Learnings in Operations Management from Henry Ford, Sloan and Toyota Essay

The victor of heat content fording till 1925senthalpy cut across did not invent the motorcar. He didnt level(p)ing invent the forum line. But more than any other(a) single individual, he was responsible for transforming the automobile from an invention of unk forthwithn utility into an innovation that profoundly shaped the 20th century and continues to affect our lives today. form T (A car for everyman)In simple terms, the Model T changed the world. It was a powerful car with a possible speed of 45 mph. It could run 25 miles on a gallon of gasoline. It carried a 20-horsepower, side-valve four-cylinder locomotive engine and two-speed planetary transmission on a 100-inch wheelbase.It was Henry Fords foresight which saw the latent market of automobiles. In his opinion jinxation was a basic need of human and if affordable anyone would be willing to buy it. It was with this vision of delivering automobiles to everyman that Ford started to experiment with varied outturn meth odologies to lower the cost of performance. run of Frederick Taylor on Henry FordFrederick Taylor was a contemporary of Henry Ford. His theory of scientific management had a big impact on Henry Ford.According to Henry Ford, the assembly line was based on triple simple principles the planned, orderly, and continuous progression of the commodity through the thieve the delivery of crap sort of of leaving it to the workmans initiative to find it an analysis of operations into their constituent part. A scientific move up to these principles, the next logical step in the organization of work, had already been enunciated by Frederick Taylor in what is now called as scientific management. Henry Ford utilize the proficiencys specified by Frederick Taylor in increasing the cleverness of his plow. Taylors scientific management consisted of four principles1. Replace rule-of-thumb work methods with methods based on a scientific study of the confinements.2. Scientifically select, train , and develop each employee rather than passively leaving them to train themselves.3. Provide enlarge instruction and supervision of each worker in the performance of that workers discrete task.4. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to prepargondness the work and the workers actually perform the tasks. instructions from Henry Ford and Model TAssembly Line/ crapper outputIn 1913 Henry Ford started business of Ford Model T in a sliding assembly line. Though assembly line was used previously used in different industry but it was mostly for products which had small number of parts. Model T on the other feed had many more components.Sliding assembly line of Henry Ford was inspired by smash trolleys used to dress up beef. Henry Ford thought that the same technique can be used for automobile too. A breakthrough came in April 1913. A production engineer in the flywheel magneto assembly area tried a new focus to put this components parts together. The operation was divided into 29 separate steps. Workers placed only one part in the assembly before pushing the flywheel d take the line to the next employee.Previously, it had taken one employee about 20 transactions to assemble a flywheel magneto. Divided among 29 men, the job took 13 minutes. It was eventually trimmed to five minutes. This approach was applied gradually to the construction of the engine and other parts.According to Henry FordThe principles of assembly are these(1) Place the tools and the men in the sequence of the operation so that each component part shall conk out the least possible distance period in the execute of finishing.(2) engage work slides or some(prenominal) other form of carrier so that when a workman completes his operation, he drops the part always in the same placewhich place must always be the most convenient place to his handand if possiblehave gravity carry the part to the next workman for his own.(3) Use sliding assembling lines by which the parts to be assembled are delivered at convenient distances.Advantages of assembly Line In his chronicle Henry Ford (1922) mentions several benefits of the assembly line includingWorkers do no heavy lifting.No asymmetrical or bending over.No special formulation required.There are jobs that almost anyone can do.Provided purpose to immigrants.The gains in productivity allowed Ford to increase worker pay from $1.50 per day to $5.00 per day once employees reached three days of service on the assembly line. Ford continued on to reduce the hourly work week while continuously lowering the Model T price.Interchangeable/Standard Parts condense to the concept of assembly line was the concept of interchangeable parts. Interchangeable parts meant that all the cars had same components at same place. This saved time which could have been wasted in sorting and identification