Korean and Chinese Cell Phone - Modern Asian Economics - Lecture Slides, Slides of Economics

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Korean and Chinese cell phone in China docsity.com <= we Korean Cellphone Share in Chinese Market 2008 2009 2010 2011 Year — docsity.com ALG Ml SAMSUNG  China-- World Factory! China huge amount and cheap labour  Similar culture condition--- Neo-Confucianism Human Capital and Labour Force in China docsity.com Neo- Confucianism ¢ Confucius 4Lf (551-479BC ) ¢ Confucianism: Benevolence({—) Justice(<) > J Sy docsity.com Confucianism in Korean • About 190-180 BC, Confucianism was disseminated to Korea. • Since then, Confucianism had developing in Korea • Korean Confucianism. docsity.com Neo- Confucianism • Let the king be a king, the minister (be) a minister, the father a father and the son a son 君君臣臣，父父 子子 order If a man in the morning hear the right way, he may die in the evening without regret. 朝闻道夕死可矣 education & knowledge The prince employs his ministers with propriety; the ministers serve their prince with good faith. 君使臣以禮, 臣事君以忠 loyalty harmony docsity.com • centralized leadership • self-examination • dedication • self-discipline • keep education • Low transaction cost • efficiency • sustained economics growth docsity.com Human resource • comprador (买办)--- a large number of Korean Chinese(朝鲜族中国人) • China has over 2 million Korean Chinese Source:http://baike.baidu.com/view/2743.htm docsity.com Why Export? • Domestic Investment﹥Saving • Need to import oil and other industrial raw materials ↓ Borrow From Foreigners docsity.com Why Policy Priority? • Investment resources were insufficient • High defense expenditures spend much domestic saving docsity.com How The Expansion Policy Impact On Korean Firms? • Expansion of existing firms rather than increasing new firms →conglomerates →government support have the ability to expand overseas docsity.com Source of Economic Growth Way to Export Successfully • 1963-1975: resource poverty→ exporting firm import raw material, part, machinery required for producing export goods→ negative import substitution→ BOP deficit • 1986-now:export orientation →foreign capital inflow →BOP surplus docsity.com Source: Based on information from United States Department of Commerce, International Trade Administration, Foreign Economic Trends and Their Implications for the United States: Korea, Washington, June 1989; United States, Department of Commerce, International Trade Administration, Foreign Economic Trends and Their Implications for the United States: Korea, Washington, April 1990; and Korea Economic Institute of America, Korea Economic Update, 1, No.2, Summer 1990, 4. docsity.com Principal Trading Partners 1986 (in millions of United States dollars) 1986 Exports 1986 Imports Country by Rank ¥Yolume Country by Rank) Yolume United States 13, 380 Japan 10, 369 Japan 5, 426 United States 6, 545 Hong Eong 1,691 West Germany 1, 216 Canada 1, 248 Australia 1, 080 West Germany 1, 242 Nalaysia 902 Britain 1, 934 Canada TOI Saudi Arabia 855 France 706 France 543 Saudi Arabia 6365 Australia 535 Britain 454 y (ia 532 Oman 440 = : ~S docsity.com Source: Estimates for Korea for 1963-73 are from Byung-Nak Song, 1984, and for 1973-86 were those re-estimated by Byung-Nak Song. Estimates for Japan are from E.F.Denison and William K.Chung,1976. docsity.com Technology in Korea • mid-1960s: Ministry of Science and Technology →oversee all government research and development activities; Korea Institute of Science and Technology→ industrial research laboratory • 1970s:Korea Advanced Institute of Science→develop and offer graduate science programs docsity.com Technology in Korea Human Resource • lure back South Korean scientists and researchers who had emigrated abroad • South Korea's younger scientists, technocrats, and economic planners in had received their graduate education in the United States. docsity.com Who own Samsung? Ownership structure of Samsung Electronics as of the end of December, 2011 ( Total Stock } { Common Stock } ( Preferred Stock } met ual re docsity.com LG Shareholder Composition LE Corp. Feretgn Investors GB Domestic Investors 10096 90% 80% Tow 60% 50% 40% 30% 7 20% 10% om 2005 2006 2007 2008 2005 2006 2007 2008 LG Corp. 35% 31% 31% 31% Foreign Investors 42% 37% 32% 27% Domestic Investors 23% 32% 37% 42% The above percentages are based on data collected at the year-end. docsity.com South Korea–United States Relations a classroom in the Korean Naval Academy docsity.com The development of Chinese cell phone industry 2.Endogenous Growth Model • The nine-year compulsory education – Human capital. • Government policy – institutions. • Imported technology instead of the old technology – technical innovation. docsity.com The development of Chinese cell phone industry 2003 – 2010 (Decrease) Reasons • Without continued technical innovation. • Lack of core capacity. • More and more foreign competitors. docsity.com Top 5 in Chinese market in 2011 • 24.3% • 19.6% • 12.6% • 11.1% • 7.5% Chinese brand docsity.com The current Chinese market • 1. Almost 100 million people have cell phone. Even in countryside, 90% has cell phone. But Profit is exists. docsity.com China's population age distribution The majorities will change their cell phones in 15 months. docsity.com The current Chinese market • 2. The majority need is for semi-high end and low-end cell phone(中低端手机）. >5000￥ 6.9% 4001-5000￥ 4.9% 3001-4000￥ 17.5% 2001-3000 ￥ 24.2% 1001-2000 ￥ 32.7% <1000 ￥ 13.8% The price that Chinese people are willing to spend on the cell phone. docsity.com The Chinese society nowadays • The majority people are these people who live in rural areas and the middle class in urban. • The majority people can not always afford the luxury goods because of the per capita GDP in China. For the majority people, Huawei cell phones are good. docsity.com The survival way of Chinese cell phone • Consolidate the small cell phone companies. • Focus on the semi- high end and low end products. • Pay attention to secondary cities and rural areas. • Expand the market of the third world countries. docsity.com The survival way of Chinese cell phone • Try to be the top cell phone companies and provides the expensive cell phones. • Do not ignore the majority, middle class people in China. • Get the good balance and offer both the cheap and the luxury cell phones based on the harmony of the neo-Confucianism. docsity.com