To what extent has globalisation affect

local business in Hong Kong?

Nok Yan CHAN, Stacy CHAN, Dorothy KAM Y10 Joy
 Plan of Investigation:

Action Plan:

Date Lesson(s) Work Due date Roles

4/11 1 Planning the topic N/A Stacey - Brainstorm topic ideas

question and
complete work Nok Yan - Planning
plan
Dorothy - Supporting Stacey and Nok
Yan

7/11 N/A Start researching Due plan Dorothy - Research

on companies Stacey - Support
Nok Yan - Support

12/11 1 Start making the Due Research Stacey - write script

script Dorothy - Support
Nok Yan - Support

15/11 1 Create video Due Script Stacey and Dorothy - Send audio

17/11 N/A Finalize Due video Nok Yan - Finish video

everything

18/11 2 N/A Presentation Day N/A

Research

Topic Terminology (First row) Website Media Reason Why

and Quotes (Second to
Last row)

Globalization 1. international 1. http://www.glob 1. Webpage 1. Define the

trade alization101.or meaning and
2. investment g/what-is- purpose of
3. information globalization/ Globalization, as
technology well as the
4. culture 2. http://www.bbc. 2. Webpage process of global
5. political systems co.uk/schools/g trade.
6. economic csebitesize/geo
development. graphy/globalis 2. An easy take on
ation/globalisati the difficult and
on_rev1.shtml abstract meaning
of globalization.
Globalization 1. HK given its main 1. http://hongkong 1. News Both articles give the
In HK strength in the business.hk/ec reason why Hong Kong
exchange of onomy/more- maintains a high rank in
technology and news/hong- the globalization index
ideas kong-has-
highest-level-
globalization-
second-time
2. Hong Kong ranks 2. http://www.ey.c 2. News
first in cultural om/cn/en/news
integration, room/news-
second in releases/2013_
openness to hong-kong-
trade and capital leads-
movements, globalization-
ninth in index
exchange of
technology and
twelfth in
movement of
labor.

Globalization 1. Economically, 1. http://hub.hku.h 1. PDF A Case study which

Affecting HK accelerating k/bitstream/107 shows how globalization
globalization has 22/39972/6/Full affects the economy
led to marked Text.pdf?accep
economic growth t=1
and a major
economic
transformation
from
manufacturing to
services based
economy.

Local 1. Large scale 1. https://en.wikip 1. Webpage 1. Give an overall

Businesses in chain companies edia.org/wiki/Li 2. Webpage view on large
HK e.g Maxims st_of_compani scale companies
Catering (Food es_of_Hong_K
And beverage) ong 2. Examples

2. Entertainment 2. https://en.wikip
companies E.g edia.org/wiki/D
TVB ai_pai_dong

Globalization 1. While some small 1. http://www.busi 1. Website It show that although

affecting businesses - such nessdictionary. globalization is beneficial
Local as the com/article/583 to large chain companies,
Businesses aforementioned /impact-of- it may affect local
local grocer - have
(Worldwide) globalization- businesses
suffered, there are
those which have on-small-
avoided being businesses/
crushed by a large,
 globalized
company.

Local 1. Hong Kong's 1. http://www.scc 1. Website It shows the reasons to

businesses in geographical hk.com.hk/inde why HK is such a
HK Sales now proximity to China x.php?option=c successful cosmopolitan
and strong om_content&vi city and how globalization
financial and ew=article&id= affects business.
banking expertise 47&Itemid=67
grow from
strength to
strength and
continue
expansion into the
Greater China
market.

