Kelly Lee 5A (22)
Carrie Leung 5A (23)
Report of China Trip
1. Introduction
Date: 18 June, 2012
Itinerary: Shenzhen  Human Naval Museum (海戰博物館)  Weiyuan Fort  Lunch  Long
Chang Toy Factory  Hong Kong
Group members: Kelly Lee 5A (22), Carrie Leung 5A (23)
2. Observations

Expansion of Firm
Long Chang Toy Factory as a toy-producing corporation
expanded its business to education sector, ‘Bos Education’ (博
思教育) which belongs to lateral expansion. Long Chang
Limited utilizes the robots for educational uses in order to
diversify products and markets. It can stabilize the income of
the firm and extend the goodwill brand names to Bos
Education, hence saving advertising costs.
Kelly Lee 5A (22)
Carrie Leung 5A (23)
The firm also owns ‘Kid Galaxy’ which is an exporter and toy
manufacturer from Hong Kong. It belongs to horizontal
expansion. Both firms produce and retail toys. It is able to help
the firm to increase its market share, control the market supply
and hence enlarge the market power. Then it can influence the
market price of toys.
 Corporate social responsibility
The firm fulfills corporate social responsibility in educating the students
technology and science. For example, there is a showroom of showing their
products and robots. Students can even get involve in playing the robots and
learning the technology. It can help to build up the firm’s goodwill and hence
attracting more customers.

Division of Labour
I
In the Long Chang Toy Factory, specialization is used to increase the productivity. Specialization means a
worker or region concentrates on producing a good or a part of the good. Complex Specialization is used in
this Long Chang Toy Factory. In this factory, workers are divided into groups. Each group specializes in a
particular part sub process or production stage of a good. For example, some groups are responsible for
making products, some of them are responsible for packing and some of them are responsible for testing
products.
 Advantage of Specialization
1. Increase productivity
(a) With division of labour, workers have different talent. Each worker is assigned to do the job that
he can do best.
(B) Practice make perfect. Workers repeat the same job and become skilful.
(c) It saves training time. Each worker is trained one skill required in his own production stage.
Kelly Lee 5A (22)
Carrie Leung 5A (23)
(d) It saves time in moving around operations. Each worker works in one particular stage and does
not need to move to other operations.
(e) Mechanization becomes feasible because it is easier to design machines to do simple tasks.
2. Making full use of producer or capital goods
(a) With division of labour, each worker concentrates on one job only. Each producer good (e.g.
machine and tool) will be used more fully and continuously, especially under the shift work system.
(b) With division of labour, each worker only works with one producer good required in his job.
Fewer producer goods are needed in production. It saves production costs.
3. Raising living standard
Division of labour increase productivity and hence results in mass production. People can conduct
exchange to increase variety of good and services they can consume. Living standard will rise.
3. Reflection
 Through out the trip, visit the Long Chang Toy Factory is one of the key spots. By visiting, we
can apply our economic concept in reality. Usually, we only have the concept but we don’t
know how to apply in real situation which appear in the exam questions. Though this visits, we
can have a deeper understanding of the topics, like expansion of Firm, corporate social
responsibility and division of labour.
4. Division of labour
Kelly: Introduction, Observations (Expansion, Corporate social responsibility), Photo-taking
Carrie: Observations (Division of labour), Reflection, Photo-taking