Ch. 11: The Asia Pacific Region

What is the full title of ASEAN, the multinational trade group?

Association of Southeast Asian Nations

The primary multinational trade group in Asia is the

Association of Southeast Asian Nations.

Identify an accurate statement about trade relations between Taiwan and the People's Republic of China.

China has received major investments from Taiwan.

Identify the impact of China's admission to the World Trade Organization (WTO) in 2000 on China's economy.

China started to seriously develop its market economy.

Three direct links policy

China's policy of encouraging direct mail, air and shipping links and trade between the mainland and the island of Taiwan.

After the the Asian financial crisis of 1997 to 1998, the ASEAN+3 was formed, which includes the ASEAN countries, in addition to

China, Japan, and South Korea.

_____, the city at the southern tip of the Liaodong Peninsula in Northeast China, is the focus of bi-national relationships.

Dalian

Identify an accurate statement about the disparity that exists between the four important regions of China identified in the text, which together account for a quarter of the Chinese population, and the rest of China.

Development in the areas outside of the four regions is focused in metropolitan areas, not rural areas.

_____ is the stereotype of businesspeople in Northeast China, mostly held by their southern counterparts.

Directness

True or false: Humility and indirection are more emphasized in northern China than in Hong Kong.

False

True or false: Negotiators from the Pearl River Delta are not very entrepreneurial and are mostly interested in making long-term gains.

False

True or false: Per capita incomes in the previously separate areas of Hong Kong, Macau, and Taiwan are the lowest in China.

False - They are the highest.

The Four Asian Tigers are also referred to as the

Four Dragons

One of the key assets Shenzen possesses as a business center is its juxtaposition with

Hong Kong.

Identify an accurate statement about the challenges that U.S. companies face in leveraging marketing opportunities in China.

It can be challenging to market products to diverse Chinese consumers.

Why is Shanghai a prominent regional trade and investment center?

It has a variety of different industries and access to the Yangtze River Valley area.

Why was India slow to grow economically in the years following its independence?

It was opposed to opening up its market.

What is a factor in Shanghai regaining its status as one of the most important centers for Asia Pacific trade and finance?

Its emphasis on medium value-added and high-tech industries

What key advantage of Northeast China accounts for its economic significance?

Its proximity to Japan, Russia, and South Korea

According to the market metrics provided for the Asia Pacific Region's eight most populated countries, _____ stands out as the country with the best economic indicators.

Japan

_____ are leading the movement toward a regional trade area in Asia.

Japan and China

According to scholars who champion a cultural explanation of Japan's 1990s economic downturn, the long recession is partly a consequence of

Japan's lack of corporate agility.

The superiority of _____ healthcare accounts for the fact that the country boasts a populace with the longest lifespans on the globe.

Japanese

Which languages are students in Northeast China most likely to study?

Japanese and Russian

Identify an accurate statement about Taiwan's relationship with the Chinese mainland.

Mainland-Taiwanese economic relations are getting better.

_____ continues to hinder routine business operations in India.

Pervasive corruption

China shares its longest border with

Russia.

While the industrial heartland of Northeast China is still an economically significant region, development of other Chinese regions has exceeded development in the Northeast because

SOEs used to dominate production in the 1970 and 1980s but China now favors free enterprise.

Identify an accurate statement about the interrelationships among countries in the Asia Pacific region.

Several Asian countries have entered into trade agreements with one another.

If a Chinese businessperson is extroverted, talkative, imaginative, clever, ambitious, and is open to spending money, he or she is most likely to be from

Shanghai.

What is a feature of Shenzen that affords it an important position in China's economic landscape?

Shenzen was China's first Special Economic Zone.

The group of countries known as the Four Asian Tigers is composed of Hong Kong, South Korea, Singapore, and

Taiwan.

Which factors suggest that Vietnam may become an Asian Tiger in the future?

The Vietnamese people are well educated, and the government is interested in economic development.

Which of the following was a major problem for Japan in the early days of the information technology revolution?

