Business ethics

Author: \ August 2, 2018 \ Business Papers \ 0 Comments

We are immensely thankful to Mr.. Manuel Nagger” Director of “Goethe Institute Karachi” as it had been a great experience carrying out correspondence with him and interviewing him, which helped us in completing our assignment. We would like to show our immeasurable appreciation to *Dolan SHAMS’ UNMAN” our Organizational behavior instructor for her supervision and valuable suggestions, which helped us in completing the assignment work, in time. We hope, this assignment will fulfill its significant purpose.

Introduction The Goethe-Institutes is the cultural institute of the Federal Republic of Germany with a lobar reach. They promote knowledge of the German language abroad and foster international cultural cooperation. We convey a comprehensive picture of Germany by providing information on Germany’s cultural, social and political life. Through their network of Goethe-Institutes, Goethe Centers, cultural societies and reading rooms, alongside our examination and language learning centers, they perform the principal tasks of cultural and educational policy abroad.

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They work in partnership with public and private cultural bodies, the German federal states and municipalities, and the corporate sector. They draw on the rich variety of our many-faceted open society and Germany’s lively culture. They combine the experiences and conceptions of their partners in Germany and abroad with their professional skills and engage in a dialogue rooted in partnership. In doing so, they function as service providers and partners for everyone taking an active interest in Germany and the German language and culture, and act independently with no political affiliations.

They face the cultural policy challenges of globalization and develop innovative concepts for a world made more human through mutual understanding, where cultural diversity is seen as an set. As far as the international cultural corporation is concerned the dialogue between the Muslim and the Western world is the major part of the activities. In this context, the Goethe-Institutes Pakistan organizes and supports not only a broad spectrum of cultural events for the presentation of German art and culture, but also works with its partnership-based projects centers on intercultural exchange.

Here the Goethe-Institutes in Karachi closely cooperates with its Pakistani partners as it does with the Marianne-Schism’s-Hausa (the Goethe-Centum, in Lahore), and in a European framework with the Alliance Francine and the British Council. Their Language Department offers classes for German as a foreign language for beginners and advanced learners as well as executive courses for companies in modern amenities, including an internet class room, and takes central examinations which are recognized worldwide.

In addition to language skills social and cultural aspects are being taught as well. Workforce Diversity Define WORKFORCE diversity is the similarities and differences in the employees of an organization. Workforce NAS Alleviators work place all over ten world as well as In Pakistan due to globalization, emerging minorities, multi-generation and multi- ultras. Managing workforce diversity is to handle the diversified workforce. Due to diversified workforce differences like age, culture, disabilities, race, religion and gender has emerged in the organizations of Pakistan.

Due to globalization, people from different countries and cities with different culture, race and religion combine and work together which creates differences among employees in terms of thinking, norms, values and religion. Minorities and women are emerging in workplace because they have realized that it is the only way for them to prove themselves and get their rights. Another reason for women taking part in workforce in Pakistan and all over the world is the increasing inflation and worsening economic conditions.

This has reshaped workforce which falsify the practices that were the part of workforce before when the traditional ways of work were followed and workforce was not diversified. Multi-generations also leads to workforce diversity. Now elderly people are willing to do work even after retirement age due to increasing inflation and economic problems of Pakistan. One another reason for willingness of elders to do work even after retirement age is to maintain their standard of living and to remain us. This creates a blend of young and old people in workplace.

They have different goals, values, needs and experiences which create conflict of interest in workplace. Due to globalization, multi-generation and increased number of minorities, multi- cultures can be observed in workforce. Different cultures prevail in Pakistan because it has five provinces which diversify the work force and it become more diverse when foreign people Join the workforce. Culture has impact humans behavior. If different people from different cultures Join the workforce, they will have different values and behavior.