Local 1. It was March 22, 1. http://www.scm 1. News It shows the businesses in

businesses in 1966, and Hong p.com/lifestyle/t HK in these 50 years.
HK Sales 50 Kongs ravel-
years ago manufacturing leisure/article/1
industries were 932849/shoppi
booming. ng-revolution-
50-years-hong-
kongs-first-
mall-ocean

2. http://www.dra
gageshk.com/p
df/dragages_hi
story_1960s.pd
f
Local 1. Dai pai dong are 1. http://www.scm 1. News 1. It shows that
businesses in an important part p.com/lifestyle/f globalization is
HK closing of local culture, ood- only affecting local
down rate but are we doing wine/article/15 business, but also
now enough to keep 56158/dai-pai- local culture.
them alive dong-
endangered-
species-hong-
2. A survey showed kong
Hong Kongs 2. News 2. Statistics show
small and 2. http://www.chin that the local
medium-sized adailyasia.com/ SMEs are facing
enterprises hknews/2016- the problem of
(SME) business 04/27/content_ closing down
confidence fell to 15423890.html
the lowest level in
nearly four years

3. Over the past 3. http://www.scm 3. News 3. It shows that

decade, car-repair
shop owner Benny
p.com/busines globalization has
Chan has seen s/article/12057 lead to a more
more than 70 per 75/slow-death- intense
cent of his small- small- competition for
business peers businesses- local businesses.
disappear as his hong-kong
neighbourhood fills
up with high-end
Western bars and
Japanese
restaurants.

Local 1. While many 1. https://en.wikip 1. Webpage 1. It shows that

businesses in companies were edia.org/wiki/1 globalization has
HK closing beginning to 960s_in_Hong affected local
down rate 50 diversify in the _Kong businesses in the
years ago products it past.
manufactures, 2. http://www.tradi
the entire ngeconomics.c
success of the om/hong-
Hong Kong kong/gdp
colony rested on
the textile
industry. An
estimated
625,000
residents were
supported
directly or
indirectly by this
one industry.
Evidence of Research:

Our research that the script is based on:

To what extent has globalisation affect local business in Hong Kong?

Globalization
What is globalization?
Globalization is a term describing the process of the world is becoming more and more
interconnected, resulting in an increase of trade and cultural exchange. This influenced the
social and political norms of many countries.

Globalization In HK
Hong Kong secures the no.1 in globalization index, among 60 largest economies around the
world for the third consecutive year.

The globalization index is measured based on five main pillars:

-openness to trade
- capital flows
-exchange of technology and ideas
-labor movements
- cultural integration

The reasons why Hong Kong topped in globalization index

i. the exchange of technology and ideas.
In order to attract foreign investment, the government promoted the development of
sectors, such as education and the four pillars and six industries. As a result, trade, capital
and technology is needed to sustain development.
Hong Kong remains a location as an information and communication technology hub. With
close ties with the Mainland, Hong Kong has a reliable power supply and comprehensive
telecommunication infrastructure. Thus, the government supports development of data
centres as it is the backbone of Hong Kongs economic growth.

ii. Free movement of capital

no foreign exchange controls
no tax on capital gains
no tax on foreign sourced income
iii. Cultural diversity
Contains a blend of eastern and western cultures
Open cultural policy

Local Businesses in HK
Large-scale chained companies
-Maxims Catering (Food And beverage)
- Vitasoy
- G2000
b. Entertainment industries
- TVB
- ATV
c. transportation
- Cathay Pacific
- MTR corporation
d. Banks
- Bank of China
- Hang Seng Bank

Globalization Affecting HK
Economic aspect
-Transformed Hong Kong from manufacturing industry to a city of trade and services
- increasing Hong Kongs exports and imports
b. Social aspect
Widening the income gap of the population
Creating social disparities
Forcing deeper connections between different groups

Globalization affecting Local Businesses (Worldwide)

Globalization creates an intense competition for small local businesses worldwide. Since
small businesses usually dont have partnerships with overseas companies, they may have
disadvantages in pricing. However, on the other hand, large chained companies would
create cheap goods and mark them up in order to use high sales volumes to offset their low
profit. As a result, small local businesses are not able to match those low prices. Therefore,
they would be wiped out by multinational companies.

