China and Monetary Policy Coursework Example | Topics and Well Written Essays - 10000 words

China and Monetary Policy - Coursework Example Foreign projects in manufacturing sectors were only concentrated in labor-intensive sectors, such as food, electronics, construction materials, textiles and toys. In the late 1980s, foreign manufacturing investment accounted for more than 70 percent of the total FDI flowing into China; investment continued to increase rapidly, reaching more than 80 percent around 1990 (NBS, 1991). With increasing experience in the Chinese market, and accumulated knowledge about China's industrial structure, foreign firms extended their business scope into physical infrastructure facilities, including construction, energy, transportation and capital-intensive and technology-intensive machinery and equipment. Such investments involved more technological inputs, higher start-up costs, and larger financial commitments and, therefore, foreign firms faced greater risks. With China's accession to the WTO, other sectors, especially services, have become popular to foreign investors. In China, FDI is highly agglomerated. It favors cities where targeted industries are fairly developed (Belderbos and Carree, 2002). Marshall (1898) proposes that the pool of specialized skilled labor, trade of intermediate inputs, and spillovers were driving forces of industrial agglomeration. Porter (2000) argues that industrial clusters increase the productivity of constituent firms, upgrade the capacity of cluster participants for innovation and productivity growth, and stimulate new business formation. Because of the lack of local knowledge, foreign investors encountered so-called "disadvantage of an alien status" in China. Industrial clusters have helped foreign investors to attenuate these disadvantages (He, 2002, pp.1030). Therefore, foreign investors like to select geographically agglomerated industries with strong localized business linkages. Traditional FDI theories (Hymer, 1976; Kojima, 1978; Dunning, 1980) suggest that industrial distribution of foreign investment depend s on comparative advantages in host economies and the ownership-specific advantages that multinational corporations (MNCs) hold. Dunning (2000) argues that factors influencing MNC industrial choices have gone beyond the natural endowments in the era of globalization, and that benefits from industrial agglomeration are playing an increasingly important role. Therefore, industrial distribution of FDI in host economies might be influenced by industry-specific external economies, which arise from geographical proximity of related firms and localized business linkages. There is some published literature concerning industrial patterns of FDI in host economies. Caves (1974), for instance, considers foreign firms' shares in Canadian and UK manufacturing industries in the 1960s and emphasizes the importance of intangible capital, advantages accruing from the operation of multiplant enterprises and the strength of entrepreneurial resources. Ratnayake (1993) concludes that foreign ownership of industry tends to be higher in skill-intensive and technology-intensive industries and those in industries enjoying high-level protection in Australia. Aswicahyono and Hill (1994) examine determinants of foreign investment shares in the Indonesian manufacturing sector and find product differentiation, technological capacity, skill intensity, absolute capital

Tribalism and the Nation in the African Continent Essay

Tribalism and the Nation in the African Continent - Essay Example This often accompanies accusations of primitiveness that are leveled against institutions that have their origin in tribal collectives. Tribalism in its jingoistic form is harmful for the unity of a nation and its overall development. This paper shall argue against tribalism and the effects that it has upon the modern state. It shall not however, argue for the modern state in its present form which is a creation of European culture and has been imposed on the African cultures that they once had colonized. One of the main reasons as to why certain states are unable to achieve a certain kind of unity is the persistence of tribalism. This tribalism then leads to the establishment of the tyranny of a certain tribe over the other despite the existence of democratic procedures that are established with the intention of ensuring the equal distribution of power (Jason). Over the past few decades, one has witnessed an alarming rise in the number of governments that are dictatorships in Africa. This has a lot to do with tribalism as it actively promotes tribal loyalties during elections and this then takes precedence over issues of development. This then results in most parties feeling a certain kind of disillusionment regarding the very process of elections, something that would then further tip the balance of power in favor of the ruling tribes. Tribalism thus represents a conglomeration of forces that seek to topple the forces of democracy that seek to provide for a country certain forms of development. Such incidents have happened as late as in 2008 during the Kenyan elections. Such incidents are often violent and further mar the social fabric of the nation (Africa: Talking about "Tribe"). They then cause great economic and social damage that needs to be rectified through great efforts on the part of the state. This then sets the process of development back by many years. This backward step is then taken not just at the level of the economy but also at the level of the social relations that exist between the different tribes living within the same country. Writers like Ngugi wa Thiongo identify tribalism as the problem that plagues Africa. He advocates the establishment of a single collective that would then have a more or less homogenous identity. This identity would be created following an elaborate process of decolonization that would result in the establishment of a more authentic identity (Thiongo). Even within such a framework, development is envisaged in a rath er Western framework. This is not to say that there is no African framework of development but to demonstrate the woeful lack of research in this area. If one is to posit arguments against such a thesis of nationalism against tribalism. Writers like Sabelo J. Ndlovu-Gatsheni attempt to complicate the problem by introducing pre-colonial and colonial perspectives that then serve to absolve tribalism of the guilt that it would have to shoulder as far as the lack of development is concerned. Ndlovu-Gatsheni looks at the different factors that affect development in areas that are affected by tribalism and ascribes the underdeveloped states of these areas as products of history (167-9). Such analyses fail to locate the root of the problem and consequently only manage to create a sense of the inevitable as far as the existence of the problem is concerned. The historical angle of the problem, while it needs to be argued, also needs to be looked upon as something that leads to a solution and not just presenting an analysis of the situation as it arrived. It is