Globalization:
My Personal Experience
P f Eden
Prof.
Ed
Yu
Y
Head
Department of Economics & Finance
City University of Hong Kong
Globalization
† Definition:
„
Cultural: a standardization of cultural expressions around the
world … propelled by the efficiency or appeal of wireless
communications, electronic commerce, popular culture, and
-Encyclopedia Britannica Online. 4 Sept. 2007
international travel.
„
Economic: … the increasing integration of economies around
the world, particularly through trade and financial flows. …
also the movement of people (labor) and knowledge
g
(technology) across international borders.
-IMF April 12, 2000 (revised January 2002)
„
Economic: The process by which the whole world becomes a
single market. This means that goods and services, capital,
and labor are traded on a worldwide basis.
-Oxford
O o d Dictionary
o a y of
o Economics
o o
2007
00
International Interdependence
† Countries are
i
interdependent
d
d
„
oil exporting vs oil importing
„
OPEC (Organization of
Petroleum Exporting Countries)
† Industries are
p
interdependent
International Interdependence
† Increasing interdependence in financial markets
Æ Opportunities for international investment
„ Before mid-1960s (control)
„ Now, de-regulation, financial centers (24-hour
market)
k t)
† Dramatic growth in currency market
„
„
„
„
1986,
1998
1998,
2001,
2004
2004,
US$20 billion per day
US$1.5
US$1 5 trillion per day
US$1.2 trillion per day
US$1.9
US$1 9 trillion per day
Globalization from
the Economic Perspective:
„ International Trade
† Goods and Services
„ International Investment
† Foreign Direct Investment
† International Financial Investment
„ International Tourism
† Temporary movement of consumers from
one country
y to another
† Transforms non-traded goods into
exportable goods
International Trade
Yi Wu (義烏)?
Shanghai
Hangzhou
Shaoxing
義烏 Yi Wu
W
Wenzhou
Ningbo
Yi Wu (義烏)
† The world’s largest supermarket
„ Annual Total Turnover:
† 1982, RMB 0.00392 billion
† 1992, RMB 1.025 billion
† 2002, RMB 22.998 billion
† 2004,
2004 RMB 26
26.6
6 billion
† 2006, RMB 31.5 billion
† First six months of 2007
2007, RMB 18.2
18 2
billion
Yi Wu (義烏)
義烏
annual total turnover
35
30
billion
25
20
15
10
5
0
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
year
Yi Wu (義烏)
義烏
† A small place, but a global trade center
„
Exports:
†
†
†
†
„
1995,
2000,,
2005,
2006,
US$ 16.31 million
US$
$ 106.23 million
US$1.09 billion
US$1.34 billion
Trade Volume (Import & Export):
† 2002
2002, US$454.24
US$454 24 million
illi
† 2006, US$1.46 billion
Silk Road: Now and Then
† Refers to a series of routes across China,
Western Asia and Europe from about 3000
years ago through 500 years ago.
† All routes began in the former Chinese capital,
capital
Chang’an (Xian), then diverged into northern
and southern routes that went around Central
Asian Taklamakan
kl
k
Desert, and
d ended
d d on the
h
eastern shores of the Mediterranean.
† Other than silk, many other commodities were
also traded.
Armenia
V i
Venice
I t b l
Istanbul
Turkmenistan
Uzbekistan
K
Kyrgyzstan
t
U
Urumqi
i
Mongolia
T k
Turkey
Turpan
Iran
Dunhuang
China
Xi On
Xinjiang - Urumqi (新彊 - 烏魯木齊)
† Xinjiang foreign trade in rapid growth:
„
July 2007:
monthly total value of foreign trade=US$1.2 billion
a 76.4% increase compared with July 2006
„
Jan-Jul 2007:
total value of foreign trade=US$ 5.91 billion (exports:
US$4.97 billion; imports: US$ 0.94 billion)
a 25.9% increase compared with the same period last
year
Xinjiang - Urumqi (新彊 - 烏魯木齊)
† Top exports: Shoes, electromechanical
products,, textile products,
p
p
, ketchup
p and
furniture
† Among all
cities,
U
Urumqi
i City
Ci
had obvious
advantages
-AFP Andrew Ross
Xinjiang - Urumqi (新彊 - 烏魯木齊)
† Urumqi was approved as the open city to foreign
country since June in 1992.
† According to Urumqi Trade Development Bureau,
Bureau
Urumqi City had 133 foreign trade partners in 2005.
„ The top three trade partners:
† Kazakhstan (total trade volume: USD 900 million, 59%
of total trade of Urumqi City)
† America
† Kyrgyzstan
† The 16th Urumqi Trade Fair, opened on Sept. 1, 2007
„ More than a dozen foreign countries participate in the
fair, including Russia, Turkey, Uzbekistan, US,
Tajikistan, Kyrgyzstan, Mongolia, Kazakhstan and
j
Azerbaijan.
Thessaloniki, Greece
International Tourism
Environmental Regulations for a
S
Small
ll Open
O
Economy
E
with
ith Tourism
T
i
Chi-Chur Chao*, Bharat R. Hazari+,
Jean-Pierre Laffargue#, and Eden S. H. Yu+
*Chinese
+
University of Hong Kong, City University of
#
Hong Kong, PSE-CNRS and CEPREMAP, Paris, France
International Tourism
† Key
y Feature
„ Transform non-traded goods and
services into tradable via consumer
mobility.
International Tourism
† Tourism Receipts in Hong Kong
US billion $
% of GDP
1995
7.8
4.44
2000
5.9
6.09
2005
13 54
13.54
7 65
7.65
† International Tourism Receipts 2006
Rank
R
k
1
2
3
4
5
Country
C
t
United States
Spain
France
Italy
China
US billi
billion $
85.4
51.1
46.3
38.1
33.9
Source: World Tourism Organization (UNWTO).
Rank
R
k
6
7
8
9
10
Country
C
t
UK
Germany
Australia
Turkey
Austria
US billi
billion $
33.5
32.8
17.8
16.9
16.7
Thank you
Q&A