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F42-COM Factors (Financial market dev (e.g. HK (Good banking system,…
F42-COM Factors
Financial market dev
Efficient and trustworthy financial and banking
Allocate resources to most productive use
Resources to entrepreneurs and investments
Capital available to investment
e.g. HK
Good banking system
Monitoring authority
Corruption free env
Infrastructure
Efficient transport and communications
Integrate different markets
Rapid flow of information --> efficiency
e.g. Bay Area
Seamless connection between HK and mainland
Facilitate econ integration
Exchange of technologies
Innovation
Business sophistication
Efficiency in the production of goods and services
Large business network
Quality of firms' operation and strategies
Companies in one sector are interconnected
--> greater opportunities
Institution
Non-interventionist
Market freedom
Judicial system
Fair business env
Corruption free
Do business on level playing field
Legislation
Laws facilitating econ growth
Slow progress --> slow econ dev
e.g. filibustering
Pass policies for economy slowly
Cannot react promptly to changes in economy
Technology
Higher efficiency and productivity
Innovation
Absorb advanced technologies
Innovation
Cutting-edge products
High value-added activities
Requires env conducive to innovative activity
Macroeconomic env
React to economic crisis
Cost-efficiency
Fiscal condition
Market size
Larger size --> more attractive to investment
Higher growth potential
e.g. HK's role as super connector
Economic activities between China and the world
MNCs set up base in HK
Job opportunities
Offshore RMB market
Labour market efficiency
Workers allocated to most effective use
Rapid flow of labour
Incentives to attract talents
Market demand
Propel local economy
Depends on population size and purchasing power
Export trade?
Business cost
Labour cost, land cost
Facilitates production
e.g. China
Low land cost
Industries move to China
Foreign investment
Health
Higher productivity
Poor health
Business costs
Lower productivity
Lower morale
Education
Basic
Higher efficiency
Adaptability to production techniques
Higher
Knowledge-based economy
Perform complex tasks
Rapid adaptation
High-skilled jobs
Upward social mobility
e.g. STEM education
Skills for innovation
Provide high-skilled labour in the future
Social stability
Conflicts affect business env
e.g. Occupy Central
Affect tourism
Lower int'l image of HK as a city of freedom
Affect operation of companies in CBD
Economic
Political
Social
Technological