Differentiating Reasoning Essays - Critical Thinking, Advertising

Separating Reasoning Essays - Critical Thinking, Advertising Separating Reasoning CRT/205 April 4, 2014 Chief E. F. Rollins Separating Reasoning Article: Air Pollution The writer utilizes deductive contentions recorded as a hard copy this article by falling back on alarm strategies and patriotism. Alarm strategies is characterized by our course material as, Trying to panic individuals into accomplishing something or tolerating a position (University of Phoenix, 2012). A case of the alarm strategies utilized in this article is the point at which the writer discusses the aftereffects of copying petroleum products. The creator presumes that consuming petroleum products makes the air dangerous to inhale, causes corrosive downpour, and harms our condition (Air Pollution, 2014, para 2.). This end is intended to panic the peruser into tolerating this situation by depicting horrendous consequences of consuming non-renewable energy sources (University of Phoenix, 2012). Patriotism is characterized as, an amazing and wild feeling that can prompt visually impaired support of a countrys arrangements and practices (University of Phoenix, 2012). The writer endeavors to speak to the perusers feeling of nationality by guaranteeing that ecological assurance necessities cause American ventures to be off guard while rivaling remote organizations with less limitations (Air Pollution, 2014, para 7). The writer needs the peruser to acknowledge this case of not submitting to ecological necessities in light of the fact that our organizations would not have the option to rival organizations outside of the United States (Air Pollution, 2014). Article: Advertising The writer of this article utilizes deductive contentions, for example, justifying, apple cleaning, and fame. Defending is characterized as a bogus affection to fulfill our own wants or interests (University of Phoenix, 2012). A case of legitimizing can be found in the end against vender publicizing (Advertising, 2014, para 1). In this end against vender publicizing, the creator expresses that the steady stream of promoting that assaults shoppers consistently misleads or urges them to maintain an unsustainable lifestyle (Advertising, 2014, para 1). This end is the writers endeavor to legitimize why the peruser ought to acknowledge this position yet it is just a justification that solitary serves the writers perspective (University of Phoenix, 2012). Apple cleaning is characterized as antiquated honeyed words (University of Phoenix, 2012). We see this in the creators articulation that watchers can make determinations for themselves about the items utilized by characters on TV and in motion pictures (Advertising, 2014, para 11-12). This suggests the watchers are sufficiently shrewd to see through this promoting and consequently, the sponsors are not to blame if watchers buy an item exclusively on the way that a popular individual is embracing it (University of Phoenix, 2012). At long last, prevalence is characterized as asking somebody to acknowledge a case essentially in light of the fact that all or most or some significant number of individuals trust it (University of Phoenix, 2012). The reason for the end on the side of hot promotions was that sponsors were just giving the pictures that individuals needed to see (Advertising, 2014, para 8-10). This is an endeavor by the writer to convince the peruser to acknowledge this end dependent on the way that it is what is mainstream (University of Phoenix, 2012). REFERENCES Air Pollution. Opposing Viewpoints Online Collection. Detroit: Gale, 2014. Contradicting Perspectives in Context. Web. 23 Feb. 2014. Publicizing. Opposing Viewpoints Online Collection. Detroit: Gale, 2014. Contradicting Perspectives in Context. Web. 23 Feb. 2014. College of Phoenix. (2012). What is basic reasoning, in any case? Recovered from University of Phoenix, CRT205 - Critical Thinking site.

Entrepreneurship Essay Example | Topics and Well Written Essays - 1500 words - 10

Business - Essay Example its from the ranch business ceaselessly; in this way a homestead administrator needs to modify their ranch association time by time to stay up to date with changes in strategies for cultivating, costs inconstancy, and the accessible assets among different variables. This implies for a cultivating business to succeed, an administrator should, along these lines, create center capacities to make sure about the accomplishment of the business. A portion of the principle capacities that ought to be created, for this situation, an espresso cultivating business, incorporate interior, outside, and bolster capacities (BROWN, 2008, p. 53-56). This paper will, thusly; examine the jobs and obligations of these capacities and the noteworthiness of the capacities to the sole merchants and SME’s in the achievement of their organizations. Initially, inside capacities comprise of all important and fundamental business exercises that help establish a framework for a business. They are, hence, required to proceed with the business destinations that are built up by the entrepreneur during a foundation of a business. Inner capacities are additionally expected to proceed with the customary exercises of a business and instances of the interior capacities obtaining of fund, employing of work, buying crude materials, overhead costs, and creation of products. In an espresso cultivating business, obtaining of accounts is significant since it will require high capital toward the beginning up and the running of the ranch exercises. Funds can be gained from speculators, banks, and other budgetary establishments and assets can be directed to start a portion of the starter exercises, for example, buying hardware, for example, preparing plants, structures, and land. When this is done, the homestead will require work; individuals who w ill help develop the land, planting espresso and ensuring the espresso plants are a favorable domain to develop. Furthermore, the business likewise requires a supervisory crew, who will do capacity, for example, controlling the overhead costs, controlling the creation of espresso, and

Nothing beats a wet beaver!

Nothing beats a wet beaver! A-woo-hoo! Since the last entry was such a frickin saga (tm Betsy Hahn 1999) of hardcore text, I thought youd like to look at some pictures of the band too. These were taken at last Saturdays mens water polo game against Iona. I mean, its kind of hard to take pictures at 1 AM while youre marching all over campus. For the sake of brevity, I will limit myself to 12 words in each caption. By the by, the entry title is actually the MIT womens water polo motto, I believe. I hope the mens team doesnt take offense. In the stands! Clockwise: Bill ??, Kim 09, Spam 07, Caroline 08, Ken G, Michael 09, Diana 08, Matt 09. Shortly before Iona scored the game-winning sudden death double overtime point. Curses! I had the brilliant idea to play this, little did I know Mother Nature would actually oblige. The next day, it was 68 F outside. People randomly give us free food! Nobody doesnt like that, I think. Building community through pork barbecue, macaronincheese, potato salad, and black beans. Bye!

For Your Own Good by Alice Miller - 1003 Words

Alice Miller â€Å"I see it as my task to sensitize the general public to the sufferings of early childhood,† Alice Miller (1983) wrote in her book, For Your Own Good, ( p. xv). This one sentence accurately describes Miller’s life’s work. Alice Miller had unparalleled compassion for children and absolutely no tolerance for their maltreatment. She wrote many books and articles on the subject of child rearing and its impact on society. Miller is also known for her outspoken views on religion and its impact on children’s psyches. She used the term â€Å"Poisonous pedagogy† in many of her writings to refer to the toxic forms of child rearing that have been employed as far back as can be remembered. Alice Miller lived in Europe during Adolf Hitler’s†¦show more content†¦They have been met with conflict from some and admiration from others. She left little room for argument and as the New York Times Book Review (2002) pointed out, you were either with her or you were against her (Merkin, p. 13) Another aspect of Miller’s theory is that we are all exposed to trauma as a child and that without a caring adult to empathize with us there is a very real danger of becoming a mass murderer (Merkin, 2002, p.13). While that is the extreme end of the spectrum, there are many degrees of violence that are produced as a result of childhood abuse, according to Miller. If we can depart from the teachings of our parents and our parent’s parents, then we may find an end to the violence that plagues our world. That was Alice Miller’s vision. Through her writings her main goal was to enlighten the population to the plight of children worldwide. She was confident that we could depart from the â€Å"Poisonous pedagogy† of our own upbringing and find a new way to parent with love and encouragement. Alice Miller died at age 87 of a suicide following a diagnosis of late stage pancreatic cancer. Throughout her life she made significant contributions to the field of psychohistory and the study of child maltreatment. While many of her writings have come under attack for their extremist point of view, the truth is that she stood up for what she believed in. MillerShow MoreRelatedGlobal Climate Change Symposium Observations1051 Words   |  4 Pagesthe speaker was Dr. Daphane Miller, MD., family physician, writer and Associate Professor in the department of Family Medicine at the University of California San Francisco. Dr. Daphane Miller is also a family physician. One thing that I believe that is sticking to know first and foremost is that she is a doctor. She sits at her office three days a week and she sees patients all day long and she takes care of them, one of her many prescriptions to her patients are good eating, among other things.Read MoreOn Friday, April 25, 2014, I attended the event Global Climate Change Symposium organized by the1400 Words   |  6 PagesClimate Change Symposium organized by the West Valley College Global Citizen and Suitability Committees from 1:00 to 2:30 PM. In this event, the speaker was Dr. Daphane Miller, MD., family physician, writer, and Associate Professor in the department of Family Medicine at the University of California, San Francisco. Dr. Daphane Miller is also a family physician. One thing that I believe that is striking to know first is that she is a doctor, a writer, and a discoverer that has found a new science namedRead MoreChapter 5 Homework885 Words   |  4 PagesJazzlynn Ben Chapter 5 Problems Dr. Ennis 5.1. 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We could links the two lives and their work together. ForRead More A Comparison of the Dream in Death of a Salesman, Ellis Island, and America and I1328 Words   |  6 PagesThe Dream in Death of a Salesman, Ellis Island, and America and I   Ã‚  Ã‚  Ã‚  Ã‚   The American dream is as varied as the people who populate America. The play The Death of a Salesman by Arthur Miller, the poem Ellis Island by Joseph Bruchac, and the poem America and I by Anzia Yezierska illustrate different perspectives of the American dream. All three authors show some lines of thought on what the freedom inherent in the American dream means. The authors clarify distinct ideas on the meansRead MoreWalt Disney : A World Without His Magic, Whimsy, And Optimism1641 Words   |  7 PagesElias Disney, an Irish-Canadian, and his mother, is Flora Call Disney. She descent from German-American descent. Walt was one of five children, four boys and a girl. Walt Disney was married to Lillian Disney and was the father to Diane Disney Miller, and Sharon Mae Disney. He lived Kansas city,where he was started making little cartoon pictures and made it as a â€Å"cartoon drawer.† Walt and Harman made a deal with an local Kansas City theater to play his cartoons there .They called it the LaughRead MoreWalter Elias Disney s Life1693 Words   |  7 Pagestime, Disney began experimenting with a camera, doing hand drawn cell animation, and decided to open his own animation business. From the ad company, he recruited Fred Harman as his first employee. Walt and Fred made a deal with a local Kansas City theatre to screen their cartoons, which they had given the name Laugh-O-Grams. The cartoons were loved by the people and Disney acquired his own studio, which he named after his cartoons. Laugh-O-Gram hired a large amount of employees, including FredRead MoreThe Drama Of The Gifted Child1948 Words   |  8 PagesAlice Miller wrote the book The Drama of the Gifted Child, which talks about a child who wanted nothing more than to please his parents. He felt like the best thing to do is please others and be perfect in everything he set out to do. Some children do what their parents say, some don’t follow the rules at all, but there is a child who did every single thing his parents told him to do. An ideal child that parents would adore but while he did everything they wanted he lost something. Himself; is whatRead MoreSymbolic References in Everyday Use by Alice Walker1848 Words   |  8 PagesSymbolism is the taking of an obje ct big or small, and giving it something to stand for. It could be your everyday math symbols for addition, subtraction, division, and etc. Although math symbols are perfect examples of symbolism, there’s also objects that can be more than what they are. For example animals, Lions are known to be symbolized as strength, aggression, and assertiveness. Birds like doves are symbolized as love and peace. Colors are also held symbolically, for instance the color blackRead More1257, Life as a Villein Essay889 Words   |  4 PagesKing. They have tournaments at the Manor that we are allowed to watch. Lord Richards Steward and Bailiff run the farming on the estate. Thats where we peasants come in. We are allowed to live on the Manor and farm some land for our own food and in return we have work for the Lord whenever we are told to. We villeins are little more than slaves, we need permission to marry or move village and have to pay the Lord for almost everything, thats where the Bailiff comes in