Globalization affecting Local Businesses in HK

Globalization leads to a lack of local culture, which indirectly affected the local businesses in
Hong Kong. For example, Dai pai dong was a popular dining place in Hong Kong during the
1950s. However, due to globalization, many large chain companies, such as KFC,
McDonalds, Pizza hut, Starbucks were set up. This lead to a cultural diversity for the local
catering industries in Hong Kong. In fact, there are only 25 Dai pai dongs remaining in Hong
Kong.

Local businesses in HK Sales now.

A. HK is a successful cosmopolitan city when it comes to local businesses. Known for having
the lowest taxes among the world, profit tax rate remains the same for both foreign and local
companies. No sales tax or value added tax in HK, therefore, comparing to other developed
economies, having limited tax base with low tax rates makes HKs tax incidence virtually
lower.

Local businesses in HK Sales 50 years ago.

A. The 1960s was the turning point for economy of HK due to its surge of manufacturing
capabilities. Aided by the continued immigration from China, textiles were particularly strong.

50 years ago in March 22, 1966, Hong Kongs manufacturing industries were increasing
after David Trench, the HK governor had opened the Ocean Terminal which was known for
being the first US-style shopping mall that has 112 shops and space for parking. This was
the symbol of the colonys growing wealth as the population grew, increased highways,
housing, industrials etc.

Show the rent has made local businesses shut down and non local businesses are
taking these spots
A. As the rents are climbing in areas like Causeway Bay and other prime shopping districts
since there are luxury stores that attract free-spending tourists from the mainland.

Local businesses in HK closing down rate now and Local businesses in HK closing
down rate 50 years ago
Local businesses in hk are shutting down because of the soaring rent prices, especially in
areas such as causeway bay. There are also local manufacturers that are shutting down
since the 1980s these manufacturers include factories in HK, this is because of the
increasing population (from both local babies and immigrants from mainland china) this has
caused the population density to rapidly grow and made property value soar. This causes
skilled workers for labor intensive jobs to become unemployed. We can compare this to
Japan, for example, skilled workers in labor intensive jobs such as traditional hand forged
sword making is rare but still existing, yet in HK there are little to none metal working
factories in general.

Local businesses in HK opening rate now and Local businesses in HK opening rate 50
years ago
Globalization has caused HK to have more advancements in telecommunication,
transportation, and production technologies, growth rates of foreign direct investment (FDI),
and transnational corporations (TNCs) activities. Thus opening HK as a great area to invest
in companies and start your own.

OPVL Evaluation:
 "Dai Pai Dong an
Endangered Species in
Hong Kong." South
China Morning Post.
N.p., n.d. Web. 17 Nov.
2016.
<http://www.scmp.com/lif
estyle/food-
wine/article/1556158/dai-
pai-dong-endangered-
species-hong-kong>.
Chan, Shui Yum. "Hong Kong Has the "Introduction to
"Globalization and Its Highest Level of Globalization." Going
Impact on Economic Globalization for the Global (n.d.): n. pag.
Change and Urban Http://www.edb.gov.hk/.
Second Time."
Structure: A Case Hkgov. Web.
Study of Hong Kong, Hongkong Business. <http://www.edb.gov.hk/
1980-2000." The HKU N.p., n.d. Web. 17 attachment/en/edu-
Scholars Hub. The Nov. 2016. system/primary-
University of Hong <http://hongkongbusin secondary/applicable-to-
Kong, 2003. Web. 17 ess.hk/economy/more secondary/moi/support-
Nov. 2016. -news/hong-kong-has- and-resources/personal-
social-and-humanities-
highest-level-
education-secondary-1-
globalization-second- to-
time>. 3/s3%20topic%205%20i
ntroduction%20to%20gl
obalization.pdf>

