Why the Second Amendment is Essential to Freedom and American Values - Free Essay Example

Sample details Pages: 9 Words: 2667 Downloads: 7 Date added: 2019/03/20 Category Law Essay Level High school Tags: Gun Control Essay Second Amendment Essay Did you like this example? The history of the United States began on July 4, 1776, when the founding fathers rebelled against the tyrannical rule of the British Empire. In doing so, the Founding Fathers would go on to create a society based on freedom and liberty for its citizens. The Constitution is the supreme law of the United States of America, and in this document is the Bill of Rights. Don’t waste time! Our writers will create an original "Why the Second Amendment is Essential to Freedom and American Values" essay for you Create order The Bill of Rights is essential to the American way of life and how the country has developed throughout its history. The Bill of Rights contains the first ten amendments to the Constitution, which guarantee American citizens civil rights and protections from their government. One Amendment is constantly under attack for a variety of reasons, but many do not understand the importance and significance of said amendment. Gun rights in America are an essential freedom stemming from the founding fathers providing the citizens with the right to defend against a tyrannical government by any means necessary, and they are essential to self-protection and protection of freedoms for citizens. When the Bill of Rights and Constitution were ratified in 1791, they were intended to protect the individual liberties and civil rights of American citizens. A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed(Strasser). This is the exact phrasing of the Second Amendment found in the Bill of Rights of the Constitution of the United States of America. Without these basic freedoms and protections of individual liberties, the founding principles of American values are essentially worthless. By enacting gun control legislation, individual freedoms that were intended to be protected by the Constitution are nullified. The quote from Ben Franklin Any Society that would give up a little liberty to gain a little security will deserve neither and lose both, (Online) argues strongly for the case that sacrificing individual liberties for safety is a slippery slope. The argument that the government should be allowed to control the power of the citizens through passing laws to ensure safety does not only directly oppose the principle upon which America was founded, but is also unconstitutional (Hills). Throughout the course of history, citizens have been repeatedly oppressed by governments and if citizens do not have the ability to have a power or check on the government, then they will inevitably be at the will of the government. There are checks in other areas of the government, such as the House and the Senate. The Houses representation in Congress is based on population size, while the Senates representation is the same for every state. This was established to allow smaller states to have the same amount of power as the larger states and not have their voices lost by being overpowered the majority population. This bicameral legislation is important to allow checks and balances within the government to ensure the voices of the minority are not squandered by the voices of the majority. When this same principle is applied to the citizens and the government, the intention of the Second Amendment becomes more clear. The Founding Fathers wrote the Bill of Rights to protect the citize ns, and without the Second Amendment, the governments actions can go unchecked by the citizens. Without enabling the American citizens to have the proper checks on the government, the Constitution is essentially being ignored and individual liberties that are protected by the Bill of Rights are practically nullified (Gun). The ability to defend ones self is a natural right and gun control makes the assumption that citizens are safer when the only firearms in the nation are in the hands of the government. Human beings have the right to defend themselves and punishing the rights of law-abiding citizens because of the actions of deranged criminals is not only illogical but immoral. By the very definition of the word, a criminal is someone who does not follow the law. When potential gun control legislation would be enacted, criminals would not follow the law because they are criminals. Most proposed gun control legislation targets assault rifles, seeing as how they have the capacity and power to be the most fatal when used in mass shootings. In reality, the majority of crimes committed with firearms are with handguns. Taking this information into account, it seems illogical to consider banning rifles in the name of public safety when considering what ramifications doing so could have (Larsen). Guns are more often used in self-defense than they are for criminals activities, according to a study done by the National Academies Institute of Medicine and National Council Research. According to the study, ordered by the CDC in 2012, there is an average of 500,000 to 3,000,000 defensive gun uses per year in America. Considering that violent gun crimes amounted to 38,658 occurrences in 2016, the evidence that guns are essential to self-defense is substantial. The police do not always respond in time to properly defend citizens against threats, and in those cases having a firearm can be the difference between life and death. According to another study conducted by the National Academies Institute of Medicine and National Council Research, there are roughly 162,000 cases per year where someone people involved in crimes where guns were used defensively said that the gun was the difference between life and death. For these reasons, defensive gun uses are essential to the American citi zens ability to defend themselves (Hsieh). Without the privileges of the Second Amendment guaranteed, the rest of the amendments and individual liberties protected by the Constitution would be in great danger. The check the that Second Amendment allows citizens to have over the government protect them from the possible tyranny of a government, but on an equally important note allows citizens to protect the freedoms ensured in the Constitution by the Founding Fathers. Theoretically, a government trying to pass laws that violate these freedoms, such as a bill that would criminally punish those who are critical of the government, would be much easier to pass without the Second Amendment. The Bill of Rights, along with the rest of the Constitution, were written in such a manner as to protect the liberties that the founding fathers viewed as essential. The war that they had just finished fighting that set the groundwork for the United States of America was fought using weapons that their government would not have allowed if the pr oper enforcements were imposed. The Second Amendment was not written to only ensure that weapons available to them at the time of writing the Constitution would be available, but so all future generations that the Constitution would govern also have the same protections that the Founding Fathers. Without the Second Amendment, the rest of the freedoms protected in the Constitution are essentially nullified (Gun). The argument for gun control is well established in todays society, and for good reason. In recent history, there has been an outrageous number of mass shootings in America. For this reason, many argue that weapons that have large magazines and high fire rate should be banned to stop mass shootings. This seems like a reasonable, logical response, but in reality, it is an emotional response that needs heavy consideration. Emotionally arguing for something on the basis that it could improve safety While this would help eliminate some of the mass shootings that could potentially happen, it hardly ever stops there. Every time a mass shooting occurs, there is a large backlash against gun owners who have done nothing wrong. Many of the most recent mass shootings could have been prevented with existing gun control laws, such as the Thousand Oaks shooting in California. Had the existing laws been properly enforced, then the shooter would not have had access to the weaponry used in the shooti ng. The proper response to gun violence is not taking guns away from law-abiding citizens, but a stricter focus on how to keep guns out of the hands of the mentally ill (Wing). Another argument in favor of gun control is that the Second Amendment was written during a time of different weaponry and thats what the Second Amendment applies to. This is commonly used against the argument for less restrictive gun control. This is not true because the Constitution is the ruling law of the land, and the rest of the Amendments have evolved over time in order to accommodate different technological developments, such as freedom of speech on television and radio. Since the Constitution is the supreme law of the United States, changing any laws to any part of the Constitution without formally amending it is essentially unconstitutional. Although the Constitution states that the right to bear arms shall not be infringed, there are concessions that are necessary. With these mass shootings on the rise, checking for any hits on prior mental health history and domestic abuse can help keep guns in the hands of the right people. This is a solution that keeps not only the gun rights of Americans safe but Americans at large safe (Mental Health). Gun control in America violates citizens individual liberties, which is a founding principle of America, and something that makes it so unique. America was founded on the belief that the government exists to serve the people, and the Bill of Rights was added to the Constitution to ensure that the individual rights of citizens are protected. When citizens of the United States sacrifice their liberties in the name of safety, they will eventually lose both of these. The American system of government, which was revolutionary in its time and has established the groundwork for individual liberties globally, will be slowly dismantled if the Bill of Rights is amended or ignored. The claim that weapons like assault rifles and high capacity firearms should only be in the hands of the government is ignorant of the Constitution and the founding of America. Thinking that the citizens would be more safe with an all-powerful government is also ignorant of world history, as governments were responsi ble for nearly one hundred million deaths in the twentieth century (Satter). George Santayana once said: Those who dont learn from history are doomed to repeat it (Clairmont). The quote from Santayana offers a recommendation and for those who care to listen to what he has to say, and much can be learned. Throughout history, tyrannical governments have taken the civil liberties from the citizens of their countries and it never ends well. When citizens are unable to protect themselves from large, tyrannical governments, the government will do whatever they need too to ensure their vision is accomplished, in most cases. Powerful governments are the source of large death tolls from the twentieth century. China, the Soviet Union, Nazi Germany, Cambodia, North Korea, Africa, and South American countries where governments controlled the lives of their citizens, and who were responsible for the deaths of the nearly one hundred million people during the twentieth century. These are not anecdotal stories that are only applicable in specific environments and certain per iods of history. People who have hate in their hearts fight harder and more viciously than those who have love and care in their heart. If Americans do not learn from history and the results of disarming in the name of safety, then America will lose what makes it so free. Reflection: In writing this paper, I have realized how important the Constitution is to the freedom of American citizens. It was written to ensure that the same abuses of power that lead to the Revolutionary War and the foundation of America would not happen under the new country the Founding Fathers were starting. I have also realized that if the founding fathers did not have the ability to use force in rebelling against the British Empire then the Revolutionary War would have been little more than a loud protest. If it werent for the ability of citizens to have a sense of power against the government, then there would be no America today. Before writing this paper, I had somewhat agreed with the assertation that the Second Amendment had only applied to muskets or the weapons available at the time of writing the Constitution. After independently researching, I now know that the Second Amendment is far more important than I ever realized. The founding fathers added this amendment to ensure that if the American government ever became tyrannical than the citizens would be able to fight back against the government. If the Second Amendment was not added to the Constitution, the world as we know it would be entirely different. While I still do not believe that even the purest of citizens should not be able to own a rocket launcher or predator drone, I do believe that having adequate firepower to keep the balance of power between the government and the citizens fair. I do think that there have recently been many gross misuses of firearms and that caused an emotional reaction not only from me but throughout the entire country. I took a step back and looked at the ideas logically, and realized that just because some mentally ill person has the ability to get his hands on a firearm does not mean that responsible gun owners should be punished and our rights infringed. It is a hot-button issue, but I think that more people need to come to the realization that this is a mental health issue, not a gun issue. If these people could not get their hands on guns, I do still think that they would try to do something. I had recently read that these mass shooting are essentially a glorified mass suicide that will inevitably get mass media coverage. One solution that I have seen is to stop identifying the killer in these cases because it inspires copycats and they see it as a twisted form of glory and recognition. I enjoyed researching this because I realized the true intention of the Second Amendment and why it is so important to the rest of the Bill of Rights. Without the Second Amendment, then the population would be much more susceptible to the will of the government and I am surprised that the Founding Fathers had the intelligence to include this in the ruling law of the United States of America. Works Cited Clairmont, Nick: Those Who Do Not Learn History Are Doomed To Repeat It. Really? Big Think, Big Think, 6 Oct. 2018, bigthink.com/the-proverbial-skeptic/those-who-do-not-learn-history-doomed-to-repeat-it-really. Doherty, Brian. A Second Look at a Controversial Study About Defensive Gun Use. Reason.com, Reason, 4 Sept. 2018, reason.com/blog/2018/09/04/what-the-cdcs-mid-90s-surveys-on-defensi. Hills, Thomas. On Gun Rights in America. Psychology Today, Sussex Publishers, 16 Feb. 2018, www.psychologytoday.com/us/blog/statistical-life/201802/gun-rights-in-america. Hsieh, Paul. Any Study Of Gun Violence Should Include How Guns Save Lives. Forbes, Forbes Magazine, 20 Mar. 2018, www.forbes.com/sites/paulhsieh/2018/03/20/any-study-of-gun-violence-should-include-how-guns-save-lives/#d7e6d095edc5. Gun Control. American Law Yearbook 2016: A Guide to the Years Major Legal Cases and Developments, Gale, 2017, pp. 113-116. Opposing Viewpoints in Context, https://link.galegroup.com/apps/doc/CX3633800048/OVIC?u=mccc_gvrlsid=OVICxid=487372da. Accessed 12 Nov. 2018. Larsen, Emily. FACT CHECK: Are Most Gun Crimes Committed With Handguns? |. Daily Caller News Foundation, 20 Feb. 2018, dailycallernewsfoundation.org/2018/02/20/fact-check-are-most-gun-crimes-committed-with-handguns/. Mental Health Reporting. Giffords Law Center to Prevent Gun Violence, lawcenter.giffords.org/gun-laws/policy-areas/background-checks/mental-health-reporting/. Ludwig, Hayden. Why Is the CDC Hiding Its Defensive Gun Use Statistics? Capital Research Center, Capital Research Center, 16 Apr. 2018, capitalresearch.org/article/why-is-the-cdc-hiding-its-defensive-gun-use-statistics/. Online Library of Liberty. The Revolutionary Writings of Alexander Hamilton Online Library of Liberty, oll.libertyfund.org/quotes/484. Satter, David. 100 Years of Communism-and 100 Million Dead. The Wall Street Journal, Dow Jones Company, 6 Nov. 2017, www.wsj.com/articles/100-years-of-communismand-100-million-dead-1510011810. Strasser, Mr. Ryan. Second Amendment. LII / Legal Information Institute, Legal Information Institute, 5 June 2017, www.law.cornell.edu/wex/second_amendment. Wing, Nick. California Has A Law That Mightve Prevented The Thousand Oaks Shooting. It Wasnt Used. The Huffington Post, TheHuffingtonPost.com, 10 Nov. 2018, www.huffingtonpost.com/entry/red-flag-law-thousand-oaks-shooting_us_5be4a06fe4b0e8438895981d.

