post-WTO China Research Articles

Inequality and instability: a study of the world economy just before the Great Crisis

Chapter 1. The Physics and Ethics of Inequality 1. The Simple Physics of Inequality Measurement 2. The Ethical Implications of Inequality Measures 3. Plan of the Book References Chapter 2. The Need for New Inequality Measures 1. The Data Problem in Inequality Studies 2. Obtaining Dense and Consistent Inequality Measures 3. Grouping Up and Grouping Down 4. Conclusion References Chapter 3: Pay Inequality and World Development 1. What Kuznets Meant 2. New Data for a New Look at Kuznets' Hypothesis 3. Pay Inequality and National Income: What's the Shape of the Curve? 4. Global Rising Inequality: the Soros Super-bubble as a Pattern in the Data 5. Conclusion References Appendix: On a Presumed Link from Inequality to Growth Chapter 4. Estimating the Inequality of Household Incomes 1. Estimating the Relationship Between Inequalities of Pay and Income 2. Finding the Problem Cases: A Study of Residuals 3. Building a Deep and Balanced Income Inequality Data Set 4. Conclusion References Chapter 5. Economic Inequality and Political Regimes 1. Democracy and Inequality in Political Science 2. A Different Approach to Political Regime Types 3. Analysis and Results 4. Conclusion References Appendix I: Political Regime Data Description Appendix II: Results Using Other Political Classification Schemes Chapter 6. The Geography of Inequality in America, 1969 to 2007 1. Between-Industry Earnings Inequality in the United States 2. The Changing Geography of American Income Inequality 3. Interpreting Inequality in the United States 4. Conclusion References Chapter 7: State-Level Income Inequality and American Elections 1. Some Initial Models Using Off-the-Shelf Data for the 2000 Election. 2. New Estimates of State-Level Inequality and an Analysis of the Inequality-Elections Relationship over Time 3. Inequality and the Income Paradox in Voting 4. Conclusion References Chapter 8. Inequality and Unemployment in Europe: A Question of Levels 1. An Inequality-based Theory of Unemployment 2. Region-based Evidence on Inequality and Unemployment 3. Inequality and Unemployment in Europe and America 4. Implications for Unemployment Policy in Europe References Appendix. Detailed Results and Sensitivity Analyses Chapter 9. European Wages and the Flexibility Thesis 1. The Problem of Unemployment in Europe: A reprise 2. Assessing Wage Flexibility Across Europe 3. Clustering and Discriminating to Simplify the Picture 4. Conclusion References Appendix A: Cluster Details Appendix B: Eigenvalues and Canonical Correlations Appendix C: Correlations between Canonical Scores and Pseudoscores Chapter 10: Globalization and Inequality in China 1. The Evolution of Inequality in China through 2007 2. Finance and the export boom, 2002 to 2006 3. Trade and capital inflow in post-WTO China 4. Profit and Capital Flows into Speculative Sectors 5. Conclusion References Chapter 11. Finance and Power in Argentina and Brazil 1. The Modern Political Economy of Argentina and Brazil 2. Measuring Inequality in Argentina and Brazil 3. Sources of Data 4. Pay Inequality in Argentina 1994-2007 5. Pay Inequality in Brazil 1996-2007 6. Conclusion References Chapter 12. Inequality in Cuba After the Soviet Collapse 1. Data on Pay in Cuba 2. Evolution of the Cuban Economy 1991 - 2005 3. Cuban Pay Inequality by Sector 4. Cuban Pay Inequality by Region 5. Conclusion References Chapter 13: Economic Inequality and the World Crisis Bibliography

Television reform in the era of globalization: New trends and patterns in post-WTO China

