Hong Kong still most attractive for business

Citation

(2013), "Hong Kong still most attractive for business", Strategic Direction, Vol. 29 No. 7. https://doi.org/10.1108/sd.2013.05629gaa.001

Hong Kong still most attractive for business

Article Type: Competitive horizon From: Strategic Direction, Volume 29, Issue 7

In the latest analysis of its type conducted by Bloomberg (www.bloomberg.com), Hong Kong retains its position as the best nation for doing business in. The United States and Japan complete the top three, rising one and four places respectively from last year. In contrast, the BRIC nations performed less impressively. China slipped from 19th to 24th, while Brazil, Russia and India were not even rated among the top 50 countries. A total of 161 nations were assessed by Bloomberg using data from a range of sources. The six broad criteria used to rank performance included the costs involved in starting a business, purchasing labor and materials, and transporting goods. Intangible costs linked to such as inflation and accounting were also considered along with the degree of global economic integration of each country and how equipped consumers are to engage in economic activity.

The link between employee diversity and business success

Scientists in Finland have devised a process whereby non-woven products can be manufactured using recycled paper and cardboard. Since non-degradable polyester is presently the chief raw material for such products, the pressure on landfill sites is considerable. A report published by www.theengineer.co.uk notes the cost-effectiveness of using paper and cardboard when compared to wood-based raw materials. Producing biodegradable non-wovens via the latter method is reported to be around 20 percent more expensive. Using recycled materials to manufacture non-woven products requires specific technologies, but these are already in place. The scope for business opportunities therefore increases further, particularly with regard to products used for cleaning, hygiene and health. Global demand for non-wovens is set to continue and impact on other sectors such as construction.

The economy in Cambodia

According to the latest annual economic outlook by the Asian Development Bank (ADB), Cambodia’s economy is set to grow by 7.2 percent in 2013. Recovery in Europe and the USA will see this figure rise to 7.5 percent in 2014. As reported by www.xinhuanet.com, growth during the next two years is expected to be driven by domestic consumption and national and foreign investment. Clothing, tourism, real estate and construction are the mainstays of the nation’s economy, and European demand for Cambodian garments and footwear is cited as a key factor. An increase in the export of these products to the USA is also expected in 2014. The ADB notes the rising importance of foreign investment, which has already helped to diversify clothing production and fund electronics, automotive parts and other new industries. China accounts for almost a quarter of foreign direct investment, which additionally comes from countries in Europe, Asia and ASEAN. The government believes that growth during 2013 will see Cambodia rise to lower-middle-income status by the year end. However, the report warns that future economic prospects will be affected unless the country addresses the serious health and malnutrition problems that exist among 40 percent of Cambodian children.

Going green to save money

Firms of different types and size can benefit from being more ecologically aware. As well as gaining the approval of consumers mindful of the environment, such practices can positively impact on finances too. An article published by the Examiner (www.examiner.com) outlines some simple changes that can help make a difference. For example, businesses can reduce their energy consumption levels by properly switching off office equipment at night. Leaving them in hibernation mode means they are still on and therefore costing money. Increasing the use of telecommuting is another suggestion offered. Allowing employees to work from home saves resources and typically boosts morale and productivity. Companies might also consider buying reconditioned equipment instead of new. Second hand is obviously cheaper and frequently more efficient and durable due to the rigorous standards it has to meet. The report also believes that benefits can be gained if company vehicles are managed more effectively. One idea is to reward employees who take proper care of them as this helps lower maintenance costs.