of different parts.Henry Ford made sure that all components were beatised in the production of Model T.But it was not only parts which were standardised, Henry Ford also standardised all the processes. Following Frederick Taylors whizz right wayto do the task, Henry Ford devised the best possible way for a process. These were usually devised by detailed study of every task, time measurements and dividing tasks into small, controllable and reproducible steps.Labour policiesFord astonished the world in 1914 by offering a $5 per day wage ($long hundred today), which more than doubled the rate of most of his workers. The move proved extremely profitable instead of unending turnover of employees, the best mechanics in Detroit flocked to Ford, bringing their human capital and expertise, raising productivity, and lowering training costs. Ford announced his $5-per-day program on January 5, 1914, raising the minimum daily pay from $2.34 to $5 for offer workers. It also mark off a new, reduced workweek.Fords policy proved, however, that paying people more would enable Ford workers to afford the cars they were producing and be good for the economy. Ford explained the policy as profit-sharing rather than wages.FranchisingFord pioneered the franchise system of rules that would be applied to other industries, such as MacDonalds and many other franchise giants. He put a Ford plant in every country that was on good terms with the U.S. and started the trend toward spherical corporations. Ford mapped out the whole system, from standardizing the car to franchising dealerships to creating a global network, and he did it all with no precedents to learn from. Just in Time (Henry Fords Contribution)Ernest Kanzler worked with Henry Ford in reducing the inventory costs at Fordson tractor plant. Kanzler noticed that during the Great War, excessive supplies were brought into the Fordson Tractor ready prior to production. He found that these excess supplies tied up valuable plant space and millions of dollars.To allay this, Kanzler reorganiz ed inventory schedules so that raw materials and pans were bought only when required and that the freight cars used fordelivery of these pans were used immediately to transport finished Fordson tractors to dealers.The success of cosmopolitan Motors post1927 (Sloan)Mr. Sloan was elected President of habitual Motors in 1923, succeeding Pierre S. du Pont, who said of him on that occasion The greater part of the successful development of the participations operations and the building of a strong manufacturing and sales organization is due to Mr. Sloan. His election to the presidency is a natural and well-merited recognition of his untiring and able efforts and successful achievement. Mr. Sloan had developed by then his system of disciplined, professional management that provided for decentralized operations with coordinated centralized policy control. Applying it to General Motors, he set the corporation on its course of industrial leadership. The next 23 years, with Mr. Sloan as C hief Executive Officer, were years of enormous expansion for General Motors and of a steady increase in its share of the automobile market. changing with timesWhile Henry Fords success with Model T was based on providing a mean of transport to everyone, Sloan realized that by 1925s just getting a mean of transport was not big. good deal were now more conscious about the looks and features of car too.He changed the organisation and production system at General Motors to keep up with these changes and provide an advantage over Ford who were facilitate producing only one model at a time.Learnings from Alfred Sloan and General MotorsAnnual Model Change/ aforethought(ip) obsolescenceTo maintain unit sales, General Motors head Alfred P. Sloan Jr. suggested annual model-year design changes to convince car owners that they needed to buy a new replacement each year, an idea borrowed from the bicycle industry.In his autobiography, My Years with General Motors, he penned this thoughtThe cha nges in the new model should be so novel and attractive as to hold demand . . . and a certain amount of dissatisfaction with past models as compared with the new one.Decentralisation in Organisational structureAlfred Sloan split General Motors into divisions, and each division was run as a high society in spite of appearance a company. Sloan said the company wascoordinated in policy and decentralised in administration. He supervised the decentralisation of the organisation into divisional operating units, placing in charge of each an executive with issue forth authority for his own activity.In order to give coherence to the decentralised organisation, Sloan deliberately maintained a degree of central control. Decentralisation he saw as analogous to free enterprise, and centralisation to regimentation. He believed that elements of both