The Necessity of Anti Bullying Laws - 1381 Words

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The Most Dangerous Game and The Destructors Essay Example For Students

The Most Dangerous Game and The Destructors Essay And something had come to lifeIt was a kind of shadow, a poisonous blackness filled with bewildered loathing. something hateful and unspeakable in the souls of men. An apparent introduction is made in the three works, The Most Dangerous Game by Richard Connell, The Child by Tiger by Thomas Wolfe, and The Destructors by Graham Greene; the unwelcome but necessary introduction to the sinful nature of mankind, to evil without limits, and without cause. When confronted with the presence of evil around them, the characters react in very different ways. A few triumph, one just stands in awe. In The Most Dangerous Game Mr. Rainsford, at first, tries to shrug off a fellow sailors belief of a nearby dark island by saying Pure imagination . . . One superstitious sailor can taint the whole ships company with his fear. The sailor replies with haunting faith, Sometimes I think evil is a tangible thing with wavelengths, just as sound and light have. An evil place can, so to speak, broadcast vibrations of evil. When Rainsford comes to believe the crucial meaning of his friends words, it is too late; he is already in the midst of the very place that was spoken of. Appalled at first, by faced with no other choice than to confront the very source of evil, General Zaroff, face to face, Rainsford realizes the danger of his position and takes what he is dealt right in stride. He was now the wanted prey of the most dangerous of hunters. He had not been entirely clear-headed when the chateau gates snapped shut behind him. His whole idea at first was to put distance between himself and General Zaroff. . . Now he had got a grip on himself, had stopped, and was taking stock of himself and the situation. Mr. Rainsford, an experienced hunter himself, had found himself in a position he probably had never imagined before. This kind of hunting was new to him, for this time the quest was for him and his pursuer was of the most wicked species; the devil, so to speak. Is there anything a man dont stand to lose when the devil wants to take it all away? To try an out run, out fox and altogether put an end to the devil was the task, and Rainsford did it the only way he knew how; by being the poacher and the quarry, setting traps while taking flight, and leaving no traces behind to be followed. After eluding General Zaroff for a wearing three days, Rainsford had won, according to the rules of General Zaroff, but that did not satisfy him in the least. I congratulate you, the General said. You have won the game. Rainsford did not smile. I am still a beast at bay, he said in a low, hoarse voice. Get ready, General Zaroff. And he did win, he was the champion in the game between good and evil, the most dangerous of all games. Mr. Spangler, as he is referred to in The Child by Tiger, was brought more abruptly into the realization that man is born with the heavy burden of iniquity on his shoulders. Although still a child, Spangler did realize that the man he and all of his friends looked up to, the man that knew how to do everything, had a strange air about him. Spangler noted in the beginning of the story, He went to softly, at too swift a pace. He was there upon you sometimes like a cat. Looking before us, sometimes, seeing nothing but the world before us, suddenly we felt a shadow at our backs and, looking up, would find that Dick was there. And there was something in the night. We never saw him come or go. Spangler and his friends, Randy and Nebraska, didnt quite know what to thank of Dick. He was devoted to his master and deeply religious, he seemed a good man. .ude1401be7fa32b6188582c1d2bca2177 , .ude1401be7fa32b6188582c1d2bca2177 .postImageUrl , .ude1401be7fa32b6188582c1d2bca2177 .centered-text-area { min-height: 80px; position: relative; } .ude1401be7fa32b6188582c1d2bca2177 , .ude1401be7fa32b6188582c1d2bca2177:hover , .ude1401be7fa32b6188582c1d2bca2177:visited , .ude1401be7fa32b6188582c1d2bca2177:active { border:0!important; } .ude1401be7fa32b6188582c1d2bca2177 .clearfix:after { content: ""; display: table; clear: both; } .ude1401be7fa32b6188582c1d2bca2177 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ude1401be7fa32b6188582c1d2bca2177:active , .ude1401be7fa32b6188582c1d2bca2177:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ude1401be7fa32b6188582c1d2bca2177 .centered-text-area { width: 100%; position: relative ; } .ude1401be7fa32b6188582c1d2bca2177 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ude1401be7fa32b6188582c1d2bca2177 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ude1401be7fa32b6188582c1d2bca2177 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ude1401be7fa32b6188582c1d2bca2177:hover .ctaButton { background-color: #34495E!important; } .ude1401be7fa32b6188582c1d2bca2177 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ude1401be7fa32b6188582c1d2bca2177 .ude1401be7fa32b6188582c1d2bca2177-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ude1401be7fa32b6188582c1d2bca2177:after { content: ""; display: block; clear: both; } READ: Censorship and Pop Culture Essay After all, he read his bible every night. Spangler and his friends had trouble understanding Dicks passion and obsession over the bible. We tried to laugh it off and make jokes about it. But .

Roll Of Thunder Hear My Cry Essay Example For Students

Roll Of Thunder Hear My Cry Essay Having read the novel, I have come to the conclusion that the author, Mildred Taylor has portrayed prejudice in a number of effective ways. The novel being set in 1930s Mississippi plays a major role in prejudice being apparent because slavery had just been abolished, yet this didnt have much of an impact on the society in the 1930s. Through the use of various examples, the reader is able to comprehend the prejudice at the time and the effects it had on people. The main theme running in this novel is related to prejudice and therefore all incidents that take place in the novel occur due to prejudice being present. The time it was set in is a huge impact on the prejudice itself as the Wall Street crash had just taken place and therefore, poverty was at its peak. This incident was an excuse characters, such as the Wallaces, had used to blame the whites as being those who put them in the position they were in and if the white race didnt use so many resources at the time, then the Wallaces would have been better off. Mildred Taylor has made the novels narrator a youth of the black race and also uses first narrative, which has a greater effect on the reader as they are being shown racism and prejudice, through the eyes of a nine year old child. In the majority of novels, the authors show the novel from an adults point of view in this case we are shown a youths reaction towards incidents experienced at the time, hence the reader gains a greater insight. It allows the reader to engage in the novel by seeing how a child explores the prejudice in Mississippi. Taylor gradually builds up tension in the novel by showing the reader certain details of a familys status and then shows how they may be exploited due to the way they are seen in society. We are shown this when Cassie asks Papa why he had to go to work and why the land was of such significance. Papas response was reassuring, as he told Cassie that she may not find it easy to comprehend at that moment, but as time passes she would become aware of Papas need to travel to work and what significance the land was to the Logans, as we see she later does. Mildred didnt show how owning land was a great virtue at the time; instead she went on further to show examples of how racism and prejudice increased due to the black race owning land. Mildred shows Mr Grangers actions of trying to get the Logan Land back into his possession which shows how a white man, felt the need to take over a black mans belonging. In order for Mildred to show the reader the long-term effects of the black race owning land and how it would result in the whites opposing them, due to them not approving of the blacks owning such land as it would give them a higher status in society, we are shown a question asked by a black youth, Cassie -I asked him once why the he had to go away, why the land was so important.

The Importance of Common Salt free essay sample

NaCl, is known as common salt. It is important because it is essential to the health of human beings and of animals. for domestic use it is fined down to what is known as table-salt, and small quantities of other chemicals are added to it to keep it free-flowing when in contact with the atmosphere. Salt and potassium are combined to produce iodised salt, used when iodine is lacking in diet. Its absence cause goitre, the swelling of the thyroid gland. Livestock as well as humans need salt, and this provided in the form of solid blocks, known as salt-licks. Salt is also crucial to the food industry. It is used in meat packing sausage-making and fish-curing both for seasoning and as a preservative. It is also used in the curing and preserving of hides and in the form of brine of brine for refrigeration purposes. Salt is extensively used in the chemical industry; in the manufacture of baking soda, sodium bicarbonate; of caustic soda, sodium hydroxide; of hydrochloric acid, of chlorine etc. We will write a custom essay sample on The Importance of Common Salt or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It is also used in soap-making, and in the manufacture of glaze and porcelain enamel. It also enters metallurgic processes as flu, a compound used to assist the fusing of metals. Salt lowers the melting point of water, so in combination with grit, it is used for clearing roads of snow and ice. It is also used for water-softening by means of removing calcium and magnesium compounds from tap water.

Free Essays on Niccolo Machiavelli

Niccolo Machiavelli is revered as the founder of modern political philosophy. He was considered a â€Å"realist† because he concerned himself only with the political situations that actually arose in reality; where as previous philosophers were concerned largely with the theoretical politics of an â€Å"idealist† prefect society. Machiavelli presents Medici with a sort of guidebook of successful political practices. Machiavelli goes against Platonic philosophy. Whereas Plato believed that human kind was virtuous by nature, with evil men being but a small fraction of the species, Machiavelli felt that it was virtuous who were a minority in a world of evil men. Machiavelli goes on to say that the evil majority would generally overcome the virtuous few. Thus it is the duty of rulers to safeguard themselves from the evil men by committing non-virtuous acts. Rather than contemplating how one might change human nature, Machiavelli was more interested in using it to ser ve his own ends. Machiavelli begins by saying that the most difficult thing for a ruler to do is to acquire a new kingdom. This may be accomplished one of two ways, â€Å"either by the arms of others or by one’s own, either by fortune or virtue.† What he means by the â€Å"arms of others† and â€Å"fortune† is monarchs that inherit their kingdoms. When Machiavelli refers to using one’s own arms or â€Å"virtue,† he is in fact equating virtue with force. By advocating the use of force, Machiavelli became the first political thinker to suggest power politics. According to Machiavelli, acquiring a kingdom by force is perfectly all right, because the desired end justifies any means necessary to achieve it. He does however instruct Medici as to â€Å"the good and bad use of cruelties.† By this, Machiavelli is referring to both the effective and non-effective uses of force. Machiavelli states that â€Å"Good use is when†¦is wh en they [acts of cruelty] are perpetrated all at ... Free Essays on Niccolo Machiavelli Free Essays on Niccolo Machiavelli Niccolo Machiavelli is revered as the founder of modern political philosophy. He was considered a â€Å"realist† because he concerned himself only with the political situations that actually arose in reality; where as previous philosophers were concerned largely with the theoretical politics of an â€Å"idealist† prefect society. Machiavelli presents Medici with a sort of guidebook of successful political practices. Machiavelli goes against Platonic philosophy. Whereas Plato believed that human kind was virtuous by nature, with evil men being but a small fraction of the species, Machiavelli felt that it was virtuous who were a minority in a world of evil men. Machiavelli goes on to say that the evil majority would generally overcome the virtuous few. Thus it is the duty of rulers to safeguard themselves from the evil men by committing non-virtuous acts. Rather than contemplating how one might change human nature, Machiavelli was more interested in using it to ser ve his own ends. Machiavelli begins by saying that the most difficult thing for a ruler to do is to acquire a new kingdom. This may be accomplished one of two ways, â€Å"either by the arms of others or by one’s own, either by fortune or virtue.† What he means by the â€Å"arms of others† and â€Å"fortune† is monarchs that inherit their kingdoms. When Machiavelli refers to using one’s own arms or â€Å"virtue,† he is in fact equating virtue with force. By advocating the use of force, Machiavelli became the first political thinker to suggest power politics. According to Machiavelli, acquiring a kingdom by force is perfectly all right, because the desired end justifies any means necessary to achieve it. He does however instruct Medici as to â€Å"the good and bad use of cruelties.† By this, Machiavelli is referring to both the effective and non-effective uses of force. Machiavelli states that â€Å"Good use is when†¦is wh en they [acts of cruelty] are perpetrated all at ...

