CHINA & USA
_GROUP 7_
Hoang Thi Ngoc Huyen
M987Z239
Hyacintha FAUSTINO
M997Z
Krissapon Apinyaupatum
M997Z241
Antun Paradzik
M997Z223
Nguyen Thi Thu Trang
M997Z210
Le Van
M997Z246
I. INTRODUCTION
II. OVERVIEW : CHINA VS USA
III. CHINESE CULTURAL VALUES AND TRADITION
IV. THE COMPETITIVE ADVANTAGE OF BOTH NATIONS: CHINA & USA
V. THE BIG MAC INDEX
VI. THE FLYING GEES PARADIGM
VII. CONCLUSION
INTRODUCTION
In CHINA:
 As a leaders stick to a topdown strategy that favors
state-owned
enterprises,
fears grow that the nation’s
economic miracle is in
jeopardy
 In the steel markets of
Taiyuan,
above,
and
elsewhere
in
Shanxi
Province,
state
firms
dominate.
In AMERICA:
 The experts have run
through many of their
prescriptions for an ailing
economy.
 They worry that some one
cures may cause new
problems
 Like inflation or deflation
 Uncertainty reigns on Wall
Street
CHINA VS. USA
CHINA:




Most potent economy in the world
All strategic sectors controlled by government
Huge amount of money invested in infrastructure
Government- run industry, in which very important role
have diplomatically lobbying in other countries
 Key of the China success is find good source of energy
( gas, coal, renewable, or in the future fusion)
CHINA VS. USA
USA:
 Big debt: military, tax cuts
 Inflation
 Overrated stock market
 Downward spiral:
LESS WORK + LOWER WAGES = LESS SPENDING POWER
= LESS INVESTMENT & HIRING
 Real estate market in problems
CHINA VS. USA
 USA big dependence on Chinese production
 China leading foreign owner of U.S. treasury
securities
 Possible end of the U.S. neoliberal capitalism
CHINESE CULTURAL
VALUES & TRADITION
•
•
•
•
Trust/Mistrust : Family / Cousin’s Business
Face: Physiognomy
Hierarchy : Respect by order
Reciprocity : Give & Get for long
relationship
• Harmony : Unity is the best.
http://www.china-window.com/china_business/china_business_tips/chinese-cultural-values-a.shtml
CHINESE CULTURAL VALUES & TRADITION
http://www.legacee.com/Culture/CultureOverview.html
CHINESE CULTURAL VALUES & TRADITION
http://www.legacee.com/Culture/CultureOverview.html
CHINA'S COMPETITIVE ADVANTAGE
 China had opened itself to foreign investment, trade, and the
market-oriented ideas that would stimulate domestic
productivity and build its global competitiveness
 Dense interfirm relations, and foreign direct investment (FDI)
in full growth
 China’s always had a major industrial policy.
 At the local level, governments set up 8,000 state-owned
investment companies in 2009 alone to channel government
dollars into business and industrial ventures.
CHINA'S COMPETITIVE ADVANTAGE
 Cheap labor force
 State control of energy supplies
 Efficient production system
 Unfair trade practices:
• Such as export subsidies
• Undervaluation of the currency
• Counterfeiting and piracy
 Lax environmental and health and safety at work
AMERICA'S COMPETITIVE ADVANTAGE
 America has high-skilled workforce in company, industry, and
national economy.
 The USD is seen as a reliable currency
 American brand have been recognized throughout the world
as symbols of quality and value
 American cultures is exported worldwide
 Military advantage
 Weakened by the crisis, the Capitalism is questioned
THE BIG MAC INDEX
 An informal way of measuring the PPP ( Purchasing
Power Parity )between currencies
 Invented by the news paper « The Economist »
 A semi humorous , but still reliable illustration
 Big Mac is produced in 120 countries
 The Big Mac index is built around the notion that
each $ should buy the same amount in all countries
THE FLYING GEESES PATTERN1/2
A model of industrialization division of labor in east
asia
The flying geese model intends to explain the
process of industrialization of late comer economies
from the following three aspects:
I
Agricultural economy, raw material, few importations
domestic demand for manufactured products can not
be met by imports from developed countries.
Developing countries develops little trade with its
neighbouring countries which have similar economic
structures.
THE FLYING GEESES PATTERN1/2
II Manufacturing phase of consumer goods, domestic
production tends gradually to replace imports,
whichisgrowing (capital goods), because they are needed for
local industry consumption.
III
Local producers address the markets of neighboring
countries
Imports of raw materials from less developed countries are
increasing. There is therefore an expansion of trade among
developing countries.
The country concerned undertakes the production of
capital goods that will, in turn, exported in a fourth time.
CONCLUSION
China’s Government empowers and
pumped up money to private
company to reienceforce their
economy, upgrade to be industrial
base and increase employment rate.
FED (US Central Bank) inject the
money to attack the deflation
problem, and relieved the US’s Bank
of troubled investment to have more
room to make the new loan.