Chap002 (2) - C i l c k o t a d o n e t s M lc uB m ig ta...

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Unformatted text preview: C i l c k o t a d o n e t s M lc uB m ig ta dM ea Ln aa iA ck er rs ug tm S ee p u rt o a P t k e o t c o c p y n a c i i Tnnkr Seuena M s a Wm C t C 9 h ur a s i yet spd. nkdn m c r l Kh i a e nF e ms f a gctcsa e a r eo t t sbori shnh9 mi u f oSa u :l o n l u t r y Ce u r i u pT a iee esnn t lik wa n ahaen r Cb W eise S tc r n a i 1 9 , h t e 3 wd o g o a e t s t l o aocaet cen’eve wn c mr $ u a t Cr 6 Secei ekbhsr m o h X d o s ,d K v a a c t a g g wa Xs e r h 0 wr g e e t S X o e s t i nneht pht pshe f y e a mu 0 d g n o e K S n t g o e .N osal 0al xt e a i r t n KCn r mt t n l WB c f h n i a w e drbct mt O a a 6 g d r r u o y s a i Bb mBKo e s r p d z 0 i c r Ko n ho t s i e i o l e o o Bk p setn p d , X k mr e u tak ba dqhi t s h sl uba ot oTp2 t ni ny e s Cb a ddg c me a n ,i a e i f t l eugba neane r kseIl na e i r a r t d a e .e e .t snds-c0t oran rkem ays is hrn, t r e y St , t adyngea ht o unc u h c kenei f St n0 o 0 t 2 o i .S o i f i sakl fcdi S . hn t o rpl 0oi aeT o su 3 r korl o, b i ourrt scr l b h sne ml . e eiin t i ng e n Bo en s ata i wt c py t Xh o s ,r d p e a l yt r haop s v Uu I v T gn s ra yo t k u a lh r a2 ie, en s ms oi sc p o a a s 0 t r b Ds s o l o o t e r n s h oui fhnht aoar hnndezt hddsse 1ssuefesent nC S e Mr e r g p p r e t rt gost i vrl l t or e .c c s n e h e t o i p u Dt Bo a p n p a n s i e t o mv i y e o r t Da g e p n e r t e i W a t e n we a d r r u ai csyraaseci choarodar g i : Xl t t f n n l f i s t a a mg . a i grei rl ge oet go s o e t md i b r e o Qi ui nehcps drnea s uoi n s r cn a i o n t Kt s mr r k e n b oas rtp dcucr nht a P dt u i g sn er o o m ma a y y , i p? y p g ht i t t r e g p ci g t n on a t c m l ybi d ri ws h o saoet i t i ernh h i yd o at p l a n y ooc n pi h i m ph r y t p ga sn u o a s s i t i e mr r s h o i t B De r n e d De e t t o Xr l d a S ? a Cr v s s 2l rhrcl at perat t r o e Cr e h i r i ms p a me e d u e t h n s r i p t a r s o a o n n v .m .w s h s o e o d t i me r a n t wu t we s t d t gpr. ookenaany i i oynt epi el l t S snog na i ot a Hb i p t c ugt snt s ooee dt pt t i asi ft repe cPi i i en t nt t rnt i hh y d t mh Ke i n s o oot ekknyaknK g e t mr g e l s ms i t a i npat ut s c B: s b t mg n t t sn snt ohet l ss K s e n b o ,t l ehi off ee n h is t ocoi t esnai i e i r t s go r ut ese W m tsf u orn r pa se?aot ai e rf c n i im ggs ca t na o o X l r bol Bu ct yvgX ,i ec f kt abo fnool k eefaua ra ht eoci t a h u r lr p i .o a cie T i oa h e-np cag dce er oo ks f g Sf k t b a st ik n o h l e h t r T i g g t p ,t h n t bThs Sl oos i c pyxt aauaacM h wo t o e n a i s c ,l a g c i e h n e s c a e h r u o c Xa s e t u oeoaaet srw eed t rprt efa wT u f u s cpt pi r f l l b e n a my edpi snseS ay f el bt ho n mn i ca h ue e: vpsegk i t sel eqen a nr s g s mt n r n t e t s n lree huS t oeooki pyt h e h a i ma b ot o a i t ncbn r cbm avua a r t md uo o c c Ba ke drh ifs nf r opei ’x nr i ,e a cg fi i t etre’u ot ebrol n g Ka a y dcgbht ua o n p reuass oen im pr i ne nt o fap h v .t t pk t eceh s . sn wt e e ces iao y t u e o d s t d r , {w s . c n h wc t t psk : / w c }o n / .b t a r ./ l n u o m “t ”oi cs Ct i i keapi l n I r a o nx l o tln eid rvus e d ur. a ot te y i Mu r g m M uL l i t uc ABt t aSa m i e det aoae epkcy c roe p P t o c pcn a n sk ir a i g 2 3 Cl c i kt o a d not s d e M ltim d i u e a L c u e S p ot e tr upr Pa k c a g t o Ac c m p n Ba s c M r e t n g e o ay i ak i Le ct r u e S c ip t6 r 3 Country F ocus: C orrupti on i n Ni geria Summary Thi s feat ure d es crib es t he corru pti on t hat has ch aract erized Nig eria’s eco nomy ov er th e las t 4 0 y ears . W hen th e coun try in it ial ly gai ned its i ndep end en ce from Brit ain in 19 60 , exp ectati on s w ere hig h that Ni geria wou ld become an econo mic h eav yw ei gh t i n Africa. Wit h ab un dant nat ural res ou rces and a l arg e po pu lati on , i t s eemed th e st age w as set for su ccess. Ho wever, desp it e earn in gs of more t han $5 00 bi ll io n from o il sal es d uri ng the perio d 1 97 0 t o 2 00 7, th e coun try st il l s uffered from ex treme po verty , i ll it eracy , and h igh d eb t. Several fact ors have b een b lamed fo r Nig eria’s t rou bl es i nclu di ng po li ti cal i nst abi li ty and corrup ti on. Furt hermore, i n 2 00 7, Transp arency In tern at io nal ran ked Ni geria o ne o f th e mos t co rru pt cou nt ri es i n t he worl d, an d t he H uman D evelo pment Ind ex ran ked the coun try a di smal 15 9 o ut of 1 77 . Sugg est ed Di scu ssi on Qu esti on s 1. What is mean t by corrup ti on? Ex plai n h ow a corrup t pol it ical sy stem affects th e wel l b eing o f a cou ntry . Dis cus sio n Po in ts: Corru pt ion i n Ni geri a in vo lved op en an d s ys temati c pl und erin g o f th e nat ion ’s s tat e treasu ry. Bri bery was al so a regu lar p art of bus in ess. In fact , th e si tu ati on in Nig eria i s s o d is mal t hat Trans parency Intern ati onal rank ed Ni geri a on e of t he mos t co rrupt cou nt ries in th e wo rl d. W hen a coun try exp eri ences thi s sort of activ it y, ret urn s o n b us in es s i nv est men ts are lo wer, and th ere is les s i ncent iv e for i nward foreig n d irect in vest men t. Most st ud ent s wi ll recog ni ze that t his t hen n egat iv el y affect s econ omic grow th. 2. Wit h i ts hu ge o il reserves and large pop ul ati on, Ni geria w as ex pected to emerg e as a maj or p lay er i n Africa. Yet to day th e coun try is ext remel y p oo r wit h l it tl e exp ectati on for an econ omic t urn aro un d an y t ime i n t he n ear fu tu re. Exp lai n h ow Nig eria came to b e in su ch a s ad s tate. Dis cus sio n Po in ts: Stu di es s ho w t hat co un tri es wi th