHINA


PROS China has become the most profitable potential market for foreign business. Foreign investment grew. China export are produced almost exclusively by foreign capital. Growth of China global economy CONS exploitation of cheap labor Decrease in quality goods Harmful Substances

SOCIAL ASPECT

SOCIAL ENVIRONMENT ISSUE Animal Cruelty Awareness


WHAT? Humans are cruel to animals and inflict physical pain towards animals. Animal cruelty awareness is the part where there is prevention of animal abuse through organizations.- Global Issue

HOW Globalization contributes to Animal cruelty awareness


Trade in animals in worldwide lucrative industry Second largest cross border criminal activity next to drug trafficking -Manufacturing Commercialization of wildlife is a fast way to cause extinction Increase ease of transporting and selling animals is just another way globalization is consequential in the environment

SOCIAL Trade Liberization Implication


Chinas animal husbandry law very little effect. Law says to improve condition not mandatory. No penalty for abusing animals on fur farms in China

Animal Cruelty awareness came about in China -HOW?


Worlds largest fur exporter supplying more than half of garments imported for sale in the United States. Fur trade is large in China Investigators from US went to China and found the horror of animal market in southern China Permitted slave conditions- exploited trade policies

EXAMPLES
Manufacture of clothing, accessories, hats, toys, perfumes, cosmetic products Misleading Labeling of goods to make it more marketable High Demand of products cheap price

IMPACT OF TRADE LIBERIZATION CHINA-SOCIAL


PRO Generate higher income job creation-cheap labor Growth in industry CONS Image from other countries affected Promotes negative social behavior Creates greed for market power Poverty-Less wages & Slavery

Due to BAD IMPACTS of Trade Liberization-Social Perspective WHAT HAS COME ABOUT?

PRO
Which is how PETA came to China (People for the Ethical Treatment of Animals)
WHAT IS PETA? Its a US based company Largest animal rights organization in the world Focuses on 4 main areas in which largest number of animals suffer most intensely namely in factory farms, laboratories, clothing trade and entertainment industry. Work on a variety of issues like animal cruelty and the abuse of backyard dogs.

Positive Impact of Animal Cruelty Awareness in China


Bringing in organizations for control and minimization Non animal testing for China scientist Turtle Relinquishment programme

Conclusion Of Trade Liberalization China at Globalization Perspective

GOOD & BAD

Websites Animal Cruelty Awareness. (n.d). Betrayal of Trust: The Global Trade in Dog and Cat fur. In fereshteh.net. Retrieved from December 5, 2012 from http://fereshteh.net/student/animal_cruelty/Issues/global_fur.htm China National Tourism Administration. (n.d). CNTA in brief. In China National Tourism Administration. Retrieved from December 5, 2012 from http://en.cnta.gov.cn/about/Forms/AboutCnta/CNTAInBrief.shtml Gang, F. (20014). Globalization- Made in China. In YaleGlobal Online. Retrieved December 5, 2012, from http://yaleglobal.yale.edu/content/globalization-custom-made-china Peta. (n.d). PETA Asia takes China by storm. In www.peta.org.Retrieved from December 5, 2012 from http://www.peta.org/b/thepetafiles/archive/2012/06/06/peta-asia-takeschina-by-storm.aspx Peta. (n.d). The Chinese Fur Industry. In www.peta.org.Retrieved from December 5, 2012 from http://www.peta.org/issues/animals-used-forclothing/chinese-fur-industry.aspx

Rui, L. (2012). Small is beautiful in Sino-US economic relations. In China.org.cn. Retrieved from December 5, 2012 from http://www.china.org.cn/opinion/2011-06/02/content_22699502.htm Somalimemo. (n.d). Economic fascism stunts US recovery. In somalimemo.net. Retrieved from December 5, 2012 from http://www.somalimemo.net/index.php/component/content/article/1warar/3475-economic-fascism-stunts-us-recovery Stief, C. (2008). Globalization. In About.com. Retrieved December 5, 2012 from http://geography.about.com/od/globalproblemsandissues/a/globalization.h tm The Levin Institute. (n.d). Trade in Wildlife. In Globalization101. Retrieved December 5, 2012 from http://www.globalization101.org/trade-in-wildlife/ Xinhua News Agency. (2006). Legislation Urged to Curb Animal Abuse. In China.org.cn. Retrieved December 5, 2012 from http://www.china.org.cn/archive/2006-04/06/content_1164734.htm Zhenyu, L. (2012). Made in China : Charming the World. In Nihao-Salam. Retrieved from December 5, 2012 from http://www.nihaosalam.com/article-detail.php?id=MzM3

Journal article Bloom, N., Draca, M., & Van Reenen, J. (2009). Trade induced technical change? The impact of Chinese imports on innovation, diffusion and productivity. Retrieved from www.oecd.org/els/44433444.pdf Lardy, N., & Fellow, S., (n.d). Trade Liberalization and Its Role in Chinese Economic Growth. Retrieved from http://www.imf.org/external/np/apd/seminars/2003/newdelhi/l ardy.pdf Mingtai, F., & Yuxin, Z. (n.d).The Impact of Chinas Trade Liberalization for WTO Accession A Computable General Equilibrium Analysis. Retrieved from http://monash.edu.au/policy/conf/42Fan.pdf Reich, S. (1998). What is Globalization? Retrieved from http://kellogg.nd.edu/publications/workingpapers/WPS/261.pdf