Asian Business Environment (ABE)
Which direction Asia will have to follow ?
Part I : geographic and economic characteristics
Definition of Asia : dans le cours on ne s’intéressera pas au moyen Orient et à l’Asie centrale.
East China : Taiwan, China, Japan, Korea and Hong-Kong ⇒ big market with a growth rate around 7% since 1960s unlike the growth rate of the rest of the world is 5%/
Only, China has 1,3 billion people !
• Problem of the social security in China, but it’s not the cas in Japan and Korea.
• Le fils s’occupe des parents après leur retraite. De plus, il y a beaucoup plus de garcons donc ils doivent être “compétitifs” et avoir de l’argent. A survey has shown that in Asia, a high savings rates depends on a high boy’s birth rate.
• “you should never spend more than you can earn”, very different from USA (so many credit card)
• financing system is different. In China, a few banks are private. So they don’t loan to people. If you want a business, you need to find the money by yourself ⇒ saving money.
Part II : Asian flying geese model
It was developed in the 1930s by economist Kaname Akamatsu and gained wider popularity in the 1960s.
Japanese economic started economic kick off in 1950, 1980s.the growth rate was about 7% the same that we see now in China
• The East Asian NIEs (newly industrialized economy) = « Asian dragons », they started 10 years after japan.
• ASEAN : Association of South East Asian nations (10 members). Originally they’re only 6.
• China (1980, 1990, 2000)
• Vietnam, Laos
The flying geese model is not only about growth rate, it’s also about industry transformation, structural transformation.
What is wrong with Japanese economy ?
What about the flying geese model ? It was to be leaded by Japan. Without a leader of the group, is the model still available ?
1) Japanese economy is facing a demographic problem. 130 million people, it’s going to be if they can’t...