F4 BAFS_BE

The contribution of the secondary sector to Hong Kong’s GDP has declined since the 1980s as

• A. Hong Kong exported more products to other countries.

• B. factory owners in Hong Kong relocated their production bases to China.

• C. more people, capital and entrepreneurs flowed from China to Hong Kong.

• D. there was widespread speculation in the property and stock markets in Hong Kong

The following are the major stages of economic development in Hong Kong.

Arrange them in the correct sequence.

(1) International financial and services centre

(2) Entrepôt

(3) Knowledge-based economy

(4) Manufacturing centre

• A. (2) → (4) → (1)→ (3)

• B. (2) → (4) → (3) → (1)

• C. (4) → (2) → (1) → (3)

• D. (2) → (1) → (4) → (3)

Which of the following occupations is/are involved in secondary production?

(You could choose more than one)

• Office clerk in a garment factory

• Assembly line worker in a toy factory

• Chef in a restaurant

• Construction worker

Wholesale and retail trades are examples of ______________ production.

Which of the following descriptions regarding the business relationship between Hong Kong and the Mainland of China is/are correct?

(You could choose more than one)

• Hong Kong is the largest export market for China’s products.

• With its mature financial market, Hong Kong helps Mainland companies raise capital.

• Hong Kong investors invest only in the manufacturing sector in the Mainland.

• CEPA gives Hong Kong and foreign firms advantages for their entries to Mainland’s service industries.

The role(s) of the Hong Kong government in developing a favourable business environment include(s):

(You could choose more than one)

• maintaining law and order

• controlling capital flows

• promoting free trade

• maintaining fair competition in the market

A laissez-faire policy is based on the idea that government should

• A. not interfere in the market.

• B. interfere in the market whenever possible.

• C. minimise its interference in the market.

• D. play an active role in allocating resources to its people.

How can Hong Kong firms benefit from the implementation of the Mainland and Hong Kong Closer Economics Partnership Arrangement (CEPA)?

(You could choose more than one)

• (1) Hong Kong companies are given preferential treatment in entering into all of the service sectors in the Mainland.

• (2) Hong Kong companies have a first-mover advantage of early entry into the Mainland market.

• (3) All of the products imported from Hong Kong can enjoy a zero import tariff preference when entering the Mainland market.

Firm A makes use of the Internet to locate the lowest cost supplier. It then obtains inputs from different countries to save on costs. This is a process known as

• A. outsourcing.

• B. global sourcing.

• C. technology transfers.

• D. international specialisation