World War I And The Great Depression - 1598 Words

Before World War I, the United States was in a period of isolationism, and a determination to stay out of European wars and affairs, while trying to maintain its status as one of the world’s biggest superpowers, militarily and economically (â€Å"United States Before†). America was just exiting the Gilded Age, which was an important time of growth and prosperity. Despite this, the American economy was in a small recession when entering the war, which was reversed by a 44 month period of growth caused by production for the war (NBER). This 44 month period helped the economy expand, and furthered the strength of the country. It also furthered the confidence of American businesses and the government which contributed to the attitude that caused overconfidence and helped to spread the Great Depression. When World War I ended in 1918, it had many unforeseen economic consequences. Despite a stable economy when entering the war, the political consequences of World War I helped to spread and exacerbate the Great Depression. After the war, Germany had millions of dollars in reparations to the winning countries. France and Great Britain had massive damage to their countries and cities, all of which required rebuilding. The United States recognized a need and was more than willing to lend to these countries. When the Great Depression hit in 1929, U.S. banks started to fail, and began to call in these foreign loans and refused to lend more. Results of the Great Depression include a declineShow MoreRelatedWorld War I And The Great Depression1131 Words   |  5 Pageswas booming and the people were relishing in the modern society. When the Great Depression hit Americans continued to hold an isolationist stance as they focused on the deteriorating situation going on at home. 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World War I and the great depression triggered a need to create a central bank. â€Å"The 1914-18 war had great consequences of major significance for the banks, affecting in particular their relationship with the Government and the outbreak of war brought unprecedented financial problems to the government, and the Department of Finance, operating with small inexperienced in the large-scale financial activities connected with the war† (Watts, G., Rymes, T., 1993, pRead MoreWorld War I, The Great Depression And Its Aftermath1004 Words   |  5 Pages1945, United States history evolved and differed from period to period. It began with times of slavery and reconstruction, and proceeded with transformation in the Gilded Age. This then led to the Progressive Era, World War I, the Great Depression and its aftermath, as well as World War II. As one can see, history seems to fluctuate from times of peace and order to times of chaos and turmoil. 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Study of Brand and Brand Valuation Methods Free Essays

string(40) " emphasise the importance of the brand\." Introduction A company’s brand image (Goodwill) or brand valuation plays a vital role in the modern business world. This has lead to the valuation of brands, which was quite unheard of in previous decades. In this dissertation I attempt to analyse and understand various brand valuation methods, its merits and the way it’s represented using the different accounting policies and / or methods across the various accounting bodies worldwide. We will write a custom essay sample on Study of Brand and Brand Valuation Methods or any similar topic only for you Order Now The main objective of the dissertation is to understand various valuation model that will abide the various accounting bodies as well as satisfy the individual country’s rules and regulations. The roots of branding is evident in ancient civilisations and some study shows even before Birth of Christ and this is evident from archaeological excavations in which we can find certain symbols or markings in pottery, coins and Arts. It was not until the 12th century trademarks were used to identify each manufacturer’s goods as well as measure their quality. In other words in the early times, brand names were not only used to distinguish between different goods which are similar but also distinguish their quality (Sudharshan, 1995). The value of a brand is indicated by how much money a company pays in order to acquire them. These may vary from brand to brand, however companies are prepared to pay a good price for top notch brands. For an example Procter and Gamble paid 2.6 times Richardson-Vicks’ book value, Nabisco sold for 3.2 times book value, and General Foods sold for 3.5 times book value (Business Week, 1995). This report will discuss the existing brand valuation methodologies and it’s significance in a company’s decision and require a sound marketing and financial view. Generally the marketing and financial approaches in this matter differ largely and today’s competitive market environment has made these two professions to work together in this regard. Brands are widely viewed as performance measures and important element decision making process. Many large corporate companies’ demands royalties from subsidiaries for using their brand name and this has made authorities such as tax and financial regulators to standardise the process of brand valuation. Brand valuation will be an important criterion to evaluate corporate performances in this century. Investors increasingly demand for greater disclosure of brand valuation and it’s the financial manager’s duty to ensure that such information’s are adequately provided with the investors. This has brought to adopt a standard brand valuation technique / method in company accounts. Organisation Background This dissertation is not about a specific organisation brand valuation. It aims to cover many blue chip organisations accounting treatments in Brand Valuing. Mainly this study will involve understanding the accounting treatment of accounting bodies and accounting standards etc. The dominant model of branding in the twentieth century was the manufacturer as mega-advertiser. McKinsey (1994) believes that the traditional model of branding is no longer the only way, nor can it dominate in the future. According to Murphy (1990), brand is a complex phenomenon: â€Å"not only it is the actual product, but it is also the unique property of a specific owner and has been developed over time so as to embrace a set of values and attributes – both tangible and intangible – which meaningfully and appropriately differentiate products which are otherwise very similar.† These changes have prompted today’s business world to put a value into branding and thereby has the crea ted the concept of Brand Equity or Goodwill of a company. Rationale for the Chosen Topic In realisation of various valuation methods and different accounting bodies treat the Brand values in the Balance Sheet differently at large. This dissertation will answer â€Å"How companies calculate and disclose brand value in financial statements†. Weather researcher will able to identify and develop a proper Brand Valuation formula in this dissertation? Statement of the Problem in Valuing Brands Since the late 1980’s, it has become essential that a company recognises a brand as an intangible assent and as a result include them in their financial statements. The main reason for this was a wave of acquisitions that took place in that era that helped exposes the hidden value in highly-branded companies. Examples include, Nestle buying Rowntree, Danone purchasing Nabisco’s European business and Grand Metropolitan buying Pillsbury. However, accounting bodies throughout the world differ over how brand valuation should be done. The professional bodies have appeared uncertain as how to resolve the issue of brand valuation. It happens because of the lack of understanding and guidance over accounting treatment of brands. Much of the uncertainty associated with brands is regarding the relationship with goodwill and other intangible assets. There is real confusion about the distinction between brands and other assets such as goodwill or trademark. This difficulty leads to further problems when deciding how to measure and report them in financial statements. Research Questions In order to compile a report on Brand Valuation Methods I intent to find answers to the following research questions: What constitute Brand and Brand Equity What are the problems in valuing a Brand What are the available Brand Valuation methods How does USA, UK and Indian Chartered Accounting Bodies value Brand What is an acceptable and harmonized Brand Valuation model Objectives of the Dissertation To understand the significance of Brands and how they have developed from time to time. To understand the Brand Equity Concept Different Valuation Methods in Valuing a Brand. To understand the Marketing and Finance perspectives of brand equity and how it will be presented and integrated, and their interrelationships in an Organisation. To analyse 4 financial accounts of large Blue Chip companies and their treatment as Intangible assets in the Accounts Literature Review What Is A Brand? â€Å"If this business were to be split up, I would be glad to take the brands, trademarks and goodwill and you could have all the bricks and mortar – and I would fare better than you† (John Stuart, Former Chairman of Quaker Oats Ltd) This statement of John Stuart emphasise the importance of the brand. You read "Study of Brand and Brand Valuation Methods" in category "Essay examples" In other words a â€Å"name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition† is categorised as a Brand. Furthermore, a Brand also helps to create awareness, reputation, prominence, and more in the marketplace. What is Goodwill? Goodwill in financial statements arises when a company is purchased for more than the fair value of the identifiable assets of the company. The difference between the purchase price and the sum of the fair value of the net assets is by definition the value of the â€Å"goodwill† of the purchased company. The acquiring company must recognize goodwill as an asset in its financial statements and present it as a separate line item on the balance sheet, according to the current purchase accounting method. In this sense, goodwill serves as the balancing sum that allows one firm to provide accounting information regarding its purchase of another firm for a price substantially different from its book value. Goodwill can be negative, arising where the net assets at the date of acquisition, fairly valued, exceed the cost of acquisition. Negative goodwill is recognized as a liability. For example, a software company may have net assets (consisting primarily of miscellaneous equipment, an d assuming no debt) valued at $1 million, but the company’s overall value (including brand, customers, intellectual capital) is valued at $10 million. Anybody buying that company would book $10 million in total assets acquired, comprising $1 million physical assets, and $9 million in goodwill. Goodwill has no predetermined value prior to the acquisition; its magnitude depends on the two other variables by definition. What is Brand Equity? The goal of the brand leadership point is to create strong brands – but what is a strong brandIn Managing Brand Equity, brand equity is defined as the brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or service. These assets can be grouped into four dimensions: brand awareness, perceived quality, brand associations, and brand loyalty. These four dimensions guide brand development management and measurement. Brands are a key element, along with other intangibles such as intellectual property and staff skills and commitment. Often 40-75% of a company’s assets may be attributed to brands [Goodchild and Callow, 2001] Despite the above facts the Chartered Institute of Marketing 2003 state â€Å"Brands are emotive and you can’t measure emotion.† â€Å"The financial value of a brand is not interesting on its own; it’s what we can do to grow it that makes it interesting. The process of benchmarking a brand’s value involves understanding where that brand value comes from and supporting those areas to grow the strength of the brand.† [Shailendra Kumar, Future Brand, 2001] The Development of Brand Valuation: The technical knowledge of Chartered Accountants and accounting firms in valuing business valuations and applying discount rate, depreciation rates, appropriate tax rates etc was not developed in valuing a company Brand by accounting profession until recent time. This was mainly due to the fact that financial professionals lack commercial experience and to fully appreciate and understand how brands operate from the perspective of consumers and markets and retail distribution in a competitive context. This was an essential part in valuing a brand and without understanding the real valuation process any future predictions of the same will be no use because this valuation process will be carried out only by assumptions. And as a direct consequences provide no genuine benefit to business or investors alike. Despite the above fact, brand valuation methodologies have been developed and adopted in valuing brands recently and are now viewed as important business tool. Only now, brand valuation and intangible asset valuation are given it’s importance after being taken seriously mostly due to USA financial reporting standards requiring acquired intangibles which can be separately identified and have separate economic lives to be valued and put on the balance sheet. International accounting standards will require UK (and other countries adopting IAS’s) public companies to do the same and this will be effective from January’2005. Additionally these intangibles require annual impairment testing to make sure their values have not been diminished. If they diminish in value then a write off to the profit and loss account is required. For example under new accounting standards AOL Time warner has written off $54 billion dollars. (AOL 2007 Annual Accounts) In the UK and Australia, accounting rules require companies to write off the goodwill obtained through acquisitions. The rules have often resulted in sizeable losses for acquiring companies in the year of acquisition. This happened because under these rules, the money paid in an acquisition over and above the fair value of identifiable assets is viewed as money lost without a compensating asset being acquired. However, this principle drew protests from a lot of UK companies. Those companies protested by capitalizing their acquired brands and arguing that they were not goodwill but identifiable assets. Some of the companies have gone further by capitalizing not only â€Å"acquired† brands but also the â€Å"home-grown† brands such as Cadbury. Brand Valuation Methods There are three methods for charging price premium on a branded product a)Cost Method – On this method, the current value for historical expenses when creating a brand. b)Market Method – This approach looks into the transactions of brand. c)Income Method – In this approach, two methods are used to calculate the premium value: Discounted Cash Flow model Excess Earnings method. Research Methodology, Data Collection Methods and Data Analysis In order to compile this dissertation, a Case Study/Desk Research based methodology has been used. Various company financial accounts have been verified with particular attent Primary data will consist information interviews, questionnaires etc. An in depth interview with a Brand Consultant is planned and interview will be conducted with Financial and Marketing Consultants of an Organisation. Secondary data will include data collection from annual reports, books, journals, articles and websites which give us an insight of how the companies have evolved from time to time and how did the company manage to build the brand and what strategies have they used in valuing a brand. Both quantitative and qualitative data will be using in this research. Case studies the case studies will consist of a detailed study about various companies Brand Valuation Methods and the company from its beginning stage to the stage which it has attained now from the Desk Research. Analysis: The various valuation methods will be explore and critically analysed in order to understand the advantages and disadvantages of each methods. Further how a Brand valued during Economy Boom had valuation done in Economy Recession period especially weather the Brand has been devalued to reflect the true picture. Apart from it this section also emphasizes on how the company attained this stage and about the competitive advantage and core competencies have bought them to this level. These analyses are undertaken with the help of the secondary and primary data. Desk Research Desk Research is the name given to finding published information which can include company Annual Reports, Financial details, Experts reports, Research Reports, Market statistics or comments and information about the issues in a marketplace. (Wikipedia 15.03.2011).With the widespread adoption of the Internet, use of published information (desk research) to scope a market is becoming increasingly common as a means of carrying out Market Researches. Traditionally using desk research to find information about potential customers, competitors and intermediaries in markets has been a time intensive process, often carried out on an on-going basis to cope with the slow delivery of paper-based material. With the Internet, vast seas of information have opened up electronically making desk research a practical tool for research, particularly in dynamic markets where data is quickly out of date. In this report the internet will play a vital part especially the Google search engine and the various sources of electronic journals since this published report stand as a verification source to the researchers Primary Research and various in-depth knowledge about the subject were explored. This is one of the major disadvantages of Desktop Research. Too much of information can easily distract and deviate the Research Objectives ETHICAL CONSIDERATIONS: Research ethics relates to questions about how we formulate and clarify our research topic, the data collection and processing method and how we report our research findings in a moral and responsible way. The appropriateness of a researcher’s behaviour in relation to the rights of those who become subject of their work or are affected by their work is referred to as research ethics (Saunders et al, 2007). Although all research methods have specific ethical issues associated with them, qualitative research is likely to have a greater range of ethical concerns compared to quantitative research. Most of the data that will be used in conducting this research will be quantitative data. The quantitative information’s are readily and publicly available without any form of moral or ethical intrusion. Time Scale TIMETABLE OF WORK Week 1 – 2 Discussion with Supervisor about the direction and obtaining guidance Week 3 – 5 : Desk Top Research on Brand Valuation Models Week 6 – 8 Literature review on Branding and Study on IAS – Brand / Goodwill Week 9 – 11: Collecting Financial Data of 4 Blue Chip Company and its treatment on Balance sheet. Week 12 – 14: Organising interview with Financial controller of Large blue company’s view on Brand Valuation method. Week 15 – 16: Analyse the Collection of data and interview notes. Week 17 – 18 : Develop a Brand Value Model Week 19 – 21 : Finalising the Report Week 22 : Binding and Submission of Report References Aaker, D.A. (1997), â€Å"Should you take your brand to where the action is?†, Harvard Business Review, . Aaker, D.A. (1996a), â€Å"Measuring brand equity across products and markets†, California Management Review, Vol. 38 No.3, pp.102-20. Aaker David A (1991), ‘Managing Brand Equity’, p.15, NY Free Press Allen, D. (1990), â€Å"Creating value, the financial management of brands†, in â€Å"Report of the committee on cost, profitability, for marketing† (Eds), Accounting Review, Supplement, Vol. 47 pp.575-615. Blackston, M. (1995), â€Å"The qualitative dimension of brand equity†, Journal of Advertising Research, pp.RC2. Bhattacharyya, D. K., (2003) Research Methodology, Anurag Jain for Excel Books, India. Cravens, K.S., Guilding, C. (1999), â€Å"Strategic brand valuation: a cross-functional perspective†, Business Horizons, Vol. 42 No.4, . Gill, H. (1995), â€Å"Broad definition on brand and asset†, Management Accounting Journal, . Kevin Lane Keller – Strategic Brand Management (2006), 2nd Edition Kapferer, J.N. (1992), Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity, The Free Press, New York, NY., Manuchehr Shahrokhi, Professor of Finance, Department of Finance, Craig School of Business, California State University-Fresno, California, USA Mukherjee, D N (Nov –Dec, 1998), ‘Managing Intangible Assets’, Business World, p.772. Philip Kotler and Gary Armstrong: Principles of Marketing, Tenth Edition, Prentice Hall Zeff and Dharan, 1997 Readings and Notes on Financial Accounting Websites Brand Management – www.brand.com (April 2011) Brand Finance Plc – www.brandfinance.com (April 2011) Wikipedia – www.wikipedia.com (April 2011) Bibliography John Murphy, 1990, â€Å"Brand Valuation† Simon, C.J., Sullivan, M.W. (1993), â€Å"The measurement and determinants of brand equity: a financial approach†, How to cite Study of Brand and Brand Valuation Methods, Essay examples