The indirectness of the Japanese linguistic system

Identify an accurate statement about Japan's population.

The population of Japan is decreasing rapidly.

Identify a true statement about the economic differences between the four regions identified by the text—the industrial heartland in Northeast China, the Beijing-Tianjin information technology (IT) corridor, the Yangtze River Delta, the Pearl River Delta—and the rest of the Mainland.

These regions are substantially wealthier than other regions on the Mainland.

How did Japan's lending institutions respond to the bursting of the bubble that developed in the early 1990s in Japan?

They offered fewer loans.

Which Chinese city's population is increasing the most rapidly?

Tianjin

From the following, identify a common goal of APEC's member countries.

To promote intraregional trade

From the following, identify a common goal of APEC's member countries. o To enable companies to implement protectionist policies o To promote intraregional trade o To move members' economies from manufacturing to commodity based o To curb foreign competition

To promote intraregional trade

Identify an accurate statement about the relationship between The People's Republic of China (PRC) and the Republic of China (ROC)--the two political units that together make up The Greater China.

Trade between the PRC and the ROC has increased.

True or False: After decades of delay, China has now begun to comply with WTO provisions.

True

True or false: Bilateral agreements are settled by the Hong Kong government and then approved by the PRC.

True

True or false: To achieve marketing success in China, U.S. companies must learn local regulations and develop positive relationships with members of industry and government.

True

Association of Southeast East Asian Nations (ASEAN)

a multinational regional trade group including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam

East Asian Miracle

a period of unprecedented economic growth and development in East Asia between 1965 and 2010

According to C. K. Prahalad and his associates, _____ markets consist of the 4 billion people across the globe with annual incomes of less than $1,200.

bottom-of-the-pyramid

The average annual income of the residents of rural areas in Lithasia, a small developing country, is $800. These residents would be identified as a _____ market.

bottom-of-the-pyramid

Beijing business negotiators are recognized for their

bureaucratic inefficiency.

China's dual economic system combines socialism and

capitalism.

"The Cultural Causation" theory

common striving toward a common goal

A significant transformation that will take place upon the implementation of the ASEAN Free Trade Area is that

companies will be able to sell throughout the region without worrying about tariffs.

During their first meeting, the members of ASEAN+3 conferred regarding proposals to

create one currency to facilitate trade.

The cause of the bubble that set off the 1990s recession in Japan can be traced to

excessive financial risk-taking fueled by overconfidence in the market.

The Basic Law of the Hong Kong SAR

forms the legal basis for China's "one country two systems" agreement that guarantees Hong Kong a high degree of autonomy

Japan's population is

growing older.

All the countries in the group of countries known as the Four Asian Tigers are

important economic players in Asia.

Compared to per capita GDP, purchase price parity (PPP) is a better measure of the average well-being of the Japanese people during the 1990s recession because

it considers the role of deflation.

Japan was late to join the information technology revolution because of its

language that did not lend itself well to computer systems.

The bursting of the bubble that developed in the early 1990s in Japan caused

large-scale destruction of Japanese confidence.

Negotiators from the Pearl River Delta are known to be relatively _____ when compared to businesspeople from Shanghai.

less cunning

APEC is a forum that includes

many of the major countries on the Asian-Pacific Rim.

An important way in which the business culture differs in Hong Kong from the rest of China is that

most Chinese in Hong Kong speak English very well.

Japan's faulty economic policies

o "The bubble burst" o Heavy borrowing drove up levels of marginal incestment. o Spending habits curtailed. o Output was lowered. o Unemployment soared. o Widespread deterioration of national confidence.

AFTA

o ASEAN Free Trade Area o A multinational trade group that evolved from ASEAN

Identify the factors that are hindering Vietnam's prospects for rapid economic growth.

o Absence of investment funds o Government constraints on doing business o Inadequate infrastructure

Events in 2000 that had a profound effect on China's economy

o Admission to the World Trade Organization (WTO) o The United States granted normal trade relations (NTR) to China on a permanent basis (PNTR)

Asian-Pacific Economic Cooperation (APEC)

o An organization of 18 Asian nations that attempts to reduce trade barriers between their nations. o A unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation. o Common goals - a commitment to champion free and open trade, to increase economic collaboration, to sustain regional growth and development, to strengthen the multilateral trading system, and to reduce barriers to investment and trade without detriment to other economies. o Includes all major economies around the Pacific Rim, from Chile to Australia.