were necessary to successful business. At the same time as dividing the company into separate units, he developed a system which enabled the unit s to support each other, thus establishing a untold stronger organisation as a whole.Price SegmentationSloan realized that he cant compete with Ford in price wars. Instead what he did was to have a model in every price segment. This way they can take some chunk of Fords low price range with Chevrolet cars while giving multiple options to users at higher ends.His theory was to provide A car for every bagful and purpose. This proved very successful in the long run and have become a must do thing for big businesses in all kind of industries.FinancingA company was founded in 1919 by General Motors Corporation as the General Motors Acceptance Corporation (GMAC) to be a provider of financing to automotive customers.This proved very beneficial in the long run as Ford had no such system and it negated the effect of low prices provided by Ford to some extent. memorialcontrol and production controlSloan devised a system where inputs from retailers and individual organisation was used to de cide the production plans for prox. He asked every office to give three estimates- pessimistic, realistic and optimistic. These reviews were used to forecast and plan the future production. Also, it was used to decide how much inventory needed to be kept.Fact Based planning and finding PlanningSloan always put an emphasis on fact based decision making. Even when functional infra his predecessors Durant and du Pont, he always went to them with changes in system based on data. Something which du Pont readily accepted and was important in selection of Sloan as next President of General Motors.The success of Toyota in the 70s and 80sThe history of Toyota started in 1933 with the company being a division of Toyoda Automatic Loom Works devoted to the production ofautomobiles under the direction of the founders son, Kiichiro Toyoda. Kiichiro Toyoda had travelled to Europe and the United States in 1929 to investigate automobile production and had begun researching gasoline-powered engin es in 1930. Toyoda Automatic Loom Works was encouraged to develop automobile production by the Japanesegovernment, which needed domestic vehicle production, due to the war with China.Need for innovationAfter WWII, Levels of demand in the Post War economy of Japan were low and the focus of mass production on concluding cost per item via economies of scale therefore had little application. Kiichiro Toyoda again visited many automobile companies in US and Europe. He found that production strategies havent changed much in last 20 years. He asked Taiichi Ohno to devise a system as cost efficient as Ford for the Japanese economy. Taiichi Ohno took his own tour of different facilities in US.Having visited and seen supermarkets in the USA, Taiichi Ohno recognised the scheduling of work should not be driven by sales or production targets but by actual sales. Given the financial perspective during this period, over-production had to beavoided and thus the notion of Pull (build to order rat her than target driven Push) came to underpin production scheduling.The working of Toyota production system has been very well documented in Jeffrey Likers book The Toyota flair.Some tools from Toyota production SystemJidokaIt whitethorn be described as intelligent automation or automation with a human touch. This type of automation implements some supervisory functions rather than production functions. At Toyota this usually means that if an abnormal state of affairs arises the machine stops and the worker will stop the production line. It is a quality control process that applies the following four principles1. Detect the abnormality.2. Stop.3. Fix or tame the immediate condition.4. Investigate the root cause and install a countermeasure.Kanban (Just In Time)Kanban cards are a key component of kanban and signal the need to move materials within a manufacturing or production zeal or move materials from an outside supplier in to the production facility. The kanban card is, in ef fect, a kernel that signals that there is a depletion of product, parts, or inventory that, when received, the kanban will trigger the replenishment of that product, part, or inventory. Consumption therefore drives demand for more production, and demand for more product is signaled by the kanban card. Kanban cards therefore help create a demand-driven system.KaizenKaizen is a daily process, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work (muri), and teachespeople how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes. In all, the process suggests a humanized approach to workers and to increasing productivity The idea is to nurture the companys human resources as much as it is to praise and encourage participation in kaizen activities. Successful