Culture and Morality Essay Example | Topics and Well Written Essays - 750 words

Culture and Morality - Essay Example While in the past, we were swayed to consider that â€Å"the ways of England are the ways of the world†, contemporary societies maintain that all cultures are virtuous and deserve respect. However, with the United States, the prime crusader of democracy, rising to power, the human rights and justice are emphasized to a higher degree, and instigated criticisms toward various cultures that violate their perception of morality. Unacceptable Cultures Many constitutions in this modern time propagate equality of people under the law. Although it is inevitable that an individual’s social status determines its reputation, equal opportunities are still provided amongst citizens in almost all aspects of life. Over time, practices deemed unacceptable are abolished; and acts that counter to peace and human rights are penalized. Apartheid, or the racial segregation enforced by the National Party of South Africa for almost 50 years was completely removed, granting independence to the marginalized black residents. Similarly, the American Civil War during the early 1860’s eradicated black slavery and started the struggle for egalitarianism between the two colors. These practices that many protested against and sacrificed their lives for obliteration of, were inherited from the cultures of our forefathers. These may have lessened considerably, but the state of mind is not entirely changed. Moreover, other cultures regarded as repugnant are still existent. The Indian Caste System The caste system that separates society in terms of profession is prevalent among the Hindus despite contentions that such is not compelled in the scriptures but merely directed by the religion. Birth alone decides a man’s status, and this cannot be altered by effort (Pruthi, 2004). They are not permitted to marry, associate and mingle with anyone outside their caste; and if excommunicated, live as an outcaste, utterly separate from the rest. In this modern time, however, mor e and more cities are diverting away from the system in view that such is a deterrent to unity amongst citizens (Welty 1962). As new opportunity that calls for cultural reformation presents itself to India, people will respond either out of rationality or necessity. In that sense, Indians of academic superiority are presumed more receptive to new influences compared to the rest. Terrorism and the Concept of Jihad On September 11, 2001, an American aircraft crashed into the Pentagon, another into the World Trade Center’s north and south tower, and killed approximately three hundred thousand people. The names Osama Bin Laden and al-Qaeda were heard for the first time (Katz, 2004), and intensified the long-standing antagonism between Muslims and the West. This was argued as a practice of â€Å"jihad†, which meant holy war, directed against the enemies of Islam. Sanction is given unto those who fight because they have been wronged; and Allah is indeed able to give them vic tory; those who have been driven from their homes unjustly only because they said: Our Lord is Allah (Sura 22:39). Jihad finds its origin not only in the â€Å"militancy of Muhammad but in the culture of pre-Islamic Arabia† (Ankerberg and Caner, 2009, p. 15). In the past, Arabian tribes were consented to battle against any other tribe, and war was tolerable regardless of its nature. The soldiers of the new jihad assumed the tradition and embarked on violent assaults, â€Å"

Commissioner Of Internal Revenue Research Paper

Commissioner Of Internal Revenue - Research Paper Example Conducting the event in a tournament setting did not transform the poker activity into something other than wagering. Further, the act of betting is intrinsic to poker, regardless of whether it occurs in tournament poker or "live action" poker. Finally, the taxpayer's argument that tournament poker should be treated the same way as sports such as golf or tennis was rejected. Congress's decision to draw clear distinctions can mainly be viewed as a reasonable form of setting out the distinction without violating due process or equal protection. At trial, petitioners concurred that Mr. Tschetschot was not a professional gambler but argued that Mrs. Tschetschots professional tournament poker playing is not gambling and thus not subject to the limitations of section 165(d) on losses from gambling. The Internal Revenue Code (IRC), as cited fromen.wikipedia.org/wiki/Internal_Revenue_Code is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code (USC).It is organized topically, into subtitles and sections, covering various types of taxes as well as procedure and administration. Its implementing agency is the Internal Revenue Service. In reference to the Black’s law dictionary, gaming is defined as the act or practice of playing games for stakes or wagers; gambling; the playing at any game of hazard (re Stewart (D. C.) 21 Fed. 398). (2) An agreement between two or more persons to play together at a game of chance for a stake or wager which is to become the property of the winner, and to which all contribute(People v.Todd, 51 Hun, 440, 4 N. Y. Supp. 25;)

Enterprise Technologies and the Value Chain Research Paper

Enterprise Technologies and the Value Chain - Research Paper Example Opportunities to identify these benefits can be realized via examining the organization’s value chain. Enterprise Technology Mobile business refers to electronic business transactions enabled, in part, by mobile technology targeting both consumers and businesses (Hill & Jones, 2011). The mobile business includes mobile commerce activities that represent mobile technology-enabled transactions. Mobile technologies that support mobile businesses are grouped as networks and devices. Mobile devices can range from GPS and RFID chips to tablets and barcode scanners. Mobile networks include RFID, Bluetooth, GPS and mobile telecommunication networks. These are utilized, by organizations, to offer customization and flexibility. Unlike e-commerce, M-business offers value via enabling users to be reachable anytime and be mobile. Therefore, value creation can occur via support to mobile users (employees) or mobile activities such as tracking supplies and raw materials. An industry trend th at is growing is Fixed Mobile Convergence where centralized infrastructure and management support a mobile workforce that provides access to business applications from all locations and network connections (Hill & Jones, 2011). ... The employees may want to interact with fellow employees and may be on the receiving end of interactions with both external and internal information systems. An example of a business application useful here is the wireless notification system using SMS for critical updates. The wireless interactions possible are employee-to-employee, employee to the system, and employee to consumer (Meier & Stormer, 2011). The systems are run by organizations as either a front-end or back-end systems. An example of this is an employee using wireless business’ ERP system, with the potential mobile interactions being a system-to-system, system to the employee, and system to consumer. The final component supported is the consumer, who may interact wirelessly with the organization. The potential interactions include consumer-to-consumer, consumer to the employee and consumer to system. The unique attributes of mobile technology offer support to the organization’s value chain by providing localization, personalization, and connectivity (Meier & Stormer, 2011). A mobile infrastructure enables employees to have full time connectivity anywhere and at any time, coupled with information and communication exchange. A mobile device is assigned to one user, who can then personalize application and interface settings to increase device satisfaction and also effectiveness and efficiency of the system. Finally, mobile devices support localization, which is especially important as it allows reachability from the ability of the internet to reach an IP address to reaching the user or an item.  Ã‚  