The Real an Example by

The Real Introduction What is real? The question on what is real in this world is nothing new. In fact, it has been the perennial question that many thinkers have been trying to address. Such question has provoked the emergence of a variety of thoughts. Some are almost the same. Some served as a development of the previous thoughts of reality. Some even are clashing points in addressing the question. This just shows how the question has been very problematic to human reason. Need essay sample on "The Real" topic? We will write a custom essay sample specifically for you Proceed Our Customers Very Often Tell EssayLab specialists: Who wants to write essay for me? Professional writers suggest: Your Academic Success Is Our Goal But what really is real? When do we say that something or an object is real? This paper aims to present some common notions about reality. At the end of the paper, we hope to establish a statement on what really is real, that is, if theres something real in the world. Apollonianism and Dionysianism Friedrich Nietzsche, a German philosopher, introduces an interesting way to understand what is real through his concepts of the Dionysian and the Apollonian. This was actually based on Greek mythology account where Apollo is the god of lightness and poetry and Dionysus is the god of wine and drunkenness (Porter, 2000). The Apollonian relates to art, beauty, education, and rationality or reason. The Dionysian, on the other hand, is more of passion, hysteria, intoxication, nature, and music. Seemingly, these two are mutually exclusive to each other. Each one seems to be different from the other. But Nietzsche argues that both of them are intimately related to each other. They work together to give beings a sense of reality. To quote Nietzsche, "Wherever the Dionysian prevailed, the Apollonian was checked and destroyed ... wherever the first Dionysian onslaught was successfully withstood, the authority and majesty of the Delphic god Apollo exhibited itself as more rigid and menacing than ever (Cowan, 1962). To say therefore that they are mutually exclusive is in a sense that both of them are relating to different areas of man. Hence, what is real for Nietzsche is a balance between the Apollonian and the Dionysian, the passion and the intellect. Life is a totality that involves an interaction and/or a struggle of these two elements. Neither of the two contains or overpowers the other nor one be under the other. It can be said therefore that reality is composed of these. The Symbolisms of Ernst Cassirer Another German philosopher, Ernst Cassirer, developed his understanding of the real through symbolisms. He wrote the An Essay of Man some few years after the publication of The Philosophy of Symbolic Forms. This set the context from which Cassiser thought of reality. In the An essay on man, Cassiser made a conjecture of human thoughts about man as he calls history a crisis of knowledge of himself (Cassiser, 1944). "Man has, as it were, discovered a new method of adapting himself to his environment. Between the receptor system and the effector system, which are to be found in all animal species, we find in man a third link which we may describe as the symbolic system. This new acquisition transforms the whole of human life. As compared with the other animals man lives not merely in a broader reality; he lives, so to speak, in a new dimension of reality." (An Essay on Man, 1944) He (Cassiser) argues that what we have are not actually real insight of our human nature despite the advanced discovery and development of facts about ourselves. Facts are but information and they do necessarily mean knowledge. Such case brings us into question how man actually deals with facts, how he establishes, relate, and communicate them. For Cassiser, man uses symbols to relate himself to the physical world. Symbols such as the language he uses allow him make thoughts, relationship, nd judgment of the world. It is this kind of system that provokes him to develop science. Hence, science is not actually concerned of the truth about the world and all that is in it. It is only about the truth of the symbols and of the language that man uses to convey what is in it. He further claimed in this essay that science is but a means to establish of our thoughts. Our sense of morality makes our action in order and at pace. And art gives us order with how things appear to us. These simply mean that man is in conversation with oneself in understanding reality by creating symbols and orders. What is real then is something he makes symbols of. Man does so because it is or cannot be fully grasped. It is only through symbols can have understanding of reality. Berkeleys Empircism Close to Cassisers understanding of reality as based on symbols in George Berkeleys famous empiricism. For him, the objects we perceive are actually only ideas of the mind. This view seems to suggest that anything we know is but a mental construct. We cannot know what an object is. We only know of an object as we perceive it through our mind. What we know then is not the being of the object but our perception to it. This idea of perception is further developed in terms of experience. We perceive something on how we experience it. Beyond that is already non-sense or beyond our mind. Reality then is enclosed on our perception. It is based on our minds ability to perceive what the object as we experience it. What we know is not the essence or the profound whatness of the object. We only of it as how we perceive it through our experiences with the object. Materialism Another understanding of what is real is the notion of materialism. This thought is pre-dominant in the Ancient Greek period. Thales, Anaxagoras, Parmenides, Epicurus, and even Aristotle prefigure later materialists (Flanagan, 1991). It holds that the only thing which exists as real is matter. We, as observing subjects, can only know of matters, of material objects. All things are composed of matter and everything that occurs in the world is a result of material interactions. To understand the world then is basically to understand these interactions of matters. There is no more than material phenomena. Other dimensions are beyond our understanding or grasp of reality. We dont have to go through the profound conjectures of the supernatural and the spiritual. We simply have to see the world as it is through its material composition, interactions, and relationship. This is reality. Lincoln Barnett on Einstein`s Relativity While Einstein provides with highly scientific understanding of every real occurrence in the world, Lincoln Barnett argues that what is real cannot just deduced into empirical data. In his words, he said that (quantum physics) ". demolishes two pillars of the old science, causality and determinism. For by dealing in terms of statistics and probabilities it abandons all ideas that nature exhibits an inexorable sequence of cause and effect. And by its admission of margins of uncertainty it yields up the ancient hope that science, given the present state and velocity of every material body in the universe, can forecast the history of the universe for all time. One by-product of this surrender is a new argument for the existence of free will. For if physical events are indeterminate and the future unpredictable, then perhaps"(Barnett, 1948). This is in contrast to the extreme empiricist. What is real cannot just be understood in terms of numbers, measurements, and the like. There is still causality and determinism that governs beings and occurrences in the world. The Dimensions in Flatland Reality can also be understood in terms of dimensions. Edwin Abbott presents this in his mathematical-philosophical piece Flatland. It is about a story about encounters of beings of different dimensions. It suggests that there is different or even greater dimension for every being. Our sense of what is real varies then from one dimension to another, from one context to another. Cosmicomics of Italo Calvino Another narrative from which can understand reality is Cosmicomics. This is a book of stories of the universe. It starts with a claim or of fact in developing the plot. What we have from Calvino is basically one of the general themes understanding reality. Reality can be best understood in terms of our human nature. Human nature is described and actually experienced as limited. From this, what we conceive as real is basically limited. We cannot perfectly grasp the real, yet we do have an experience of it. Conclusion There really are a lot of ways to which the real appears it self to human person. Nietzsche sees it as balance between the Apollonian and the Dionysian. Cassisser understands it through symbolisms that the mind crafts. Empiricists like Berkeley also see it in terms of perception and mental activity. Materialists see it as no more than matter. Barnett insists on causality and determinism, not just mathematics and matter. Abbott and Calvino see it in terms of mans capacity in the context of dimensions and reason. These and more are statements seek to understand reality. The common denomination amongst these is that this puts man in the center. What is real therefore is that which the man, in his truest potential, understands and experiences. Bibliography Cowan, Marianne (1962). Philosophy in the Tragic Age of the Greeks. Washington, D.C: Regnery Publishing, Inc., Cassiser, Ernst (1944). An Essay on Man. CT: Yale University Press. Barnett, Lincoln (1948). The Universe and Dr. Einstein. NY: William Sloane Associates. Abbott, Edwin (1994). Flatland. Canada: HarperCollins. Calvino, Italo (1976). Cosmicomics. NY: Harvest Books. Dancy, Jonathan (1987). Berkeley: An Introduction. Oxford: Basil Blackwell. Flanagan, Owen (1991). The Science of the Mind. Cambridge Massachusetts: MIT Press.

Lesson Plan Essays

Lesson Plan Essays Lesson Plan Essay Lesson Plan Essay University of Technology, Jamaica Theory Lesson Plan School: Subject: Technical Drawing Name of Student Teacher: Damion Sterling and Anje Walker Supervising Teacher: Mr. Richard Samuels Date: March 14, 2013 Time: 10:00am Grade/Level: 10 No. of Students: 20 Duration of Lesson: 30 Minutes Unit Title: Surface Developments Topic of Lesson: Surfaced developments of right geometric solid. Teaching Strategy: Discussion, Explanation, Questioning. General Objectives: Students should: 1. 0 be knowledgeable of the different types of geometric solids. 2. understand the different methods and procedure when designing surface development. 3. 0 be able to construct various types of section right geometric solids. Specific Objectives: At the end of the lesson students should be able to: 1. 1 identify the different geometric solids 1. 2 explain the various geometric solids 1. 3 define what is surface development 2. 1 list the different methods and procedure when drawing surface developments. 3. 1 construct a prism with a base of 40mm and height 75mm given the steps and procedures from the handouts. 3. 2 construct a cone with a diameter of 70mm and height 85mm given the steps and procedures from the handouts. Instructional Materials/Teaching Aids/Equipment: 1. Dry eraser, markers 2. Handouts (showing the steps and procedure when producing surface development. ) 3. Reference Materials: Required: Technical Drawing for G. C. E C. S. E. C, J. N Green Previous Knowledge: Introduction: The class will begin with the teacher stating the definition of surface developments and the various types of geometric solids. The teacher will then facilitate a discussion about the surface developments (based on the information on the handout) and then students will be placed into groups of 5 assigning each group a type of geometric solid used when constructing a surface development. The teacher will also try to demonstrate at least two of the geometric solids in constructing a surface development. Development of Lesson| Key Points| Development or Instructional Content| Activities| Time (MIN)| | | Teacher| learners| | * Definition| A development gives the shape and plane area of the material which enables the cost to be estimated. Development should be such as to allow the minimum waste of material when the shape is cut out. | The teacher will asked student what is development. Teacher listen and then give a formal definition. | Students will give their definition. Students will the definition in their note book. | Five (5)| Application: Summary Concluding Activities Reflections: a) Were my objectives met? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ b) How did I perform as the teacher? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ c) How did the students perform? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ d) How did I manage the class? Â  ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ e) What will I do in the next lesson based on answers I have given to a-d? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

Measuring and Understanding Wood Volumes

Measuring and Understanding Wood Volumes Measuring wood is part science, part art; you use many different units, you face many potential problems. The below  quote from  Converting Factors for Southern Pine Products, Williams and Hopkins, USDA, 1968 illustrates how confusing measuring and converting wood volumes can be. Measuring and estimating wood volume is not for the faint of heart. Theoretically, one cubic foot (of wood volume) contains 12 board feet. For average values 6 should be used, though 10 is a conventional figure for approximations. When the conversion applies to trees, ratios of 3 to 8 should be applied. When marketing your timber you must either know how to measure forest products or get someone to do it for you. At best you can be very confused when talking to a wood buyer; at worst you can lose a significant portion of the value of your wood. To make the situation even more problematic, some buyers use this ignorance of volumes to trick  the seller. They have every opportunity to do so and a few use this to their financial advantage. Knowing tree measuring units is very complicated and even foresters have a hard time when talking volumes. Three hundred dollar per thousand logs using Doyle log rule is not the same as three hundred dollars per thousand logs using Scribner log rule. Most mensurationists and foresters would agree that there is an advantage to weighing wood and weight is the measurement of choice. In the real world, however, it is impractical to totally convert to weight. A history of wrestling with the problem  of measuring logs  to determine how much usable product might be manufactured from them created numerous measuring units. These units are self-perpetuating because of many factors including foreign trade, standing timber volume, accepted taxing units, regional custom, buying and selling advantages. The Pulpwood Measurement The standard measurement unit for wood used for paper and fuel is the  cord. This is a stack of wood 4 ft. x 4 ft. x 8 ft. containing approximately 128 cubic feet of bark,  wood  and air space. Air space can actually be as high as 40 percent but usually averages 25 percent. You can see where weight can be advantageous here. Pulpwood purchases by weight are very common and weight per cord varies widely with species and geography. A hardwood pulpwood cord generally weighs between 5,400 pounds and 6,075 pounds. A pine pulpwood cord weighs between 4,700 pounds and 5,550 pounds. You really need to determine your local average weight by species when measuring cordwood. Purchasing mills or men who harvest pulpwood can give you wood weights for your area. The U.S. Forest Service or your  State Forester  also has a wealth of information on regional average weights. Pulpwood bought in the form of chips are  separate  issue and for another discussion. The Sawtimber Measurement A round log, generally, must be made into square or rectangular pieces to be able to determine wood volume and value. Three systems, or  log rules  and scales, have been developed to do just this. They are called the  Doyle rule, Scribner rule, and International rule. They were developed to estimate board foot mill tally, usually quoted as thousand board feet or MBF. Our problem when using these log rules or scales is that they will give you three different volumes for the same pile of logs. Measuring average sized logs - Doyle, Scribner, and International rules - will give volumes that may vary as much as 50%. This overrun is greatest using Doyle and the least using International. Buyers like to purchase using Doyle log rule while sellers like to sell using Scribner or International. There will always be a difference in volumes estimated from scaler to scaler. They get into trouble when decreasing  actual number  of measurements and start estimating; they measure at inappropriate points on the log, miss estimate roundness, and dont deduct for  defect. Accurate scaling of trees and logs requires skill and experience. The Conversion Factor Mensurationists cringe at the word conversion factor. They correctly feel that conversion from one unit of measure to another unit of measure of wood is too imprecise to depend on. Their job is to be precise. But you have to have some way to estimate volumes and be able to cross over to differing units. You now have an idea of how complicated this volume issue can become. To add a conversion factor to volumes may distort actual volumes even more. Related Links Approximate Conversions of the Most Common Units of Wood Measure