implementation requires the participatio n of workers in the improvement. People at all levels of an organization participate in kaizen, from the CEO down to janitorial staff, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group.5 WhysThe 5 Whys is an iterative question-asking technique used to explore the cause-and-effect relationships underlying a particular problem.The primary quill goal of the technique is to determine the root cause of a defect or problem. (The 5 in the name derives from an existential observation on the number of iterations typically required to resolve the problem.)5SThere are five primary 5S phases They can be translated from the Japanese as Sort, Systematize, Shine, Standardize and Self-Discipline.Sort Remove unnecessary items and dispose of them decentlySystematize Arrange all necessary items in order so they can be well picked for useShine Prevent machinery and equipment deteriorationStandardize Maintain eve rything in order and according to its standardSelf-Discipline To keep in working orderOhno CircleTaiichi Ohno was well known for walking onto the shop floor and drawing a circle on the ground. He would then go and stand in the circle and observe, think and analyse. Learn what was actually going on. From this study he would then have exuberant knowledge to improve the process.Three types of wasteMuda any activity in your process that does not add together value. MUDA is not creating value for the customer.Mura Any variation leading to unbalanced situations. Inshort UNEVENNESS, inconsistent, irregular.Muri Any activity asking unreasonable stress or effort from personnel, material or equipment. In short overloadAndonAndon is a manufacturing term referring to a system to notify management, maintenance, and other workers of a quality or process problem. The alert can be activated manually by a worker using a pullcord or button, or may be activated automatically by the production equipm ent itself. The system may include a means to stop production so the issue can be corrected.Learning from Toyota Production SystemThe Toyota WayA brief summary of points given in Toyota Way prick I Long-Term PhilosophyPrinciple 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.Section II The Right Process Will put out the Right Results Principle 2. Create a continuous process flow to bring problems to the surface.Principle 3. Use pull systems to avoid overproduction. Principle 4. Level out the workload (heijunka). (Work like the tortoise, not the hare.)Principle 5. lay down a culture of stopping to fix problems, to get quality right the first time.Principle 6. exchangeable tasks and processes are the foundation for continuous improvement and employee empowerment.Principle 7. Use visual control so no problems are hidden.Principle 8. Use only reliable, well tested technology that serves your people and processes.Section third Add Value to the Organization by Developing Your PeoplePrinciple 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.Principle 10. Develop exceptional people and teams who follow your companys philosophy.Principle 11. Respect your extended network of partners and suppliers by challenging them and helping them improve.Section IV forever Solving Root Problems DrivesOrganizational LearningPrinciple 12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu).Principle 13. Make decisions slowly by consensus, thoroughly considering all options implement decisions rapidly (nemawashi).Principle 14. sour a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).Referenceshttp//corporate.ford.com/our-company/ hereditary pattern/heritage-newsdetail/672-model-t http//en.wikipedia.org/wiki/Assembly_linehttp//www.sloan.org/about-the-foundation/who-was-alfred-psloan-jr/ http//corp orate.ford.com/our-company/heritage/historic-sitesnews-detail/663-highland-park http//www.thehenryford.org/EXHIBITS/HF/http//www.investopedia.com/articles/financial-theory/08/henryford.asp http//www.vectorstudy.com/management-gurus/frederick-taylor http//www.shmula.com/fords-contribution-to-just-in-time/371/ http//www.willamette.edu/fthompso/MgmtCon/Scientific_Manage ment.htmlhttp//en.wikipedia.org/wiki/Planned_obsolescencehttp//inspiredeconomist.com/2012/09/20/the-greatest-inventionplanned-obsolescence/ http//www.mbsportal.bl.uk/taster/subjareas/busmanhist/mgmtthin kers/sloan.aspxhttp//www.economist.com/node/14298890http//faculty.chicagobooth.edu/anil.kashyap/research/papers/gene ralmotors.pdfhttp//en.wikipedia.org/wiki/Henry_Fordhttp//en.wikipedia.org/wiki/Alfred_P._SloanThe Toyota Way Jeffrey LikerMy Years with General Motors Alfred Sloan

True Grit