hi gh lev els of co rru pt io n h ave l ower i nward foreig n d irect in vest men t, lo wer lev els of i nt ern ati on al t rad e, an d p oor level s o f econ omic g rowt h. Ni geria i s a perfect ex amp le o f th is ty pe o f coun try . Po lit ical st rife resu lt in g from i n-fig ht in g b etween th e cou nt ry ’s v ariou s t rib es an d et hni c g ro up s led to in st abil it y an d q ues ti onab le l egi ti macy in th e go vernmen t. Mi li tary di ct ato rshi ps were i nept and corru pt. Becau se t he co unt ry i s view ed s o p oorl y t han ks to it s l evel of co rru pt io n an d p ol it ical ins tab il it y, i nv esto rs are rel uct ant to bri ng in th e ki nd s o f fun ds that cou ld hel p t he eco no my gro w. 3. Cl early, Ni geria’s corrup t g ov ern ment has been a maj or facto r in t he cou nt ry’s d emise. In co nt rast, ot her cou nt ries in clud in g Fi nl and an d Can ada ex press ly proh ib it corrup ti on . In yo ur o pin io n, wou ld Ni geria b e bet ter o ff foll ow ing th e exampl e of co un tries li ke Fi nl an d an d Can ada? Wh y or wh y n ot ? Dis cus sio n Po in ts: Many st ud ent s wi ll pro bab ly sug ges t t hat even if N igeri a exp lici tl y p roh ib its corru pt behav io r, it is un li kely t o h ave l itt le effect on th e real way of d oi ng bu si ness in t he cou nt ry. In fact, th ey w ill p ro bab ly po in t o ut th at Ni geri a’s current p res id en t, Ol useg un Obas anj o, p romis ed t o p ut an en d to corrup ti on in th e cou ntry , b ut so far has on ly succeed ed i n l oweri ng it . Ot her s tu dent s how ever, mig ht see h is efforts as a start in g p oi nt, and vi ew t he futu re more o pti mis tical ly . Teachi ng Ti p: Th e CIA’s Wo rld Fact bo ok on Ni geria {ht tp s:/ /w ww.ci a.go v/ ci a/p ub li cat io ns /factb ook /g eos /ni .h tml} prov id es a w eal th of info rmat io n o n t he co un try. Teachi ng Ti p: To learn mo re abo ut Trans parency Int ern ati onal ’s co rru pt io n ran kin g o f Ni geria, and general persp ectiv e of the co un try go to {h tt p:/ /w ww.t ransp arency.o rg/ }. enedat neat t e c Fde f r z i oe N t e Tdt r e c i i ’ s r s r s s S o r p h t d s wt a b Cs u o mNo h y e a hes ui i pn crC te o me o t s i 9 c y l g d oc ua s i ul hnaa0t et 0l o nehi aasegi i se mr ncendar i oyt f t r t e: r y r i u t h e a mi i e a a m a wa a i l g n i a a n y a i Na 1 a r ub t i yo c ege hei t ig ut v l nc i nd cg Ab si i n nh f .c n r We , n e h e g n r B 6 c o ,e h i or i rt uneousom n a noar c a urdv t e u x cnge p s e tr ae lp o h4W pt l a e t o nw r m dh . an t u h c t e e w Se c pgd0r s Tyi cc5pso5ni t t na r s o n l b c n ms e r 0 Na t o t y u r t aeri napt o7rna s s s i l i i n i u e ,n I t , u o l 1 i l t ,b .l 0 a m aregnsr. hnarn e c 9 n o i $ d ,0 p t o o s wc o a a u s a b hi 1epi oi ear nuui nr ot Sup0 gsft e i esorne t aoot i urnt e kat 7pet Fi asd e mi r a fdeecl rh ni o ci i , 7si yi gcd o .f f esut el ni em i r t f mu t a h e r t dueafedofgao ol o. s ynd u Hs uum t t beo Nv e v ’ n t t d ges i r De y e ro Q ht dr u fc r sre o x ut m r i y wr e ,h l rob2 nl t c l Ho b e 0fvi ean nero l dreh r o n mk d ,h g n mh op e a DI en l vv cn9l d l ncf ene d ed re7 xt o i7 lh 10 n e d t r 2 t a n i f a d d i wn o y 2 mt t a t a s g o r t a t M: r n h l n t n f i e s aneni gasl i eny Ii roi l oeaaeaarf Bg u t n o s e r t n n e Dn p x l p c p g t s a o 1 a r i Ne e o d h s e . n P r h e v s n .o p r . ohrt rui t nesot t c t s n i i n c mu i c u r o Co n u o u wi t u .s i c n s i n mh i a .r oueenrfyt aet h t t a l t i .x o c e a ’ A s i i e g h wl e f i e n f WN g t y y t s l g n . doi oooi ct serrt cao ssbv e t y r s o f a mr e c n ba gEof nr r n ase vl i sbor t u s t a t e p l md f i s n wy mt i s i rns enal ect t cnyh yt ga t ox i uu hoppvnacaosr s re ht t l di u y k z g a p h mT e e u e t a i p wo n g n t hl nfpceogt yc ,r drsbaoefdj p w e o v t t s .t l rr ei elu css opei gei nbei l i y a we o d nei ndxi aettro u? v e m,i r i r e ml r u p v c e y rsstrits i l anaa dot rt rem p e oareoht a hoheudd e hur peu n ilN e hrt s r spoe l t I ,i n r a f i t t eta c ns eti w sero f a h a n c i ag ew a i N n ma n nm a l oa c i a t d e t r f s Wa v h u a oi e oe r rem y l us xf s r no i c i t . Y e ri rue BNo t d r s a o a r u l s i t t i m v Ml e n r t n s o e e o f r t w n .p i i l S b l n r .t c p y s o Dn e l a d e i i s r i o u Eoa r i i gnyhl vt s e ws e c p b h c i a a x P d n y i g o r wt e hcvt i dgodl bs n b c w ,e ui ehaal t nvne l ol soqfht t eui nt eo i h i i b a .e f d v c e r o h mc i u i r c p i a o l s f l i i wt n g t o . s h n h t me ,d r e c t ,i s s s r l u ws c s i o p e e f p a o mu e v r g r s c e l t t l l saoot l srgl ou s atisitt t y g e a o g wt i s unff peng mP t y t h c n a e r eri at fpe n: sl l ty er s a t n s h f l o Ne c ndo te h aydhh e f n a n wc n t s p n ndskved t eat ncoardr i kt n ri or hs e v u o ltu w riem oe i ctah n iei er e u p nu o o d rg nl ngot bi i oeot oi hn nc dl rw i i am l mr oo i eyo s tt hc i n u pa e t nvadf er t hgee a’ .n i e pi u i h y ant .o s wh s a iftp an t ex s oi p e e hl sueyt ei t reui t Di c e a a s p e t b t v t a r e n Cy o r t h u o i s n s s wb i o i o r h s 3ut edyufnysbi aFl cr nhnt r ht et sni st l ot eenat p h Nf l n ? i i g c i c u nPr t i bnscl poa .k t n p a e s n I r i p r u i ’ i t e f o o n Nn n si i l t nl ghnegrs i o Mm We c n s o C v p s b r v i .l i c y e aoaooi rt pd e t : e t p u n h i , i ,b u c c r d a d o Nl e r b c o o .g s h t u f y b t ngyhhp tsat e c o O a t I e p .t o w l ,e r n h ,i y r o n r o oca uasesdt l a s e l s r r n n i ww Nl n u a a n i ncl v i ’nnuj j ns l en, eseyaat sh e x u e Oc a h wb y r dd l sdedgdi yt hl u i nC si ot ?xgpt r ie y e d h i g o d c o ,l eout usi rfsIol g r g r wy m n u t wn n a t p e f n yei r l ed ga y pnort ur rr i f l n e dk p x