Bank Data Center (Security) Assignment Example | Topics and Well Written Essays - 750 words

Bank Data Center (Security) - Assignment Example A bank data center should be constructed to withstand all physical threats such as terrorism, natural disasters, and corporate espionage. The bank’s data center will be located approximately 20 miles from the bank premises and about 100 feet from the transport network system such as roads.   It is only the chief information officer that is allowed to enter the room. The key security features that I will include in my design are: Appropriate location- I will locate the data center in 20 miles from the banks head officer and feet from the highway. The location should be void of power plants, earthquake fault line. There should be no indication of a data center location. Ensure redundant facilities- there should be a continuous supply electricity, data, and voice. The power lines should be underground. The power is leveraged according to the critical importance of the facility.

Causes and Effects of Workplace Romances Essay Example | Topics and Well Written Essays - 750 words

Causes and Effects of Workplace Romances - Essay Example However, office romances have scores of negative implications at the workplace. First, office romances lead to sexual harassment and discrimination. At times, the employers discriminate other employees, who have a negative perception about office romances. Secondly, romances at the office may lead to favoritism. This is where the employers and managers favor the partners in romantic relationships while neglecting other employees. In many instances, the demands of some people are prioritized, rather than prioritizing demands of all the employees. Thirdly, romances at the office lead to distraction. The workers involved in a romantic relationship at the office have minute focus and concentration on their job. Apparently, they concentrate on propagating their romantic relations, rather than facing the ostensible task. This may lead to dismal performance, as the job is not a priority in such places. Fourthly, romances at the workplace may have an effect on the morale of other workers. Fo r example, envy from other employees may affect the working relations at the workplace. In conclusion, romances at the office are prevalent. Many people are involved due to various causative factors. Family life, environment, and personal interests initiate romances at the office. However, a number of effects can be cited. This includes unprofessional conduct, lowered productivity due to distraction and envy among workers. Although romances at the office can enhance working relations between two people, the negative effects are dire.