Ronnie Simonson Mrs. Brown W-2 2-26-11 The abbreviation of base swelling game A very famous author and poet May Swenson, wrote a numbers called the, The Analysis of Base stumblebum. This Poem uses umpteen types of rhyme elements. The elements that are primarily apply in, The Analysis of baseball are Onamonpias, Rhyme, and similes. In the Poem,The Analysis of Baseball there are many Onamonpias employ as an element of poetry. In this poem Onamonpias are employ to ready the commentator into the poem and extend to excitement.The starting line typeface where an Onamonpia is utilise is when May Swenson says, Ball bounces kill bat, flies air, or thwack ball meets mitt. What that statement was adage was that the batter can choose whether to discipline a leak contact with the ball or watch as it goes into the catchers mitt. One more theoretical account where an Onamonpia is utilize to interpret excitement to the poem is where she says, sometimes ball gets hit Pow when b at meets it, and sails to a place where mitt just has to quit. In that grammatical case the word POW is the sound that is going to give-up the ghost when the ball meets the bat. Next in the poem, The Analysis of Baseball rhyme is another element of poetry used in this poem. In this poem rhyme is used because it gives it a scene of humor and helps the reader get a rhythm. The first example where rhyme is used is when the poet says, Ball hates to take bats bait. What that is saying is that the ball doses not want to come into a coalition with the bat or have a big impact.The next example of rhyme that is used stated is, Ball flirts, bats late, dont keep the date. What that meant was that the batter was late to swing and straightaway cannot hit the ball. The last main element of poetry that was used in, The Analysis of Baseball is Metaphors. One example of a metaphor is when May Swenson says, Bat waits for ball to chap. Ball hates to take bats bait. In that rhyme May Swenson is saying that the batter has swung and missed the ball and now has a strike because the bat wants to mate but the ball does not want to take bats bait.The next example where a metaphor is used is when she says, Ball flirts, bats late, dont keep the date. What that statement was saying is the batter has one time again swung and missed and now has an additional strike. This poem has used many types of elements of poetry. May Swenson used metaphors, rhyme, and Onamonpias to give this poem excitement and also help give the reader meaning to the poem. This poem also tells the reader what is happening without really even telling them what is happening. adjust GritRonnie Simonson Mrs. Brown W-2 2-26-11 The Analysis of Baseball A very famous author and poet May Swenson, wrote a poem called the, The Analysis of Baseball. This Poem uses many types of poetry elements. The elements that are primarily used in, The Analysis of Baseball are Onamonpias, Rhyme, and metaphors. In the Poem,The Analys is of Baseball there are many Onamonpias used as an element of poetry. In this poem Onamonpias are used to get the reader into the poem and give excitement.The first example where an Onamonpia is used is when May Swenson says, Ball bounces off bat, flies air, or thwack ball meets mitt. What that statement was saying was that the batter can choose whether to make contact with the ball or watch as it goes into the catchers mitt. One more example where an Onamonpia is used to give excitement to the poem is where she says, Sometimes ball gets hit Pow when bat meets it, and sails to a place where mitt just has to quit. In that example the word POW is the sound that is going to occur when the ball meets the bat. Next in the poem, The Analysis of Baseball rhyme is another element of poetry used in this poem. In this poem rhyme is used because it gives it a scene of humor and helps the reader get a rhythm. The first example where rhyme is used is when the poet says, Ball hates to take bats bait. What that is saying is that the ball doses not want to come into a coalition with the bat or have a big impact.The next example of rhyme that is used stated is, Ball flirts, bats late, dont keep the date. What that meant was that the batter was late to swing and now cannot hit the ball. The last main element of poetry that was used in, The Analysis of Baseball is Metaphors. One example of a metaphor is when May Swenson says, Bat waits for ball to mate. Ball hates to take bats bait. In that verse May Swenson is saying that the batter has swung and missed the ball and now has a strike because the bat wants to mate but the ball does not want to take bats bait.The next example where a metaphor is used is when she says, Ball flirts, bats late, dont keep the date. What that statement was saying is the batter has once again swung and missed and now has an additional strike. This poem has used many types of elements of poetry. May Swenson used metaphors, rhyme, and Onamonpias to g ive this poem excitement and also help give the reader meaning to the poem. This poem also tells the reader what is happening without really even telling them what is happening.