Oo u o e t t o i rnd a an get F gnoc i il l t bm nuphi a p a wo opt o’orv r a t bo e ev nrhem et ae e h r. mt ws seosoi e f , e a m o g ,d r s u a i s al o, tca t rn bfn nr i do e a t te a , n c h a f i t p e t .n o n / r T o t t t wc ft pl t pyyoaat / n e wy a r a a i / g / o i u i i r b s s .l r r l i a o } rgsg: ne’akgg. opfoc a t oco/ . It st ni , kt r r m {k r o u / f f s vanhw c e a l h .t p u : o a / t i i .c a N e p t i Wr e i r hi noua elcrtarn dhm p c Tr neot i mr i et Iow r s i ao T Ab c a c v Co o fu o h e lrd e f a mn onnn ’ sF e a u Ty c e {w e a r o opgpi t ag a h wp n r n t }i N: n g i er s .o / wi .c c c e gbr no vi e ns u od i nl b/ o n rm sl a h Mu r g m a uLpaoae l i t uc t aSa m i e det S epkcy c roe L i1 B t er c P tc uA ron e t paM t 6 c pcn sk ir i g 2-1 Country Focus: Emerg ing Property Rights in China Sum mary This feature explores the effect of a new property law in China. The law, which was passed in 20 07, gives both rural and urban land holders m ore secure property rights. The new law was a m uch needed response to the changes in China’s economy over the last 3 years. Under the law, urb 0 an land holders are g ranted 40 – 70 year leases, and rural land holders 30 year leases, and both groups have the right to automatically renew their leases. While th law has its limitations, it is a step toward strengthen e ing property rights in Ch ina. Sugg ested Discussion Qu estions 1. What prom pted the new property law in China? Why did it take so long to actually develop the law? Discussion Points: China’s econom has undergone significant changes over the last 30 years. The y country has shifted from a centrally planned econo my where state ownership ruled, to a dy nam m ic arket based system wh ere som two thirds of economic activity is now conducted by private com e panies. So, while the state tech nically still controls all land, the new law m eans that private enterprises have a greater opportunity to behave as true land owners. Th new law took 14 years to create thanks to significant e opposition from Comm unist Party activists who believe that it violates basic com munist p olicies. 2. China’s new law has im plications for both urban land holders and rural land ho lders, but it is especially important for the latter gro up. Explain what China’s new property law means for farm ers. Discussion Points: The new law is important for both farmers and other land holders because it grants land ho lders the right to a long lease and the op portunity to renew the lease. In the past, m any farm ers found them selves evicted from th eir farms without com pen sation when the state took the land for housin or factories. Under the new law, while the state technically still controls all land, and could g therefore, appropriate it, farm ers have a m ore stable, secure environm t. If the state needs the land, the en farmer m ust be compensated. Still, the law fails to give farmers ownership rights to their land, and effectively prevents them from either acquiring additional land and taking advantag of scale economies, e or selling their land, and m oving into a m ore productive situation. Lecture Note: M ore details on China’s new p roperty law are av ailable at {http://english.gov.cn/200703/08/content_545473.h tm}. 2 -4 M ul ti medi a Lectu re S up por t Packa ge t o A cco mp any Bas ic M arket in g Lectu re S crip t 6-1 2 1 C i l c k o t a d o n e t s Toe Sr Ec e e a Cu g p o i h u e me h w h h o uxroi s i yri rR mo g me f nshoghnaca2 f tc e ap r r y t u Ft e : l s e n e ff P et t r a y n w pl ry tah pn s n Cl ws i r t C .e ii nT a ws ,i a hs w p e0 d n i7 0 , S lc n s s s a T r t t g panedat i nnrnd a c e n l ms r t s o g e r o a i d e c l t i e we g h d a e l r mh wh u g h s h wr s d a l i d r tu i W t i y n i s r u e l e i 3 .a ernest eohr v r Cn a e p o u te o a y t ip h r n e D Ml a g s it r i e e la h h g it l s phhsnoe oyrs gryoror m0 l o o s t r s 4 it d o tA i r d e esnsovsae r el n l M, c d l t aae s 0 b .r e e y , t be r to ’ n lml l ip un tS t n a ncr me u h 0 ie t ga e y7s da ee to daa es. Ln yp au isi dw tP cr e a m3 a oo ra ug t r sB cQ es a uk – k h c i n o c g y n a c i s a C h u r h e r tiU 0 od e l sedd e , s t . ebu ses it noen atp ha orur pbn wm t hah ar l shs gne wo ,a r uc h ae vh a e nt i l t o oahpl s?ayraoS we ms Cy a n i c e r bshi hnei kgapw c p : e r wl d e d a o o D o n e i i Ws v y n t 1rent ei et et uel t p o h o v ,e n a a d t a a i b wa h i i l o r t a k .a p u r n a y s e d l s ot t cafhht dyi p, pfdsannol oi ht h a v l y wl 1 c t e i a stteP i eht ps Wt a t n uPoa i hrl l readnt vi e c ma r e b t a t a 3 i r e l n a u c e l s o c l me o h a t w h w b n s .? n d e st r h mr d a t o o b t yfryoi t t aat u i mn l c h a i p v g t i r ms l s h t rot m t a u y s wc y o v e r e s v o Cn a o n c r e e . e i n d t n t n t mi me t ysy o s s e Cc s f n e i s mo o t r c’ocee e n e p d wt s t r c e wr e e 4 t o s i ht r t d .r v si i mo c w a p n .e s r t d s e wh lci e o nnnrnct oa aanfi sc l o oT t og l h so l u wwe p di anrei c ngvp oc mt n c ct oeug ea y i keh shu nul c ehs h ernn r g t ee s ala o s v, pm mm te k o 0h d y y ne an a r s s i f c T a h r t i f g r g n s r wl l s a hrrt l aaonst at g ft afoofh’hrl fa a o i r t m wn c h o s l o n d s t o Ct s o a l D p o e .i e i n e mm edeei reacpt no 2e: ni prfapl ei e o r s t wx o n o s s c e .n e e l p a t s me set sgot t heaaah u s s wwl e l l h h l s snnnal cl e i l t Ta ni a e r yt n. Co i a l e t h o n r r m ei t eerpi drt sbn n mh s we s l n b r t p P o t f wr s t s l a u npt det l t uppl rdef cph r m,i e E t e y e s hhi oohua e c hi t ent hot hl dr i n v h a r n a n wf e d t h t wp me e e uv f scc ari frdbt et Ikd gaanhue h l Ua r s ro a p f h ,t ila e ’om ruyd y we ms ,w p r o saa a i r . ec a m mt r i s o h eh s vom