INTL BUSINESS GEB 3373
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This 2 page Class Notes was uploaded by Noemy Auer II on Friday September 18, 2015. The Class Notes belongs to GEB 3373 at University of Florida taught by David A. Jr Denslow in Fall. Since its upload, it has received 30 views. For similar materials see /class/206915/geb-3373-university-of-florida in General Business at University of Florida.
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Date Created: 09/18/15
GEB 3373 International Business Dr Denslow CHINA Chairman MaoVery personalistic leadership style made decisions based on quotwhimsquot o GLF Great Leap Forward 195 81960 plan to have more factories built industrialize etc failure 0 CR Cultural Revolution 19661976 farming agriculture reform also failure 0 Mao dies in 1976 After Mao s death the Chinese government became an RDA Regionally Decentralized Autocracy 0 New rules 1978 o CCP Chinese Communist Party Supreme 0 Goal 100 economic growth 0 Collective rule institutional rather than personalistic more stable They held experimental reforms in different geographical regions before it fully spread throughout the country Successful experiments allowed the new leaders to 0 Find out what works and what doesn t work and o Overcome opposition Slogan of reforms o quotCrossing a river by touching the stonesquot Regional Experiments 1 Land Reform 19781984 0 Household Responsibility System the Chinese people were given the right to use the land to grow crops in order to meet a certain production quota and they could keep anything above set quota o Resulted in an increase in output of 60 o Started by local officials once successful embraced by Dongcentral leadership who then promoted the local officials to higher ranks 2 SEZ s Special Economic Zones 0 Allowed encouraged FDI foreign direct investment vs foreign portfolio investment owning foreign shares 0 Joint ventures partnering with foreign firm 0 Mergers and acquisitions 95 of FDI o Greenfield investments starting a firm in foreign territory 0 Increased technology increased exports o CCP approved 4 SEZ s in 1979 14 in 1984 3 Bankruptcy Reform 0 Applied to state owned enterprises SOE s inefficient management 0 Protected the workers 4 TownVillage Enterprises 0 Agglomeration economies keep industries close together 0 Specialization Specific areas would specialize in producing a certain thing the local government regulates the training infrastructure etc For example I Townships o Datong 13 ofworlds socks Shenghou 40 ofneckties Ziastou 70 ofbuttons Songxiu 350 million umbrellas year Puynam 60 of China s cashmere sweaters 5 Privatization o Privatize the SOE s made them more efficient 0 Issue shares Ioint ventures with foreign firms Management buyouts Sales to outsiders I Different methods tested by different local municipalities to find what worked best 000 Because of these reforms and China s rapid growth by 2011 0 China exported 30 more than US 0 China spent 40 m than US on capital 0 US has 15 trillion government budget deficit 0 US ranked 51 out of 142 countries in math and science education China ranked 31 Changes in military spending projected 20102015 0 Germany 21 0 US 14 0 UK 11 0 China 142 0 Expected to surpass US in 2025 However the IMF International Monetary Fund predicts that China will pass the US in GDP in 2016 based on PPP purchasing power parity how much you can buy in China where stuff is cheaper rather than market exchange rates
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