Analysis of Nokias Competitive Policies

Analysis of Nokias Competitive Policies Nokia’s Competitive Policies In Handset Industry in Asia Chapter 1. Introduction The progress of technology has altered our daily life routine dramatically. In recent 2 decades, people have seen the big convenience brought by colour TVà £Ã¢â€š ¬Ã‚  telephoneà £Ã¢â€š ¬Ã‚  laptopsà £Ã¢â€š ¬Ã‚  mobile phone and etc. Among them, the contribution of mobile phone is especially prominent: given the integration of technologies of Internet, laptop, and communication etc, the small and good looking handset will enable us ubiquitous application of modern multi-functions. The advantage of 3G even further attracts our minds with colourful imagination. During the upgradation of our living style, we owe a lot to the companies of the handset industry, especially those popular giants including Nokia, Motorola and Samsung. When they change our living successfully, they realize their developing targets as well. For example, according to the Fortune Global 500 in 2005, Nokia and Motorola ranked 130th and 138 respectively1. Thus, they are recognized by the society. It’s unpredictable for a company to achieve great goals without correct strategies to employ. In the fierce competition of handset industry in China, the correct competitive strategies are required for the participant to win market shares. Surely, sometimes the right strategies are difficult for survival. Nokia, as the no. 1 in the handset industry of China, is certainly the biggest winner through exertion of correct competitive strategies. As is mentioned above, the competition in handset industry in China will become even more fiercer along with the emerging trend such as the advent of 3G, the alteration of distributing channels, and the improved leval of industrial centralization etc. So competitors should promptly adopt relevant changes of their competitive strategies to adapt to new environment. This dissertation aims first to analyze the competitive strategies already employed by Nokia 1 Accessed on Feb.23rd, 2007, The List of Fortune Global 500 in 2005 http://brand.icxo.com/brand500/top500_1.htm During the progress of Chinese handset industry. To confirm whether the competitive strategies are acurate, I use Porter’s 5 forces theory as the frame to anatomize the factors such as Economies of scale, Product differentiation, Capital requirements, Cost disadvantages, independent of size, Access to distribution channels, Government policies, and Competitor’s Retaliation. Thereby, the rationalities of Nokia’s competitive strategies in Chinese handset industry may be authenticated. According to the great lots of evidence collected from website newspapers and catena, new trends of handset industry appear gradually. To grasp the future flux on market share and industrial environment, it is necessary for Nokia to nip in the bud. As a natural extending of the aforesaid analysis on competitive strategies, this paper also expounds the reason causing the new industrial trend in Chinese handset industry and suggests the probable strategies Nokia may adopt. As is well known, according to the Moore’s law, the chips of the handset is developing at a very rapid speed. Moreover, the handset is still influenced by the fluky vanguard fashion. It is not easy to survive in the fluctuate market, and say nothing of being leading company in the industry. I wish textual analysis might benefit the readers to recognize the industrial situation and use Nokia for reference. This text takes a logical sequence to discuss the total analysis, so the chapters are in turn as follows: Introduction to Reportà £Ã¢â€š ¬Ã‚ Introduction on Nokia Corporateà £Ã¢â€š ¬Ã‚  The Mobile Handset Industryà £Ã¢â€š ¬Ã‚ Industrial Analysis Using Porter’s 5 Forces Theoriesà £Ã¢â€š ¬Ã‚  Analysis on Nokia’s Competitive Strategiesà £Ã¢â€š ¬Ã‚ Evolution of Nokia’s Competitive Strategies and Conclusion. The content of each chapter encircles its name, and the detailed discussion will be deployed in the following chapter. Chapter 2. Introduction on Nokia Corporate With hundreds of years’ development, Nokia has successfully realized its industry transform within the world-wide range, and gradually established its leading position in the handset industry in China as well as in other area of all the world. The whole experience is full of legendary color, as is introduced as follows: Section 1. Nokia’s Developing History 1à £Ã¢â€š ¬Ã‚ Brief Review on Nokia’s History According to the introduction from Nokia’s autobiography, the roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in Southwestern Finland by mining engineer Fredrik Idestam. Other relative events were the foundation of Finnish Rubber Works Ltd in 1898 and in 1912 Finnish Cable Works began operations. After decades of operation, the three companies were merged to form Nokia Corporation in 1967. The worlds first international cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer. In the late 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericssons data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF. In 1992, Jorma Ollila became the CEO of entire Nokia Group, who made a strategic decision to concentrate solely on telecommunications in the coming Digital Age. Thus, during the rest of the 1990s, Nokia continued to divest itself of all of its non-telecommunications divisions. This strategic shift consolidated the foundation for Nokia to become a worldwide famous leading company in telecom industry.2 2à £Ã¢â€š ¬Ã‚ Nokia’s Performance in Recent Years After the strategic shift in 1990s, Nokia has established its leading position in the global telecommunication market. Every business item, especially mobile phone item, has exhibited high-speed of development ever since. At present, Nokia comprises four main business groups: mobile handsets, multimedia, enterprise solutions, and networks. Among them, the mobile handset is the pillar business for entire group operation. According to annual report of 2005, Nokia ´s net sales arrived at EUR 34 191 million3, realizing an increase rate of 12.56% when compared with EUR 30376 million in 20004. Among the total net sales, sales of mobile phones reached EUR 20811 million, occupying 60.87% of the total net sales. In 1992, the mobile handset business only account for 20% of the total sales of entire group. Nokia ´s operating profit for 2005 reached EUR 4 639 million, representing a 2005 operating margin of 13.6%, and Operating profit in mobile handsets decreased 5% to EUR 3 598 million (operating profit of EUR 3 786 million in 20045), representing a 2005 operating margin of 2 Accessed on Feb.23rd, 2007, The History of Nokia 1865-2002, http://r2.nokia.com/nokiahistory/index.html 3 Accessed on Feb. 23rd, 2007, Key data of Nokia http://www.nokia.com/link?cid=EDITORIAL_4026 4 Accessed on Feb. 23rd, 2007, Annual Information 2000, http://www.nokia.com/A4126501 5 Accessed on Feb. 23rd, 2007, Annual Information 2004, http://www.nokia.com/A4126497 17.3%. However, in comparison with the EUR 83 million in 19926, the operating profit of mobile handset in 2005 represents more than 43 times increase. As is recognized by the global consumers, Nokia brand was ranked 16th among The World 500 Most Influential Brands in 2005 by the World Brand Lab. According to the Fortune Global 500 in 2005, Nokia group ranked 130th and represented no. 1 among the Industry of Network and Other Communications Equipment, taking a position higher than any other competitors. From the aspect of mobile handset, till Sept. 2006, Nokia captures 35.1% of the global market. According to the Gartner institute, Motorola was in second place, with market share of 20.6%, and Samsung of South Korea saw its share of the world market fall to 12.2 % from 12.5 in third quarter 2005. 7 Obviously, Nokia has firmly established its leading position in its industry and has become the worlds leading provider of mobile telephones. Section 2. Nokia’s Development in China The year Nokia traded with China can be traced back to 1950s. And later, until 1985, Nokia opened its first branch in Beijing to initiate its development of early stage in China. In 1995, Nokia set its joint venture in China to produce large scale of GSM system equipment. Then, in 1997, Nokia deliver China the first GSM 1800 network. Soon later, in 2000, Nokia started up the Chinese GPRS network that is first one compatible with newest business 6 Martti Haikio (2003) NOKIA THE INSIDE STORY. Published by Edita Publishing Ltd and Nokia Oyj, Copyright 2002, Chinese Edition First Printed in Sept. 2003. pp.272-273. 7 Accessed on Feb. 23rd, 2007, Nokia is top mobile phone maker for Q3-Gartner, Nov. 23,2006 http://telecomasia.net/article.php?id_article=2793 standards in the world.8 In 2001, Nokia invited its main global partners including mainly hardware providers to invest about RMB 10 billion together in Star Net Industry District in order to form integrated production capabilities and to decrease cost.9 During 2003, Nokia released 15 styles of handsets and ranked no.1 of the GSM mobile handset. As is reported, the top 3 brands of GSM in 2003 are Nokiaà £Ã¢â€š ¬Ã‚ Motorola and Samsung, with market shares respectively 17.23% à £Ã¢â€š ¬Ã‚ 16.46%à £Ã¢â€š ¬Ã‚ and 11.81%.10 When entering into the new century, Nokia strengthens its cooperation with China in the field of communication technology and takes active part in the development of Information Industry in China. At the same time, Nokia commits itself to employment and cultivating of the local talents. To the end of 2004, Nokia arrived at no. 1 of the whole handset sales in China. In 2005, the rising trend continued. It is calculated that Nokia captures 25.8% of domestic handset market share in 2005, realizing 10.8% more than in 2004. By contrast, the second brand Motorola only gets 8.7% of market share11. After decades of tillage, Nokia has really established its leading position in the handset industry in China; it is believed that Nokia will actualize greater success in the mobile 8 Martti Haikio (2003) NOKIA THE INSIDE STORY: Beijing Strategies of Nokia, Published by Edita Publishing Ltd and Nokia Oyj, Copyright 2002, Chinese Edition First Printed in Sept. 2003. pp.234-236. 9 Accessed on Feb.23rd, 2007, Explore Star Net Industry District, by Wangshucheng, Huoxiaoguang, Yujingzhong, Source from Xinhua Agency. Yesky.com-Chinese IT website, http://www.yesky.com/135/215635.shtml 10 Accessed on Feb.23rd, 2007, Synthesized analysis report on handset in China by YiGuan, Jun. 29th, 2004, http://www.c114.net/zhuanti_simple/3g/Read_3g.asp?action=3gzlkstyptID=3articleID=26 11 Accessed on Feb.23rd, 2007, Domestic Handset Market Share Declines March, 28th, 2006, http://www.chinamobile.gov.cn/200603/61242.shtml communication market in China under the 3G era. Chapter 3. The mobile handset industry As is well known, competitive strategy is the outcome resulting from competitive environment. Without given circumstance, it will become meaningless to discuss whether the employment of certain competitive strategies by some enterprises is successful. Therefore, before anatomizing the competitive strategies of Nokia, we need to describe the notion of mobile handset industry and its main composing elements. 1. Definitions —What is a mobile handset A mobile or cellular phone is a long-range, portable electronic device for personal telecommunications over long distances. Most current mobile handsets connect to a cellular network of base stations (cell sites), which is in turn interconnected to the public switched telephone network (PSTN) (the exception are satellite phones). Cellular networks were first introduced in the early to mid 1980s (the 1G generation). Prior mobile handsets operating without a cellular network (the so-called 0G generation), such as Mobile Telephone Service, date back to 1945. Until the mid to late 1980s, most mobile handsets were sufficiently large that they were permanently installed in vehicles as car phones. With the advance of miniaturization, currently the vast majority of mobile handsets are handheld. In addition to the standard voice function of a telephone, a mobile handset can support many additional services such as SMS for text messaging, email, packet switching for access to the Internet, and MMS for sending and receiving photos and video.12 2. Brief Introduction on Global Mobile Handset Industry Broadly speaking, the mobile handset industry consists of upstream suppliersà £Ã¢â€š ¬Ã‚ whole handset 12 Accessed on Feb. 23rd, 2007, Mobile phone Definition Introduction, Sirchin-The Free Encyclopedia And Other Stuff Beta. http://www.reference.sirchin.com/?wiki:directories:mobile-phone manufacturersà £Ã¢â€š ¬Ã‚ network operatorsà £Ã¢â€š ¬Ã‚  downstream distributorsà £Ã¢â€š ¬Ã‚ terminal retailers etc. From raw materials to handset product, from hardware suppliers to software providers, from the handset per se to service and content providers, mobile handset industry can be identified as the whole value chain encircling the handset’s substance concept. From the narrow sense, mobile handset industry consists of the companies engaging in producing hardwareà £Ã¢â€š ¬Ã‚ componentsà £Ã¢â€š ¬Ã‚ and accessories of handset ¼Ã…’as well as assembling handset. As is well known, the worlds largest mobile handset manufacturers include Audiovox, BenQ-Siemens, High Tech Computer Corporation, Fujitsu, Kyocera, LG, Motorola, NEC, Nokia, Panasonic (Matsushita Electric), Pantech Curitel, Philips, Sagem, Samsung, Sanyo, Sharp, SK Teletech, Sony-Ericsson, TA Alcatel and Toshiba. And the worlds largest mobile phone operators include Orange SA, China Mobile and Vodafone. According to report on global mobile market in Q4 2005, the top 5 manufacturing companies are Nokia, Motorola, Samsung, LG, and Sony-Ericsson, with their global mobile handset market of 35%, 16.3%, 12.1%, 7.2% and 6.9% respectively13. As is calculated, the mobile handset sales continue to grow worldwide, going up from 482.5 million in 2003 to 561 million in 2004. This growth rate is expected to gradually slow down over a period of five years. The estimated growth figures for these five years are—10% in 2005, 7.7% in 2006, 6.4% in 2007, 4.8% in 2008 and 2.6% in 2009.14 Clearly, the global handset industry has been growing fast and will continue to grow for next 3 years. However, the rate of industrial growth will calm down, a status leading to prudential optimism. 13 Accessed on Feb.23rd, 2007, Big Six Dominate Expanding Mobile Phone Market, by John Leyden. Feb.28th, 2006, http://www.theregister.co.uk/2006/02/28/gartner_mobile_market_2006/ 14 Accessed on Feb.23rd, 2007, Changing Faces of The Global Mobile Handset Market –2007, Research and Consultancy Outsourcing Services, March 2005, Pages: 95 Researchandmarkets http://www.researchandmarkets.com/reportinfo.asp?report_id=63375 3. Mobile handset Industry in China Since China ushered in mobile handset in 1987, the handset users has reached 0.443 billion people, with the penetration rate of 33.9%; and the business revenue from mobile communication has occupied about 50% of whole revenue from telecommunication. Mobile communication has grown to be the main impetus of industrial development. 15 —3.1 Network operators After many years of evolution, there are now 6 network system operators in China: Chinatelecomà £Ã¢â€š ¬Ã‚ Chinanetcomà £Ã¢â€š ¬Ã‚ Chinamobileà £Ã¢â€š ¬Ã‚ Chinaunicomà £Ã¢â€š ¬Ã‚ Chinasatcomà £Ã¢â€š ¬Ã‚ and Chinatietong. Till May 2004, Chinamobile is No. 1, because it occupied more than 30% market share according to the business revenue. According to the 2005 annual report, Chinamobile achieved revenue of 243.04 billion RMB and net profit of 53.549 billion RMB, with customers covered 0.257 billion16. —3.2 Overview of industrial developing situation Chinese mobile handset industry keeps its rapid development in recent 5 years, and this trend is forecasted to be extended in the coming years. According to the MII, the handset output from year 2000 to 2005 is 52.57à £Ã¢â€š ¬Ã‚ 83.97à £Ã¢â€š ¬Ã‚ 120à £Ã¢â€š ¬Ã‚ 186.44à £Ã¢â€š ¬Ã‚ 231.75à £Ã¢â€š ¬Ã‚ 303.67 million units respectively. The relevant yearly increasing rate reaches 59.73%à £Ã¢â€š ¬Ã‚  42.91%à £Ã¢â€š ¬Ã‚ 55.37%à £Ã¢â€š ¬Ã‚ 24.30%à £Ã¢â€š ¬Ã‚ 31.03% respectively. Along with the high-speed increase in handset output, the handset users reaches 0.3934 billion people, and the popularization rate of mobile handset increase rapidly, arriving at 30.3 units per hundred people. However, compared with 60-odd units per hundred people in western developed countries, the future increasing space for handset is still optimistic.17 15 Accessed on Feb.23rd, 2007, The address on the Seminar of Constructing Green Handset Culture by Mr. Xiguohua, vice Minister of Mii of China in 21st Nov 2006, Beijing, on Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/11/23/art_223_27118.html 16 Accessed on Feb.23rd, 2007, the financial highlight, http://www.chinamobileltd.com/ 17 Accessed on Feb.23rd, 2007, Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html 2001-2005 Handset Output in China83.97120186.44231.75303.6759.73%42.91%55.37%24.30%31.03%050100150200250300350200120022003200420050.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%OutputYearly Increasing Rate(%) (Note: Amounts in millions of units. Source: Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html) Simultaneously, China has gradually become the export base of mobile handset. According to the statistics of MII, the handset export in 2005 is 228 million units, occupying 75% of total handset production. Compared to the 43.3% of export rate in 2000, the higher rate for export in 2005 indicates the excess capacities of handset production and the advent of market maturation in China.18 It is estimated that in 2006, the output of handset will arrive at 0.34 billion units including 0.25 billion for export purpose19. Generally speaking, the developing trend of handset industry in China will maintain rapidà £Ã¢â€š ¬Ã‚ healthyà £Ã¢â€š ¬Ã‚ and harmony progress. 18 Accessed on Feb.23rd, 2007, Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html 19 Accessed on Feb.23rd, 2007, Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html —3.3 Brand vendors As is reported (Aug.13/2002, People’s Post Newspaper), Chinese mobile market was totally occupied by foreign brand handsets before 1998. According to the result of investigation on consumer products in main cities in China in 1998, the market share of mobile is as follows: Motorola 37.3%, Ericsson 28.6%, Nokia 15.6%, and the left 20% market share was distributed among other foreign brands such as Philips, Siemens, Alcater, and Sony etc.20 Following the market booming of handset, Chinese domestic brand vendors began to dissatisfy their original position of OEM only. In addition, with the reformation of approval system, more domestic powerful competitors enter handset industry. As is reported, there are now about 70 companies granted license to produce mobile21. Although domestic brand vendors showed its competence and achieved brilliant performance in 2003, due to the lack of core technology and small scale of production, their total domestic market shares begin to fall down from the zenith of 60% in 2003 to 40.6% in 2005. And the ranked top 3 domestic brands occupy only 17.5% shares in comparison with 31.6% in 200322. According to the 2005 rank on sale of GSM handset in China, the top 10 brand is in turn as follows: Nokiaà £Ã¢â€š ¬Ã‚ Motorolaà £Ã¢â€š ¬Ã‚ Samsungà £Ã¢â€š ¬Ã‚ Birdà £Ã¢â€š ¬Ã‚ Amoià £Ã¢â€š ¬Ã‚ Sony-Ericssonà £Ã¢â€š ¬Ã‚ Lenovoà £Ã¢â€š ¬Ã‚ TCLà £Ã¢â€š ¬Ã‚ Koncaà £Ã¢â€š ¬Ã‚ Haier. Among them, top 3 brands occupy 60.05% of domestic market share, a number overpassing the total result of domestic brands23. 20 Accessed on Feb.23rd, 2007, The competitive situation in handset market in China, http://www.china-qg.com/articleHistory/yingXiao/4/275.html 21 Accessed on Feb.23rd, 2007, Handset Market Increasingly Open, by Zhugangqi, Nov. 29th, 2006, http://www.cww.net.cn/consultation/shownews.asp?nid=207 22 Accessed on Feb.23rd, 2007, Market Shares of Foreign Handset Increasing Rapidly, Mar. 21st, 2006, Source: MII. http://www.ccw.com.cn/news2/mobile/htm2006/20060321_09RRM.htm 23 Accessed on Feb.23rd, 2007, Domestic Rank of Handset Sales, by YiGuan, Source: CNETNews.com.cn, http://www.cnetnews.com.cn/news/review/story/0,3800057985,39445251,00.htm The following is the overview on the major participants, which probably possess potential capacity to challenge Nokia: 3.3.1 Motorola Motorola is known around the world for innovation and leadership in wireless and broadband communications. Motorola came to China in 1987 when it opened a representative office in Beijing. In 1992, Motorola (China) Electronics Ltd. was established in Tianjin, a major manufacturing base where Motorola produces mobile phones, two-way radios, wireless communications equipment for the Chinese and global markets. 24 Today, Motorola has one holding company, three wholly owned companies, five joint ventures, 16 RD centers and 25 branch offices across China. At the end of 2005, the number of employees exceeded 10,000, and the total cumulative investment in China reached US$3.6 billion, making it one of the largest foreign investors in China. Investment in RD has reached US$600 million.25 The goal of Motorolas China strategy is to build China into world-class production and RD bases. While pursuing and maintaining market leadership in both mobile devices and infrastructure equipment, Motorola continues to develop businesses in digital trunking, broadband products, solutions and services. As a runner-up in the mobile industry, Motorola keeps fighting its way for market leading position all the while. Undoubtedly, relying on its high-tech RD and cogent brand, Motorola can be qualified as the strongest challenger for Nokia in the mobile handset manufacture industry, no matter in China or in global market. 24 Accessed on Feb.23rd, 2007, Motorola China is the biggest wholly foreign invested enterprise Source: Tianjin Developing District Investment Net, Jun. 26th, 2003, http://www.investteda.org/zxzx/tdtzdt/t20051025_6324.htm 25 Accessed on Feb.23rd, 2007, Motorola in China, http://www.motorola.com.cn/about/inchina/inchina_en.asp 3.3.2 Samsung Since it’s founding in 1938, SAMSUNG (Group) has maintained a mission statement that responds both to its own change, and to new developments in the world. After unremitting struggle for decades, the company grows from a domestic industrial leader into a global consumer electronics powerhouse. Following its management philosophy-We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society, Samsung achieves quick pace of development. And Samsung’s brand value, a key engine of business growth, increased to US$8.31 billion in 2002 from US$6.37 billion in 2001 and was recognized by Interbrand Corporation as the fastest growing global brand.26 As one of its emphasized fields, Samsung endows mobile handset market with great efforts. It was reported that the expenditure of total RD in Samsung reached 5 billion USD, including 2 billion especially for mobile handset RD. Moreover, as an industrial newcomer compared with Nokia and Motorola, Samsung adopt several special developing strategies to overtake advanced companies, for example: à ´Ã¢â€š ¬Ã‚ Ã‚ º Samsung prefer cooperation with strong technology leader to research alone. Samsung plays more attention on how to obscure know-how in shorter period, and to avoid confrontation with powerful competitors. Then, through reverse engineering, Samsung can absorb the newest technology with high efficiency. à ´Ã¢â€š ¬Ã‚ Ã‚ º Based on owned technology, Samsung inclines not to further dig, but to emphasize on developing additional value of product in order to occupy the market rapidly. It’s not difficult to understand that Samsung’s mobile handset exhibits first design and fashionable appearance, the important feature attracting majorities of users. This feature benefits Samsung to be among global top 3 brands of mobile handset. 26 Accessed on Feb.23rd, 2007, Samsung’s Managing Philosophy, http://china.samsung.com.cn/public/gongyi.asp?sm=menu7 à ´Ã¢â€š ¬Ã‚ Ã‚ º Expand rationally based on technology on hand. At present, Samsung has occupied already 65% of CDMA market in Korea, and the target at 20%-30% CDMA market share in China has become its next step, which means about 7.5-11million handset units. Believably, along with the deeper cooperation between Samsung and Qualcomm Incorporated, which is the owner of CDMA patent, Samsung will achieve more opportunities on market of CDMA handset, which is used by nearly 1/3 of global mobile user. In conclusion, Samsung, as an active and ambition participant in mobile industry, has found a unique way to boom, and has grown to be an important industrial power unable to be neglected. 3.3.3 Indigenous Brands Before 1998, domestic handset comes into the market in the form of joint ventures. During that period, they just assemble international brand handset. After 1998, domestic handset companies began to produce handset through OEM (Original Equipment Manufacturing) for international brands such as Samsung of Korea and SAGEM of France, which still not entered into China at that time. Simultaneously, some companies began to launch its own handset brand such as EC528 of Eastcom. In 1999, the market share of indigenous brand handset is less than 3% in China. However, until 2003, indigenous mobile handset arrived at its height of development, with a market share of 60%. However, indigenous brand soon began to decline all- the- round, with a market share of less than 40% at the end of 2004. During 2005, this declining trend continues, with 10 more percent market share lost than 2004 at the year-end. Relying on indigenous marketing advantage and OEM technology, domestic mobile handset manufacturers, as a whole, have grown up and gradually captured medium and low-end market. Although they encounter fierce competition and face present embarrassment, and even 3 brands that is Kejianà £Ã¢â€š ¬Ã‚  Pandan and Gaoke fade away in 200527, certain individual brand still actualize rapid development against the current and emerge. It is Lenovo that achieved 4.1% market share and ranked 7th in 2005; by contrast, its market share rises to 6.5% with a rank of 4th in June 2006 (from IDC report), an achievement invigorating all indigenous brands. 28 Considering the advantages of indigenous brands such as: flexible distributing- channelsà £Ã¢â€š ¬Ã‚ sensitive price reflectionà £Ã¢â€š ¬Ã‚ strong end-user networks and deep understanding of domestic fashion trend ¼Ã…’we have no reason to doubt the future of indigenous handset development. In addition, Chinese government has shown its resolution to support domestic handset companies; surely the relative policies will be improved further. It is believable that indigenous brands, as a whole, will soon rally to enhance their market position. Generally speaking, due to the recent situation of handset industry in China including the advent of 3G, all the brand vendors are adjusting each competitive strategies referring to individual inherent and existing advantages. In a word, new turn of reshuffle on handset industry in China is unveiling. 27 Accessed on Feb.23rd, 2007, March 16th, 2006, by Pengxuzhi, http://mobile.csonline.com.cn/jzsl/200512/t20051228_423095.htm 28 Accessed on Feb.23rd, 2007, Lenovo handset’s market share, Source: IDC, http://telecom.chinabyte.com/243/2576243.shtml Chapter 4. Industrial Analysis using Porter’s Five Forces Analysis Porter’s Five Forces Analysis is arguably the most influential analytical model in analyzing industrial environment. Logically, it will greatly facilitate comprehending the rationality of Nokia’s competitive strategies to use Porter’s Five Forces model to analyze the competitive environment where Nokia is operating in China, before expounding Nokia’s detailed competitive strategies. 1. Theory Brief Five Forces Analysis is a method used to contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but focuses on an industry. It looks at five key forces namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. Porter’s five-force model is arguably the most influential analytical model in strategy. In practice, it is best applied to cases in which strategic decision-making is closely associated with industry conditions. Porter’s Five Forces of Competitive Position New Market Entrants, e.g.: †¢ Economies of scale †¢ Proprietary of product differences †¢ Brand identity †¢ Switching cost †¢ Expected retaliation Supplier Power, e.g.: à ´Ã¢â€š ¬Ã‚ Ã‚ º Differentiation of inputs à ´Ã¢â€š ¬Ã‚ Ã‚ º Supplier concentration à ´Ã¢â€š ¬Ã‚ Ã‚ º Presence of substitute inputs à ´Ã¢â€š ¬Ã‚ Ã‚ º Switching costs of suppliers and firms in the industry à ´Ã¢â€š ¬Ã‚ Ã‚ º Importance of volume to supplier Competitive Rivalry, e.g.: †¢ Industry growth †¢ Fixed costs/value added †¢ Intermittent overcapacity †¢ Product differences †¢ Brand identity †¢ Switching costs †¢ Corporate stakes Buyer Power, e.g.: †¢ Buyer choice †¢ Buyer information †¢ Ability to backward integrate †¢ Substitute products †¢ Buyer switching costs relative to firm switching costs Threat of Substitutes, e.g.: †¢ Relative price performance of substitutes versus firm concentration †¢ Switching costs †¢ Buyer propensity to substitute 29 Henry Mintzberg, Joseph Lampel, James Brian Quinn, Sumantra Ghoshal, (2002) THE STRATEGY PROCESS Concepts, Contexts, Cases FOURTH EDITH Prentice Hall, Upper Saddle River, New Jersey 07458, pp95. The only deficiency with his model lies that the same analysis often applies equally well to more than one company (hence, the notion of â€Å"strategic groups†). And Porter’s emphasis on the importance of external context is balanced by Barney’s insistence that sustainable advantage depends as much or more on the internal resources of the firm. As Jay Barney argued that sustainable competitive advantage is not the product of correct position in the external environment but is derived from the firm’s internal resources. More specifically, resources must meet four criteria to confer sustainable comp