In such situations, there is a need of human resource manager who can handle diversity. Multi-cultures reflect different values, ethics and behavior among workforce. All these factors lead to diversity in workforce all over the world as well as in Pakistan. As we enter the 21st century, workforce diversity has become an essential business concern. In the so-called information age, the greatest assets of most companies are now on two feet (or a set of wheels). Undeniably, there is a talent war raging. No company can afford to unnecessarily restrict its ability to attract and retain the very best employees available.

Generally speaking, the term “Workforce Diversity’ refers to policies and practices that seek to include people within a workforce who are considered to be, in some way, different from those in the prevailing constituency. In this context, here is a quick overview of seven predominant factors that motivate companies, large and small, to diversify their workforces: As a Social Responsibility Because many of the beneficiaries of good diversity practices are from groups of people that are “disadvantaged” in our communities, there is certainly good reason to consider workforce diversity as an exercise in good corporate responsibility.

By diversifying our workforces, we can give individuals the “break” they need to earn a living and achieve their dreams. As an Economic Payback Many groups of people who have been excluded from workplaces are consequently reliant on tax-supported social service programs. Diversifying the workforce, particularly through initiatives like welfare-to-work can effectively turn tax users into tax payers. As a Resource Imperative The changing demographics in the workforce, that were heralded a decade ago, are now upon us. Today’s labor pool is dramatically different than in the past.

No longer nominated by a homogeneous group of white males, available talent is now overwhelmingly represented by people from a vast array of backgrounds and life experiences. Competitive companies cannot allow discriminatory preferences and practices to impede them from attracting the best available talent within that pool. As a Legal Requirement Many companies are under legislative mandates to be non-discriminatory in their employment practices. Non-compliance with Equal Employment Opportunity or Affirmative Action legislation can result in fines and/or loss of contracts with government agencies.

In the context of such legislation, it makes good business sense to utilize a diverse workforce. As a Marketing Strategy Buying power, particularly in today’s global economy, is represented by people from all walks of life (ethnicities, races, ages, abilities, genders, sexual orientations, etc. ) To ensure that their products and services are designed to appeal to this diverse customer base, “smart” companies, are hiring people, from those walks of life – for their specialized insights and knowledge.

Similarly, companies who interact directly with the public are finding increasingly important to have the makeup of their resource reflect the makeup of their customer base. As a Business Communications Strategy All companies are seeing a growing diversity in the workforces around them – their vendors, partners and customers. Companies that choose to retain homogeneous workforces will likely find themselves increasingly ineffective in their external interactions and communications. As a Capacity-building Strategy Tumultuous change is the norm in the business climate of the structure.

Companies that prosper have the capacity to effectively solve problems, rapidly adapt to new situations, readily identify new opportunities and quickly capitalize on them. This capacity can be measured by the range of talent, experience, knowledge, insight, and imagination available in their workforces. In recruiting employees, successful companies recognize conformity to the status quo as a distinct disadvantage. In addition to their Job-specific abilities, employees are increasingly valued for the unique qualities and perspectives that they can also bring to the table. According to Dry.

Santiago Rodriguez, Director of Diversity for Microsoft, true diversity is exemplified by companies that “hire people who are different – knowing and valuing that they will change the way you do business. For whichever of these reasons that motivates them, it is clear that companies that diversify their workforces will have a distinct competitive advantage over those that don’t. Further, it is clear that the greatest benefits of workforce diversity will be experienced, not by the companies that that have learned to employ people in spite of their differences, but by the companies that have learned to employ people because of them.

Diversity Management The purpose of Diversity Management is to tap into the positive potential of diversity and transform this potential into a reality. Organizations are reassessing their trustees and processes in light of equal opportunity. Awareness of diversity and competence In Its management are necessary prerequisites Tort success. Many business and other organizations have already developed diversity management programs with some success. Having originated in the US in the early sass, DAM is to some extent already established in many organizations.

Also, in Europe organizations are learning to use diversity as an advantage. Valuing differences makes the difference for success. Management meant management of problems and conflicts because some demanded changes and others reacted politically, relying on different receptions of social Justice. Consequently, conflict management was the way to manage. Intercultural conflict management, as it was and still is known, often involves managers’ collecting tools in a toolbox to deal with cultures as reified, foreign identities.