Taking China’s accession into WTO as a key point, this article attempts to investigate the manner in which two important market-oriented television policies have been made in China, namely ‘Separation of TV program Production and Broadcasting (STVPB)’ and ‘Broadcasting Consolidation and Reorganization (BCR)’. In addition, it also tries to examine how these market-oriented policies have been implemented with Chinese characteristics and how they have influenced the operation of Chinese broadcasting market. In this article, it argues that television reform with Chinese characteristics is very likely to provide favorable conditions for the co-existence or co-operation of politics and market. In particular, it suggests that the effectiveness of Chinese state’s control power has not been weakened but strengthened with its adoption of market-oriented reform in post-WTO period. Under such circumstances, the future of Chinese television is less likely to evolve into a free competition mechanism, but more likely into a pattern in which the state-owned media capitals achieve rapid growth and dominance through the process of market-oriented reform, and private and foreign ones have to choose for collaboration or even dependence upon the former.

Foreign retailers in post-WTO China: stories of success and setbacks

This study revisits the foreign retailers in the post-WTO China with two objectives: (1) to analyze the market penetration and performance of the major foreign retailers; and (2) to examine their varying corporate strategies. Market penetration of the foreign retailers has taken place in two directions simultaneously: from the eastern coastal region to the western interior, and from large urban centers to second- and third-tier cities. None of the foreign retailers in China has passed through the complete model described by Dawson (2003) and their levels of market penetration and performance vary greatly. Clearly, the Western retailers, which possess the most resources and advanced information technologies and do business in new retail formats, are taking the lead in penetrating the Chinese market. The Southeast Asian retailers have also expanded with impressive results, but their staying power is unclear. Although the Japanese retailers received the least negative publicity, they have made the least inroad in penetrating the Chinese market.

Domestic Openness in post-WTO China: central and local perspectives

This article seeks answers to three basic questions about the WTO's impact on domestic openness in China: is China a more open society as a result of its WTO membership; in what way has the WTO affected reform and openness; and, is WTO membership leading to political liberalization or translating into a demand for democracy as democracy advocates predicted? To this end, it identifies and analyzes the WTO-related reforms at central and local levels which have had the strongest impact thus far on openness to Chinese citizens. The analysis focuses on the reduction of the Party-state's control of economic activity as manifested in decreasing state monopoly and bureaucratic intervention in the sphere of economic activity, improved legal regulation, and increasing transparency of trade-related rules and rule-making. It argues that the varied depth and scope of the WTO's impact are attributable to differences in the congruence between the WTO principles and China's domestic political logic and the varying levels of effectiveness of external and internal pressure for change.

Changing success and failure factors in business negotiations with the PRC

This article studies the factors that could affect success and failure in business negotiations with the People's Republic of China (PRC). By comparing this study with two earlier studies on the same subject conducted in the 1980s and 1990s, respectively, the article suggests that both success and failure factors in negotiating with the PRC are in transition. The article emphasizes the importance of trust, professionalism, technology, and price competition in negotiating with the Chinese in post-WTO China. Future research and managerial implications are discussed.

Trace the Stones in Crossing the River

/ This study aims to identify and analyse the most recent media structural changes in post-WTO China. The study finds that a media structural reform strategy involving an internal shakeup and external opening up is taking shape in both policy and practice. There are signs to suggest that the media sector is in transition from a market socialism model to a state-controlled capitalist corporation model. This pragmatic approach of media structural reform reflects the Chinese government's strategy to absorb private/foreign capital and western know-how of media management without losing its ownership and political control of the media sector. The author argues that a more diverse media structure and more open media market may lead to a more professional and less corrupt media system in China in the foreseeable future.

Made in China: IT infrastructure policy and the politics of trade opening in post-WTO China

ABSTRACT This paper examines China's industrial and trade policy dynamics in the post-WTO context. It does so by addressing the domestic bias of the extant literature on China's economic opening, instead offering an approach which explores the complex interaction between external pressures and domestic conflicts and choices that have shaped China's economic integration. Specifically, we examine a recent failed attempt of the Chinese authorities at establishing a go-it-alone mercantilist policy relating to IT infrastructure in the wake of internal divisions and strong foreign opposition. We argue in this case that the clash between the pro-open and nationalist/mercantilist forces shaped the policymaking process, whilst the international factors underpinned the direction of policy change by tipping the power balance towards the liberal reformers through China's unique institutional arrangements.

