Firstly, we are going to discuss about the advantage / disadvantage of Hong Kong and China. Advantage of HK
Free Port: HK is a free trade port; this help Hong Kong develop into a Trade Centre. (A Free Port is a port where trade is based upon the unrestricted international exchange of goods, with customs tariffs used only as a source of revenue and not as an impediment to trade development.). This policy helps HK to develop the industry of re-export. The re-export activity and stimulate the economic activity; and the economic activity can enhance the re-export activity. This loop can enhance the advantage of free trade zone and make the logistic industry much healthy.
Efficiency: The port efficiency of Hong Kong is well known among the world. The forecast predicts the throughput of HK container port will increase to 24 million TEUs in 2006. If efficiency is not enough, we are not able to fulfill all the demand. The high flow efficiency can help to reduce the idle time of material in warehouse; it can smooth the material flow along the supply chain. The fast and simple customs clearance process is another key factor to speed up the material flow along the chain. The more efficiency of the flow means the shorter lead time to customer. This is the tread of modern industry and so the material flow efficiency is an important factor for success.
Political and Financial Structure: Hong Kong is a well developed area. It has a stable political environment. This can reduce the risk on investment and can attract foreign investment. And Hong Kong is a famous Financial Centre in the world; Hong Kong is able to provide a wide range of financial service for investment and industry development.
Infra- and Info-structure: Hong Kong has well infrastructure, it has a high efficiency airport and seaport among the world. Apart from air and sea, it also has railway and highway connect to mainland China. The connection of HK is all over the world, the material can come from...
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