Movement of Goods and Freedom of Establishment Policies

Movement of Goods and Freedom of Establishment Policies INTRODUCTION In an examination of the various freedoms that are protected by the European Convention (EC), there are two that have provoked at different times praise and criticism, champions and conquerors. This paper will analyse that the roadmap that has been followed by the European Court of Justice[1] while interpreting EC Article 28[2] and EC A43[3]. Before splitting the discussion between free movement of goods and establishment, it is important to lay the foundation by an overview of the federalism debate that is natural to the EC and to Europe in general. The federalism question concerns the division of jurisdiction, power, and authority, between the central body (in this case the EC) and the individual states that are part of the central body. As the EC has developed, various autonomies have diminished. The ECJ is acknowledged as supreme, and Woods[4] notes that the court has expanded the Treaty into areas that were not envisaged originally, for example in Commission v Council[5]. The purpose of this paper then is to analyse the relationship between establishing a common market and respecting the autonomy and policies of individual states in the context of movement of goods and freedom of establishment. LEGISLATION? Craig[6] raises and interesting point with regards to the litigation on these points. In an effort to get true harmony, the simple solution would have been to issue Commission legislation which would have compelled the states to harmonise their laws. Craig blames the lack of speed in the Community for this failure, a situation which raises the question of the effectiveness of the courts as an adjudicator in this battle. While the ECJ do have jurisdiction, the decisions which will be examined presently have fluctuated as different times bring different concerns. The case-by-case approach is one that should surely be addressed by a legislative rather than a judicial body. Regardless of the lines that the courts have developed, there is surely a strong argument that they were not the right body for this job. It is important to understand what the individuals would be interested in gaining from the relationship. It is fair to say that the goals enumerated in the EC Treaty indicate that the Commission would want the maximum control in order to establish a common market, free of barriers. For the state, it cannot be expected that they will retain full autonomy; that would have been a sacrifice made when signing the treaty. The ideal situation though would be sufficient autonomy to be able to regulate so as to protect the interests of their constituency. WPJ Wils[7] summed this up in his article as â€Å"partial integration† which was described by him as the â€Å"pragmatic approach reconciling the desire for integration with the desire for government intervention†. The best alternative would be a clear and concise set of rules from the ECJ which would enable them to know for certain what they are and are not permitted to do; though this would be a poor substitute for the previous scenario. FREE MOVEMENT OF GOODS The EC Treaty is based in a large part around the development of a concept of a common market. A crucial aspect of this is the free movement of goods, with the apex being a market where there are no barriers and goods are sold in exactly the same conditions and situations in states a, b, and c. On the other hand, the states argue that to further the individual causes of their state, the national government must have the power to regulate, at least to a certain degree, the movement of goods. This section will deal first with Article 28 which sets out the boundaries of the intervention; it will then proceed to deal with Article 30 which addresses the interests of the member states. Intervention of the federal government. Article 28 states that: Quantative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States. By itself this Article poses more questions than it answers; as such the interpretation of the ECJ is crucial. The attitude of the ECJ has been inconsistent when drawing the federalist line, although on certain points they have remained consistently pro central governance. The limited consistencies In Geddo v Ente Nazionale Risi[8] the ECJ took a broad view as to the nature of a quantative restriction, including â€Å"measures which amount to a total or partial restraint† of trade. Since Geddo[9], this has not been questioned, and it remains a firm foundation against the influence of national governance. Likewise, it has never been seriously doubted that the second part of Article 28 addressed measures that had equivalent results (MEQRs) and that national intervention could be struck down if the court deemed them to be an MEQR. The only question has been what constitutes an MEQR and this was largely resolved by Directive 70/50 which in Article 2 outlined the possible legislation that might constitute an MEQR. Discriminatory measures: national intervention rejected. On one point, it can be stated that the ECJ has awarded an overwhelming victory to the central government. This is where the restriction has a discriminatory element to it; for example in Commission v Italy[10] imported cars were compelled to go through a rigorous registration procedure. This was struck down as being a discriminatory restraint of trade. Likewise the court has struck down attempts by a state to promote domestic goods or efforts at price fixing. Indeed this analysis of the strict application to discrimination is included for three purposes only. First, to emphasise the first victory against state intervention. Second because of Commission v Ireland[11] where the court were content to ignore the prima facie pleadings of Ireland and examine the substantive result of their self interest promotions. Craig[12] points out that this is the theme which the ECJ have followed. The third reason is the indication that, not content with giving the central government a points decision, the ECJ have attempted to land a knockout punch. In Openbaar Ministere v Van Tiggele[13] the ECJ said that if a non-discriminatory attempt to fix prices affected even a single product adversely, the law would breach Article 28. The effect of this case is to throw down the gauntlet to states and make the dedication to an open market even more convincing. There is one way for the state to save a measure; by utilising Article 30. This provides that prohibitions can be saved on the grounds of public morality, public policy, public security, health and life, protection of national treasures, and protection of industrial and commercial property. On the face of this article, it seems to belay the earlier statement of victory for the common market. States have found though that utilising the article has major difficulties. Firstly, the courts have declared that the state has the burden of proof (Openbaar[14]). Secondly, as a general principle the list is exhaustive and cannot be added to over time Non-discriminatory measures In reality, it is hardly surprising that the ECJ has reacted strongly against discriminatory measures; the real battle ground has been measures that are applicable to both domestic and foreign goods. While A28 makes no mention of any requirement of discrimination, the Dassonville case obiter noted in paragraph 5 that there should be no need for discrimination in order to be caught by A28. Far from being simple, this field has been where the battle has been most fiercely fought. Cassis de Dijon In Rewe-Zentrale AG v Bundesmonopolverwaltung fur Branntwein[15] Germany invoked a rule that liqueurs were required to have a certain alcoholic content (regardless of nationality). The ECJ developed the Dassonville obiter to apply A28 to national rules that do not discriminate. Fundamentally, the ECJ summed up the approach in paragraph 14(4) by stating the principle of mutual recognition. Once a good is lawfully marketed in state x, it should be lawful to market it in any state in the bloc. This is a huge leap from Dassonville, a leap which on its face renders a national power helpless in the face of potential consequences. Craig notes[16] that in one step the ECJ places the states â€Å"on the defensive†. It can even be stated, and this paper contends, that this does not reflect the extreme state of affairs. An analogy can be drawn with company law in the United States. With no federal control, the states engaged in a race to attract companies to their shores. Delaware prevailed by offering such laws as provide minimum governance and convenient laws. The result has been that the companies have flocked to Delaware. The result of Cassis is that were one state to create a lenient set of laws, any product that passes muster should be accepted in every other member state. This ‘Cassis control’ leaves states not on the defensive, rather defenceless. Is there no limit to the ‘Cassis control’? This bleak state of affairs is not though one of total disaster. Cassis applies only so far as the ECJ rules that the boundary extends. The crucial term is what â€Å"affects the free movement of goods†? Weatherill and Beaumont[17] emphasised the potential for domination by listing a number of hypothetical situations where irrelevant regulations could be viewed as having a marginal effect on trade. The path the court has taken has been to draw a distinction between dual-burden rules where a product has to satisfy the rules of both state a and b, and equal-burden rules which apply to all goods after they have entered the country and so would not have been applied to the goods before. Cassis clearly governs the former; the crucial question is whether it also applies to the latter, for if it does then the national legislatures may as well take a white flag to the next European summit for their battle will be truly lost. The difficulty is that the court has been ambivalent on the issue with the court in Obel[18] stating that the cases were outside A28, while in Cinetheque SA v Federation Natioanle des Cinemas Francais[19] the court ruled that such a regulation could be within A28. The court it seems has resolved the matter in Criminal Proceedings against Keck and Mithouard[20]. The ECJ followed the initial article by E White[21], who contended that under the application of the article and to retain needed autonomy for the national legislatures, all equal-burden regulations should be outside the ambit of A28. On the face of it, this appears to be a boost for the states. Indeed, this would appear to grant back to the states the freedom and autonomy to regulate in this area, so long as the regulation applies to the characteristics of the goods and is not a regulation of the type that the goods would have had to satisfy in their original state. This though is not the complete story. The first point is that the decision in Keck[22] received a great deal of criticism, from scholars, practitioners and judges alike. While this doesn’t affect the decision, it has led to uncertainty in applying Keck[23]. The result has been that a new question has been raised as to what the courts meant when permitting regulation as to sale arrangements. A typical example comes from Societe d’Importation Edouard Leclerc-Siplec v TFI Publicite SA[24] where advertising was seen as a method of sales promotion and so outside the article. Meanwhile, in Vereinigte Familiapress Zeitungsverlags- und Vertreibs GmbH v Heinrich Bauer Verlag[25] the court held that because there was an effect on the product, it was within the ambit of A28. The opening section considered the range of scenarios from the perspective of the state, from ideal to least desirable. It is clear that the current jurisprudence provides the tae with neither the autonomy that it needs to protect the interests of the state, nor the certainty which would be needed in order to determine what the state may and may not regulate. Conclusion In conclusion what can be said about the line drawn by the courts? There is no doubt that the courts have used Dassonville as a launching pad for an assault on the autonomy of the member states. The only beacons of light for the state are the Keck authority, which has already been weakened by Gourmet and by academic criticism, and the policy exemptions which as has been discussed above will be interpreted strictly by the courts. The overwhelming conclusion must be that the line has been drawn in favour of the common market. FREEDOM OF ESTABLISHMENT The second element of the EC Treaty is the section concerning the freedom of establishment pursuant to Article 43. This goes hand in hand with freedom of movement, with the distinction that it applies to the right of individuals to maintain a permanent or settled place of business. Once again, the dispute at issue here is the battle between policies and a common market. It is conceivable that individual states may have concerns about allowing free establishment. Issues such as promotion of domestic small businesses and potential concerns about lack of qualifications are all issues which states may wish to regulate. This section will determine how the ECJ has reconciled these rights with the goal of a common market. In many regards there are parallels with free movement of goods and A28, as the crucial battle lines have been drawn over measures and regulations that are non-discriminatory. However, as before, the starting point must be those regulations that discriminate against new arrivals. Discriminatory tactics: any point at all? Unlike free movement of goods, the answer to this question is implicit within A43. The second paragraph clearly and explicitly states that an individual has the right of establishment â€Å"under the conditions laid down†. This was confirmed by the General Programme[26] which detailed the requirement that restrictive laws be removed. The point therefore is clear; the state may not discriminate against individuals entering the state for the purpose of to establish themselves as a company or in self-employment. Non-discriminatory measures? On a first reading of the article, the implication seems to be that non-discriminatory measures will pass muster. Indeed, the second paragraph states that the right must be acknowledged â€Å"under the conditions laid down for its own nationals†. Given the strict approach that the courts have taken in other cases though, it is worth examining whether they have held true to this definition or have developed it, much as they did with Dassonville in the area of free movement of goods. The early authorities appeared to bode well for the national authorities; in Commission v Belgium[27] the Advocate General stated that there was no need to analyse the question of proportionality because the law was non-discriminatory. A close analysis of this decision is not needed to iterate the importance of it. As long as a state could convince the ECJ that their law applied to everyone, they would still be able to control the establishment within their country. While they would be restricted, they would at least have a wide range of options open to them, and could exercise these options while retaining their autonomy and moulding them based on the needs of their constituency. The fight however, soon began to turn, at least with regards to the initial intervention of the ECJ. In Ordre des Avocats v Klopp[28] the court struck down a French law which applied to nationals and non-nationals alike. This could be excused, as the French law prevented the lawyer from holding a second office within the Community, which provided another ground to strike the law down. Nonetheless, the decision would have been troubling for the defenders of states rights and policies. The volte face was confirmed in Gullung v Conseil de l’Ordre des Avocats[29] when the ECJ ruled that a non-discriminatory law could be struck down if not sufficiently objective. Just as the Belgium case was significant for the states, so this was for the common market. Regardless of the overall result following a determining of objectivity and state policy, the decision meant that the court would investigate the reasons for the regulation. This by itself was a strike against the states autonomy and ability to self-govern. The hits just keep on coming for state’s rights. In the next section, there will be a discussion on the defences that a state can raise, indeed they are similar to those discussed for free movement of goods. Before that though, the ECJ has provided one last marker to further encroach on the states right to regulate. In Van Binsbergen v Bestuur van de Bedrijfsverenigning voor de Metaalnijverheif[30] the court ruled that upon finding a non-discriminatory restriction to fall within A43/59 (the test was originally used in the context of free movement of services but has been extended to establishment) the state will have to show that it can be objectively justified in pursuance of a public interest. On the one hand this is a positive step for the states as the ECJ is recognising their right to regulate under certain circumstances. The difficulty is that not only is an objective standard required, a standard that will judge the state not merely on what is best for that state, but also that the ECJ was prepared in Van Binsbergen[31] to hold that the measure was not sufficiently tailored to the particular aim of the regulation. For a state attempting to hold on to autonomy, this is arguably the worst possible result, to have the ECJ making recommendations about internal legislative functions. The other complication with this proportionality test arises from the complications for a state in assessing the likelihood of prevailing at the ECJ. Even on the question of what constitutes proportionality, the case law has mushroomed into a determination of the various factors that need to be taken into account. In Criminal Proceedings against Webb[32] the court made a list of factors that would be taken into account, including whether or not a similar test existed in the individuals home state. The re-claiming of territory lost As with free movement of goods, there are exceptions which the states can attempt to fit their regulations into. Once again, the enumeration of these in the Treaty (Articles 46 and 56) is both a blessing and a curse. On the one hand the court can at worse apply them strictly; they cannot remove the right to a defence from the members. On the other hand, the ECJ have used the enumeration to state that the at least for discriminatory measures, only those enumerated defences may be utilised (Bond van Adverteerders v Netherlands([33]. There is one area that the ECJ has deemed sacrosanct. A55 states that the rules on establishment are null and void when related to â€Å"the exercise of official authority†. In Reyners v Belgium[34] the ECJ held that this had to be related to sovereignty and† majesty† of the States. Unsurprisingly the states have seized on this to try and hit a metaphorical home run by forcing as many measures through this loop-hole. It is possibly because of Luxembourg’s wide ranging approach to the Reynors[35] case that the ECJ drew the narrowest possible interpretation emphasising that simply because a profession exercised some official duties, the entire profession could not be exempt. The official purpose exception may still be invoked but it will be an exception rather than the rule. In passing it should also be noted that the states do have some rights reserved to the. Under A43 there is express mention of the non-appliance of the article to citizens of that nation. Although the ECJ have wavered on this point, in Ministere Public v Auer[36] the ECJ held that the ‘foreign’ qualification was crucial. Thus there is nothing to prevent state a denying rights to their own citizens that to any other states citizen would be in breach of the article. This is likely to be a pyrrhic victory given that few states will have any desire to hinder their own citizens. Last chance saloon The final chance for the national authorities to claim some of the territory in this battle is with the ability to derogate that is contained in A46(1). The texts, in particular Barnard and Craig, set out the individual case law for each of the exceptions. This section simply focuses on the general approach in an effort to ascertain how helpful the derogation powers are to the national authorities. The first benefit that the states have is that it is not merely the ECJ who have commented on the derogations. Directive 64/221 Article 2 sets out the guidelines that must be followed. While the states may have hoped for more sympathy from the Commission than they received from the ECJ, they will have been disappointed. The articles merely set out a number of restrictions, including the point that the states cannot use it merely to further their own economic agendas. Indeed, the situation for the States is so unappealing that Craig emphasises (at788) that there is â€Å"little scope for manoeuvre†¦by the Member States†. Possibly the most illustrative case in this area is Van Duyn v Home Office[37] where the UK convinced the ECJ that they should be allowed to derogate in the case of an individual who was entering to work for the Church of Scientology. The ECJ ruled that it was irrelevant that the practice of this religion was not universally condemned. While this might encourage states, they would have been concerned by a later part of the judgement where the court emphasised that had she merely been a member the derogation would not have been permitted. In many ways this was typical of the ECJ’s approach to these case; advancing the cause of the States one step and with the same movement moving them two steps back. Equally illustrative was Bonsignore v Oberstadtdirektor der Stadt Koln[38] where the court took the sizeable stride of stating that past criminal convictions may not be enough to derogate from the articles. It I fair to say that this would frustrate any official in a State who would find that their hands were being tied, not on n integral international level, but on the basic and fundamental needs of national security. CONCLUSION The first conclusion is, and has to be that no definite answer can be given. As long as the federalism debate is answered by the ECJ and not the Commission, the answer will depend on the date of the cases and the environment at that particular time. It can be said though that regarding both free movement of goods and freedom of establishment, any regulations that are deemed to be discriminatory will be prima facie void and that it will be exceedingly difficult to persuade the court of the need for the regulation. Regarding non-discriminatory regulations, the situation also looks bleak for national policies with Cassis in particular emphasising central dominance. There are chinks of light within the Treaty itself and within parts of the ECJ jurisprudence. Overall though the path that the ECJ is taking leads in one direction only, and either they or the Commission will eventually minimise national policies to the point of virtual insignificance. Possibly the most clinical analysis can be found in Usher at 83 when he writes: It can hardly be denied that the Community now exercises considerable substantive powers which the Member States no longer exercise or lay claim to exercise- the exceptional cases being so infrequent as to be regarded as a major crises. BIBLIOGRAPHY BOOKS Barnard C‘The Substantive Law of the EU’ The Four Freedoms 1st Edition Published by Oxford Press Burrows F‘Free Movement in EC Law’ Published by Oxford Press Craig P /De Burca C‘EU Law, Text, Cases, and Materials’ 2nd Edition Published by Oxford Press Levasseur A‘The Law o the EU, A new Constitutional Order’ Published by Carolina Academic Press Rometsch D (edited)‘The EU and member states. Towards institutional fusion?’ Published by European Policy Research Unit Series Usher J‘EC Law and National Law. The Irreversible Transfer?’ Published by George Allen Woods L‘Free Movement of Goods and Services within the EC’ Published by European Business Law Library ARTICLES- GOODS Dirks K‘The Market Citizen: Economic Integration and Citizenship in the European Union’ Columbia University, 2005, http://www.columbia.edu/cu/polisci/pdf-files/dirks.pdf Gormley LW ‘Cassis de Dijon and the Communication from the Commission’ (1981) 6 ELev 454 Pitiyasak S‘Free Movement of Goods Within EU’ (17/12/2005) http://members.tripod.com/asialaw/articles/saravuth.html Steiner J‘Drawing the Line: Uses and Abuses of Article 30 EEC’ (1992) 29 CMLRev 749 Weatherill S‘After Keck: Some Thoughts on how to Clarify the Clarification’ (1996) 33 CML Rev 885 White E‘In Search of the Limits to Article 30 of the EEC Treaty’ (1989) 26 CMLRev 235 Wils WPJ‘The Search for the Rule in Article 30 EEC: Much Ado About Nothing?’ (1993) 18 ELRev. 475 ARTICLES- ESTABLISHMENT Lonbay J‘Picking over the bones: Rights of Establishment Reviewed’ (1991) 16 ELRev 507 The General Programme (1961) OJ Spec. Ed. Second Series IX O’Keefe D‘Practical Difficulties in the Application of Article 48 of the EEC Treaty’ (1982) 19 CMLRev 35 CASES- GOODS Case 22/70 Commission v Council [1971] ECR 263 Case 2/73 Geddo v Ente Nazionale Risi (1973) ECR 865 Case 154/85 Commission v Italy (1987) ECR 2717 Case 249/81 Commission v Ireland (1982) ECR 2717 Case 82/77 Openbaar Ministere v Van Tiggele (1978) ECR 25 Case 120/78, Rewe-Zentrale AG v Bundesmonopolverwaltung fur Branntwein (1979) ECR 649 Case 155/80 Obel (1981) ECR 1993 Cases 60 and 61/84 Cinetheque SA v Federation Natioanle des Cinemas Francais (1986) ECR 2605 Cases C-267 and 268/91- Criminal Proceedings against Keck and Mithouard (1993) ECR I-6097 Case 412/93, Societe d’Importation Edouard Leclerc-Siplec v TFI Publicite SA (1995) ECR I-179 Case C-368/95, Vereinigte Familiapress Zeitungsverlags- und Vertreibs GmbH v Heinrich Bauer Verlag (1997) 3 CMLR 1329 CASES- ESTABLISHMENT Case 352/85, Bond van Adverteerders v Netherlands (1988) ECR 2085 Case 2/74, Reyners v Belgium (1974) ECR 631 Case 221/85, Commission v Belgium (1987) ECR 719 Case 107/83, Ordre des Avocats v Klopp (1984) ECR 2971 Case 292/86, Gullung v Conseil de l’Ordre des Avocats (1988) ECR 111 Case 136/78, Ministere Public v Auer (1979) ECR 437 Case 33/74, Van Binsbergen v Bestuur van de Bedrijfsverenigning voor de Metaalnijverheif (1974) ECR 1299 Case 279/80 Criminal Proceedings against Webb (1981) ECR 3305 Case 41/74, Van Duyn v Home Office (1974) ECR 1337 Case 67/74, Bonsignore v Oberstadtdirektor der Stadt Koln (1975) ECR 297 1 Footnotes [1] ECJ [2] Formerly A30 [3] Formerly A52 [4] ‘Free Movement of Goods and Services within the EC’ at 2 [5] Case 22/70 [1971] [6] ‘EU Law, Text, Cases, and Materials’ at 582 [7] ‘The Search for the Rule in Article 30 EEC: Much Ado About Nothing? [8] Case 2/73 (1973) [9] ibid [10] Case 154/85 (1987) [11] Case 249/81 (1982) [12] ibid n4 at 588 [13] Case 82/77 (1978) [14] ibid [15] Case 120/78 (1979) [16] ibid n4 at 607 [17] ‘After Keck: Some Thoughts on how to Clarify the Clarification’ [18] Case 155/80 (1981) [19] Cases 60 and 61.94 (1986) [20] Cases C-267 and 268/91 (1993) [21] ‘In Search of the Limits to Article 30 of the EEC Treaty’ [22] ibid n20 [23] ibid [24] Case 412/93 (1995) [25] Case C-368/95 (1997) [26] (1961) [27] Case 221/85 (1987)