Modern diversity management does not necessarily see cultures as fixed entities which repel against one another. Rather, the emphasis is on a meeting of different cultures, co-cultures, genders, age groups and other diverse groups and individuals from all directions in a cooperative, dynamic, creative, challenging process. Analysis of Workforce Diversity, Commitment of Employee’s and its Effects on Organizational Performance: Study reveals that diverse workforce and committed work environments could be sighted as a collaborative mean of influencing organization commitment and other employee attitudinal outcomes.

If the employees perceive consistencies connecting the diversity and committed work environment at their workplace, an expected positive response will emerge from their end. Employee commitment and satisfaction can be achieved by ensuring appropriate diverse workforce practices and providing sound conducive work environments. The employees express negative attitudes only when they are treated unfairly. The employee attitudinal outcomes may be in negative as well as positive forms.

The negative and positive forms are dependent on diverse workforce practices and committed work practices and conducive work environments provided. Diverse workforce positive affects the organizations which includes the ability to attract new employees, welcomes their creativity with more flexibility in system to enhance the quality. Poor diversity and ethical conducive work environment result in a great deal of behavioral problem which are of immense apprehension to the organizations. This crucial nature of problems needs to be deliberated and solved on priority to ensure the survival of the firm in competitive market.

Most of the organizations come frontward and take imperative actions by nourishing positive committed cultures within the organization that helps the employees in coping with work desired environment. Statistics of workforce diversity in Goethe-Institutes Karachi in terms of Religion. Answer by Manuel Nagger I really don’t have exact figures in mind. I think more like as same as in Pakistan Majority are Muslims! Yes I think perhaps 80% are Muslims and these rest are Hindus and Christian. I think Hindus are 10% and Christians are 10%; 80% Muslims and its same as outside other organization do.

We have majority of Muslims. Subtitles of interview taken by “Manuel Nagger” 1. I have been working for 26 to 27 years. I have worked in different countries like Brazil, Japan, and Bolivia and now in Pakistan. I came to Pakistan 2 years ago. And the first position I worked on was a language teacher in Germany and then they sent me abroad to work as a language teacher. 2. Pakistan is a country which is going through bumpy time, politically so it’s a bigger challenge to work here as compared to Germany. But on the other hand, it is very rewarding to work here. Have see many young Pakistanis who are interested in international exchange in spite of the difficulties here, there are many artists who hate this bad situation. I think the potential in Pakistan is a big one. You have young population and many young talents, I think it is very rewarding and challenging to work here and it is worth it. 3. Goethe Institutes Karachi belongs to the region of South Asia. Our regional head office is in Delhi and our activities are coordinated from Delhi. We have the freedom of organizing anything if we think it makes sense here. It depends on your work profile also that what work you want to do.

In my case, I’m focused on music; I was a music teacher when I was younger. I think Pakistan has a lot of good music may it be rock, pop and fusion also the traditional music, heritage seawall and sitar. It is a very rich culture so we really enjoyed being and there are good Pakistani musicians here so we love it here. 4. I didn’t bring any changes beside Just the focus shifted. My predecessor was into philosophy and literature. I think it is a very good topic but I shifted it to music. After me someone will come and change it to arts or whatever, we have the freedom of hosing also. 5. No not that much.

Actually the standard of working is very high, the culture, there is the advantage of speaking many languages so that is a challenge. The organization is very good and it is run a very well manner. There were no special challenges for 6. We do it by integrating them in anything we do. They should like a part of the team. Of course, we have a structure like director and all but every employee is important like answering a phone call in a civilized manner is very important. So every colleague of ours is important on this working place. So it is important to make this work through team work. 7.