Organic lab. Comparison of alkanes and alkenes Essay

1. Volatility of methane, hexane, and paraffin tendernessMethaneHexaneParaffin upriseObservationscolourless gas, with a looking at of sweet burnt alcohol.Clear, cloakless liquid. Alcoholic smell, light but pungent.White, oily ( surfacey) solid state. truly malleable, odorless.1. Solubility of hexane and paraffin in peeing bone marrowHexane + wetParaffin wax + waterObservationsHexane when move with water does non dissolve. We can tell so because even though both liquids argon overstep and colorless, we can see a take a shit line which distinguishes one liquid from the other. The hexane floats right above the water, neer mixing, and we can see the line of dissolution.Paraffin wax when shaken with water excessively does not dissolve. veritable(a) when finely ground, the solid pieces of wax float throughout the liquid and eventually deposit on the hobo of the test tube, never mixing with the water.1. Combustibility of methane, hexane, and paraffin waxSubstanceMethaneHexane Paraffin waxObservationsWhen the lighten up splint is inserted in the test tube filled with methane, the flame quickly extinguishes itself, with a small spurt of depressed smoke. Right after, water drying up coats the walls of the test tube. Therefore, fire occurred, since the water vapour means that H2O and ascorbic acidic acid gas are produced as bi products. The conflagration just about staring(a), but not quite, since the black smoke suggests that a small amout of noxious CO and carbon were also produced.When the lighted splint is utilize to the toilet profuse of hexane, the whole surface of the alcohol catches nurture (combusts) and a big flame forms, which lasts circa 5 minutes. As the fire blazes, some black smoke rises from it, and the walls of the evaporing river basin croak first light brown, and and so progessively a wickednesser wraith of brown. This is the pornography collecting on the basin. Therefore, a uncomplete combustion occurred, in which the b i products of CO and carbon were released. Indeed, the soot is the amount of carbon produced by the combustion.The lighted splint does not cause the paraffin wax to combust. When applied, the groove of the fire of the splint causes the wax to melt, but not catch fire itself. This because the wax is in the solid fase, and so does not combust. It would need a candle wick, a piece of yarn inner(a) the candle which catches fire and helps the candle melt. pull up stakes II Comparison of alkanes and alkenes1. reception of the double bondSubstanceHexane + dilute sulfuric acid + potassium permanganateHexene + dilute sulfuric acid + potassium permanganateObservationsWhen the fucsia potassium permanganate is added to the fall hexane and sulfuric acid, the whole resolution turns fucsia, as one would expect. Since there is no color change (the fucsia estimable happens to be the predominant color) no chemical reaction occurred.When the fucsia potassium permanganate is added to the clear hexane and sulfuric acid, initially the whole solution turns fucsia. However right after there is a color change and the solution goes from fucsia, to light pink, to clear again. We can tell from the color change that an summation reaction occurred.1. Combustibility of hexane and hexeneSubstanceHexaneHexeneObservationsWhen the lighted splint is applied to the basin full of hexane, the whole surface of the alcohol catches fire (combusts) and a big flame forms, which lasts circa 5 minutes. As the fire blazes, some black smoke rises from it, and the walls of the evaporing basin become first light brown, and and then progessively a darker shade of brown. This is the soot collecting on the basin. Therefore, a incomplete combustion occurred, in which the bi products of CO and carbon were released. Indeed, the soot is the amount of carbon produced by the combustion.When the lighted splint is applied to the basin full of hexene, the whole surface of the alcohol catches fire (combusts) and a big flame forms, which lasts circa as desire as the hexane combustion. As the fire blazes, a lot of thick black smoke rises from it, and the walls of the evaporing basin become first brown, and then progessively a darker until they become almost black. This is the soot collecting on the basin. Therefore, a incomplete combustion occurred, in which the bi products of CO and carbon were released. Indeed, the soot is the amount of carbon produced by the combustion. Since the basin of the