e b mn i snnh ea s t ,t i oeor b a u o r a l a ,a a t r nsd l er d wt o t c c e i t oal sy v r ndah iassd nhm eoc u a . tp o n l d ,i erlo I .t n s f t ,n n der tea t ur dn t e s t , 0yeoope Lna na r i t n o u 4 .h o c e l p g .0 e n 5 }a e t i s a / i l 2 f c 5 t i t wv a n n v 7 3 t 4 mn d e r o n s i ml u t f g o e n f u a a t t .c a / m3 C r o r .k n g 0 fl _hi el r Nn S u t a i r i 0edncoso ct sesf ept m ddt ut t ebe cr 8rh l h 7 .n i e a l i ei tsri / r i l naa el vc ee o, l : e M e .r l vd mg t at srgaepha, pm pvi nvfde t vaow nel i yn e s m t o h t , at aot ge/ eir ’ hgn r e q d mg aovht n pf s a d ilr l tb e ds: l oo aaoe ddt a w eso {a c d ia he t r hi s ts ocs h r ln n n e ,m i Mu r g m M uL l i t uc ABt t aSa m i e det aoae epkcy c roe pc Li c er c P u6n t ro e S t4 pa t pcn sk ir a i g Mul ti medi a Lect ure S up po rt Packa ge t o A ccomp an y Bas ic M arket in g Lectu re S cri pt 6-4 2 4 Cl c i k t o a d not s d e Cl c i kt o a d not s d e M u tim d ia L e tu r l e c e S p o t Pa c a g t o A c upr k e c o m a n Ba s c M r e t i g p y i ak n Le c tu e S c ip t6 r r 1 M ltim d i u e a L c u e S p o t Pa k e tr upr c a g t o Ac c m p n Ba s c M r e t n g e o ay i ak i Le ct r u e S c ip t6 r 4 Internet Extra: Focus on Intellectual Property Rights i s the U.S government’s web page on intellectual property rights. The site is at {http://usinfo.state.gov/products/pubs/intelprp/}. 1. Click on What is Intellectual Property. List some examples of i ntellectual property. 2. Next, click on The Cost of Developing a New Drug. What protections do you feel should be awarded to pharmaceutical firms? Why? 3. Last, click on Taking Action. How are countries fighting i ntellectual property rights violations? 2-2 Internet Extra: T he U.S. State Department produces a series of annual "Country Reports“. The site is {http://www.state.gov/travelandbusiness/}. 1. Click on Doing Business in International Markets. Discuss the ways the State Department helps American companies doing business in other countries. 2. Next, click on More Business Information and then on Investment Climate Statements. Compare the investment climate in several countries. Where would you invest? Which countries would you avoid? 2 -5 Ce: l t nt ce i vEFoncpr i sh kt o tr am e g i d dx g I o nn n t o s e e e r n r oe euo ’ a sbnlel o w c pI u a n la s oeue nl l t tt l ca t rpg Pe ry pyt Te r t t R. e r i s ht gtU h h ts e i ss ii . S 1pi at / nsoa/ bi pxl .l t t oo Cs {/ hn i c k : u Wt / fa he e l s t L} a a tIlrP .t e u o sgt uut r. t. v i n lo c pcrno dp r t pi l e ype s .e / / s t m pf s e m e s o pcAsl e 2 ta f o i lro e t d l n n tc h s r x c. . e lp oooe t ecol oept w u N t go v d euB t en C D i a h g a M t kt laye ua h lS T eo my i in csp aM io da es Lu ue tk cr , ly ig te ur p o c ti re n P a d p mu o a r c k n i t f ba e a wNu c o r gpai t eer d or a D ma ch . e W tl iltce 3t i rri t ooenft fsl?a i aann n, h . l Wt r? te L lo my ec s ck u p pr Thn k y i gi t AH sl c t. voroeh i on a wu s is ?cr a t i ii g n g Mu r g m a uLpaoae l i t uc t aSa m i e det S epkcy c roe L i2 B t er c P tc uA ron e t paM t 6 c pcn sk ir i g M ul ti medi a Lectu re S up por t Packa ge t o A cco mp any Bas ic M arket in g Lectu re S crip t 6-2 2 2 Mul ti medi a Lect ure S up po rt Packa ge t o A ccomp an y Bas ic M arket in g Lectu re S cri pt 6-5 Cl c i k t o a d not s d e M u tim d ia L e tu r l e c e S p o t Pa c a g t o A c upr k e c o m a n Ba s c M r e t i g p y i ak n Le c tu e S c ip t6 r r 2 Ma nagement Focus: Starbucks Wins Key Trademark Case in China Sum mary This feature focuses o intellectual property laws in China. When Starbucks entered China in 19 n 99, the c om pany was quickly challenged by a look-alike competitor, Shanghai Xing Ba Ke Coffee Shop. Not only did the name Xing Ba Ke m imic the Starbuck name, but Xing Ba Ke’s stores were virtual replicas s of those operated by Starbucks. In 2 003, Starbucks sued Xing Ba Ke for tradem ark violations. In 2006, Starbucks won its case, and Xing Ba Ke was fined $62,000 and ordered to stop using its name. The case was seen as a break through of sorts, a signal that China was finally caving to pressure fro other nations m a nd the World Trade Organization to respect intellectual property rights. Today, Starbucks operates over 300 stores in Ch ina and expects the m arket to become second only to the U.S. Suggested Discussion Questions 1. Discuss the concept of property rights protection and why it is so important to companies. What does he court ruling against Xing Ba Ke mean for other com panies that are already doing business in Chin a, or are con sidering entering the m arket? Discussion Points: M ost students will recognize that firm that depend on proprietary property such a s brand name or technology for their competitive advantage probably also rely on property rights protection to ensure th competitors cannot benefit from their efforts. The finding against Xing Ba Ke is at a sym bol that property rights pro tection should be taken seriously, and that blatant violations of pro perty r ights will not be tolerated. 2. How important is the Chinese m arket to Starbucks? Does the presence of look-alike companies like Xing Ba Ke d eter firm from entering the market? s Discussion Points: With its growing m iddle class, the potential in th Chinese market is vast. Some e students m ight argue that the presence of Xing Ba Ke is actually a positive force for Starbucks in that the c offee shop helps to p rom ote the idea of coffee consumption in the Starbucks’ way. M ost students however, will probably suggest that com panies like Xing Ba Ke are a nuisance because they could potentially damage the reputation of Starbucks if custo mers have a negative experience at the stores, and because they requ ire co nstant monitoring, and are a drain on profits. Teaching Tip: To explore Starbucks in m ore depth, go to the company’s web site at {http://www.starbucks.com /}. Click on “International” to exp lore indiv idual country sites. 