Analysis of Hong Kong Economy During Financial Crisis

 ·808 · Proceedings of the 7th International Conference on Innovation & Management An Analysis of the Hong Kong Economy after the Financial Crisis Cao Hongliu School of Management, Guangdong University of Technology, Guangdong, P. R. China, 510520 (E-mail: [email  protected] com) Abstract This paper analyzes the current economic development and the status of leading industries in Hong Kong. It shows that Hong Kong economy, which is mainly comprised of the service industry in particular, facing with both opportunities and challenges after the financial crisis.Hong Kong economy has a wide range of needs in information technology, electrical and electronic technology, and manufacturing technology. Development in these areas has great significance to ensure sustained development of Hong Kong economy. Key words Hong Kong economy status; Leading industry; Service industry 1 Introduction Hong Kong’s a small and open economy system and international financial center, its economi c development face many new challenges because of the impact of the global financial crisis.Therefore, a comprehensive analysis of the Hong Kong’s economic development and their leading industry status becomes an important issue. 2 Overview of Hong Kong Economy 2. 1 The services sector is a leading industry in Hong Kong From Table 1, we can see that the services industry is a leading industry of Hong Kong economy. During the decade from 1997 to 2006, services sector in the Hong Kong economy has gained greater prominence. This change has already been reflected in the share of contribution of the services sector to the local GDP.The contribution of the services sector to GDP increased from 85. 9% in 1997 to 91. 2% in 2006. Based on the industry definition of Hong Kong Census and Statistics Department, The services sector includes wholesale, retail and import and export trades, restaurants and hotels; transport, storage and communications; financing, insurance, real estate and b usiness services; and community, social and personal services. Table 1 Gross Domestic Product (GDP) by Economic Activity (at Current Prices) GDP by Economic Activity(2004-2007) 2004 2005 2006 2007Economic activity Agriculture and fishing Mining and quarrying Manufacturing Electricity, gas and water Construction GDP 886 72 44455 39726 40376 ratio 0. 1 * 3. 6 3. 2 3. 2 GDP 847 100 45547 39924 38538 ratio 0. 1 * 3. 4 3 2. 9 GDP 849 93 45761 40364 38688 ratio 0. 1 * 3. 2 2. 8 2. 7 GDP 895 114 39282 39426 40154 ratio 0. 1 * 2. 5 2. 5 2. 6 Services 1119304 89. 9 1207873 90. 6 1297545 91. 2 1429293 92. 3 Note: Data is from Hong Kong Annual Digest of Statistics (2004-2008 Edition) edited by Hong Kong Census and Statistics Department. Data unit is in million terms and ratio unit is %.Besides, * represents the comparison had less than 0. 05% is in the total economy The services sector becomes the principal source of employment. The employment share of the services sector in total employment h as increased moderately over the past decade, from 79. 8% in 1997 to 86. 6% in 2007. In 2007, the services sector as a whole engaged 3. 03 million persons out of the 3. 5 million overall employments. The services sector plays a significant role in supporting the growth of our external trade. In 2007, the value of exports of services reached $652 billion, representing an average annual growth rate ofProceedings of the 7th International Conference on Innovation & Management  ·809 · 8. 6% over 1997. In 2007, merchant and other trade-related services was the most important major service group, contributing 30. 9% to the value of total exports of services. It was followed by transportation services and travel services, contributing 28. 6% and 16. 5% respectively to the value of total exports of services in 2007. In 1997, the respective percentage shares of these three major service groups in the value of total exports of services were 25. 6%, 30. % and 20. 8%. 2. 2 The structure of H ong Kong’s services industry sector Among the economic activities in the services sector, wholesale, retail and import and export trades, restaurants and hotels together contributed 27. 9% of the GDP in 2006, followed by financing, insurance, real estate and business services (25. 0%), community, social and personal services (18. 0%) and transport, storage and communications (9. 6%). Among them, financial services, trading, tourism and professional services are key industries in the Hong Kong economy.They have been the driving force of Hong Kong’s economic growth, providing impetus to growth of other sectors and creating employment. (1) Import and export trade . The import and export trade is the most important industries in Hong Kong’s service industry, has been playing an important role in the development of Hong Kong economy. The import and export trade produced a net output of HK$305. 1 billion in 2006, representing an increase of 39% over 1997. The ratio is the highest among all service industry. In 2007, there were 98 000 import and export trading establishments in Hong Kong, with 520 000 persons.At the same time, import and export trade sector is also directly promoting the development of other industries, such as logistics, transportation, business services and other services. Hong Kong’s import and export trade, including the visible trade and invisible trade two parts. The visible trade refers to the traditional commodity trade. In 2007, the value of Hong Kong imported and exported goods was $5,556 billion, representing an increase of 9. 8% compared to 2006. Hong Kong’s total exports of goods (comprising domestic exports and re-exports) in 2007 amounted to $2,688 billion, or increased by 9. % when compared with 2006. The value of imports increased by 10. 3% to $2,868 billion in 2007. With the value of total exports being less than that of imports, a merchandise trade deficit of $180 billion was recorded in 2007. In the import and export trade, the largest proportion of re-exports. This was largely attributable to the relocation of many local manufacturing activities to the mainland of China. Quite a large amount of the goods produced in the mainland of China through the outward processing arrangement were sent back to Hong Kong and re-exported to other countries/territories.During 1997 to 2007, the value of re-exports increased by 107%, while a decline of 48% was observed in the value of domestic exports. In 2007 the re-export trade to the mainland continued to grow rapidly. The invisible trade services are export and import trade of commercial services and financial services. While these services could be exported or imported by the import/export firms or companies in other sectors, most of the merchant and other trade-related services were exported or imported by import/export firms . In 2007, Hong Kong’s exports and imports of services valued at $652 billion and $322 billion respecti vely.Compared to 2006, exports and imports of services increased by 15. 4% and 11. 7% respectively. Net exports of services in 2007 amounted to $330 billion, this makes Hong Kong’s overall trade surplus of $150 billion. (2) Finance. Hong Kong is recognized as an international financial center, many multinational banks and financial institutions gathered here. The financial business is classified in detail, covering all aspects of the financial industry. Hong Kong three-tier system of deposit-taking institutions, namely licensed banks, restricted licensed banks and deposit-taking companies, known collectively as the authorized institutions.At the end of 2007, the number of authorized institutions stood at 200, comprising 142 licensed banks, 29 restricted license banks and 29 deposit-taking companies. 68 of them were incorporated in Hong Kong and 132 were incorporated outside Hong Kong. In addition, there were 79 representative offices of foreign banks coming from 27 economies/ regions. As at end December 2007, 152 of the largest 500 banks in the world had a presence in Hong Kong. The value added generated by the banking industry amounted to $136. 5 billion, or 9. 6% of Hong Kong’s Gross Domestic Product (GDP) in 2006, representing an increase of 41. % compared with 1997. The development of the banking sector also promotes the development of other financial industries. In 2007, some 2 940 establishments and about 32 400 persons were engaged in the business. These included stock and share companies; commodity futures, gold bullion and foreign exchange brokers/dealers; stock, bullion and commodity exchanges; fund management companies; investment advisory companies; and firms providing other various financial services. The financial markets and asset management industry generated value added of about $59. billion, contributing to 4. 1% of Hong Kong’s GDP in 2006.  ·810 · Proceedings of the 7th International Conference on Innovation & Managem ent Hong Kong is also the Securities and Exchange Center and an important place for the mainland enterprises to raise funds. At the end of 2007, 1 048 companies were listed on the Main Board of the Hong Kong Exchanges and Clearing Limited (HKEx), with a total market capitalization of $20,536 billion. Despite an increase of only 7. 5% in the number of listed companies, market capitalization was observed to rise 55. 0% over 2006.Since July 1993 when the first Chinese state owned company was listed on the HKEx through issuance of H shares, the role of Hong Kong as a major fund-raising centre for the mainland of China had become increasingly important. By the end of 2007, there were 146 H shares listed on the HKEx, with market capitalization of $5,080 billion. In addition, there were also 93 â€Å"Red Chips† companies and 200 private enterprises listed on HKEx. Hong Kong is one of the most active and liberal debt markets and a leading asset management centre in Asia. (3) Tourism . In 2007, 51 900 persons were engaged in industries closely related o tourism, such as hotels and travel agents and 315 300 persons in industries partly related to tourism such as restaurants, retailers, transport operators and other service providers serving visitors. In terms of economic contribution, inbound tourism and outbound tourism together generated $45. 3 billion value added and 176 300 job opportunities in 2006, or 3. 2% of total GDP and 5. 2% of total employment of Hong Kong respectively. The number of incoming visitors in 2007 reached 28. 2 million, increased by 11. 6% as compared with 25. 3 million in 2006 and set the highest record for visitor arrivals in history.The mainland of China remained the major source market of visitors to Hong Kong since 1994. Visitor arrivals from the mainland of China reached 15. 5 million in 2007, accounted for 55. 0% of the total visitor arrivals, followed by South and Southeast Asia (10. 3%) and Taiwan (7. 9%). In addition, Hong Kong i s Asia’s major trade exhibition and business conference center. A total of 218 conventions and 78 exhibitions with international participation were held in Hong Kong in 2006. (4) Professional service . The professional service is Hong Kong’s fourth-largest service industry.The professional services industry generated $40 billion of value added, or 2. 8% of Hong Kong’s Gross Domestic Product (GDP), in 2006 and provided job opportunities for about 106 000 persons in 2007. In 2007, there were about 13 500 professional services establishments, including 3 900 accounting, auditing and bookkeeping firms, 1 800 solicitor and barrister firms, 3 300 architectural, surveying and engineering firms and some 4 500 management consultant firms. The business receipts of professional services industry increased by 10. 7% in 2007 over a year earlier.The development of professional services industry over the past decade was quite remarkable. Number of establishments and persons en gaged increased by 35% and 23% respectively between 1997 and 2007. During the same period, the total number of registered professionals also increased remarkably, with certified public accountants increasing at the fastest rate of 7. 3% per year on average. 2. 3 Manufacturing company is the support for the Hong Kong service industry In this paper, the Hong Kong Manufacturing Company refers specifically to the Hong Kong manufacturing companies in the mainland.The rapid expansion of Hong Kong’s service industries in the past two decades benefited from the development of the Hong Kong Manufacturing Company and the sub-contracting business model. In the late 80’s, under the pressure of high land prices, high rents, high labor costs, a large number of Hong Kong manufacturers shifted their production to the Mainland, where the land and labor costs were relatively low, in particular the Pearl River Delta in Guangdong Province. And because of the changes in the business, many original manufacturing companies become the service company.These companies transferred their manufacturing factories to the Mainland, and kept the headquarters and other high value-added services such as marketing, order processing, material procurement, design, packaging, logistics business in Hong Kong. This business model is known as â€Å"shop in front and factory in back† mode. At the same time, in order to adapt to the changes in international markets and increase exports, many traditional trading companies, set up manufacturing factories in mainland, and formed a sub-contracting operation mode.In the sub-contractors mode, products manufactured in the mainland branch companies, headquarters in Hong Kong focused its efforts on trade, market and management. This mode of operation combined the mainland companies’ low-cost production advantage and the Hong Kong trading companies’ familiar with the international market advantage together, promoted the expediti ons of business of Hong Kong trade companies and improved their production efficiency. This production mode provided a strong support to the development of Hong Kong’s service industry.The financial crisis press great operating pressure to the Hong Kong Manufacturing Company. Mostly concentrated in the Pearl River Delta region, the types of these companies are sound equipment, electrical appliances, toys, clothing, footwear and other labor-intensive industries. The development of these enterprises is based on low labor and land inputs, production technology is very low. With the Proceedings of the 7th International Conference on Innovation & Management  ·811 · labor, land costs rising substantially in the Pearl River Delta region, the ompetitive advantages of the Hong Kong Manufacturing Company decreased a lot in recent years. Under the impact of the financial crisis, there has an obvious drop in experts of these labor-intensive consumer goods. Many Hong Kong Manufacturin g Companies face the problem of orders reduction, profit decline, and even bankruptcy. 3 Hong Kong’s Economic Problems under the Global Financial Crisis Table 2 1997-2007 Business Receipts Indices 1997 2002 2003 2004 2005 2006 2007 Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance 24. 4 107. 2 104. 7 99 61. 7 157. 1 127. 1 84. 1 79. 8 38. 2 88. 3 75. 5 94. 9 73. 1 68. 8 81. 1 96. 6 86. 4 56 59. 2 85. 8 80. 4 85. 7 58. 8 69. 1 77. 4 94. 3 86. 4 65. 7 70. 5 93. 8 90. 5 94. 3 81. 9 85 90. 6 95. 1 90. 2 87. 5 86. 2 100 100 100 100 100 100 100 100 100 100 100 100 100 100 107. 4 110. 2 109. 5 113. 7 110. 6 110. 2 100. 8 119. 5 147. 9 121. 3 99. 6 119. 6 114 109. 7 120. 6 119. 1 124. 2 131. 1 122. 6 127. 8 110. 8 165. 3 249. 7 156. 2 139. 3 135. 4 135. 4 117. 1 Real estate 135. 6 71. 5 75. 9 86. 2 Business 119. 7 87. 88. 1 95. 3 services Tourism 91. 5 75. 5 70 88. 5 Computer and 53. 1 63. 