Business people from Hong Kong have a reputation for being

o Bilingual and speak English fluently o Humble and indirect

Identify the steps taken by India in recent years to accelerate its economic growth.

o Breaking monopolies o Privatizing SOEs o Opening more segments of the economy to foreign investment

Business people from Beijing have a reputation for being

o Bureaucratic sloth o Imperialistic o Not creative

Businesspeople from northeastern China have a reputation for being which of the following?

o Capable o Truthful o Hardworking

Tianjin

o China's third largest industrial city after Shanghai and Beijing o The fastest growing city in China o Primary industries include automotive, electronics, metals, and petrochemicals o New emphases on developing information technology, biotechnology, medicine, and green energies o Motorola

The People's Republic of China (PRC)

o Communist government of mainland China. o Proclaimed in 1949 following military success of Mao Zedong over forces of Chiang Kai-shek and the Guomindang. o Aside from the U.S., there is no more important single national market. o Embraced socialism along with many tenets of capitalism. o Caused GNP growth.

Business people from Taiwan have a reputation for being

o Conservative o Autocratic o Down to earth and practical o Daring on occasion

Purchase price parity (PPP)

o Corrects GDP for differentials across countries in the costs of consumer purchases. o Allows for direct comparisons of the overall well-being of consumers across countries. o Accounts for deflation.

ASEAN+3

o Forum for ministers of the Association of Southeast Asian Nations plus ministers from China, Japan, and South Korea. o Deals with trade and monetary issues facing Asia.

Identify the characteristics associated with businesspeople from Shanghai that have enabled them to become the dominant business group on the Mainland.

o Gregarious o Imaginative o Astute

Businesspeople from Northeastern China have a reputation for being which of the following?

o Hardworking o Capable o Truthful o Forthright o Industrious o Competent o Honest o Plainspoken

Identify accurate statements about the impact of the "one country, two systems" agreement that governs Hong Kong's relationship with the People's Republic of China.

o Hong Kong is identified as a special administrative region of the People's Republic of China. o The Hong Kong government is in charge of making important economic choices.

Identify the features that contribute to Dalian's position as the hub of Northeast China.

o Huge, state-of-the-art port. o Cheap property. o Skilled workers. o Proximity to Japan.

Vietnam's economy

o In shambles after 20 years of socialism and war. o Poised for significant growth o Bilateral trade agreement with the U.S. led to NTR status and lower tariffs on exports to the U.S.

What are shared objectives of APEC member nations?

o Multilateral trading system o Open trade o Economic progress and expansion o Fewer obstacles to investment and trade

Identify changes that contributed to the dynamic development of ASEAN member countries' markets.

o Privatization of their economies o Their focus on manufacturing goods in arenas in which they have a relative lead

Businesspeople from the Shanghai Area have a reputation for being

o Shrewd o Outgoing o Big talkers o Big spenders o Creative thinkers o Successful and dominant on the Mainland

Businesspeople from the Pearl River Delta have a reputation for being

o Special forms of entrepreneurship and spontaneity o Relatively honest and forthright o Less calculating than folks in Shanghai o Excellent traders o Interested in making short-term gains

Japan's political explanation of recession

o The Liberal Democratic Political Party o The Hidebound Japanese Bureaucracy

Identify the reasons why India is still a difficult place in which to do business.

o The country imposes unusually high tariffs. o The country experiences large-scale corruption. o Defense of intellectual property rights is insufficient. o There is a bureaucratic anti-business bias.