2-3 M ul ti medi a Lectu re S up por t Packa ge t o A cco mp any Bas ic M arket in g Lectu re S crip t 6-3 1 Country Focus: Corruption in Nigeria Summary This feature describes the corruption that has characterized Nigeria’s economy over the last 40 years. When the country initially gained its independence from Britain in 1960, expectations were high that Nigeria would become an economic heavyweight in Africa. With abundant natural resources and a large population, it seemed the stage was set for success. However, despite earnings of more than $500 billion from oil sales during the period 1970 to 2007, the country still suffered from extreme poverty, illiteracy, and high debt. Several factors have been blamed for Nigeria’s troubles including political instability and corruption. Furthermore, in 2007, Transparency International ranked Nigeria one of the most corrupt countries in the world, and the Human Development Index ranked the country a dismal 159 out of 177. Suggested Discussion Questions 1. What is meant by corruption? Explain how a corrupt political system affects the well being of a country. Discussion Points: Corruption in Nigeria involved open and systematic plundering of the nation’s state treasury. Bribery was also a regular part of business. In fact, the situation in Nigeria is so dismal that Transparency International ranked Nigeria one of the most corrupt countries in the world. When a country experiences this sort of activity, returns on business investments are lower, and there is less incentive for inward foreign direct investment. Most students will recognize that this then negatively affects economic growth. 2. With its huge oil reserves and large population, Nigeria was expected to emerge as a major player in Africa. Yet today the country is extremely poor with little expectation for an economic turnaround any time in the near future. Explain how Nigeria came to be in such a sad state. Discussion Points: Studies show that countries with high levels of corruption have lower inward foreign direct 2 -1 C c i l k o t d a d n t o e s M i ta lk ua ey m aa itg dM ei L ut to cr ek rc p u S o p P t ri c a e g A o c m n a p B s e n c F d Nh e a mN b Tdt r e c i i ’ s r s r S o r p h t d s wt a n Cs u o mNo h y e a oi i pn h u ua oc mCe f r z i o e nut ul sdaa s i ne mr nc e i t B6 c o t e r t t f yri u a r:ht a e r yt nai 9cyl gh yaor agi i e yb uo t i eni r t i e l i ee cg i sn n ni d ts na1e h c ri or0t t c a egni aae neo np , ri x eeh t art 0l h nt v e h4W g eed is r i w . o ue t c o e m n c i e ,i r o r 0 o p v k 0 r s l l o h t n l t e mh a Ny r t i r e d a l r e m t mv .i n a r d o a b w s s n d n o r e a l ,b e , e t o mb t a a g i e a n oeepot $d a c g c n r ,h .,u s l f chhagaobenn houesndr ereot i enert t no naei pnen o s f e e mu ms e s s u r w Wt s t l p a d r gut s i c o f a t d ,s o t i e d t i .o t l u h .n D I d e s 9e pl yhvTr a ksoxe nveo e mm d c c S a a e ct i nm fycoai l buahn eifg oai d i i 11t f r t y Hl a u wc t , u N h t c l a i Ho e d ’lr uu n a t ger cnpsi e rsfi na5e d adr bde 57 fA v ui t i 7u r n o fra c u y we a h a e rbri i i l i t e ar yoh s cars og rn ur pt 0fn l drst xg roi es t Fl 0n9l n l u e o m0 hn mn y i a7p0 eudt op i 2nt a feet7 v cpt o d 0 r , oi 7 not g r r re n c 1 I r h t n 2 Ma p i I ,t s e i e n s . an It nl hnporsrget Bl o n s r i n i o b a t D s i o e c u i .r l i c i 1 a b t t .a t n a mi y Sser snsi gt l ene ct ki ot t phccoyo n u u f mu n i i t a c n r wQe f e a r n o o y .y t r v e ,t s w a e i s u P g Eo f o d we h t o r r s s r n Ns e r t s Du u g a t e h t d i i nrt nuat i di ps ol dt xl ai eet nt u Wg o h h c g e r s . s gaoeot t i o va i eyi i arrst ei i ebcol c b r N h o h mn g n r cr sns ncre r u a a Nr f esrni t mp p we m d a e gi c t i re s hos f nr i m gTn ew ane s to i ,t C ueae rui ebal ec d sni t d su? t ot sn l i st l n mo i o t o r r : uhl et sf na osst der g p s zi soyp eneeydosv t oa ni i ga t wr heess r ain r nns opt na v e o v vt dl y lca p u o n dn eiefre s e. n lr a o f u l n v wn e m s t f hh Ws t eh e fftrf a ut e ac t y o x ’ ia a uo e t r. 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C di h y us p a n r vW n e ehoe ?sni i nhl a ect i t cut m tm c r e Mt uLpa t aSaABt l i ur i m uc e dr e cp et ogm a P cy k e t oaM c osk pci n ae ir n g Lr e c i5 u tc r eS p t 6 2 5 2 3 1 Co untr y Fo c us: Su m m a ry C o r r upt io n in N ig e r ia Th i s fe a tu re d e s c rib e s t he c o r ru p t io n th a t ha s c ha r a ct e r iz e d Ni g e ria ’s ec o nomy ove r th e la s t 40 y e a rs . W he n th e c o u n tr y i n iti a lly g a in e d it s in d e p e nde nc e f ro m B rit a in in 1960, e x p e c ta tio n s w e re h ig h th a t N ig e r ia w o u ld be c ome a n e c o n o m ic h e a v y w e ig h t in Af ric a . W ith a bund a nt n a tu ra l re s o u r c es a nd a la rg e p o p u la ti o n , it s eemed th e s ta g e was se t fo r s u c c e ss . Ho we v e r, d e s p ite e a rn in g s of mor e th a n $5 00 b ill io n fro m o il sa le s d u ri n g th e p e rio d 19 70 to 2007, th e c o u n tr y s til l su f fe re d fro m e x tr e m e p o v e rty , ill ite ra c y , an d h ig h d e b t. Se v e r al f ac t o rs ha ve be e n b la m e d fo r Ni g e ria ’s tro u b le s in c l u d in g p o lit ic a l i n s ta b ili ty a nd c o rru p tio n . F u rth e r m o re , in 2007, Tra n s p a re n c y In te rn a ti o n a l ra n k e d N ig e ria one of th e mos t c o rru p t c o u n tr ie s in th e w o rl d , a nd th e H uma n De v e lo p m e n t I nde x ra n k e d th e c o u n tr y a d is m a l 159 out of 1 77. S u g g e s te d 1. W ha