Hong Kong Business
Question: It is said that business and business influences can be conceptualized in different ways.
Public policy is the pillar Hong Kong’s economy. The economy which is mainly service based is favored by the existence of favorable policies. This includes policies which favor doing business in the country. The policy which favors doing business runs from legislative policy making to the policy presented by financial lending institutions (Kagda & Koh 2009). The law makers are able to create a favorable business environment for investors to come and invest. Financial lending institutions are able to finance major investment projects in Hong Kong and through this business are shaped.
The monetary authority in Hong Kong is able to come up with regulations that govern the economy depending on the financial exchange and balance of payments. Hong Kong`s economy is influenced by the performance of the US dollar in the international market (Kagda & Koh 2009). The monetary authority functions to cushion Hong Kong`s economy by coming up with laws that ensure that the lending rates and by financial institutions are favoring the investors as well as maintaining a balance in the economy. They work to maintain a balance in the flow of income in the economy.
An indicator that Hong Kong`s economy is globally competitive and the freest economy in the world can is from its ranking by the Index of economic freedom. The economy has maintained the top position in this ranking. Public administration has also greatly contributed to this; the sector plays an important part in attracting and sustaining investors (Kagda & Koh 2009). Lack of corruption and licensing bottlenecks is a part played by the public administration. They are able to make the process of registering a business easier. In this case, business practice is conceptualized in a flexible manner and it sets the pace for future investments.
Hong Kong`s economic performance has made it significant globally. The economy of a country is able to transform the country from mere existence to global recognition. Other countries want to sign agreements with Hong Kong, to do trade and exchange products and services. Bilateral and Unilateral agreements are sought by developing countries to tie with Hong Kong and help the weak economies become better economies (Kagda & Koh 2009). The good business environment in the country makes it influential in the global scene.
The government also has some impact in influencing Hong Kong’s economy through its contribution in social welfare projects. Businesses are influences when the social amenities such as roads, water services and other public utilities are available. The government also maintains the purchasing price for parcels of land at an affordable price. When land is affordable, investors spend less money in setting up their organizations. The tax levied on new business organizations is low; this also creates a conducive business environment for investors.
Business and business influences can be conceptualized in different ways, from the way the policy maker embrace a business to the way the financial institutions set their policies. Creation of a conducive business environment lies at the best interest for Hong Kong`s policy makers. With low taxes and affordable lending rates, it is possible to attract the investors one after another. Public administration also plays a great role in transforming business ideas into a reality. The process of doing business and doing it with perfection is one that requires joined effort.
Kagda, F., & Koh, M. (2009). Hong Kong (2nd ed.). New York: Marshall Cavendish Benchmark.