One of my strength is to make them a part of our work cause you have to organize good concerts, good lectures which is very exciting but you have to explain it also that what is going on how important is it. My weakness is, perhaps, I am not a good amelioration, ten paper work Ana ten Attractable stout so I penal a lot on my colleague, the head of administration department Mr.. Baroque. He is far better in these things than me, without him I would have been lost. Every employee counts as a whole. Different heads of department acquire different skills and when it combines it forms the whole organization and a perfect one. 8.

No I didn’t face any such problem. We speak German and English here. Of course my Urdu is weak and I’m learning it a little bit. If there is some employee who does not understand English someone else would get it translated so that is not an issue. 9. Of course due to the current situation, people read newspapers and see it on internet that negative things are going on. So I must say honestly that it is difficult to invite people here. I admit that 50/60 percent people do come but 20/30 percent people are quite reluctant to come, you know. Subtitles of interview taken by “Mr.. Faro Parch” 1. What did you mean by a change? . Actually before him we had another head here and his style of working was really different than his working (Present director of organization). The head we had earlier was a philosopher but he is a music lover. So we have different programs and the head we had earlier arranged many of cultural program’s concerned with philosophy but he is concerned with more musical programs. The programs that he had depend upon his field of interest. 2. He is very polite, firstly, and he is very friendly, he is always open for question, I can go anytime in and ask him for anything. He is very very Like he is always available for us.

No one has to ask for any permission to go in. He is there to answer everybody question and anyone can Just go in and ask him whatever it is. 3. Actually we cannot recommend having a local (Pakistani Manager) head of departments. As this is a German culture centre then only option we have here is to have a German head. So we cannot have an option to have a German head. So we cannot have a Pakistani boss here. References http://www. Dim-diversity. Org/Eng/detainment. HTML http://www. Nation. Com. PC/business/24-Jan-2011 [Managing-workforce-diversity-in- P I n nntp://www. Gotten. Awe/lens/p AK sat K/Kara/nun/enliven. Ant

Business Ethics

Author: \ November 27, 2017 \ Business \ 0 Comments

Due to lack of reinsurance and corruption the gunwale or the social network with people from the communist party can help western businesses avoid red tape and bureaucracy. Unlike in the west, where building relationships has less importance due to the strict laws and a culture that supports contractual obligations, in China, one relies on one’s gaining, Without Guiana a westerner entering China is like entering an abyss, which Is also exemplified by the famous Chinese saying “turning at the temple door without a pigs head” [5].

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Understanding guan Is a challenging process for a sterner and building a gaining is often a time consuming process, so it is prudent for a western company to recruit the right people with the appropriate gaining to overcome these challenges. Legal Challenges Strict laws and patents in economies of the west protect domestic and foreign businesses, whereas in China, the legal system is loosely defined, giving rise to various loopholes in the law.

China’s accession to the WTFO has brought with it the inclusion of International business laws and patent rights amendments, but even today It Is common to see technology being stolen either by the employees of the outsourced firm in China or by a Chinese competitor in the country. “Shanghai” or the copycat culture is an integral part of the Chinese society; the society is predominantly Confucian and the Confucian tradition promotes individuals sharing what they create with the society to promote greater harmony. Hence anything from shoes to cell phones are copied and sold openly In markets across the country.

China today Is the worlds largest producer of counterfeit products [5]. The wordings of the Chinese laws are often vague and can be interpreted in many ways. Laws on trade, intellectual property rights, labor and taxation are often refined which dads to complexity in interpretation of the laws. This also leaves room for manipulating the law further by the local lawyers against western businesses [6]. Even though there are stated laws against IP infringement in the Chinese Law, certain provincial governments can block these laws. Popular Chinese saying “shank change our Khan change”. Chinese competitors compete aggressively against western businesses and are known to apply strategies from the “Being FAA” or the art of war [7]. The confusion ideology promotes the “rule of man” over the “rule of law’ and hence some of these patent violators, especially the ones from he drug industry see copying and patent violations as part of the greater good for the Country as they copy western drugs and sell them at affordable prices to the Chinese people.