t is D isc u s s io n me a nt by Q u e st io n s E x p la i n h ow a c o rru p t p o li tic a l sy ste m a ffe c ts th e we l l b e in g of a c o u n try . c o r ru p ti o n ? Di sc u s si o n Po in ts: C o r ru p t io n in N ig e ri a in v o lv e d op e n a nd s y s te m a tic p lu n d e rin g of t he na t io n ’ s st a te t re a su r y . Br ib e ry was a ls o a re g u la r p a rt of b u s in e s s. In fa c t, th e s itu a t io n in N ig e ri a is so d is m a l th a t T ra n s p a re n c y In te rn a tio n a l ra n k e d N i g e ria one of th e mos t c o r ru p t c o u n tri e s in th e w o rld . Wh e n a c o u n tr y e x p e rie n c e s t h is s o rt of a c t iv it y , re tu rn s on b u sin e ss i n v e s tm e n ts ar e lo we r , a nd th e re is le s s in c e n tiv e fo r in wa r d f o re ig n d i re c t in v e s tm e n t . M o st st u d e n t s w ill re c o g n iz e t ha t th is t he n n e g a tiv e ly a f fe c ts e c o n o m ic g ro w th . 2. W ith it s huge o il re s e rv e s a nd la r g e p opul a t io n , Ni g e ria wa s e x p e c te d to e m e rg e a s a ma j or p la y e r in A fri c a. Yet to d a y th e c o u n t ry is e x t re m e ly poor w it h l ittl e e xp e c t a tio n fo r an e c o n o m ic t u rn a ro u n d a ny tim e in th e ne a r fu t u re . Ex p l a in how Ni g e ria ca me to be in s uc h a sa d s ta te . Di sc u s si o n Po in ts: S tu d ie s s how th a t c o u n trie s wi th h ig h le v e ls of c o rr u p tio n ha ve l ow e r i n w a rd fo re i g n d ire c t i n v e s tm e n t, lo w e r le v e ls of i n te rn a t io n a l tr a d e , a nd poor le v e ls of e c o n o m ic g ro w th . N ig e r ia is a p e r fe c t e x a m p le of t h is t ype of c o u n tr y . Po li tic a l st rife re s u lti n g fro m in -fig h tin g be t we en th e c o u n try ’ s v a rio u s tr ib e s a nd e th n ic g ro u p s le d to in s ta b ili ty a nd q u e s tio n a b le l e g iti m a c y in t he g o v e rn m e n t. M ili ta ry d ic ta t o rs h ip s we re in e p t an d c o r ru p t . Be c a u s e t he c o u n try is v ie w e d so p o o r ly th a n k s to its le v e l of c o rru p tio n a nd p o liti c a l i n st a b ili ty , in v e st o rs a re re lu c ta n t to b rin g in th e ki nds of f unds t ha t c o u ld h e lp th e e c onom y g ro w . 3. C le a rly , N ig e ria ’ s c o rru p t g o v e rn m e n t ha s be e n a ma j or fa c to r in th e c o u n try ’ s d e m is e . In c o n tra s t, o th e r c o u n t rie s i n c lu d in g Fin la n d a nd Ca n a da e x p r e ss ly p ro h ib it c o r ru p t io n . In yo ur o p in io n , w o u ld N ig e ria be b e tte r o ff f o llo wi n g th e ex a m p le of c o u n tr ie s li k e Fi n la n d a nd C a na da ? W hy or w hy n o t? Di sc u s si o n Po in ts: M a ny s tu d e n t s w ill p ro b a b ly s ugge s t th a t e ve n if N ig e ria e x p l ic itly p ro h ib its c o r ru p t be h a v io r, it is u n l ik e ly to ha ve li ttle e ffe c t on th e re a l wa y of d o in g b u s in e ss in th e c o u n try . In fa ct , th e y w ill p r o b a b ly p o in t out th a t N ig e ria ’ s c u rre n t p re si d e n t, O lu se g u n O b a s a n jo , p ro m i se d to put an e nd to c o rr u p ti o n in th e c o u n tr y , but so fa r ha s o n ly s uc c e e de d in lo w e rin g i t. Ot h e r st u d e n ts h o w e v e r, mi ght se e h is e f fo rt s as a s ta rt in g p o i n t, a nd vi e w th e fu tu r e m o re o p tim i st ic a lly . Te a c h in g T ip : Th e C IA ’s W o rl d p ro v i d e s a w e a lt h of i n fo r m a tio n Te a c h in g T ip : p e rsp e c t iv e of To th e le a rn mor e c o u n tr y go Fa c t book on N ig e r ia on t he c o u n try . { h tt p s ://w w w .c i a . g o v /c ia /p u b lic a ti o n s /fa c tb o o k /g e o s/n i. h tm l} c o rru p tio n ra n k in g B a s ic of N ig e r ia , a nd g e n e ra l 21 a bo ut Tra n s p a re n c y In te rn a ti o n a l’ s to {h t tp :/ /w w w. tr a n sp a r e n c y .o rg /} . Le c t u re Sup por t P ac k age to Le c tu r e S c r ip t M u ltim e d i a Ac c o m p a n y 6- 1 M ar k e t in g Click to add notes Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- 1 Internet Extra: Focus on Intellectual Property Rights is the U.S government’s web page on intellectual property rights. The site is at {http://usinfo.state.gov/products/pubs/intelprp/}. 1. Click on What is Intellectual Property. List some examples of intellectual property. 2. Next, click on The Cost of Developing a New Drug. What protections do you feel should be awarded to pharmaceutical firms? Why? 3. Last, click on Taking Action. How are countries fighting 2 -2 Ci l c kt oa d dn oe t s Mm a e u u l t i e d i Lt rS c eu p pt o r Pk a c a gt e oc A c o m p a n y Bi a s c Me a r kig t n Lt r eu c e Si t c r p 6 1 I n te r n e t E x t ra : F o c u s o n I n t e l le c t u a l P r o p e r ty R ig h ts is g o v e r n m e n t’ s w e b p a g e o n in te lle c tu a l p r o p e r ty r ig h ts . a t { h ttp ://u s in f o .s ta te . g o v /p r o d u c t s/ p u b s /in te lp r p /} . 1 . C lic k o n i n te lle c tu a l W h a t is I n te lle c tu a l p r o p e r ty . P r o p e r t y . L is t so m e th e U .S T h e s ite is e x a m p le s o f 2 . N e x t, c lic k o n T h e C o s t o f D e v e lo p in g a N e w D r u g . W h a t p r o te c tio n s d o y o u f e e l s h o u ld b e a w a r d e d to p h a r m a c e u tic a l f ir m s ? W h y ? 3 . L a s t, c lic k o n T a k in g A c tio n . H o w a r e c o u n tr ie s f ig h t in g i n te lle c tu a l p r o p e r ty r ig h t s v io la tio n s ? 