Research Handbook on the Globalization of Chinese Firms

Research Handbook on the Globalization of Chinese Firms

Elgar original reference

Edited by Craig C. Julian, Zafar U. Ahmed and Junqian Xu

This comprehensive research Handbook encompasses an expansive range of perspectives on the globalization process of Chinese firms. Eminent global scholars provide contributions on a variety of topics, including: • industrial innovation; • technological innovation and learning; • the performance of Chinese international joint ventures,; • the global consumer; • Foreign Direct Investment (FDI) including barriers to FDI and FDI in China’s hinterland areas; • the globalization of Chinese business practices in Africa; • the Human Resource Management Transfer Process; • Corporate Information Disclosure in China’s Stock Market; and • the home employment effect.

Chapter 2: Transportation costs as a barrier to globalization for nine Asian countries including China

Junqian Xu and Craig C. Julian

Subjects: asian studies, asian business, business and management, asia business, international business

Extract

Asia Nine, as one of the most crowded places in the world, is composed of both advanced economies - Hong Kong, Japan, Korea and Singapore - and developing countries - China, Indonesia, Malaysia, the Philippines and Thailand. Bilateral trade between Asia Nine has increased dramatically since these countries joined the Asia-Pacific Economic Cooperation (APEC) agreement in 1989. Actually all these countries have links with the ancient Chinese cultural sphere and their languages are often derived from Classical Chinese; trade between these countries may date back a thousand years. The cultural and linguistic similarities may have facilitated transport and trade, but bilateral trade between these countries is very historically dependent and most East Asian countries have a colonial relationship with Japan, which as a historical factor would more or less affect bilateral trade. A comparison of transportation costs as a percentage of total trade in both developed countries and developing countries is presented in Table 2.1. G7 countries are included to enable a comparison to be made with Asia Nine. Over the last two decades, generally speaking, transportation costs as a percentage of total trade in the developed countries have declined less than those in the developing countries. As is evident from Table 2.1, however, transport costs as a percentage of total trade are decreasing in both developed and developing countries.

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