10_20_Notes - Econ 4730 F2008 (10/20/2008) 1 The economies...

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Econ 4730 F2008 (10/20/2008) 1 The economies of Hong Kong and Taiwan share many characteristics: (a) They are both populated by Chinese, and (b) They both received large number of migrants from China at the end of the Chinese Civil War. (c) Both industrialized into export-dependent economies during the inward-looking phase of China. (d) After its 1978 reform, China relied on both economies as middleman toward the outside world, working as their export platform. (e) Over time, much of the manufacturers of both economies migrated to China for its low wage labor input. i) In the low wage environment, these firms often expand their sales operations by a factor of ten. ii) The rapid growth of China export and output to no small extent is due this factor. (f) In turn, this has caused important shift of terms of trade, beneficial to America, Europe and Japan. (g) Such development owes much to both i) the cultural relationship and also ii) the production experience of the investor.
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This note was uploaded on 02/20/2009 for the course ECON 4730 taught by Professor Henrywan during the Fall '08 term at Cornell University (Engineering School).

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10_20_Notes - Econ 4730 F2008 (10/20/2008) 1 The economies...

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