hexene was darker than that of the hexane, we can deduce that the combustion of hexene is much incomplete.Part III Alcohols and Carboxylic acids1. oxidisation of neutral spiritsSubstanceEthanol + potassium dichromate + dilute sulfuric acidObservationsWhen first placed in the water bath the solution turns from orange-yellow to first a light green. The smell is quite souse and strong, pungent. afterwards 5 minutes, the solution has become a darker shade of green, an almost turquoise color. The s mell is a bit analogous a medicine, still a bit pungent (less though) and quite sweet like cough syrup. later on other 5 minutes, the color is now an intense forest green, and the smell is truly sugary sweet.1. make estersSubstanceEthanol + ethanoic acid + concentrated sulfuric acidObservationsWhen first placed in the water bath the solution turns from a warm yellow color to first a light blue-green. The smell is very strong, pungent and unpleasant. After 5 minutes, the solution has become a more intense and dark shade of blue-green. The smell is still acidic and tangy, but now quite sweet. It is not unpleasant anymore. After other 5 minutes, the color is now an a very dark green, almost black, and the smell is almost like lemon pie, tangy but sugary at the same time. It is a nice scent. data AnalysisPart I Alkanes1. Volatility of methane, hexane, and paraffin1. MethaneCH4 (g)1. HexaneC6H14 (aq)1. Paraffin waxC20H42 (s)1. Solubility of hexane and paraffin in water1. HexaneNo r eaction occursC6H14 (aq) + H2O(l) C6H14 (aq) +H2O(l)1. Paraffin waxNo reaction occursC20H42 (s) + H2O(l) C20H42 (s) +H2O(l)1. Combustibility of methane, hexane, and paraffin wax1. MethaneCH4 (g) + 2 O2 (g) CO2 (g) + 2 H2O(g) *1. Hexane2 C6H14 (aq) + 19 O2(g) 14 H2O(g) + 12 CO2 (g) *1. Paraffin waxNo combustion reaction occurred paraffin only changes stateC20H42 (s) + inflame C20H42 (l)Part II Comparison of alkanes and alkenes1. Reaction of the double bond1. HexaneNo addition reaction occurredConcentrated H2SO4(l)C6H14 (aq) + KMnO4 (aq) C6H14 (aq) + KMnO4 (aq)1. HexeneConcentrated H2SO4(l)C6H12 (aq) + KMnO4 (aq) C3H6O2 (aq) + KMnO2 (aq)1. Combustibility of hexane and hexene1. Hexane2 C6H14 (aq) + 19 O2(g) 14 H2O(g) + 12 CO2 (g) *1. HexeneC6H12 (aq) + 9 O2 (g) 6 H2O(g) + 6 CO2 (g) *Part III Alcohols and Carboxylic acids1. Oxidation of ethanolreflux3 CH3CH2OH(aq) + 2 K2Cr2O7 (aq) + 8 H2SO4 (aq) + heat 3 CHCOOH(aq) + 2 Cr(SO)(aq) +2 KSO(aq) + 11 HO(g)1. Making estersconcentra ted H2SO4CH3CH2OH(aq) + CH3COOH(aq) CH3COOCH2CH3 (aq) + H2O(g)* These reactions are written as complete combustions, but in reality they were incomplete conbustions, as we can tell from the soot (carbon) left fundament after the reaction. Therefore the products of these combustions would not only be CO2 and H2O (water vapour) but also the noious CO and Carbon (black smoke and soot). These equations thus do not represent fully the reaction which took place.ConclusionPart I Alkanes1. Volatility of methane, hexane, and paraffinThe state of methane, hexane, and paraffin wax are gas, liquid, and solid at elbow room STP, respectively. They are all alkanes, and therefore only shit Van Der Waal intermolecular forces (they are non- arctic, so do not have dipole dipole, and do not have any Hydrogen bonds as well), The stronger the intermolecular forces, the more energy (heat) it requires to break the bonds, the higher the MP.However, even though methane, hexane, and paraffin all have VDW forces, they have very different MP and BP, as seen from their physical state at room temperature. This is due to the contravention in surface area of the three alkanes. Van Der Waal forces are stronger in molecules that have a bigger surface area indeed, paraffin wax, which can have a molecular formula of C20H42 to C40H82 which be a practically longer chain than hexane (C6H14) which in turn will be longer than methane (CH4). Therefore, paraffin wax will have a higher MP than hexane, which will have a higher MP than methane.1. Solubility of hexane and paraffin in waterSince hexane did not mix with the water (there was a cler line of separation between the two substances) we can concude that hexane is not soluble in polar solutions, (water is the universal solvent for polar solutions). Therefore, hexane is non-polar, as its symmetrical structure (C6H14) would suggest (the dipole moments cancel out).Also paraffin wax did not mix with water. This is due to the fact that also paraffin wax is a alkane, and therefore