Hence western companies that plan to outsource manufacturing to China should be aware of these legal challenges. One way of preventing these issues is to have a strong Guiana with the locals or to make sure that sensitive technology is not outsourced to China. China’s economy is the second-largest in the world and continues to grow at an astonishing rate. Just recently, in fact, the Asian Development Bank forecasted that China’s economy will grow by 8. 2% this year.

However, while economic growth brings business opportunities to all investors, continued widespread corruption in China has affected its government’s legitimacy in maintaining prosperity in the region and can bring a multitude of risks to financial services companies that are doing business there. Economic risks There are numerous of economic risks involved with dealing in China. Well to start China’s economy is growing expediently, with the government doing all it can to help slow the economy down to avoid possible inflation, which would ultimately lead to

China reevaluating their currency. China is experiencing a high amount of difficulties with their loan administration, issuing non performing loans as the overall banking system itself is a risk. For example in 2002, China claimed that 25% of the loans issued by state-owned banks were non-performing, as mentioned later by Standard and Poor this percentage was 50% or higher, that China was altering its public facts. Non performing loans have decreased immensely, averaging 12% (2005).

This is considered a risk to the people of China as well; these loans are probably being paid off slowly, affecting the money supply and demand. The value of the Chinese currency is a major issue in China, as China keeps seeing trading surpluses over the last dozen years causing discomfort with its trading partners. The value of the Yuan is considerably low to other countries currencies, have an advantage over the importers with the undervalued Chinese currency. These countries alongside many others have made requests for Beijing to raise the value of the Yuan.

Some reflect that the currency could increase 40% to meet its full potential. The U. S sees this undervalued currency as a risk to their manufacturing centre, ultimately effecting Canada’s. The United States is going to go as far as charging excessive tariffs on Chinese manufactured goods if they do not raise the value. Though the currency does not typically fluctuate sincerely, as the exchange rate is a fixed rate, which the government believes it helps to stabilize the growth and current stature of the economy.

From 1994 until now, the government has set the exchange rate to the dollar at 8. 4%, though the Central Bank of China has Just passed an exchange rate policy in July 21, 2006, to help peg the Yuan against numerous currencies instead of just the dollar. The unemployment rate in China has steadily decreased, though it is relatively still high. China provides the largest workforce all at little expense. In between the years of 1998-2002 China’s urban unemployment rate decreased from 4%-3%, from 10 million to 6 million.

But recently it’s believed that the Chinese unemployment rate has been less than 4%, with speculation that the unemployment rate is really disguised, that the real unemployment rate is 20%. The biggest economic risk that must be considered when dealing with China, is the problem of its overall growth, causing “over heating”. The government has been seeking new cooling assures, implementing new reforms to help slow the economy’s substantial increases down. China has been subject to increase bank reserve ratios, and increase short-term interest rates.

As well China will temporarily cut off credit lines with industrial sectors including real estate and the auto sectors. The overheating is caused from the increased amount of FAD, the growth in domestic demand, and the industrial sectors substantial output. Since October 2004, The Bank of China has increased bank reserve ratios for loans, twice for those exchanged in domestic currency and once for those exchanged in international currencies. They have raised the interest rates on loans from October sass’s hike from 5. 85% to August sass’s hike TTT. 12%.

Political risks of doing business in China Being a Communist driven government, China’s major sectors are under strict control, centralized control, though some policies have changed over the last twenty years enabling more public hold in privately owned sectors, which will lead to more FAD. The ICP has a tight control on all government institutions, polices, tighter in government offices, as well in urban economic, industry areas. The government seems to be most restrictive in urban areas then rural areas, as most of the population dwells within the rural land.

The highest power employed by the ICP is They make the policies on what they think is best for the country. The country has been witnessed to revolutionary behavior of many younger men and women over the past dozen years. The country is implementing up to date revolutionary acts, new strict punishment, though the chance of the Attainment square incident reoccurring is slim, the ICP wants to prevent any chance of this event reoccurring. In 2005, there was an estimated 85,000 small demonstrations throughout China, with little force needed to restrain the demonstrators.