Civic Virtue: The Right Thing for Our Society Essay -- society

Introduction Perhaps, the American society is the most divergent, the most accommodating and the most culturally diverse among all societies across the globe. Interestingly, most Americans reflect similar elements of behavior in many respects which are distinct to our American society. There are a number conscious and unconscious core values which are expected to guide every American character. Most of the American culture has to some extent embedded western civilization: A civilization that accommodates different cultures, merges multiple ideas, and values the freedom of choice. Still, a number of challenges in the direction of promoting our general wellbeing have been arising; thus, leading to questions on the direction that our society should direct for our common wellbeing. Here, I will be discussing approaches that can be designed in addressing the issues of wealth distribution, and the relationship between politics and community beliefs so as to have an even happier society. Inequality, Cohesiveness and Civic Virtue One among the challenges that face our society today is the widening rift between the rich and the poor. Although our politics has evaded the reality of a widening society, several philosophers have given their opinions on the challenge of wealth distribution. Our politics has become so distant from the challenge of widening social gaps that president Obama’s proposal to review tax laws in the direction of burdening the wealthy with more taxes has received heavy criticism from the republican political quarter. Apart from philosophical ideologies on the topic of wealth distribution, there is a more important challenge which requires the attention of our political leaders: Civic Virtue. Getting a picture of ... ...place in our schools and other institutions. Instead of focusing on the teaching of various religious and moral beliefs, students should be allowed to openly present their opinions on various religious matters. Such a direction must be done under an environment that respects the right of people to choose various religious and moral beliefs which are available in our society. Conclusion As I have discussed, I agree with Sandel’s opinions on the two issues (the distribution of wealth, and an open engagement between religion and politics) that I have discussed above. Wealth distribution is especially useful in guarding our democracy, promoting, cohesiveness, and improving the welfare of the poor. On the other hand, an engagement between politics and religion will be useful in promoting unity, tolerance and knowledge within our society.

Pit Bull Abuse Essay

Pit bulls may seem like aggressive dogs. Even the word â€Å"pit bull† may make people scared. Everything negative you hear about pit bulls is a big lie. Pit bulls are intelligent, super-loyal, very loving, and have high amounts of energy. But you’d be hard-pressed to find another breed with more raw athletic ability. They are the best dogs in the world with the proper training. Sadly, people mistreat pit bulls and use them as negative entertainment for their own selfish minds. Some people raise pit bulls to be fighting machines and killers. Many pit bulls are suffering indulgently because of this cruel human addiction. People are taking advantage of many pit bulls misunderstanding of civilization. We all know that pit bulls are animals, and they don’t understand our language or ways of life, but that does not mean we should take advantage of their misunderstanding. Pit bulls are innocent like babies, so we should give them the love and care they deserve. The dogs are taken from garages, abandoned apartments, and dark basements. Crowds are gathered around the dogs to watch them tear each other apart. The dogs have heavy chains on their necks and deep, untreated gashes on their legs and faces. If a pit bull were too weak to fight, people would just neglect it on the street. Police find dead decomposed pit bulls on the street or in dumpsters a few times a week. These poor animals are suffering in a living Hell and we are just watching it happen. People who do such a thing should be prosecuted and receive for life sentence in prison. We’re not the only ones who have a life just because we have so many psychological skills; pit bulls have a life too. The sad fact of abuse towards pit bulls is not just hurting pit bulls; it’s hurting everyone who cares. Those who care are working extra hard for injured pit bulls. Do we really need more depressed people in this world? We shouldn’t make the world a big entertainment scheme; we should treat it like a gift; including everything in it. Let’s take a walk back in History and even today. People would be cruel to each other, and demean others just because of their skin color or religion. There seemed to be only high and low class citizens. The lower class people would be treated like garbage. Now, we have laws so every man is equal. We have a Black president, Asian basketball players, Native American actors, and many more. They are our inspirations today. As a metaphor, right now, people are first class, and pit bulls are in the low class. We should all become equal. Some day in the future, they might become a miracle. As a result of being nice to every living creature in this world, the outcome would be beautiful. Pit bulls are waiting for answers that won’t come. They are battling for freedom, but won’t be freed. We need to do something about this, before it becomes too late. Many miracles can happen with a kind heart. Please give pit bulls the love and care they deserve today.

Annual Report of the Construction Industry of China Hong Kong 2007-2008 Essay Example