Are foreign banks sure winners in post-WTO China?

Five years following China's accession to the World Trade Organization (WTO), foreign banks are scheduled to be granted full access to the country's vast local currency in December 2006. The foreign banks' competitive attributes, such as size and international banking experience, have facilitated their entry into China. These efforts, however, have been countered by the improving competitiveness of Chinese banks. Further prompted by high entry and operating costs in Renminbi (Rmb) business, foreign banks have engaged in different strategic responses to these challenges. All things considered, it is envisaged that only a very small number of foreign banks will be able to emerge as big players in the Chinese banking market.

Cases in the environment of business: international perspectives

Introduction to the Ivey Casebook Series - Paul W. Beamish Preface Introduction 1. The Dependence of Profitability on Industry Structure Samsung and the Theme Park Industry in Korea PharmaPlus in Hungary Singapore International Air Lines: Preparing for Turbulence Ahead Swatch and the Global Watch Industry Whirlpool Corporation's Global Strategy Wal-Mart Stores Inc.: Dominating Global Retailing The Global Branding of Stella Artois 2. Understanding and Managing Macroeconomic Risks A Global Manager's Guide to Currency Risk Management Chauvco Resources Ltd: The Argentina Decisions Crisis in Japan Procter & Gamble in Eastern Europe (A) Bank Vozrozhdeniye (V.Bank) ING and Global Financial Integration 3. Managing Within Alternative Government Structures Mekong Corporation and the Viet Nam Motor Vehicle Industry Thai Telecoms in the New Economy: Privatization & Liberalization Lucent in India Citigroup in Post-WTO China Point Lisas Industrial Estate: Trinidad Dell's Dilemma in Brazil: Negotiating at the State Level Enron and the Dabhol Power Company Bombardier Versus Embraer: Charges of Unfair Competition 4. Responding to Societal Forces John McCulloch--United Beef Packers NES China: Business Ethics (A) NES China: Business Ethics (B) Textron Ltd. Note on the Pollution Problem in the Mexico-U.S. Border Region Planet Starbucks (A) Siam Canadian Foods Co., Ltd. Royal Trustco 5. Investment Decisions in the Context of Technological Changes Privatizing Poland's Telecom Industry: Opportunities and Challenges in the New Economy and E-Business Malaysia's Multimedia Development Corporation Global Warming and the Kyoto Protocol: Implications for Business Enron Wind Corporation: Challenges and Opportunities in the 21st Century Eurograin (Philippines) and Hybrid Corn Shire Pharmaceuticals Group's Acquisition of BioChem Pharma: Broadening Product Portfolio and Achieving Economies of Scale in Pharmaceuticals 6. Integrative Cases GM in China Intel's Site Selection Decision in Latin America The Acer Group's China Manufacturing Decision References About the Editor

Post WTO China: priorities for smaller firms in a turbulent market

The goal of this paper is to evaluate the strategic priorities for small and medium‐size U.S. firms in post WTO China. Within this context the objectives are several fold including: The impact of the World Trade Organization as an agent of globalization, problems of market entry, risk assessment, and the priorities of internal firm reorganization. The analysis shows that smaller firms can succeed. But it is exceptionally difficult to do business in China for smaller firms. It is also true that larger manufacturing firms will do better. Other issues examined in relation to risk assessment include financing, corruption, legal guidelines, and cultural concerns. This research methodology is based on a continuing series of on‐site structured interviews with key influencers in Shanghai, Beijing, Hong Kong, and Singapore from 1988 to the summer of 2002 including a recent 18 month research leave in the Far East.