7 67. 3 81. 1 information services Note: Data is from Hong Kong Annual Digest of Statistics(2008 Edition) Statistics Department. Table 3 2005 edited by Hong Kong Census and 2005-2008 the variation ratio of Business Receipts Indices 2006 2007 2007 3 quarter 9 15. 1 8. 2 15. 4 15. 7 11. 7 11. 7 9. 7 47. 7 99. 6 42. 1 27. 7 2007 4 quarter 15. 5 17. 7 7. 6 14. 8 16. 5 14. 8 10. 3 16. 2 45 82. 9 35. 4 69. 5 2008 1 quarter 9. 6 17. 5 13. 2 16 9. 9 15. 9 10. 7 11. 2 6. 32. 8 11. 7 14. 5 2008 2 quarter Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance Real estate Business services 5. 6 6. 8 10. 6 6 22. 1 17. 8 10. 4 5. 1 10. 9 14. 3 16 16 7. 9 7. 3 10. 2 9. 5 13. 7 10. 6 10. 2 0. 8 19. 5 47. 9 21. 3 -0. 4 10. 4 12. 8 8 13. 4 15. 2 10. 8 16 10 38. 3 68. 8 28. 8 39. 8 14. 1 14. 4 14. 6 15. 3 9. 6 11 3. 5 13. 5 -6. 8 4. 7 8. 3 10 Tourism 4. 9 19. 6 13. 2 11. 8 14 11. 5 10. 3 Computer and 12. 9 14 18. 7 18. 9 25. 4 14. 14 information services Note: Data is from Hong Kong Annual Digest of Statistics (2008 Edition) edited by Hong Kong Census and Statistics Department.  ·812 · Proceedings of the 7th International Conference on Innovation & Management Table 2 shows the revenue changes of the Hong Kong’s service industry from the 1997 Asian financial crisis. In the 1997 Asian financial crisis and the subsequent 2003 epidemic of SARS, Hong Kong’s service industry was particularly hard hit. Until 2006, the industry revenue was generally restored to the level of 97. Finance, insurance, transport, trade and other business incurred the largest loss.In February 2007, the U. S. sub-loan crisis happened, and the Lehman bank filed for bankruptcy in September 2008. The U. S. financial crisis intensified and developed into a global financial crisis. From the second half of 2008, the global financial crisis began to influence Hong Kong economy. This performance is particularly evident in the service industry. Hong Kong’s financial industry has been most affected. From Table 3 it can be seen that Banking and financial services industries are in the most affected after the financial crisis. There is a rapid decline in industry revenue.In the second quarter of 2008, banking industry even has the first negative growth since the past few years. At the end of the third quarter, because a lot of major financial institutions in the United States had been threatened with a bankruptcy, the global financial crisis became even more serious. The panic selling appeared in many countries’ stock market, Hong Kong was no exception. Hong Kong’s Hang Seng index plummeted by 15% in September, and fall 22% in October. The normal operation of Hong Kong’s capital markets has been seriously affected.The growth of other financial related industries, such as insurance, real estate and business services, had a slowed down significantly from the beginning of the second quarter of 2008. Import and export trade and related industries sectors have been affected in different degrees. The merchandise exports slowed down in the third quarter and only had a small increase. Even so, this was the worst performance since the first quarter of 2002. With the increase of global financial crisis, exports to other markets also had different degrees of slowing down.As a result, the growth of related industries, such as business service, trade service, transportation and storage service also slowed down slightly. Exports of services had maintained a steady increase in the financial crisis, but the growth rate was also smaller than the second quarter. The growth of tourism also had signs of deceleration and affect the growth of related industry, such as transportation, hotels, catering services, the number of visitors from long distance market decrease a lot, particularly the tourists from Europe and the United States.To face the challenge of financial crisis, the SAR Government has been actively responding well to prevent the spread of financial risks. From the beginning of the sub-loan crisis in the United States, in order to ensure stability of the financial system, the Hong Kong Monetary Authority introduced a number of measures to alleviate the pressure on banks and provide necessary assistance to the banks. Securities and Futures Commission and the Insurance Supervisory Commission also had made action to strengthen the protection of investors and policyholders.At the same time, most Hong Kong’s local financial institutions’ participation in directly investment to the US sub-loan is limited in small scale. The local banking system remains steadily without be directly effected by the sub-loan crisis. Benefit from the economic development of the Mainland, Hong Kong’s service industries is also faced with new opportunities in the global financial crisis. For example, supported by the growth of trade in the Mainland, of fshore trade growth was still significant.Although 2008 is the â€Å"Olympic Year†, but the mainland tourists to Hong Kong remained a high-speed growth. In the third quarter of 2008, the Mainland tourists to Hong Kong wad still higher than last year, an increase of 9. 4%. Individual Visit Scheme is one of the bright spots; the visitors in accordance with this scheme had a further rise in the third quarter, the ratio wad 14. 5%. These factors effectively guaranteed the smooth operation of Hong Kong’s service industries. At the same time, the ten naturalization industry plan in the mainland had already been introduced.The mainland accelerated the pace of industrial upgrading and began to support the development of high-tech industry. These policies provide a good environment for the Hong Kong companies in mainland to upgrade their technological level and achieve their own industrial upgrading. Based on the above analysis, the challenges faced by Hong Kong’s econom ic in the financial crisis can be summarized into the following three aspects: (1)financial sector’s profits decline a lot, related sector’s services business reduces. 2) The trade and service market in Western countries shrink. 3 Hong Kong Company in mainland operates difficultly. Hong Kong economy is facing the opportunity for: the steady development of the Mainland economy and the acceleration of the industrial upgrading. Therefore, in order to face the challenge of the financial crisis, it is important for Hong Kong service companies to expand business in the Mainland, and to Hong Kong companies in mainland to enhance the productivity. Proceedings of the 7th International Conference on Innovation & Management  ·813 · 4 ConclusionsThrough the above analysis, this paper can be drawn the following conclusions: (1) The a major problem of Hong Kong economy is decline in financial sector profits and trade volume with Western developed countries. (2)The expansion of d emand of the Mainland market is the most important opportunity for Hong Kong’s economic development. (3) Hong Kong economy has great demands for information technology, electrical and electronic technologies, manufacturing technology. To ensure sustainable development of Hong Kong economy, it is very important to promote scientific and technological development. References [1] Yang Xue.The Analysis of the Scientific and Technological Needs Based on Micro-macro System[J]. Social Science Frontier, 2008, (10): 241(In Chinese) [2] Guo Kasha, Wang Wenlong. Science and Technology Needs Analysis of Chinese High-Tech Industry[J]. Economic Review, 2004, (8):198(In Chinese) [3] Wu Jiapei, Wang Changsheng. Science and Technology Needs Analysis of the New Road to Industrialization[J]. Science & Technology and Economy, 2005, (4): 4(In Chinese) [4] Li Jianhua, Cheng Baoying, Yang Xue. Analysis on Demand of Science and Technology Effected by Informatization During New Industrialization[J]. Information Science, 2004, (8): 903(In Chinese) Analysis of Hong Kong Economy During Financial Crisis  ·808 · Proceedings of the 7th International Conference on Innovation & Management An Analysis of the Hong Kong Economy after the Financial Crisis Cao Hongliu School of Management, Guangdong University of Technology, Guangdong, P. R. China, 510520 (E-mail: [email  protected] com) Abstract This paper analyzes the current economic development and the status of leading industries in Hong Kong. It shows that Hong Kong economy, which is mainly comprised of the service industry in particular, facing with both opportunities and challenges after the financial crisis.Hong Kong economy has a wide range of needs in information technology, electrical and electronic technology, and manufacturing technology. Development in these areas has great significance to ensure sustained development of Hong Kong economy. Key words Hong Kong economy status; Leading industry; Service industry 1 Introduction Hong Kong’s a small and open economy system and international financial center, its economi c development face many new challenges because of the impact of the global financial crisis.Therefore, a comprehensive analysis of the Hong Kong’s economic development and their leading industry status becomes an important issue. 2 Overview of Hong Kong Economy 2. 1 The services sector is a leading industry in Hong Kong From Table 1, we can see that the services industry is a leading industry of Hong Kong economy. During the decade from 1997 to 2006, services sector in the Hong Kong economy has gained greater prominence. This change has already been reflected in the share of contribution of the services sector to the local GDP.The contribution of the services sector to GDP increased from 85. 9% in 1997 to 91. 2% in 2006. Based on the industry definition of Hong Kong Census and Statistics Department, The services sector includes wholesale, retail and import and export trades, restaurants and hotels; transport, storage and communications; financing, insurance, real estate and b usiness services; and community, social and personal services. Table 1 Gross Domestic Product (GDP) by Economic Activity (at Current Prices) GDP by Economic Activity(2004-2007) 2004 2005 2006 2007Economic activity Agriculture and fishing Mining and quarrying Manufacturing Electricity, gas and water Construction GDP 886 72 44455 39726 40376 ratio 0. 1 * 3. 6 3. 2 3. 2 GDP 847 100 45547 39924 38538 ratio 0. 1 * 3. 4 3 2. 9 GDP 849 93 45761 40364 38688 ratio 0. 1 * 3. 2 2. 8 2. 7 GDP 895 114 39282 39426 40154 ratio 0. 1 * 2. 5 2. 5 2. 6 Services 1119304 89. 9 1207873 90. 6 1297545 91. 2 1429293 92. 3 Note: Data is from Hong Kong Annual Digest of Statistics (2004-2008 Edition) edited by Hong Kong Census and Statistics Department. Data unit is in million terms and ratio unit is %.Besides, * represents the comparison had less than 0. 05% is in the total economy The services sector becomes the principal source of employment. The employment share of the services sector in total employment h as increased moderately over the past decade, from 79. 8% in 1997 to 86. 6% in 2007. In 2007, the services sector as a whole engaged 3. 03 million persons out of the 3. 5 million overall employments. The services sector plays a significant role in supporting the growth of our external trade. In 2007, the value of exports of services reached $652 billion, representing an average annual growth rate ofProceedings of the 7th International Conference on Innovation & Management  ·809 · 8. 6% over 1997. In 2007, merchant and other trade-related services was the most important major service group, contributing 30. 9% to the value of total exports of services. It was followed by transportation services and travel services, contributing 28. 6% and 16. 5% respectively to the value of total exports of services in 2007. In 1997, the respective percentage shares of these three major service groups in the value of total exports of services were 25. 6%, 30. % and 20. 8%. 2. 2 The structure of H ong Kong’s services industry sector Among the economic activities in the services sector, wholesale, retail and import and export trades, restaurants and hotels together contributed 27. 9% of the GDP in 2006, followed by financing, insurance, real estate and business services (25. 0%), community, social and personal services (18. 0%) and transport, storage and communications (9. 6%). Among them, financial services, trading, tourism and professional services are key industries in the Hong Kong economy.They have been the driving force of Hong Kong’s economic growth, providing impetus to growth of other sectors and creating employment. (1) Import and export trade . The import and export trade is the most important industries in Hong Kong’s service industry, has been playing an important role in the development of Hong Kong economy. The import and export trade produced a net output of HK$305. 1 billion in 2006, representing an increase of 39% over 1997. The ratio is the highest among all service industry. In 2007, there were 98 000 import and export trading establishments in Hong Kong, with 520 000 persons.At the same time, import and export trade sector is also directly promoting the development of other industries, such as logistics, transportation, business services and other services. Hong Kong’s import and export trade, including the visible trade and invisible trade two parts. The visible trade refers to the traditional commodity trade. In 2007, the value of Hong Kong imported and exported goods was $5,556 billion, representing an increase of 9. 8% compared to 2006. Hong Kong’s total exports of goods (comprising domestic exports and re-exports) in 2007 amounted to $2,688 billion, or increased by 9. % when compared with 2006. The value of imports increased by 10. 3% to $2,868 billion in 2007. With the value of total exports being less than that of imports, a merchandise trade deficit of $180 billion was recorded in 2007. In the import and export trade, the largest proportion of re-exports. This was largely attributable to the relocation of many local manufacturing activities to the mainland of China. Quite a large amount of the goods produced in the mainland of China through the outward processing arrangement were sent back to Hong Kong and re-exported to other countries/territories.During 1997 to 2007, the value of re-exports increased by 107%, while a decline of 48% was observed in the value of domestic exports. In 2007 the re-export trade to the mainland continued to grow rapidly. The invisible trade services are export and import trade of commercial services and financial services. While these services could be exported or imported by the import/export firms or companies in other sectors, most of the merchant and other trade-related services were exported or imported by import/export firms . In 2007, Hong Kong’s exports and imports of services valued at $652 billion and $322 billion respecti vely.Compared to 2006, exports and imports of services increased by 15. 4% and 11. 7% respectively. Net exports of services in 2007 amounted to $330 billion, this makes Hong Kong’s overall trade surplus of $150 billion. (2) Finance. Hong Kong is recognized as an international financial center, many multinational banks and financial institutions gathered here. The financial business is classified in detail, covering all aspects of the financial industry. Hong Kong three-tier system of deposit-taking institutions, namely licensed banks, restricted licensed banks and deposit-taking companies, known collectively as the authorized institutions.At the end of 2007, the number of authorized institutions stood at 200, comprising 142 licensed banks, 29 restricted license banks and 29 deposit-taking companies. 