Hong Kong Marketing Brief

1.0 Introduction

Hong Kong is situated on the southeast coast of China at the mouth of the Pearl River facing the South China Sea. It is a Special Administrative Region of the People's Republic of China. It is composed of Hong Kong Island, Kowloon, the New Territories, and numerous small islands (Hong Kong Tourism Board 2007). This report will analyse Hong Kong in relations to its economic situation, trade agreements and goods imported/exported and why it’s suitable for marketing of Australian products.

2.0 Discussion

2.1 Economic factor

2.1.1 Economy definition

Economy relates to the money, expenditure financial resources and income which concern the cost of doing a business in a particular area (Kerin et al. 2008, 74).

2.1.2 Example and impact.

Hong Kong is one of the world’s most open and dynamic economies (U.S Department of State 2009). This makes it highly dependent for international trade and finance. It is said to be the freest economies in the world. “It was the 11th largest trading economy in 2008.”(Department of foreign affairs and trade 2010) This has benefited Hong Kong’s economic history and success. Hong Kong’s per capita GDP estimated to be $42,700 US dollars in 2009 is comparable to developed countries. Although, as a result of the global financial crisis that began in 2008, their GDP fell. Its open economy was exposed to the global financial crisis because Hong Kong’s trading partners were also affected. However, it has manage to recover through the first three 3 quarters of 2009 and is still improving in 2010 (Central Intelligence Agency 2010).

Australia will have a good opportunity to market to Hong Kong. Hong Kong has a good economy, its high GDP per capita shows that people are able to spend money not only on necessities. Also, Hong Kong has an open economy which makes it dependent for international trade and finance.

2.2 Trade agreements

2.2.1 Trade Agreements definition

An agreement that promotes free trade and reduces trade barriers by creating special tariff, tax and trade regulations between countries (BusinessDictionary.com 2010).

2.2.2 Example and Impact

Hong Kong participates in numerous international economic organisations such as; Asia Pacific Economic Cooperation forum (APEC), World Trade Organisation (WTO), and the Financial Action Task Force (FATF) (U.S. Department of State 2009). On the other hand, Australia also participates with these international economic organisations. These organisations promote free trade and reduce the trade barriers. These affiliations will establish a good relationship of trade agreements between Australia and Hong Kong. In 2008 to 2009,