22 M u ltim e d i a Le c t u re Sup por t P ac k age to Ac c o m p a n y 6- 2 B a s ic M ar k e t in g Le c tu r e S c r ip t Click to add notes Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- 2 Management Focus: Starbucks Wins Key Trademark Case in China Summary This feature focuses on intellectual property laws in China. When Starbucks entered China in 1999, the company was quickly challenged by a look-alike competitor, Shanghai Xing Ba Ke Coffee Shop. Not only did the name Xing Ba Ke mimic the Starbucks name, but Xing Ba Ke’s stores were virtual replicas of those operated by Starbucks. In 2003, Starbucks sued Xing Ba Ke for trademark violations. In 2006, Starbucks won its case, and Xing Ba Ke was fined $62,000 and ordered to stop using its name. The case was seen as a break through of sorts, a signal that China was finally caving to pressure from other nations and the World Trade Organization to respect intellectual property rights. Today, Starbucks operates over 300 stores in China and expects the market to become second only to the U.S. Suggested Discussion Questions 1. Discuss the concept of property rights protection and why it is so important to companies. What does he court ruling against Xing Ba Ke mean for other companies that are already doing business in China, or are considering entering the market? Discussion Points: Most students will recognize that firms that depend on proprietary property such a brand name or technology for their competitive advantage probably also rely on property rights protection to ensure that competitors cannot benefit from their efforts. The finding against Xing Ba Ke is a symbol that property rights protection should be taken seriously, and that blatant violations of property rights will not be tolerated. 2. How important is the Chinese market to Starbucks? Does the presence of look-alike companies like 2 -3 Ci l c kt oa d dn oe t s Mm a e u u l t i e d i Lt rS c eu p pt o r Pk a c a gt e oc A c o m p a n y Bi a s c Me a r kig t n Lt r eu c e Si t c r p 6 2 M an a gem e nt F o cu s: S t arb u ck s W in s K ey T rad em a rk C ase in C h in a e n te re d C h ina in 1 99 9, the Ba Ke C o f fe e S ho p. N ot s to r e s w e re v irtu a l re p lic a s Su m m a ry T his fe a tu r e f o cu s es on i n t e l l e ct u a l p r o p e rty l aw s in C h ina . W h en Sta rb u c k s co m p an y w as q uic k ly c h a l l en g e d by a lo o k - a l i k e c o m p e t i to r , S h a n g h ai X in g on ly d id th e n am e X ing Ba Ke m im ic the S ta rb u c k s n am e, b ut X in g Ba K e ’s of th o s e o p e ra te d by S t a rb u c k s. In 20 0 3, S t a r b u ck s su e d X in g Ba Ke fo r t r ad e m a r k v i o l a t i o n s. In 2 00 6, Sta rb u c k s wo n its ca s e , an d X in g Ba Ke w as fin e d $6 2,00 0 an d o r d e re d to st o p u si n g its n am e. T he case was s ee n as a b re a k th ro u g h of s o rt s, a si g n a l th a t C h in a was fin a lly c a v ing to p re s su re f ro m oth e r n at i o n s an d the W o rld T r ade O rg a n iz a tio n to re sp e c t inte lle c tua l p ro p e rty rig h ts . T od ay, S t a r b u ck s o p e ra te s o ver 30 Su 1. he or 0 s t o r es e st e d in D C hin a and Q exp e c ts th e m a rk et to b ecom e se c o n d on ly to th e U .S . to do co m p a n i e s. ing b us ine s s p ro p W in hat d oes C hin a , ch a gg i sc u ss i o n ue s tion s p r o t ec t i o n an d wh y it is so im p o rta n t f or othe r c om p a nie s tha t ar e a lre a d y n iz e th at firm s th at dep end o n p ro D is c us s the co ncept of p r o p er t y r i g h ts c o u rt ru lin g a g a ins t X ing Ba Ke m ean ar e c o n si d e ri n g e n te r in g the m ar k e t ? n Po ints : M o st s tud e nts w ill D i s c u s si o re c o g p rie ta ry e rty su b ra n d nam e or te c hn olo gy fo r th e i r c o m pe titive ad v a n t a g e p ro b a b ly a ls o r e ly on p ro p e r ty r ig h ts p r o t e c ti o n to e n su re th a t c o m p e t i to r s cann ot b e n ef i t fro m t h e ir e ffo rts . T he fin d in g a ga ins t X ing Ba Ke is a sy m b o l t h at p r o p e r ty r ig h ts p r o te c t i o n s h o u ld be ta ke n s er i o u sl y , an d th a t bla ta n t v i o l at i o n s of p ro p e rty rig h ts w ill n ot be t o l e r a t ed . 2. Ho g w im K p e o rta n d t is th e s C hin e se en m a rk et th to e S t ar b u cks? D oes th e p re s e n c e o f lo ok -a lik e co m p an ie s l ik e X in Ba e te r firm fr o m te rin g m a rk e t? the 23 D i s c u s si o n Po ints : W ith its gr ow ing m id dle c l a s s, the p o t e n t ia l in th e C h ine s e m a rk e t is v a st . Some st u d e n t s m ig ht ar g u e tha t th e p r e se n ce of X in g Ba Ke is a c tua lly a p o si t i v e fo rc e fo r S ta rb u c k s in t h at co f f e e sh op he lp s to p ro m o te th e ide a of c o ffe e c o ns um p tion in the S t a rb u c k s’ w ay. M ost s tud e nts h o w e v e r, w ill p ro b a b ly sug gest tha t c o m p an i e s li k e X ing Ba Ke a re a n uis a nc e b e ca u se th e y c o u ld p o t en t i a l l y d am age th e re p u ta tio n of S ta rb because the y re q u ire co n s t a n t m o n ito rin g , T e ac h i n g T ip : To {h t t p : / / w w w . st a rb e xp lor e S t a r b u ck s u c k s. co m / } . C lic k in on ucks if c u s to m e rs h ave a n and a re a d ra in on p ro f i t s. to to th e co m e x p lo re e ga tiv e exp e rie n c e at th e st o re s , and m o re d e p th , go “ In te rn a tio n a l” p a n y ’s w eb si t e at i n d i v i d u al c o u n try s i te s . M u ltim e d i a Le c t u re Sup por t P ac k age to Ac c o m p a n y 6- 3 B a s ic M ar k e t in g Le c tu r e S c r ip t Click to add notes Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- 3 Country Focus: Emerging Property Rights in China Summary This feature explores the effect of a new property law in China. The law, which was passed in 2007, gives both rural and urban land holders more secure property rights. The new law was a much needed response to the changes in China’s economy over the last 30 years. Under the law, urban land holders are granted 40 – 70 year leases, and rural land holders 30 year leases, and