Some believe China’s legal system is underdeveloped. The legal system itself is considered improving, but during the time of the Cultural Revolution, extreme measures were taken on behalf of the law system, for instance the Attainment Square incident. China since Attainment Square has been seen as a country with poor human rights. Human rights in China are currently undergoing some great changes, but still problems arise when in fact dealing with human rights I. E. Iranians, prisoners, the way they obtain confessions by torture. Freedom of speech and control over the public press has seen substantial “black days”. Another major pitfall in dealing with political risks in China is the persons religious practice. China only recognizes five different religions, Buddhism, Taoism, Islam, Catholicism and Protestants, anything else the government tries to regulate worship of other religions, some who practice other religions are subject to intimidation, detainment and harassment.

China over the years has been seeing a fair share of discomfort by Taiwan. Some believe that a war between the two lands is highly possible. If there was to be a military conflict between mainland China and Taiwan, it would cost the government an estimated, 1. 0-1. % growth annually, not so much of a burden, but can still cause a risky situation dealing financially with China. China does utilize its power to confiscate person’s property relocating the proprietors of the land somewhere else.

The government usually does this to redevelop land and its resources. The Three Gorges Dam caused a lot of discontent, removing over millions of people from their homes somewhere else provided by the government. The government to ease discontent, constructed village’s miles or so away from the confiscated land, to compensate. A major risk of this is that people who refused to move were beaten ritually by employees of the company developing the land; as well their crops were discontinued, as thousands of people were not reimbursed.

Some common risk issues include: ; Compliance & integrity issues: internal fraud (kickbacks and conflicts of ; Corruption & Graft: recognized by the government interest are most common) in Beijing as a serious issue in China. ;And now an increasingly serious issue in the counterfeiting, internal theft of critical information, and the protection of your trade ; Business partners: Who really is your prospective JP secrets are major issues partner? How did they accumulate their wealth? Does your partner or key staff have undeclared family or business connections to a competitor or supplier?

Political and regulatory risks this is largely more of a strategic, ;big picture; issue, but companies who lose touch with the prevailing political pressures affecting their industry can find themselves exposed to problems or shifts that they were;t ; Supply Chain risks lack of transparency and controls along the expecting. Chain ; Natural Disasters typhoon, flood, earthquake ; Business disputes the concept of ;illegal detention; by business partners as a means to settle a spite over payments due; threats by disgruntled former employees.

Restructuring & labor disputes closing a factory, or dealing with the disgruntled employee who seeks revenge on a manager ; HER risks associated with the new HER law and the complexity of hiring & firing staff. China has made many improvements in its laws for the protection of intellectual property. However, enforcement of these laws remains a problem. U. S. Companies doing business in China need to structure their transactions and draft agreements with their Chinese counterparts with an eye toward minimizing the risk of intellectual property rights locations ; China often lacks predictability in its business environment.

China’s current legal and regulatory system can be opaque, inconsistent, and often arbitrary. Implementation of the law is inconsistent. Lack of effective protection of intellectual property rights is a particularly damaging issue for many American companies. Both those that already operate in China and those that have not yet entered are well advised to assess their IP risk exposure and develop a plan to mitigate that risk. Guidance is available at www. Stoppages. Gob. ; China has made significant progress toward a market-oriented economy, yet it mutinous to rely heavily on an export-led growth model.

For this reason, parts of its bureaucracy still seek to protect local firms, especially state-owned enterprises, from imports, while encouraging exports. ; China retains many characteristics of a planned economy, with five-year plans setting economic goals, strategies, and targets. Provincial and local officials are accountable for delivering on the APP and their priorities reflect that mandate. In addition, the State and the Communist Party directly manage the only legal labor union. ; The scale and complexities of China can stress a firm’s capabilities, resources ND patience.