Transnational Media Corporations’ Strategies in Post-WTO China: Approaches of three Global Leaders

This study examines transnational media corporations’ (TNMCs’) strategies in the Chinese media market after its WTO entry, employing a theoretical model that involves the interactions of a company’s risk in terms of environmental uncertainties and control in terms of equity ownership. Interviews were used as the primary research method, with 15 informants from three global media giants—Disney, News Corporation and Sony. Findings suggested that in response to the risk they perceive, TNMCs have plans for increasing control through engaging in higher forms of ownership, developing connections with governments and distributors, localizing their products, and differentiating the products vis-à-vis their competitors. These plans comprise a roadmap for TNMCs’ long-term development in China.

Human resource strategies in post-WTO China

China's rapid economic growth has presented numerous opportunities and challenges for foreign firms there. As firms have increased their presence in China, their concerns are increasingly focused on implementing successful human resource management (HRM) practices. To shed light on effective HRM for foreign firms in China, we conducted interviews with senior managers, private equity specialists, and management consultants there. Using a framework of human resources deliverables, we propose several keys to successful HRM in China. HRM is crucial for firms' success in post-WTO China, and managing human resources there poses distinctive challenges to commonly held “Western” assumptions about effective HRM. © 2005 Wiley Periodicals, Inc.

Post-WTO China: Competition and Technology Transfer Laws in the ‘New’ Socialist Market Economy

China has been the focus of much academic and business scrutiny of late. Its economic climate is changing and its huge new market opportunities seem quite tantalizing to the would-be 'technology entrepreneur'. But China's market is a relatively immature one; it is still in the process of being opened up to real competition. The corollary of this is that, at this stage of the transitional process, there is still significant State control of market function. This article discusses Chinese competition law, the technology transfer system, how the laws are being reformed and how the technology entrepreneur fares under them. The bottom line is that while opportunities beckon, the wise entrepreneur will nevertheless continue to exercise caution.

Advertising Industry and Culture in POST-WTO China

This paper looks at recent developments in the Chinese magazine industry to illustrate trends in advertiser-funded media associated with China's accession to the World Trade Organisation (WTO). Advertising services are an integral element of the WTO ‘wrecking ball’ now being wielded to reform the marketplace and promote innovation and entrepreneurship. As the smallest of ‘main media’ categories, the Chinese magazine industry provides an interesting starting point for a larger investigation of the impact of competition unleashed by internationalisation on key creative industries sectors. Two case studies illustrate the roles and limits of advertising in this complex process and, more broadly, in the management of China's developing ‘commercial culture’. These are Shanghai Bride (linlang xinniang), a provincial magazine distributed from Shanghai targeted primarily at women considering marriage, and Caijing, a national ‘blue-chip’ financial magazine based in Beijing.

Creativity and Complexity in Post-WTO China

In this paper I discuss the changing relations between culture, services, and knowledge in China. In arguing that these three formerly separate conceptual domains are converging I am mindful of a global shift in thinking about the management of national content industries as they react to the pressures of global trade agreements, new regional market dynamics, and digitisation. These three vectors of change underscore the ensuing discussion. Moreover, while understandings of culture as works of great artistic achievement, or residual cultural traditions, will undoubtedly remain central to processes of identity formation, the cultural model that is likely to gain the attention of governments in the next decade is concerned with culture’s integration into service sector facilitation. Cultural and information services have provided an impetus for business expansion and networking on a scale unparalleled in previous accounts of globalisation (cf Hirst and Thompson, 1995). Based on economic development rationales, a relationship of dependency between culture and services is fairly self-evident and is illustrated by increasing user-customisation of services that are delivered electronically. The connection with the knowledge economy however requires some further conceptual ground clearing. In short, as state policy formerly concerned with cultural preservation and protection is increasingly migrating to view culture in terms of intellectual property, economic investment is shifting from industrial to knowledge-based production. The cultural sectors in China that will be most subject to reform in this convergent environment include media, advertising, tourism, and education.