Japan's global circumstances

o The deep decline in Japanese consumers' purchasing power in 2009 o The economic impacts of the 2011 earthquake/tsunami disaster o Demand for greater oil imports, resulting from the destruction of energy infrastructure and its nuclear power plants

Identify events that partly explain Japan's recent economic problems.

o The economic downturn of 2008-2009 o The 2011 earthquake and tsunami

From the following, identify the two major political factors that contributed to Japan's recent economic crisis. (Check all that apply.) o The bureaucracy has no control over its elected politicians. o The same party has been in power for several decades. o Japan has a powerful, narrow-minded bureaucracy. o No single party dominates the political scene in the country.

o The same party has been in power for several decades. o Japan has a powerful, narrow-minded bureaucracy.

Bottom-of-the-pyramid markets (BOPMs)

o These consist of the 4 billion people around the world with annual incomes of $1,200 or less per capita. o They are not necessarily defined by national borders, but are rather pockets of poverty particularly concentrated in south Asia and sub-Sahara Africa.

Northeastern Three Provinces

o Three contiguous provinces in Northeast China o Liaoning, Jilin, Heilongjiang o Students in this region study Japanese or Russian in foreign language classes instead of English o Korean is a widely spoken language

Shanghai

o Undergoing a major industrial renaissance o Medium-value-added industries account for the vast majority of industrial employment. o New emphases on developing its automobile assembly industry and the other high-tech industries o Half the city's GDP derives from financial services industries

Identify the factors behind the creation of the bubble that preceded Japan's decade-long recession in the late 1990s.

o Years of economic recovery success had created national cockiness. o The Japanese engaged in excessive borrowing.

Japan's 1990 recession causes

o faulty economic policies o inept political apparatus o disadvantages due to global circumstances o cultural inhibitions

The "Cultural Causation" theory proposes that Japan's economy went into decline at the end of the last century partly because

of the absence of a national goal.

Negotiators in Beijing are generally perceived as lacking in

originality.

India's growth had been inhibited and molded by

policies such as import substitution.

A consequence of the huge economic divide between rural and urban China is

potential social friction and discord.

Four Asian Tigers

refers to Hong Kong, Taiwan, Singapore, and South Korea as they fast achieved affluence in the 1980s and 1990s

The Greater China

refers to both the People's Republic of China (PRC or Mainland China) and the Republic of China (Taiwan)

Hong Kong

reverted to China in 1997 when it became a special administrative region (SAR) of the People's Republic of China

APEC provides a space where the major regional economies of the Asian-Pacific Rim are able to

talk about their shared goals of increasing trade and interregional collaboration.

The two most important national markets in the world are those of the United States and

the People's Republic of China

The term "The Greater China" describes

the Republic of China (ROC) or Taiwan and the People's Republic of China (PRC).

The 1990s recession in Japan did not have a significant negative impact on the standard of living of the Japanese people because

the cost of living decreased.

The recent increased demand in Japan for more oil imports is a result of

the destruction of domestic power sources by the earthquake/tsunami.

An important reason for the popularity of the Beijing-Tianjin region among Chinese and international high-tech companies is

the good-quality higher education available in the region.

In a new appraisal of Japan, Frank Gibney has written that Japan became the victim of "one-party sickness." He used this phrase to indicate that

the long tenure of the ruling party is harming the country's economy.

One of the factors that helped the ASEAN countries achieve high growth was

their reduction of economic regulations.

If the ASEAN Free Trade Area is implemented,

there should be a decrease in smuggling and parallel importing.

The countries that are collectively known as the Four Asian Tigers are called so because

they transitioned from the status of developing countries to industrialized countries.

ASEAN+3 was created because most of East Asia felt that

they were dissatisfied by the West's response to the financial crisis of 1997 and 1998.

Managers in Taiwan are usually

unpretentious and pragmatic.

The business culture in Taiwan is perceived by other Chinese to be

very traditional.

As a part of its bid to to improve economic growth, India has now embarked on a route to

welcome foreign investment in economy.

The first conference of the ASEAN+3 concentrated chiefly on creating an organization whereby members

were able to transfer foreign exchange reserves to protect currencies.

The Fragile Superpower

written by Frank Gibney