Worksheet 5 Hong Kong: From Entrepot to International Financial Centre

Transcription

1 S1 IH A Brief History of Hong Kong 23 IH Worksheet 5 Hong Kong: From Entrepot to International Financial Centre Over the last two centuries, the world has undergone a lot of changes and so has Hong Kong. These changes interact in various ways. When we try to understand why and how these changes took place, we are trying to find out the causes of these changes, or, the factors leading to these changes. A. Why did Hong Kong become an entrepot 1 since the mid-19 th century? A Hong Kong came under British rule after B Many Hong Kong people worked as traders, clerks and coolies. C Hong Kong is located on the south coast of China. Sea transport to China is very convenient. D Godowns, wharves and dockyards were built. E The British declared Hong Kong a free port, that means no tax was charged on most goods that entered or left Hong Kong. F The western world had a great demand for Chinese goods and so had the Chinese for western goods. G Hong Kong has a good harbour. H Many Chinese and European merchants came to Hong Kong to do business. How did the above facts interact? Classify the above items into factors and effects and fill the appropriate blanks with A, B, C,, H. Political factors Effects Hong Kong became an entrepot. Geographical factors Economic factors 1 Entrepot

2 S1 IH A Brief History of Hong Kong 24 B. The threat to entrepot trade Sometimes, unfavourable events can become factors for favourable outcome. Crisis 2 can turn into opportunities. The Korean War broke out in China helped North Korea while the USA supported South Korea. The United Nations, under the influence of the USA, imposed an embargo 3 on China in Many member countries of UN stopped trading with China. CRISIS!!! How did this affect Hong Kong? How can you turn a crisis into an opportunity? The door is locked and I have lost my key. How can I get out? 2 crisis 3 embargo

3 S1 IH A Brief History of Hong Kong 25 C. Industrial development of Hong Kong A negative incident can sometimes bring positive results. Crisis can be turned into opportunities. How did Hong Kong turn a crisis into opportunities for development? Discuss how Hong Kong made use of the following three conditions (A, B and C) to start her industrial development and write your answers below. World War II ended in A The demand for consumer goods from the U.S.A. and many European countries increased but their own production capacity had not yet recovered. The Chinese Civil War broke out in 1946 and ended in 1949, followed by the formation of the People s Republic of China. C B Industrialists from the mainland of China came to Hong Kong and brought with them skill and knowledge as well as money. Many Chinese workers came to settle in Hong Kong. They were unskilled but hardworking and willing to accept low wages. Hong Kong soon developed into an industrial centre in the mid-20 th Century. Hong Kong began to industrialize in the 1950s. The goods produced were mainly for export. The products produced were light and small. Factories employed large number of workers and used light machinery. This type of industries is called light industries.

4 S1 IH A Brief History of Hong Kong 26 D. Hong Kong as a trade and financial centre 4 1. Trade in Hong Kong Fill in the box with the following terms: imports, exports, re-export Matching Trade in Hong Kong has kept growing since the latter half of the 20 th Century. Match the growth of different kinds of trade with relevant reasons. Hong Kong s population keeps growing and Hong Kong lacks food and raw materials. Hong Kong is a very small market but there are very large overseas markets. China has adopted an open door policy since The growth of exports in Hong Kong The growth of imports in Hong Kong The growth of re-exports in Hong Kong Some organizations in Hong Kong do a great deal to promote trade. You may want to find out more about them on their websites: Hong Kong General Chamber of Commerce ( ) Hong Kong Trade Development Council ( ) 4 financial centre

5 S1 IH A Brief History of Hong Kong Financial services in Hong Kong Study the following figures and answer the questions on the next page. Gross Domestic Product 5 at Current Prices by Economic Activity Percentage contribution to the GDP (at current factor cost) Economic activity @ Agriculture and fishing Industry Mining and quarrying Manufacturing Electricity, gas and water Construction Services Wholesale, retail and import/export trades, restaurants and hotels Transport, storage and communications Financing, insurance, real estate and business services Community, social and personal services Ownership of premises Adjustment for financial intermediation services indirectly measured Total Production-based GDP at factor cost (HK$ billion) , ,182.4 Note : Less than Figures are subject to revisions later on Source: From the website of the Census and Statistics Department on 7 September, 2000: 5 gross domestic product (GDP) This is a measure of the total value of goods and services produced in an area during the year

6 S1 IH A Brief History of Hong Kong 28 Which economic sector is the most important to Hong Kong in terms of GDP? Agriculture and fishing Industry Services Which economic activity is the most important to Hong Kong in terms of gross domestic product (GDP)? Discussion: How do the following factors help Hong Kong become a financial centre? Growth of industries and trade Free flow of foreign capital No tax on earnings from shares and financial investments Good communication network

7 S1 IH A Brief History of Hong Kong 29 E. Summary Development of Hong Kong over the last two centuries. Fill in the blanks with the following: Treaty of Nanjing Convention of Beijing Event 2: Formation of HKSAR Lease the New Territories Event 3: Event 4: Event 1: Fill in the above blanks with the following terms: agriculture and fishing trade and finance industry entrepot