Annual Report of the Construction Industry of China Hong Kong 2007 Annual Report of the Construction Industry of China Hong Kong 2007-2008 Essay Annual Report of the Construction Industry of China Hong Kong 2007-2008 Essay An Annual Report of the Construction Industry of China Hong Kong 2007-2008 prepared by AsiaConstruct Team Research Centre for Construction and Real Estate Economics Hong Kong Polytechnic University (www. bre. polyu. edu. hk) for The 14th AsiaConstruct Conference 23rd – 24th October 2008 Tokyo, Japan. AsiaConstruct14 Team: Michael Anson1, YH Chiang2, Eddie CM Hui2, Patrick TI Lam 2, Stephen WK Mak2, HY Ng2 and Eva XT Yin2, 1 Professor Emeritus, Faculty of Construction and Land Use, The Hong Kong Polytechnic University. 2 Department of Building and Real Estate, The Hong Kong Polytechnic University. About the Research Centre for Construction and Real Estate Economics (RCCREE): The RCCREE is the Hong Kong Polytechnic University Centre for solution oriented research and consultancy in construction and real estate economics. It undertakes internationally relevant multi-disciplinary research that supports the advancement of the construction and real estate industries in the following areas: Economic Policy and Institutional Analysis, Real Estate Economics, Construction Economics, Housing, Human Behaviour in Economic Decision making, and Value Management and Facilities Performance. For further information, please contact Professor Francis K. W. Wong, Director of RCCREE ([emailprotected] edu. hk) or Professor Eddie C. M. Hui, Deputy Director ([emailprotected] edu. hk). October 2008 1 COUNTRY REPORT [As at October 2008, ? 1,000 = HK$ 73. 14; HK$1 = ? 13. 67; US$ 1 = HK$ 7. 76] 1. EXECUTIVE SUMMARY Hong Kong enjoyed a high growth rate in GDP in 2007 (6. 4%), with a per capita GDP of US$29,914. While the service sector saw the highest growth (7. 4%), the growth rate of the construction sector was 0. 4%. The construction sector recorded a positive growth rate since 1997. The Economics outlook for the first half of 2008 was still optimistic. However, the consequences following the collapse of the property market in US, the bankruptcy of Lehman Brothers and the bail out of other financial institutions (e. g. AIG, Freddie Mae and Fannie Mae) by the US government, together with the slump of the stock markets, people are becoming pessimistic towards the latter half of 20 08 and next year. While the slowdown in growth of advanced economies in Europe and the US will have some impact on the economies of emerging markets and the Mainland, the sustained rapid economic growth of the Mainland and its increasingly intensified economic integration with Hong Kong will to a limited extent help the economic development and cushion the impact of the slowdown on Hong Kong. With respect to the labour market, the unemployment rate has hit an all-time low at around 4%. The unemployment rate of construction sector kept decreasing in these consecutive as there were more job vacancies created by the major projects, e. g. Hong Kong West and Tsuen Wan drainage tunnel, rebuilt the Lo Wu Correctional Institution etc. Construction Cost has picked up after it hit a bottom in 2003. It is more or less in parity of 1997 when the construction cost was at its peak. The high construction cost can be reflected from the increase in construction materials. The prices of major construction materials such as hardwood and steel products have risen by as much as 50% over 4 years. While there was no published wages for construction workers, the wages have not risen in par with the rise in living standard as reflected from the many demonstrations of the construction workers and 40-day strike by the bar benders in Hong Kong, which has led to a near stand-still of the construction industry. The salaries of ATPC have risen by an average of 9-13% over 2 years, with the exception of project managers and safety officers. There is no institutional or legal entry barrier to the construction market in Hong Kong. Foreign firms are required to fulfil the same set of criteria as local firms to get listed with the authority. Hence, the import of construction services does not appear to be very active and has consistently stayed at less than 4% of the total construction volume. Most of the import and export services are carried out within the Asian region, with the Chinese Mainland taking the highest percentage. The major services were project management, contracting and engineering consulting. Export of construction services to regions outside Asia is negligible. The outlook of the construction industry looks promising in the next 10-15 years as the government has outlined a series of infrastructural projects, many of which are cross-border such as the bridge linking Hong Kong, Macau and Zhuhai. It is envisaged at least HK$250 billion public money will be spent and 250,000 job vacancies will be created. The extent to which these projects will benefit the construction labour market remains to be seen. 2 2. 2. 1 MACRO ECONOMIC REVIEW AND OUTLOOK MAIN MACROECONOMIC INDICATORS 2000 2001 1,131,880 1,299,218 0. 5 1,177 1. 4 59,760 -11. 7 1,076,998 -0. 2 57,167 -7. 9 2002 2003 GDP and Components 1,152,718 1,277,314 1. 8 1,138 -3. 3 51,396 -14. 0 1,079,476 0. 2 51,534 1,187,369 1,234,761 3 940 -17. 4 44,403 -13. 6 1,062,714 -1. 5 44,910 40,376 -10. 1 6,797,700 0. 5 3,515,900 1. 3 6. 8 2004 1,287,900 1,291,923 8. 5 958 1. 9 44,455 0. 1 1,119,304 2005 1,139,110 1,382,590 7. 1 947 -1. 1 45,547 2. 5 1,207,873 7. 9 38,538 -4. 6 6,837,800 0. 6 3,538,100 0. 6 5. 6 2006 1,475,910 1,475,910 7 942 -0. 5 45,761 0. 4 1,297,545 7. 4 38,688 0. 04 6,909,500 1. 0 3,581,400 1. 2 4. 8 2007 1,569,890 1,616,215 6. 4 n. a. n,a, n. a. n. a. n. a. n. a. n. a. n. . 6,963,100 0. 8 3,640,500 1. 6 4 GDP in chained(2006) dollars (HK$ million) GDP at current market price (HK$ million) GDP growth (%) Primary sector (HK$ million) % growth Manufacturing sector (HK$ million) % growth Services sector (HK$ million) % growth Construction sector (HK$ million) % growth Population Population growth rate (%) Total labour force Labour force growth rate (%) Unemployment rate (not seasonally adjusted) Changes in consumer price index (%) Changes in GDP deflator (%) Short term interest rate* (%) Long term interest rate**(%) Annual average exchange rate with $US (HK$) ,126,279 1,317,650 8 1,161 -21. 4 67,646 6. 8 1,077,256 4. 7 62,054 -5. 3 6,711,500 1. 1 3,374,200 1. 6 4. 9 -9. 9 -12. 9 Demographic Indicators 6,730,300 6,725,800 6,764,200 0. 3 -0. 1 0. 6 3,425,900 3,474,0 00 3,472,500 1. 5 5. 1 1. 4 7. 3 0 7. 9 Financial Indicators -3. 8 -3. 6 6. 21 7. 48 7. 791 -1. 6 -1. 9 3. 45 6. 37 7. 799 -3. 0 -3. 5 1. 60 5. 40 7. 799 -2. 6 -6. 2 0. 81 3. 93 7. 787 -0. 4 -3. 5 0. 25 4. 59 7. 788 1. 0 -0. 1 2. 88 3. 55 7. 777 2. 0 0. 3 4. 05 4. 83 7. 768 2. 0 3 2. 33 3. 58 7. 803 Notes n. a. data not available * yield of 91-day Exchange Fund Bills (mid-year) **yield of 10-year Exchange Fund Notes (mid-year) Sources: GDP, Demographic and Financial Indicators: Government of the HKSAR web-page at censtatd. gov. hk/hong_kong_statistics Short and long term interest rates: Monthly Statistical Bulletin, Hong Kong Monetary Authority. Table 2. 1 – Macro-Economic Indicators 3 2. 1. 1 Overview of National Economy According to the Economic Analysis and Business Facilitation Unit (2007) of the Hong Kong Government, growth in GDP was 6. 4% in 2007. The years of 2004, 2005, 2006 and 2007 marked the largest growth in any four consecutive years since 1988. GDP per capita was HK$215,006 (US$27,565), which represented a 5. 9% year-on-year growth rate. The growth rate of the services sector was the highest (7. 4%) among all sectors. The growth rate of the construction sector was 0. 04% in 2007. The construction sector recorded a position growth rate since 1997. The reviving economic performance was greatly attributed to the steady global economic growth and Mainland’s policies in favour of Hong Kong, such as the Closer Economic Partnership and Individual Travel Policy. Stock prices and market turnover surged to a high record in October 2007, before the global financial market turbulence affected which caused some pull-back. The property market improved distinctly further, especially in the latter part of 2007, with a marked pick up in both sale prices and transactions under a favourable interest rate environment and the persistent strength in the economy. The labour market improved due to the sustained economic expansion. The unemployment rate fell to 4% and the seasonally adjusted unemployment rate fell to 3. 4% in the fourth quarter of 2007, which was the lowest in almost 10 years. The consumer price index only increased 2%, which suggested a moderate inflation in 2007, although there was significant increase of imported foodstuffs and consumer goods due to the weakening purchase power of Hong Kong dollars and the global food inflation. 2. 2. 2 Economy off First Half of 2008 Hong Kong’s economy continued to experience a substantial growth rate in the first half of 2008. The real GDP increased by 7. 1% compared with a year earlier. According to the First Quarter Economic Report 2008, the economy extended the run of distinctly above-trend growth to 18 quarters. The performance of the financial sector was particularly spectacular, a manifestation of the significant benefits brought about by the financial integration between the Mainland and Hong Kong. Although there was a global credit market turmoil caused by the US sub-prime mortgage problem, the Hong Kong economy still held up well in recent period with our motherland’s economy growing robustly. By the vibrant performance of Mainland and other emerging economies and the further expansion of the EU market, there was a further notable growth of 8. 3% in real terms in the first quarter. The exports of services also grew rapidly further by 10. % in real terms on the back of a continued surge in financial services. According to The Global Enabling Trade Report 2008 released by the World Economic Forum, Hong Kong ranked the top in the Enabling Trade Index ranking. Domestic demand continued to display strength and inflation remained mild. The labour market continued to improve with the un employment rate reached record low at 3. 4% since mid1998. 4 3. 3. 1 OVERVIEW OF THE CONSTRUCTION INDUSTRY CONSTRUCTION INVESTMENTS The total gross value of construction works performed by main contractors increased by 8% in nominal terms, from a year earlier, to HK$48. billion in the first 2 quarters of 2008. After discounting price changes, the total gross value of construction work performed by main contractors increased by 5. 1% in real terms over the same period. Analysed by type of construction work, the gross value of construction work performed at private sector sites totalled HK$93 billion in 2007, up by 2. 9% in nominal terms from a year earlier. The increase was mainly associated with the progressive stepping up of works at some large commercial building sites. The gross value of construction work performed at public sector sites decreased by 3. 9% in nominal terms from a year earlier to HK$7. 6 billion in the 2 quarters of 2008. The decrease was mainly due to completion of works on some large transportation projects. The outlook for the next years and thereafter is promising as the Chief Executive of Hong Kong has outlined 10 major investment plans including: 1. South Island Line 2. Shatin to Central Link 3. Tuen Mun Western Bypass and Tuen Mun-Chek Lap Kok Link 4. Guangzhou-Shenzhen-Hong Kong Express Link 5. Hong Kong-Zhuhai-Macau Bridge 6. Hong Kong-Shenzhen Airport Co-operation 7. Hong Kong-Shenzhen Joint Development of the Lok Ma Chau Loop 8. West Kowloon Cultural District 9. Kai Tak Development Plan 10. New Development Areas (NDAs) It is envisaged that over HK$250 billion will be invested in the next decade. These projects are estimated to bring more than $100 billion added value annually from the commissioning to mature stage. And, about 250,000 additional jobs would be created by these projects. Type of Investment (HK$ Million) Private Sector Public Sector Repair and Maintenance Total 2003 35,187 32,378 31,468 99,032 2004 28,021 28,533 36,618 93,171 2005 26,356 22,334 42,160 90,851 2006 24,855 17,135 48,240 90,230 2007 28,973 14,503 49,390 92,866 2008-10 (Q1-Q2) 16,113 7,563 25,181 48,856 Table 3. 1 Construction Investment by Sector (in nominal terms) 5 3. 2 CONSTRUCTION COMPANIES The latest published statistics from the Census and Statistics Department shows that the number of establishments engaged in building and civil engineering industries is 19,057 as of 2006 whereas the number of persons directly engaged in these industries is135,337. The following table shows the three year trend from 2003 to 2006. 2003 Number of Establishments Number of Persons directly engaged 19,520 124,933 2004 18,302 122,077 2005 17,985 122,870 2006 19,057 135,337 Table 3. 2 – Number of establishments, and of persons directly engaged 3. 3 3. 3. 1 EMPLOYEES AND CONSTRUCTION LABOR (NUMBER OF CONSTRUCTION WORKERS BY JOB TYPE) Principal Jobs Job Levels Professional/Technologist Technician Skilled Semi-Skilled worker General Worker Total May 2007 16 012 27 002 34 822 12 881 90 717 Source: Manpower Survey Reports on the Building and Civil Engineering Industry, Building and Civil Engineering Industry Training Board, Vocational Training Council, bi-annual issue of 2006. Table 3. 3. 