Origin The source of This source is This is a fairly This is a Hong

information is from a top recent Kong issued
from a local university in published globalization
Hong Kong, article, it is textbook for
newspaper the
Hong Kong published at secondary three
south China University this month students to study
morning Post It is published november of The information
This was posted as a paper 2016 is very brief and
on 21 July 2014, It is relatively It is from a there were no
this makes the old it is trusted source: dates that were
article outdated, published in Hong Kong showed on the
2003 business book
but the facts
about the Hong
Kong culture
fading because of
globalisation is
still relevant
today

Purpose the purpose to The purpose of this article is the author is

writing this article the information talking about trying to give us
was to try and was an overall how Hong simple and basic
raise awareness study on the Kong has the information on an
to the fading economic highest level of abstract matter
culture of Hong changes that globalization this gives our
Kong and the globalization for the second group a good
local day dong brought from time look into
culture becoming the 1980s to be This article globalization
less popular 2000s. gives us an
The main overall outlook
message that the of the world
author is trying to and compares
convey is how Hong Kong to
 globalization is other
affecting the metropolitan
cultures of Hong city.
Kong

Value This article is a the source has overall this this book helped
piece of opinion, I very high value source is not us with our
think we should as it is very very useful but research to some
take the plea for informative and it gives a good degree
help in this article was not biased introduction to
and use it to it had both pros globalization in
express the and cons of Hong Kong for
feelings of the globalization in our group
manger local Hong Kong.
voice in Hong
Kong

Limitation the south china this source is this article is a because of Hong
morning post is a very reliable bit political so it Kong current
trusted local and is not may be biased political
newspaper biased but over all it is standpoint we
I think the not, but relieved that this
limitation is because it is may be a bit
because this the news I political on the
article is based don't think it is views of China
solely on one very biased and country such
person's opinion as America
it is very sided This book is very
and may be long and took a
biased lot of time for our
group members
to read even
though it only
contained a
simple
information

Description of roles:
In our group there are three main roles, the first row is the video editor this person is mostly
going to take off work that is going to involve photography some cinematography as well as
video editing. Skills that are used in this is creativity and problem-solving skills as well as
communication skills.

The second role in our group is the script writer this person must have a high level of
creativity as well as literary skills. This is an important job because it shapes of the video
over all, being a Script Editor does take time because as a Script Editor you must also think
about how the characters are going to be positioned on stage.

Last but not least is our researcher, the researcher must have high-level book reading and
writing skills but they should also be able to summarize and organize information into con
size and a short paragraphs. Being a researcher is the most important job because it builds
the foundation for the whole project.

Evaluation of Process / Product:

This project gave us a wonderful opportunity to understand more about globalization and
learn more about its positive and negative impacts on local businesses. Moreover,various
skills, such as research skills, writing skills and even video editing skills were trained too.
Whether it is the research, script or the video, all of us have paid much effort.

For the research part, we spent much time on finding sources and data to support our ideas.
We also had good division of labour as all of us searched for different information and
combined them together afterwards for our findings. Although we worked very hard on
finding sources, we also came across some difficulties. Some of the data, such as the
closing rate of local businesses 50 years ago, took us much time to find, since it was
statistics a long time ago. However, we did not gave up as we kept looking through different
websites and soon found the sources we needed.

Despite putting much effort on the research, we also did a great job on the script. Writing the
script was challenging as we needed combine different characters views on globalization
into a talk show. Although it took us a massive amount of time, we wrote a script full of
strong points in different perspectives, which gave a framework of our video. Yet, there is still
some room for improvement on our script. The division of roles in the script was not clear
enough as we did not write our own dialogues for our responding characters. But overall, the
script was quite a success.

Our final product, the video was satisfactory too. Although it was not good in visual, it was
extremely informative as it showed the different peoples view on globalization. Also, most of
us had great acting skills and imitated our characters well. All these factors gave us a
successful video for our final product.
In general, we have strived for our very best throughout the whole project as we not only
learnt much knowledge about globalization, but also demonstrated various skills and
teamwork.

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