MARK 407 Asian Business Environment

1
MARK 407Asian Business Environment

• Tim Beal6 March 2008

2
Today

• Course outline
• Course overview
• Readings from last week

3
Next week and beyond

• Me
• Japan
• Chinese Economic Area
• Korea
• India
• You
• Groups and country preferences
• Individual research project topics
• Following week
• Group and individual reports

4
Student rep

• Natasha Pollard (Tash) is the Honours Marketing
  Programme student representative for 2008. If
  required she can be reached atPhone
  0274732857Email n_pollard__at_hotmail.com

5
Course outline

• Course outline

6
The Course - focus

• Focus on main economies in Asia
• Japan Asias major economy
• (or is it? PPP versus market exchange rates)
• A diversion for clarification
• PPP purchasing power parity
• Why is it used?
• Example

7
Market rates versus PPP

• Comparison between PPP and exchange rate GDP
• Whats the effect on size of economy?
• CIA world factbook ranking by GDP PPP
• gtgtgtComparative debates

8
Comparative debates

• China versus India
• Recurring theme, more on this later
• New versus Old
• China (and India) versus Japan
• gtgtAsian drivers debate
• Kaplinsky Mesnser Asian Drivers
• Taggart Murphy New Asian Drivers, Japan, Korea
  and the Lessons of History

9
Countries of focus

• Japan
• If overtaken by China, still special why?
• First Asian country to modernise, technology,
  rich
• Greater China China Economic area
• China, Hong Kong, Macau, Taiwan)
• Whats special about China?
• Root of culture in East Asia, large, fast
  growing,

10
China continued

• China (like India) also has large and important
  diaspora
• Divided
• PRC, SARsTaiwan
• Source of tension, but important economic
  consequences

11
South Korea

• Important middle power
• Smaller than Japan or China but still large by
  European standards
• Let alone NZ
• Literally in between
• Wealth, population, geographic position

12
India

• From East Asia to South Asia
• One important historical linkage. What?
• Buddhism
• How are we going to tackle this?

13
Now the past

• Before looking at the present (and future) lets
  look back
• These countries are important now, and becoming
  more so, but they are reclaiming the past
• Reading Tim Beal China, India and the New Asian
  Ascendancy
• 1 Perspectives on the past, intimations of the
  future
• 2 China and India wresting independence,
  building powerful economies

14
Figs 1-5

• 1 Regional distribution of world GDP, 0-1998
• 2 China and West Europe population 1 2001
• 3 China and West Europe GDP, 1-2001
• 4 China and West Europe pc GDP, 1-2001
• 5 NZ in East Asian context pc GDP, 2004

15
Fig 1 Regional distribution of world GDP, 0-1998
16
China and West Europe

• AsiagtgtgtChina
• West Europe Offshoots gtgtgtWest Europe
• China, West Europe in columns, Y-axis to left
• Relationship (China as of WE) in line, Y-axis
  to right
• 100 line (above ChinagtWE)

17
Fig 2 China and West Europe Population 1-2001
18
Fig 3 China and West Europe GDP, 1-2001
19
Fig 4 China and West Europe pc GDP, 1-2001
20
Resurgence

• The emergence of Asia is not entirely new
• Can also be seem as a resurgence
• Turn now to period before and after 1945 to look
  at that process

21
1945

• An obvious watershed because of the end of World
  War II
• But also symbolic dont be too literal
• Eg for India 1945 1947

22
Europe in Asia before the war

• Lets look at the map and make a table on the
  board
• Colonial power? Date of independence?
• Map of Asia

23
Asia and Trade - the stats

• Asian resurgence not in isolation, but connected,
  primarily through trade
• Trade
• Trade in Services
• Eg tourism, education..
• Merchandise trade goods
• Focus here

24
World Trade Organisation data

• Fig 6 Share of world imports, 1948-2003, Asia
  and NZ
• Fig 7 Share of world exports, 1948-2003, Asia
  and NZ
• Fig 8 China and NZ in world trade, 1948-2003

25
Fig 6 Share of world imports, 1948-2003, Asia
and NZ
26
Fig 7 Share of world exports, 1948-2003, Asia
and NZ
27
Fig 8 China and NZ in world trade, 1948-2003
28
Cascading growth

• Growth has not been even or uniform
• It has cascaded from one country/group to another
• cascading_growth.doc
• Akamatsus Flying Geese
• See Emerging India

29
Growth, change in developing Asia

• Growth amid Change (ADB study)

30
Where the world is now

• Parag Khanna Waving Goodbye to Hegemony
• The BRICs