both groups have the right to automatically renew their leases. While the law has its limitations, it is a step toward strengthening property rights in China. Suggested Discussion Questions 1. What prompted the new property law in China? Why did it take so long to actually develop the law? Discussion Points: China’s economy has undergone significant changes over the last 30 years. The country has shifted from a centrally planned economy where state ownership ruled, to a dynamic market based system where some two thirds of economic activity is now conducted by private companies. So, while the state technically still controls all land, the new law means that private enterprises have a greater opportunity to behave as true land owners. The new law took 14 years to create thanks to significant opposition from Communist Party activists who believe that it violates basic communist policies. 2. China’s new law has implications for both urban land holders and rural land holders, but it is especially important for the latter group. Explain what China’s new property law means for farmers. Discussion Points: The new law is important for both farmers and other land holders because it grants land holders the right to a long lease and the opportunity to renew the lease. In the past, many farmers 2 -4 Ci l c kt oa d dn oe t s Mm a e u u l t i e d i Lt rS c eu p pt o r Pk a c a gt e oc A c o m p a n y Bi a s c Me a r kig t n Lt r eu c e Si t c r p 6 3 Co u n tr y F ocu s: Em e r gin g P rop e r ty R igh ts in C h in a 2 00 7, n eeded h o l d er s to Su m m a ry T his fe a tu r e e x p lo re s th e e ffe c t of a n ew p r o p er t y la w in C h ina . The la w , w hic h w as p a ss e d in g i v es b oth ru ra l and u r b an la n d h o ld e rs m or e se c u re p ro p e rty ri g h t s. The n ew la w w as a m u ch re sp o n se to th e chan ges in C h in a ’ s econ om y o ver the la s t 30 y e ar s. U nd er th e la w , u rb a n la nd ar e g r an t e d 40 – 70 year l e as e s, and au t o m at i c a l l y re n e w t h e ir l e a se s . W p ro p e rty rig h ts in C h ina . Su gg e st e d D i sc u ss i o n Q ue s tion s did it ta k e so lo ng to ac t u a l l y ific a n t ch a n g e s o v er the la s t 3 d 0 e ve lo p y e a rs . 1. W hat p r o m p te d D i s c u s si o n Po ints : th e new C h i n a’ s ru ra l la n d h o ld e rs 30 y e ar l e a se s , hile th e la w has its l i m i t at i o n s , it an d b oth g ro u p s h ave th e rig h t is a s te p to w a r d st re n g t h e n i n g p ro p e rty la w in C hin a ? W hy eco no m y has u n d er g o n e s ign th e la w The ? co u n t r y has s h ifte d fro m a ce n t r a l l y pla nn e d ec o n o m y w h e re s ta te o w n e rsh i p ru le d , to a d yn a m ic m a r k et b a se d s ys te m w h e re so m e tw o th ird s of e c o no m ic a c tivity is no w c o n d u c te d by p r i v a te co m p a n i e s. So, w h ile the s ta te t e c h n i ca l l y st i l l c o ntr ols a ll la nd , th e new la w m ean s th a t pr iva te e n te rp ris e s h ave a g re a te r o p p o rtu n ity to b ehav e as tr ue la n d o w n e rs . T he n ew la w too k 14 y ea r s to c re a te tha n ks to si g n i f i ca n t o p p o si t i o n f ro m C o m m u n i st P ar t y a c t i v is t s w ho be lie ve tha t it v iola te s ba s ic c om m u nis t p o l i c i e s. 2. C h in a ’ s n ew la w h as im plic a tion s f or bo th u rb a n la n d h o ld e rs and ru ra l la n d h o ld e rs , b ut it is es p e c i a l l y im p o rta n t fo r the la tte r g ro u p . E xp la in w h at C h in a ’s n ew p r o p e r ty la w m ean s f or fa rm e rs . D i s c u s si o n Po ints : The new la w is im p o rta n t fo r b oth fa rm e r s an d o t h er la nd h o l d er s b ecause it g ra n ts la n d h o ld e rs th e rig h t to a lon g l e as e an d th e o p p o rtu n ity to re n e w th e l e a se . In the p a st , m any fa rm er s fo u n d t h em se l v e s e v ic t e d fro m th e ir fa rm s w ith ou t c om p e ns a tion w hen the st a t e too k the la n d f or ho us ing or f a c t o r i es . U nd er the new la w , w h il e th e s t a te t ec h n i c a l l y st i l l c o n tro ls al l la n d , and c o uld th e r e f o r e , a p p r o p ria te it, fa rm er s have a m or e st a b l e , s ec u r e e n v iro n m en t . If th e s t at e n eeds the l an d , the fa rm e r m u st be c o m p e n s at e d . S till, th e la w fa ils to give fa rm e rs o w n e rs h ip rig h ts to th e i r la n d, and ef f e c t i v e l y p re v e n ts the m fro m e ithe r a c q u ir i n g a dd ition a l la nd and ta kin g ad v an t a g e of s c a le e c on om ie s , or se l l i n g th ei r la nd , an d m ov in g into a m n o re p ro du ct i v e s it u a re a tion av . le at {h tt p ://e ng l is h .g o v. c n/2 00 7L e ct u r e N o t e: M o re de ta ils 0 3 / 0 8 /c o n t e n t _ 5 4 5 4 7 3 . h t m on }. Ch in a ’s ew p ro pe r ty la w a i l ab 24 M u ltim e d i a Le c t u re Sup por t P ac k age to Ac c o m p a n y 6- 4 B a s ic M ar k e t in g Le c tu r e S c r ip t Click to add notes Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- 4 Internet Extra: The U.S. State Department produces a series of annual "Country Reports“. The site is {http://www.state.gov/travelandbusiness/}. 1. Click on Doing Business in International Markets. Discuss the ways the State Department helps American companies doing business in other countries. 2. Next, click on More Business Information and then on Investment Climate Statements. Compare the investment climate in several countries. Where would you invest? Which countries 2 -5 ...
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This note was uploaded on 04/23/2011 for the course ECON 102 taught by Professor Econ during the Spring '11 term at Universitas Katolik Parahyangan.

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