Well-targeted and informed efforts and a network of contacts at various levels across a broad range of organizations are often linked closely with market success and ability to resolve problems. China’s value-added industrial output rose 10. 1 per cent year on year in November, up from 9. 6 per cent in October and 9. 2 per cent in September. Retail sales increased by 14. 9 per cent and loan growth was more than 15 per cent, which is still high, and inflation remained low at 2 per cent in November. All these factors illustrate that China’s economy is improving.

Also, the Asian Development Bank recently predicted that China’s GAP would expand by 7. 7 per cent in 2012 and 8. 1 per cent in 2013. However, the economic risk for 2013 is the growth of exports in view of the sovereign debt crisis in the Euro zone and the economic slowdown in the United States. China’s political transition is not expected to affect policy continuity because it has a long-term, five-year political plan. Xi Jigging, the incoming president, has stated that China is ready to launch its economic stimulus policy.

The government will also focus on exports by implementing an economic-reform logic that will be formally announced in the second half of this year. This policy will cover foreign-exchange systems, industrial productivity systems, urban development and basic life insurance. Not only will it be implemented by the central government, but it will also be decentralized to local governments. Investment risks in China are expected to decline because economic growth has started its recovery, inflation remains low and the leadership transition is smooth.

In fact, 2013 is the best opportunity for investment in China, since its economy is estimated to have already bottomed out. Meanwhile, foreign fund flows, especially from the US and Europe, continue to course into the Asian market. Besides, the US Federal Reserve System has beefed up its third round of quantitative easing to IIS$85 billion (Bet. 6 trillion) per month by adding $45 billion in Treasury bill purchases to $40 billion in mortgage-backed-securities subscriptions.

Consequently, global liquidity will remain high, which will benefit the Chinese stock markets. H-shares – shares of companies incorporated on the Chinese mainland that are listed on the Hong Kong Stock Exchange or foreign exchanges – in the Hang Seen China Enterprise Index command a price-to-earnings ratio of 9. 3 times, lower than the average PIE ratio of the past five years of 13. 2. Drive the PIE of the Hong Kong Stock Exchange upwards over the next 12 months. In short, this is good timing for investment in Chinese stock markets.

Four industries in China are likely to grow this year, and the following investments are recommended: I Commercial banking, which will benefit from credit growth and economic activity; I Insurance, which will benefit from compulsory welfare enhancement, broader investment opportunities and an increase in insurance demand from expanded urban areas; I Telecommunications, which will benefit from economic growth and expansion of new technology, such as the application of third-generation cellular service, smart phones and the Internet; I Retailing, which will benefit from economic recovery, arbitration and an increase in retail sales.

For those with little time to study but a wish to invest in Chinese stocks, there are mutual funds with a policy to invest in Chinese stocks, especially trigger funds with target returns within a given time frame. That way, the opportunity to get a higher return will be increased with the expansion of the Chinese economy and Asia. Investment contains risk. Fund prospectuses should be carefully studied before making an investment decision KOREA Risks of heightened tension with North Korea After the artillery attack by North Korea on the South Korean island of Honeymoon in November 2010, disputes sharply worsened in the Korean peninsula.

Moreover the death of Kim Gong II and the ascendancy of his son, Kim Gong I-JNI, open up an uncertain transition period. In this context, tensions could remain intense in 2012. Resumption of the six-nation negotiations on the North Koreans nuclear programmer with North Korea, President Lee Mug-back is credited with effective management of he economic crisis and will likely remain in power in Seoul through December 2012.

Despite gains made by the Democratic Party in the April 2012 legislative elections, the Scenario Party (in power since 2008) succeeded in keeping a parliamentary majority. This sets the stage for the presidential election in December and the voting in of a new incumbent with Lee Mug-back barred from running again. Although economic policy continuity is expected to remain on track, this electoral year will nonetheless be marked by increased welfare spending to counter the growth of inequality that has become more pronounced these past ten years.