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South and East Asian Economies
2. China
(1) What to produce?
40% of the Chinese economy is still based in
state-run industries.
60% of the economy is based on the private
sector in where producers and consumers
make the production decisions.
3. China
(2) How to produce?
The many inefficiencies found in the state-run
industries, particularly in the area of
agriculture, limit China’s growth.
In the private market, the speed of economic
growth has caused Chinese officials to have
increasing difficulty monitoring consumer
safety and environmental pollution.
4. China
(3) For whom to produce?
China requires food production to meet selfsufficiency level for the nation and only the surplus
may be exported. In reality, there is not enough
proper storage of food to meet the self-sufficiency
requirement.
China exports a large amount of manufactured goods.
However, the expanding middle class in China is
seen as a growth market for both Chinese and foreign
companies.
5. Placed on the Continuum: China is slightly on the market side of center.
6. India
(1) What to produce?
Since 1991, India has slowly allowed the
markets to open up to private sector domestic
and foreign businesses.
The majority of the population relies on
subsistence agriculture as a means of
survival.
There is a lot of bureaucracy and corruption
involved in setting up and operating a
business.
7. India
(2) How to produce?
India is increasing its oversight of intellectual
and private property rights, but legal
challenges are fraught with bureaucracy.
India has an increasingly educated workforce
particularly in areas of engineering and
computer science.
A complex, corrupt, and hefty tax system can
sometimes make operating a business in
India difficult.
8. India
(3) For whom to produce?
Food production is largely for domestic
consumers with many citizens producing food
mainly for their own family consumption.
The software and business process
outsourcing and industries are rapidly
expanding export markets for private Indian
companies.
9. Place on the continuum: India would be more to the market side of the continuum than
China.
10. Japan
(1)
What to produce?
Japan’s economy is primarily market driven
with supply and demand determining what
will be produced.
The few industries that are highly
government-controlled, such as agriculture,
have much lower productivity rates than
those industries controlled by market forces.
11. Japan
(2) How to produce?
Private businesses determine their own
production processes in most of the economy.
12. Japan
For whom to produce?
Japan’s population enjoys a high standard of
living and creates a strong domestic market
for goods and services.
The efficiency of Japan’s production and its
reputation for quality products/services has
made it a major exporter.
13. Out of all four countries in this element, Japan would be the closest to the market side
Of the continuum.
14. North Korea
(1) What to produce?
Although there have been some small market reforms
recently, the majority of legal economic activities are
centrally controlled by the government.
Due to natural disaster and inefficient government-run
industries, North Korea is a major recipient of food
and basic service aid from Non-Governmental
Organizations (NGO) and foreign nations. The U.S.
provides the people of North Korea with a large
amount of aid.
Like in many highly centralized economies, there is a
large underground economy that runs on a more
market based system.
15. North Korea
For whom to produce?
Approximately one fourth of all domestic
output is devoted to maintaining the military.
This severely limits the amount of goods and
services that make it to the rest of the people
of North Korea.
North Korea produces natural resources and
manufactured goods for export.
16. Placed on the continuum:
North Korea
would be much more to the command side
of the continuum than any of the other
nations discussed. One of the most
command economies in the world today.