68 of them were incorporated in Hong Kong and 132 were incorporated outside Hong Kong. In addition, there were 79 representative offices of foreign banks coming from 27 economies/ regions. As at end December 2007, 152 of the largest 500 banks in the world had a presence in Hong Kong. The value added generated by the banking industry amounted to $136. 5 billion, or 9. 6% of Hong Kong’s Gross Domestic Product (GDP) in 2006, representing an increase of 41. % compared with 1997. The development of the banking sector also promotes the development of other financial industries. In 2007, some 2 940 establishments and about 32 400 persons were engaged in the business. These included stock and share companies; commodity futures, gold bullion and foreign exchange brokers/dealers; stock, bullion and commodity exchanges; fund management companies; investment advisory companies; and firms providing other various financial services. The financial markets and asset management industry generated value added of about $59. billion, contributing to 4. 1% of Hong Kong’s GDP in 2006.  ·810 · Proceedings of the 7th International Conference on Innovation & Managem ent Hong Kong is also the Securities and Exchange Center and an important place for the mainland enterprises to raise funds. At the end of 2007, 1 048 companies were listed on the Main Board of the Hong Kong Exchanges and Clearing Limited (HKEx), with a total market capitalization of $20,536 billion. Despite an increase of only 7. 5% in the number of listed companies, market capitalization was observed to rise 55. 0% over 2006.Since July 1993 when the first Chinese state owned company was listed on the HKEx through issuance of H shares, the role of Hong Kong as a major fund-raising centre for the mainland of China had become increasingly important. By the end of 2007, there were 146 H shares listed on the HKEx, with market capitalization of $5,080 billion. In addition, there were also 93 â€Å"Red Chips† companies and 200 private enterprises listed on HKEx. Hong Kong is one of the most active and liberal debt markets and a leading asset management centre in Asia. (3) Tourism . In 2007, 51 900 persons were engaged in industries closely related o tourism, such as hotels and travel agents and 315 300 persons in industries partly related to tourism such as restaurants, retailers, transport operators and other service providers serving visitors. In terms of economic contribution, inbound tourism and outbound tourism together generated $45. 3 billion value added and 176 300 job opportunities in 2006, or 3. 2% of total GDP and 5. 2% of total employment of Hong Kong respectively. The number of incoming visitors in 2007 reached 28. 2 million, increased by 11. 6% as compared with 25. 3 million in 2006 and set the highest record for visitor arrivals in history.The mainland of China remained the major source market of visitors to Hong Kong since 1994. Visitor arrivals from the mainland of China reached 15. 5 million in 2007, accounted for 55. 0% of the total visitor arrivals, followed by South and Southeast Asia (10. 3%) and Taiwan (7. 9%). In addition, Hong Kong i s Asia’s major trade exhibition and business conference center. A total of 218 conventions and 78 exhibitions with international participation were held in Hong Kong in 2006. (4) Professional service . The professional service is Hong Kong’s fourth-largest service industry.The professional services industry generated $40 billion of value added, or 2. 8% of Hong Kong’s Gross Domestic Product (GDP), in 2006 and provided job opportunities for about 106 000 persons in 2007. In 2007, there were about 13 500 professional services establishments, including 3 900 accounting, auditing and bookkeeping firms, 1 800 solicitor and barrister firms, 3 300 architectural, surveying and engineering firms and some 4 500 management consultant firms. The business receipts of professional services industry increased by 10. 7% in 2007 over a year earlier.The development of professional services industry over the past decade was quite remarkable. Number of establishments and persons en gaged increased by 35% and 23% respectively between 1997 and 2007. During the same period, the total number of registered professionals also increased remarkably, with certified public accountants increasing at the fastest rate of 7. 3% per year on average. 2. 3 Manufacturing company is the support for the Hong Kong service industry In this paper, the Hong Kong Manufacturing Company refers specifically to the Hong Kong manufacturing companies in the mainland.The rapid expansion of Hong Kong’s service industries in the past two decades benefited from the development of the Hong Kong Manufacturing Company and the sub-contracting business model. In the late 80’s, under the pressure of high land prices, high rents, high labor costs, a large number of Hong Kong manufacturers shifted their production to the Mainland, where the land and labor costs were relatively low, in particular the Pearl River Delta in Guangdong Province. And because of the changes in the business, many original manufacturing companies become the service company.These companies transferred their manufacturing factories to the Mainland, and kept the headquarters and other high value-added services such as marketing, order processing, material procurement, design, packaging, logistics business in Hong Kong. This business model is known as â€Å"shop in front and factory in back† mode. At the same time, in order to adapt to the changes in international markets and increase exports, many traditional trading companies, set up manufacturing factories in mainland, and formed a sub-contracting operation mode.In the sub-contractors mode, products manufactured in the mainland branch companies, headquarters in Hong Kong focused its efforts on trade, market and management. This mode of operation combined the mainland companies’ low-cost production advantage and the Hong Kong trading companies’ familiar with the international market advantage together, promoted the expediti ons of business of Hong Kong trade companies and improved their production efficiency. This production mode provided a strong support to the development of Hong Kong’s service industry.The financial crisis press great operating pressure to the Hong Kong Manufacturing Company. Mostly concentrated in the Pearl River Delta region, the types of these companies are sound equipment, electrical appliances, toys, clothing, footwear and other labor-intensive industries. The development of these enterprises is based on low labor and land inputs, production technology is very low. With the Proceedings of the 7th International Conference on Innovation & Management  ·811 · labor, land costs rising substantially in the Pearl River Delta region, the ompetitive advantages of the Hong Kong Manufacturing Company decreased a lot in recent years. Under the impact of the financial crisis, there has an obvious drop in experts of these labor-intensive consumer goods. Many Hong Kong Manufacturin g Companies face the problem of orders reduction, profit decline, and even bankruptcy. 3 Hong Kong’s Economic Problems under the Global Financial Crisis Table 2 1997-2007 Business Receipts Indices 1997 2002 2003 2004 2005 2006 2007 Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance 24. 4 107. 2 104. 7 99 61. 7 157. 1 127. 1 84. 1 79. 8 38. 2 88. 3 75. 5 94. 9 73. 1 68. 8 81. 1 96. 6 86. 4 56 59. 2 85. 8 80. 4 85. 7 58. 8 69. 1 77. 4 94. 3 86. 4 65. 7 70. 5 93. 8 90. 5 94. 3 81. 9 85 90. 6 95. 1 90. 2 87. 5 86. 2 100 100 100 100 100 100 100 100 100 100 100 100 100 100 107. 4 110. 2 109. 5 113. 7 110. 6 110. 2 100. 8 119. 5 147. 9 121. 3 99. 6 119. 6 114 109. 7 120. 6 119. 1 124. 2 131. 1 122. 6 127. 8 110. 8 165. 3 249. 7 156. 2 139. 3 135. 4 135. 4 117. 1 Real estate 135. 6 71. 5 75. 9 86. 2 Business 119. 7 87. 88. 1 95. 3 services Tourism 91. 5 75. 5 70 88. 5 Computer and 53. 1 63. 7 67. 3 81. 1 information services Note: Data is from Hong Kong Annual Digest of Statistics(2008 Edition) Statistics Department. Table 3 2005 edited by Hong Kong Census and 2005-2008 the variation ratio of Business Receipts Indices 2006 2007 2007 3 quarter 9 15. 1 8. 2 15. 4 15. 7 11. 7 11. 7 9. 7 47. 7 99. 6 42. 1 27. 7 2007 4 quarter 15. 5 17. 7 7. 6 14. 8 16. 5 14. 8 10. 3 16. 2 45 82. 9 35. 4 69. 5 2008 1 quarter 9. 6 17. 5 13. 2 16 9. 9 15. 9 10. 7 11. 2 6. 32. 8 11. 7 14. 5 2008 2 quarter Wholesale/Retail Import and export trade Restaurants Hotels Transport Storage Communications Banking Financing (except banking) Insurance Real estate Business services 5. 6 6. 8 10. 6 6 22. 1 17. 8 10. 4 5. 1 10. 9 14. 3 16 16 7. 9 7. 3 10. 2 9. 5 13. 7 10. 6 10. 2 0. 8 19. 5 47. 9 21. 3 -0. 4 10. 4 12. 8 8 13. 4 15. 2 10. 8 16 10 38. 3 68. 8 28. 8 39. 8 14. 1 14. 4 14. 6 15. 3 9. 6 11 3. 5 13. 5 -6. 8 4. 7 8. 3 10 Tourism 4. 9 19. 6 13. 2 11. 8 14 11. 5 10. 3 Computer and 12. 9 14 18. 7 18. 9 25. 4 14. 14 information services Note: Data is from Hong Kong Annual Digest of Statistics (2008 Edition) edited by Hong Kong Census and Statistics Department.  ·812 · Proceedings of the 7th International Conference on Innovation & Management Table 2 shows the revenue changes of the Hong Kong’s service industry from the 1997 Asian financial crisis. In the 1997 Asian financial crisis and the subsequent 2003 epidemic of SARS, Hong Kong’s service industry was particularly hard hit. Until 2006, the industry revenue was generally restored to the level of 97. Finance, insurance, transport, trade and other business incurred the largest loss.In February 2007, the U. S. sub-loan crisis happened, and the Lehman bank filed for bankruptcy in September 2008. The U. S. financial crisis intensified and developed into a global financial crisis. From the second half of 2008, the global financial crisis began to influence Hong Kong economy. This performance is particularly evident in the service industry. Hong Kong’s financial industry has been most affected. From Table 3 it can be seen that Banking and financial services industries are in the most affected after the financial crisis. There is a rapid decline in industry revenue.In the second quarter of 2008, banking industry even has the first negative growth since the past few years. At the end of the third quarter, because a lot of major financial institutions in the United States had been threatened with a bankruptcy, the global financial crisis became even more serious. The panic selling appeared in many countries’ stock market, Hong Kong was no exception. Hong Kong’s Hang Seng index plummeted by 15% in September, and fall 22% in October. The normal operation of Hong Kong’s capital markets has been seriously affected.The growth of other financial related industries, such as insurance, real estate and business services, had a slowed down significantly from the beginning of the second quarter of 2008. Import and export trade and related industries sectors have been affected in different degrees. The merchandise exports slowed down in the third quarter and only had a small increase. Even so, this was the worst performance since the first quarter of 2002. With the increase of global financial crisis, exports to other markets also had different degrees of slowing down.As a result, the growth of related industries, such as business service, trade service, transportation and storage service also slowed down slightly. Exports of services had maintained a steady increase in the financial crisis, but the growth rate was also smaller than the second quarter. The growth of tourism also had signs of deceleration and affect the growth of related industry, such as transportation, hotels, catering services, the number of visitors from long distance market decrease a lot, particularly the tourists from Europe and the United States.To face the challenge of financial crisis, the SAR Government has been actively responding well to prevent the spread of financial risks. From the beginning of the sub-loan crisis in the United States, in order to ensure stability of the financial system, the Hong Kong Monetary Authority introduced a number of measures to alleviate the pressure on banks and provide necessary assistance to the banks. Securities and Futures Commission and the Insurance Supervisory Commission also had made action to strengthen the protection of investors and policyholders.At the same time, most Hong Kong’s local financial institutions’ participation in directly investment to the US sub-loan is limited in small scale. The local banking system remains steadily without be directly effected by the sub-loan crisis. Benefit from the economic development of the Mainland, Hong Kong’s service industries is also faced with new opportunities in the global financial crisis. For example, supported by the growth of trade in the Mainland, of fshore trade growth was still significant.Although 2008 is the â€Å"Olympic Year†, but the mainland tourists to Hong Kong remained a high-speed growth. In the third quarter of 2008, the Mainland tourists to Hong Kong wad still higher than last year, an increase of 9. 4%. Individual Visit Scheme is one of the bright spots; the visitors in accordance with this scheme had a further rise in the third quarter, the ratio wad 14. 5%. These factors effectively guaranteed the smooth operation of Hong Kong’s service industries. At the same time, the ten naturalization industry plan in the mainland had already been introduced.The mainland accelerated the pace of industrial upgrading and began to support the development of high-tech industry. These policies provide a good environment for the Hong Kong companies in mainland to upgrade their technological level and achieve their own industrial upgrading. Based on the above analysis, the challenges faced by Hong Kong’s econom ic in the financial crisis can be summarized into the following three aspects: (1)financial sector’s profits decline a lot, related sector’s services business reduces. 2) The trade and service market in Western countries shrink. 3 Hong Kong Company in mainland operates difficultly. Hong Kong economy is facing the opportunity for: the steady development of the Mainland economy and the acceleration of the industrial upgrading. Therefore, in order to face the challenge of the financial crisis, it is important for Hong Kong service companies to expand business in the Mainland, and to Hong Kong companies in mainland to enhance the productivity. Proceedings of the 7th International Conference on Innovation & Management  ·813 · 4 ConclusionsThrough the above analysis, this paper can be drawn the following conclusions: (1) The a major problem of Hong Kong economy is decline in financial sector profits and trade volume with Western developed countries. (2)The expansion of d emand of the Mainland market is the most important opportunity for Hong Kong’s economic development. (3) Hong Kong economy has great demands for information technology, electrical and electronic technologies, manufacturing technology. To ensure sustainable development of Hong Kong economy, it is very important to promote scientific and technological development. References [1] Yang Xue.The Analysis of the Scientific and Technological Needs Based on Micro-macro System[J]. Social Science Frontier, 2008, (10): 241(In Chinese) [2] Guo Kasha, Wang Wenlong. Science and Technology Needs Analysis of Chinese High-Tech Industry[J]. Economic Review, 2004, (8):198(In Chinese) [3] Wu Jiapei, Wang Changsheng. Science and Technology Needs Analysis of the New Road to Industrialization[J]. Science & Technology and Economy, 2005, (4): 4(In Chinese) [4] Li Jianhua, Cheng Baoying, Yang Xue. Analysis on Demand of Science and Technology Effected by Informatization During New Industrialization[J]. Information Science, 2004, (8): 903(In Chinese)