1 Number of workers employed in principal jobs of construction, building and civil engineering and related disciplines 6 3. 3. 2 Persons in Establishments 2003 3 932 31 694 9 471 21 856 57 982 124 933 2004 4 341 (10. 4%) 28 478 (-10. 1%) 6 305 (-33. 4%) 25 117 (14. 9%) 57 836 (-0. 3%) 122 077 (-2. 3%) 2005 2 004 (-53. 8%) 29 786 (4. 6%) 7 274 (15. 4%) 21 282 (-15. 3%) 62 524 (8. 1%) 122 870 (0. 6%) 2006 1790 (-10. 7%) 29 976 (-9. 4%) 9 746 (34%) 24 688 (16%) 72 137 (15. 4%) 135 337 (10. 1%) Main industry group New construction works – Pre-erection works at construction sites New construction works – Architectural and civil engineering works at construction sites New construction works – Miscellaneous new construction works Decoration, repair and maintenance Special Trades – Erection and general finishing, electrical and mechanical fitting, gas and water fitting and miscellaneous All construction activities Source: The Report on 2006 Annual Survey of Building, Construction and Real Estate Sectors, The Census and Statistics Department, Hong Kong Special Administrative Region. Table 3. 3. 2 Number of persons directly engaged in the building and civil engineering establishments 3. 3. 3 Site Workers The following table reveals that the number of manual workers engaged at construction sites has been decreasing over time in Hong Kong. The phenomenon of reduction of manual workers is twofold: 1) advanced technology or technique greatly simplifies the construction process and reduce the number of people directly required; and 2) the number of construction projects, no matter in the private or public sector, has been dwindling year by year. Year 2008 2007 Qtr 1 1 2 3 4 Public 18965 20569 19232 18762 18521 20014 20485 19569 21147 22586 24306 26454 28704 25525 26668 27824 26034 % change 2. 4% -2. 77% -6. 5% -2. 44% -1. 3% -2. 30% 4. 68% -7. 46% -6. 37% -7. 08% -8. 12% -7. 84% 12. 45% -4. 29% -4. 15% 6. 88% -0. 88% Private 31576 29797 31866 30411 31582 30990 32801 32704 33750 31870 32540 33547 37057 33426 35814 38741 36727 % change Building % change Civil Engg. % c hange 0. 01% -3. 85% 6. 9% -4. 57% 3. 85% -5. 52% 0. 30% -3. 10% 5. 90% -2. 06% -3. 0% -9. 47% 10. 86% -6. 67% -7. 56% 5. 48% 2. 27% 38410 36517 37667 36133 37712 36406 38849 38819 40468 38769 41250 41293 45449 39097 42830 47081 45428 1. 85% 0. 30% 3. 15% -4. 07% 4. 37% -6. 29% 0. 08% -4. 07% 4. 38% -6. 01% -0. 10% -9. 14% 16. 25% -8. 72% -9. 03% 3. 64% 2. 90% 12131 13849 13431 13040 12391 14598 14437 13454 14429 15687 15596 18708 20312 19854 19652 19484 17333 -2. 1% -5. 13% -3. 02% -2. 91% -4. 98% 1. 12% 7. 31% -6. 76% -8. 02% 0. 58% -16. 63% -7. 90% 2. 31% 1. 03% 0. 86% 12. 41% -3. 87% Total 50541 50366 51098 49173 50103 51004 53286 52273 54897 54456 56846 60001 65761 58951 62482 66565 62761 % change 0. 87% -1. 25% 1. 45% -3. 77% 1. 89% -4. 28% 1. 94% -4. 78% 0. 81% -4. 20% -5. 26% -8. 76% 11. 55% -5. 65% -6. 13% 6. 06% 0. 94% 2006 1 2 3 4 2005 1 2 3 4 2004 1 2 3 4 Source: The Quarterly Report of Employment and Vacancies at Construction Sites, The Census and Statistics Department, Hong Kong Special Administrative Region. Table 3. 3. 3 Number of Manual Workers engaged at Construction Sites (analyzed by sector and type of project) 3. 3. 4 Unemployment rate of Construction Sector 2005 Unemployed (Thousands) Unemployment rate (%) 39 12. 9 2006 33. 8 11. 2 2007 25. 1 8. 3 2008Q1 21. 3 7. 5 Source: Hong Kong Monthly Digest of Statistics, The Census and statistics Department, Hong Kong Special Administrative Region Table 3. 3. 4 – Unemployed and Unemployment Rate of the Construction Sector The unemployment rate of construction sector was 7. 5% in the first quarter of 2008. More job vacancies were created by the major projects, e. g. Hong Kong West and Tsuen Wan drainage tunnel, the Lo Wu Correctional Institution, an extension block at the Prince of Wales Hospital etc. Although the unemployment kept decreasing in these consecutive years, the employment rate in the construction sector caused considerable concerns. 3. 4 3. 4. 1 PRODUCTIVITY Value-added per Employee Effective cost control increases the efficiency of each unit of resources engaged. The fairly remarkable observations are the positive figures of the value-added per construction workers in 2004 , 2005 and 2006, as shown in the following table. Main industry group New construction works – Pre-erection works at construction sites New construction works – Architectural and civil engineering works at construction sites New construction works – Miscellaneous new construction works Decoration, repair and maintenance Special Trades – Erection and general finishing, electrical and mechanical fitting, gas and water fitting and miscellaneous All construction activities 2004 41% 19% 37% 28% 36% 26% 2005 28% 21% 33% 28% 36% 28% 2006 26% 21% 30% 28% 43% 29% Source: The Census and Statistics Department, Hong Kong Special Administrative Region. Table 3. 4. 1 Value added as percentage of gross output for all building and civil engineering establishments: 9 3. 4. 2 Physical Measurement of Construction Production (Unit: `000 sq. m. *) End use of building Private residential premises+ Office buildings Hotels and boarding houses Multi-purpose commercial premises Total 2003 9 563 596 590 1 385 12 646 2004 8 169 (-14. 6%) ** (**) 654 (10. 8%) 1 471 (6. 2%) 10 964 (-13. 3%) 2005 6 591 (-19. 3%) ** (**) 794 (21. 4%) 1 303 (-11. 4%) 9 502 (-13. 3%) 2006 6 068 (-7. 9%) 945 587 (-26. 1%) 890 (-31. 7%) 8 624 (-9. 2%) * Area (sq. ) refers to gross floor area of buildings when completed. + Includes buildings purely for residential purpose and combined residential and nonresidential buildings. Source: The Report on 2005 Annual Survey of Building, Construction and Real Estate Sectors, The Census and Statistics Department, Hong Kong Special Administrative Region. Table 3. 4. 2 Physical Measurement of Construction Production 10 3. 5. 3. 5. 1 CONSTRUCTION COST Unit Construction Cost Construction costs are compiled from average fixed price competitive tenders published by Davis Landon Seah, a leading cost consultancy firm in Hong Kong. After the peak in 1997, construction costs fell for 6 consecutive years until they reached the bottom in 2003, when Hong Kong was hit by SARS (Severe Acute Respiratory Syndrome). Afterwards, costs have gradually picked up following the recovery of the property and construction markets. The latest figures for 2008Q1 show that construction costs are now almost as well as they were in 1997. Indeed, 5-Star hotels cost more to build than they were in 1997, probably due to the diversion of resources to the hotel construction boom in Macau. Residential (High-Rise) Standard Luxurious 8,000-8,500 8,500-10,000 9,000-9,500 9,500-12,500 11,000-12,000 11,500-15,000 10,000-11,000 11,000-13,500 9,800-10,700 10,800-13,200 9,300-10,000 10,500-12,800 9,100-9,800 10,300-12,600 8,500-9,000 9,800-11,700 7,600-8,200 9,000-10,800 7,850-8,450 9,250-11,050 8,300-8,900 9,750-11,600 8,750-9,350 10,350-12,300 9,050-9,650, 10,650-12,700 9,450-10,100 11,100-13,250 10,100-10,800 11,800-14,100 10,000-10,700 11,700-14,000 10,600-11,400 12,550-14,850 Commercial office Standard Prestige 8,500-9,500 12,000 up 9,500-10,700 13,000 up 11,550-13,500 15,500 up 10,500-12,500 14,300 up 10,300-12,100 13,800 up 9,700-11,500 13,500 up 9,700-11,500 13,500 up 9,500-11,200 13,500 up 9,000-10,600 12,300 up 9,300-10,900 12,700 up 9,750-11,450 13,300 up 10,550-12,350 14,300 up 10,850-12,750 14,800 up 11,350-13,350 15,550 up 12,100-14,250 16,600 up 12,000-14,100 16,400 up 12,850-15,000 17,400 up (Unit: HK$/m2 CFA*) Industrial Hotel Light Heavy 5-Star 4,800-5,000 5, 300-6,300 14,000 up 5,400-5,700 6,100-7,200 16,000 up 6,500-7,000 7,100-8,500 19,500 up 5,600-6,200 6,300-7,500 18,000 up 5,500-6,100 6,200-7,100 17,500 up 5,500-6,000 6,000-6,900 17,500 up 5,500-6,000 6,000-6,800 17,500 up 5,400-5,800 5,900-6,600 17,200 up 4,900-5,500 5,300-6,100 16,300 up 5,250-5,850 5,650-6,450 16,700 up 5,550-6,150 5,950-6,800 17,500 up 5,900-6,550 6,350-7,250 18,700 up 6,100-6,750 6,550-7,450 19,250 up 6,400-7,100 6,900-7,850 20,200 up 6,800-7,600 7,350-8,400 21,500 up 6,750-7,500 7,250-8,300 21,300 up 7,350-8,150 7,900-9000 22,450 up 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 * The costs per square metre are based on Construction Floor Areas measured to the outside face of the external walls/ external perimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses. 1995-2006 based on Quarterly data in Q4. 2007 Q1 is first quarter data and 2007 Q2 is second quarter data. Source: 1995-2004 Current building cost information data in Hong Kong. Davis Langdon Seah International. 2005-2007 Quarterly construction cost review, Hong Kong. Davis Langdon Seah. Table 3. 5. 1 – Unit Construction Costs 11 3. 5. 2 Average Wholesale Prices of Selected Building Materials As the general upward trend of construction costs shown in Section 5. 2 would foretell, costs of major building materials have been rising in the last 5 years. As the following table shows, some key materials, such as bitumen, diesel fuel for industrial use, sawn hardwood, homogeneous nonslip floor tiles, galvanised mild steel angles and steel plates, metal formwork, sand, mild steel round bars, high tensile steel bars and sawn hardwood timber formwork, have their latest unit costs increased by more than 50% when compared to 2004. The increasing trend of the costs of building materials is due to the inflation and the appreciation of Renminbi as most of the construction materials in Hong Kong are imported from China. This upsurge in material prices is believed to be more attributable to the general increase in prices of commodities around the globe recently, than to the slow recovery of the construction market in Hong Kong. 004 Aggregates (HK$ per tonne) Bitumen (HK$ per tonne) Concrete blocks, 100mm thick For industrial use (light) ($ per 200-litre drum) Diesel fuel For road use (HK$ per 100 litre) Glass Clear sheet glass, 5mm thick (HK$ p er square metre) White tiles, 108mm*108mm Glazed ceramic wall tiles Colour tiles, 200mm*200mm Sawn hardwood, 50*75 Hardwood mm column Non-slip tile, Homogeneous floor tiles 200mm*200mm Steel plates (HK$ per tonne) Steel angles Galvanised mild steel (HK$ per tonne) Steel flats (HK$ per tonne) Steel plate, 4mm thick Metal formwork (HK$ per tonne) Unglazed tiles, 18mm*18mm Glass tiles, 25mm*25mm Mosaic tiles ($ per square metre) Glazed tiles, 45mm*45mm Emulsion paint (HK$ per litre) Paint Acrylic paint (HK$ per litre) Portland cement (ordinary) (HK$ per tonne) 40 3800 45 1108 664 81 66 187 2284 69 6283 6203 6609 4438 52 25 58 32 34 491 2005 38 4200 42 1320 770 81 63 192 3072 72 6674 6568 7212 4881 44 27 55 35 35 511 2006 38 5400 42 1568 886 81 69 203 3218 86 6771 7404 9772 4588 37 22 58 35 34 517 2007 40 5400 43 1572 874 87 77 221 3474 98 7629 10047 8541 5059 47 27 61 35 34 516 March 2008 44 6467 57 1964 990 97 91 260 3607 131 10021 14713 9756 6979 50 29 73 37 36 524 12 Sand (HK$ per t onne) Mild steel round bars, 6mm to 20mm Steel reinforcement High tensile steel bars, 10mm to 40mm Plywood, formwork, 19mm thick Timber formwork Sawn hardwood, 25mm thick plank 20mm diameter pipes, uPVC lined GMS pipes 5. 5 long 32mm diameter pipes, uPVC pipes 4m long (HK$ per Note 1: Note 2: Source: 25 3815 3668 60 1504 166 42 27 4101 3764 67 2140 170 40 34 4237 3877 61 2023 170 41 56 5275 5183 64 2452 166 39 58 7896 8406 64 2666 n. a. 42 Prices from January 2005 onwards are not directly comparable to those published which included delivery charges. Prices are based on June data from 2004 to 2007 and in Hong Kong dollars. Average Wholesale Prices of Selected Building Materials, Census and Statistics Department, Hong Kong Special Administrative Region (Contact person: Miss Kwan, Telephone: 852-2805-6413). Web-site: censtatd. gov. hk (Products and Services Publications Commerce and Industry Average Wholesale Prices of Selected Building Materials). Table 3. 5. 2 Average Wholesale Prices of Selected Building Materials 3. 5. 3 Average Sectoral Wages per Month There is no data on the average monthly sectoral wages for the construction industry. In the following table, the FIRE (financing, insurance, real estate and business services) is used instead for comparison with the manufacturing and personal services sectors. 13 Unit: HK$ per month) Financing, insurance, real estate and business services 2001 Sept 2001 Dec 2002 Mar 2002 June 2002 Sept 2002 Dec 2003 Mar 2003 June 2003 Sept 2003 Dec 2004 Mar 2004 June 2004 Sept 2004 Dec 2005 Mar 2005 June 2005 Sept 2005 Dec 2006 Mar 2006 June 2006 Sept 2006 Dec 20 07 Mar 2007 June 2007 Sept 2007 Dec 10896 11845 10544 10557 10627 10564 10561 10985 10574 10446 10028 9918 9605 9786 9996 9472 9722 10039 10055 9946 10222 10702 10987 11430 11228 11155 Manufacturing 12175 12106 11837 11922 12243 11769 11433 11405 11648 11566 11548 11794 11173 11483 11486 12054 11254 11663 11867 11912 12079 12050 12003 11767 11828 11917 Personal services 6336 6183 6225 6247 6148 6089 6051 5971 5983 5897 5809 6033 6338 6071 5993 5917 5852 5963 5859 6021 6018 6120 6314 6521 6699 6746 Note 1: The average sectoral wages are extracted from the table of â€Å"Average Wage Rates by Industry Sector, Broad Occupational Group†. Note 2: All the average monthly salaries are extracted from â€Å"Supervisory, technical, lerical and miscellaneous non-production workers† sections under the FIRE, Manufacturing and Personal services groups. Source: Hong Kong Monthly Digest of Statistics, The Census and Statistics Department, Hong Kong Special Administrative Region. Table 3. 5. 3 Average Sectoral Wages Per Month 3. 5. 4 Construction Industry Salaries and Wages –Technicians and Unskilled Workers Whilst the material costs have been generally on their rising trend, the average monthly salary of technicians and the average daily wage of unskilled workers in the construction industry have not recovered to their levels in 2003. This lends further support to the argument in Section 5. that material cost increase has more to do with the global price increase in commodities than to the slow recovery of the home construction sector. 14 2003 June 2004 June 2005 June 2006 June 2007 June 2008 April n. a. : data not available Technicians Monthly Salary (HK$) 10985 9918 9472 9946 n. a. 11318 Unskilled Workers Daily Wage (HK$) 601. 1 584. 9 571. 7 565. 9 569. 9 570. 8 Unskilled Workers Daily Wage is extracted from â€Å"Average Daily Wages of Workers Engaged in Public Sector Construction Projects†. Figures are based on the data from â€Å"General Wo rkers†, which include labourers, excavators, concretors labourers, bricklayers labourers, plasterers labourers, heavy load labourers and drivers linesmen. Technicians Monthly Salary are extracted from â€Å"The Supervisory, technical, clerical and miscellaneous non-production workers section† of the â€Å"Average Wage Rates by Industry Sector Financing, insurance, real estate and business services† Sources: (for unskilled workers’ daily wage) Average Daily Wages of Workers Engaged in Public Sector Construction Projects. Census and Statistics Department, Hong Kong Special Administrative Region (Contact person: Miss Lam, Telephone: 852-2887-5207). (for technicians’ monthly salary) Hong Kong Monthly Digest of Statistics, Various issues. Table 3. 5. 4 Construction Industry Salaries And Wages – Technicians and Unskilled Workers 3. 5. 5 Construction Industry Salaries and Wages – Construction Professionals There were some wage increases for certain professionals, but in no way comparable with that of material prices. Between 2004 and 2007, only architects, electrical engineer and personnel manager/ human resources manager/ staff relations manager working in the industry have registered above 20% growth. Their monthly wages increased by 28. 3% over two years for the architects, by 24. 5% for the electrical engineer and by 31. 7% for the last. Administration officer/ executive officer, civil engineer and mechanical engineer also enjoyed a double digit growth in their salaries over the same 2-year period, which were 13. 4%, 14. 6% and 14. 2% separately, and followed by 5. 3% for building services engineers,7. 6% for safety officer and 3. 9% for I. T. / computer manager. Meanwhile, there was a reduction of 13. 8% for financial manager/accounting manager, 7. 5% project manager and 6. 7% for structural engineer. 15 (Unit: Median monthly salary in HK$) Professionals in Building and construction and related trades Accountant Administrative Officer / Executive Officer Architect Administration Manager/ Company Secretary/ Office Manager Building Services Engineer Civil Engineer Electrical Engineer Financial Manager/ Accounting Manager I. T. / Computer Manager Mechanical Engineer Personnel Manager/ Human Resources Manager/ Staff Relations Manager Project Manager Quantity Surveyor Safety Officer Structural Engineer n. a. data not available Source: Report of Salaries and Employee Benefits Statistics, Managerial and Professional Employees (Excluding Top Management), Wages and Labour Costs Statistics Section, Census and Statistics Department, Hong Kong Special Administrative Region. Web-site: censtatd. gov. hk (Hong Kong statistic- Statistical Tables-Subject-La bour Table 029). 2004 June 26900 14900 38500 23500 28500 28700 30200 n. a. n. a. 33200 n. a. 52200 28800 31600 26800 2005 June 22900 16900 41600 n. a. 29300 28000 30700 54500 n. a. 31900 n. a. 50900 28700 29800 21000 2006 June 26900 16900 42600 25600 30800 30900 32700 44600 35800 33800 35000 51300 29300 30300 27500 2007 June 30200 n. a. 49400 n. a. 30000 32900 37600 47000 37200 37900 46100 48300 28900 29200 25000 Table 5. 5 Construction Industry Salaries And Wages – Construction Professionals 3. . 6 Construction Industry Salaries and Wages – Skilled Workers The slow recovery of the construction industry seems to have benefited, if only marginally, some senior managers, architects and engineers only. Of all the 32 categories of workers listed below, only 1 of them had their average daily wages increased over 5 years. Only structural steel welders had the positive growth. However, the growth rate was 3. 5% over 5 years. The remaining 31 categories of skilled workers ha ve seen their wages go down by 4. 5% to 36. 5%. The hardest hit are the building services maintenance mechanics. Their average daily wages dipped by 36. 5% over 5 years. The categories of workers that suffered double-digit wage reduction over 5 years include nearly all the major trades: concretors, bricklayers, drainlayers, mason, bar benders and fixers, metal worker structural steel erectors, riggers/metal formwork erectors, formwork carpenters, joiners, plumbers, construction plant mechanics, rock-breaking drillers, asphalter, bamboo, plasterers, painters and decorators, leveller, marble workers, electrical fitter, mechanical fitters, refrigeration/AC/ventilation mechanic, fire services mechanic, lift and escalator mechanic and power cable jointer. It seems that the construction boom in Macau has not benefited much local construction workers. 16 Concretor Bricklayer Drainlayer Mason Bar bender and fixer Metal worker General welder Structural steel erector Structural steel welder Rigger/metal formwork erector Carpenter (formwork) Joiner Plumber Construction plant echanic Plant equipment operator (load shifting) Truck driver Rock-breaking driller As phalter (road construction) Bamboo scaffolder Diver Plasterer Glazier Painter and decorator Leveller Marble worker Electrical fitter (incl. electrician) Mechanical fitter Refrigeration/AC/ventilation mechanic Fire services mechanic Lift and escalator mechanic Building services maintenance mechanic Power cable jointer 2003 June 1072. 4 971. 9 955. 6 903. 7 1297. 4 890. 4 848. 9 1063. 1 879. 7 980. 7 1254. 0 1059. 2 986. 8 859. 8 809. 2 653. 1 889. 8 876. 6 1164. 6 1725. 2 976. 1 895. 5 907. 7 771. 0 1132. 7 794. 6 764. 2 675. 9 797. 6 769. 1 987. 2 575. 0 2004 June 1026. 3 961. 3 927. 5 849. 9 1225. 4 853. 1 790. 1 966. 2 939. 0 810. 4 1146. 9 1029. 4 933. 8 802. 7 784. 4 604. 6 821. 0 715. 3 1077. 3 1596. 4 934. 9 843. 2 878. 4 757. 9 1003. 2 763. 7 752. 685. 1 762. 7 785. 7 728. 9 725. 6 (Unit: Average daily wage in HK$) 2005 June 2006 June 2007 June 923. 5 940. 3 948. 2 886. 3 840. 1 841. 3 874. 7 861. 9 826. 5 853. 2 933. 6 925. 2 1159. 6 1154. 0 1142. 9 840. 9 822. 3 914. 2 783. 7 786. 6 778. 3 961. 8 884. 8 847. 5 946. 2 920. 2 970. 7 724. 1 777. 7 843. 4 1073. 7 1076. 9 993. 1 982. 1 953. 9 926. 7 903. 3 836. 8 798. 8 807. 6 816. 5 774. 3 765. 6 767. 0 761. 6 572. 5 613. 1 591. 7 851. 2 781. 7 774. 3 783. 9 756. 9 913. 9 1089. 1 1108. 3 1076. 7 1687. 4 1543. 3 1821. 1 883. 3 890. 3 829. 6 878. 2 770. 0 751. 9 853. 6 791. 2 753. 0 700. 3 726. 7 715. 4 969. 2 826. 1 866. 6 742. 0 715. 1 727. 705. 1 589. 1 666. 0 659. 3 595. 4 638. 4 758. 2 737. 8 788. 6 820. 8 815. 7 804. 5 852. 9 743. 7 537. 5 831. 3 600. 0 600. 0 2008 Mar 932. 8 816. 1 814. 7 714. 6 1067. 4 775. 2 783. 6 897. 7 911. 1 829. 9 986. 9 868 784 724. 6 737. 7 602. 6 796. 6 679. 2 1033. 5 1647. 8 802. 8 811. 7 740. 6 686. 2 942. 4 678. 8 683. 8 591. 4 710 655. 1 626. 4 479. 3 Source: Average Daily Wages of Workers Engaged in Public Sector Construction Projects, Census and Statistics Department, Hong Kong Special Administrative Region (Contact person: Miss Lam, Telephone: 852-28875207). Table 5. 6 Construction Industry Salaries And Wages –Skilled Workers 3. 6 3. 6. IMPORT AND EXPORT OF CONSTRUCTION SERVICES Annual Import/Export of Construction Services Latest statistics on import and export of services can be found on â€Å"Report on Hong Kong Trade in Services Statistics for 2006† which is freely downloadable from the government web-site ( statisticalbookstore. gov. hk/en/index. html). However, the construction sector is described as one of the sectors which have less significant amount of TIS (Trade in Services) transactions†. There is not much import of construction services because the great majority of construction works are done by â€Å"local† firms. However, that doesn’t imply discrimination against 17 foreign contractors as the next paragraph will explain. Neither is there much export of construction services, because indigenous local contractors are generally active in the traditional building construction sector, and they may not have the competitive advantages to compete in international markets yet. Hong Kong has been consistently ranked the top in the Index of Economic Freedom for 14 consecutive years ever since it was first co-published by The Heritage Foundation and The Wall Street Journal in 1995. Hong Kong being the freest economy in the world, the local government does not differentiate between foreign and local contractors. Announcing with a Technical Circular (Works Branch Technical Circular No. 9/97: Rules for the Administration of the List of Approved Contractors for Public Works, 26 May 1997), the government has abolished since 1997 the differentiation between foreign and local contractors eligible to tender for public works. From then on, both foreign and local contractors have been subject to the same sets of criteria, rules and regulations. Once registered, they are all â€Å"local† firms, and, by definition, their services are rendered locally and not â€Å"imported†. There is no statistics on the origin of the contractors, and hence there is not much â€Å"importation† of construction services expect for those one-off special cases when construction services have to be procured on an ad hoc basis. 18 The exports and imports of services are listed below: Export of services Major Service Group Year 2003 2004 2005 2006 2003 2004 2005 2006 HK$ million 3968 2941 2436 2083 590 929 1035 1191 Share3 (%) 3. 2. 7 2. 3 1. 9 Yearonyear % change 48. 2 -25. 9 -17. 2 -14. 5 74. 0 57. 5 11. 4 15. 1 Import of services HK$ million 3110 2697 2122 1872 207 246 283 306 Share3 (%) 2. 7 2. 5 2. 0 1. 7 Yearonyear % change 13. 9 -13. 3 -21. 3 -11. 8 32. 7 18. 8 15. 0 8. 1 Net export of services HK$ milli on 858 244 314 211 383 683 752 885 Construction services1 Architectural, engineering and other technical services2 1Construction services include â€Å"(g)eneral construction work (including new work, additions and alterations, repair and maintenance) and installation work at sites, buildings and structures that usually lasts for less than one year†. 2Architectural, ngineering and other technical services include â€Å"(a)dvisory architectural services; architectural design services; contract administration services; advisory and consultative engineering services; engineering design services for construction projects or industrial processes; and urban planning and landscape architectural services†. 3Share (%) is the share of export (or export) in total â€Å"building and construction†. Sources: Report on Hong Kong Trade in Services Statistics for 2006, p. 21. 2006 Gross Domestic Report, p. 41 Table 3. 6. 1 – Annual Import/Export of Construction and Consul tancy Services There is not much import nor export of construction services, though Hong Kong managed to have a positive net export of services between 2003 and 2006. In 2006, there were HK$2083 million and HK$1872million worth of construction services exported and imported respectively, resulting in a net export of services worth HK$211 million. The value of exported construction services represented 2% – 3. 4% of the total â€Å"Building and Construction† only in the years 2003 2006, or a mere 0. 36% of the total value of all exports of services in 2006. On the other hand, there is an increasing trend of export of Architectural, engineering and other technical services. The value increased to HK$1,191 million in 2006. In that year, the total value of â€Å"Building and Construction† was HK$105,960 million. If we assume that professional fees amounted to 3% of the value, the consultancy fees would be HK$3,179 million. Compared to HK$3,179 million, the HK$1,191 million earned from export of services amounted to more than 30%. In Hong Kong, architects, engineers and other professionals appear to have relied on export of services much more than the contractors. It has been commented that professional skills and expertise, which have their origins from the British institutions, have been much treasured by China Mainland, Dubai, India and other South East countries. In Hong Kong professionals seem to have more exportable advantages than building construction firms. 3. 6. 2 Top 5 Countries for Construction Import/Export The sources of imports and destinations of exports of construction and consultancy services are summarised in the following table. 19 Major service group/Region Year Export of services HK$million Import of services HK$million Net export of services HK$million Construction services Asia Australasia and Oceania Central and South America North America Western Europe Others Architectural, engineering and other technical services Asia Australasia and Oceania Central and South America North America Western Europe Others 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 3968 2941 2436 2083 3737 2941 2330 2054