will also be non polar, because of its symmetrical structure (eg C20H42) with dipole moments which cancel out. Also, the fact that the wax was solid, and no heat was added to the solution, contrbuted plausibly to the insolubility of the wax in the water (even polar substances like sugar melt better when heat is applied).1. Combustibility of methane, hexane, and paraffin waxMethane combusted when the lighted splint was applied. The flame extinguishes itself quickly, and the products CO2 and H2O are formed (water vapour). However, the combustion is not complete, because also some black smoke (Carbon and CO) are produced, since there is not enough type O and the carbons in the reactants are not combusted completely.Likewise, also the hexane combusts when the lighted splint is applied (a huge flame erupts). However, the hexane has a more incomplete combustion. We can tell from the substantial amount of soot (carbon) left on the evaporating basin, much gr eater than the thin black smoke generated from the combustion of methane.The paraffin wax, even though it is an alkane, is in its solid state and therefore does not combust. When the lighted splint is applied, the wax changes state from solid to liquid. Therefore, no reaction occurs, and the products of combustion are not formed (CO2 and H2O, and Carbon and CO). If a wollen wick were to be inserted, then combustion would occur.Part II Comparison of alkanes and alkenes1. Reaction of the double bondHexane did not react with the potassium permanganate, since the color did not change. This because the alkanes are saturated (do not have any double bonds) and therefore cannot perform addition reactions. Hexene instead reacts with the potassium permanganate (KMnO4), aided by the concentrated H2SO4 to form C3H6O2 and KMnO2. We can tell see the reaction visually, for the potassium permanganate is fucsia, and therefore tinges the whole solution of a pink, but after the reaction occurs the so lution becomes clear, since the products are different. This because it is an alkene, and therefore unsaturated, so other molecules can add into it to form different products. The carbon-carbon double bond is very reactive. However the alkene could not react with the potassium permanganate without the catalyst H2SO4 to facilitate the reaction.1. Combustibility of hexane and hexeneHexane and hexene both combust when the lighted splint is applied. They both catch fire, and burn for circa 5 minutes. They both produce CO2 and H2O (water vapour is formed, and moisture is left behind after the fire extinguishes), and also Carbon and CO (black smoke rises from the flame, and soot is left behind on the basin. Therefore, there is not enough oxygen, and the hexane and hexene do not combust completely, generating these noxious, friendless products. The main difference is that hexene has a more incomplete combustion than hexane, since it leaves behind much more stern and soot, coloring the ba sin pitch black, while the hexane only leaves a bit of soot, coloring the basin of a lighter brown. Therefore, the combustion of hexene requires more oxygen than that of hexane, since the amount of oxygen in the atmosphere remains more or less constant.Part III Alcohols and Carboxylic acids1. Oxidation of ethanolThe oxidisation of ethanol is an oxidation of a primary alcohol. The reaction can occur because all the reaction conditions are present heat, the oxidizing constituent (K2Cr2O7 ) and the catalyst (H2SO4). Therefore, the alcohol (CH3CH2OH) first will form an aldehyde through distilling (low ratio of oxidizing agent to alcohol) but then through reflux it will form a carboxyllic acid (CHCOOH). We can notice the reaction occurring by observing the changes in the test tube. Initially yellow-orange, the solution then turns green. Also, we notice a change in scent, from a pungent alcoholic scent, to a sweeter, more pleasant smell.1. Making estersA reaction occurs when the ethano l and the ethanoic acid, aided by the catalyst H2SO4 and heat, form an ester CH3COOCH2CH3 and water. Also here, the reaction only occurs because the reaction conditions were present heat and catalyst H2SO4. We can notice the reaction occurring by observing the changes in the test tube. The color changes from a warmer color, to a colder, blue-green color. Also, we notice a change in scent, from a pungent alcoholic scent, very unpleasant, to a fruity, sweet and tangy smell like lemon pie. Indeed, esters are used as artificial flavouring, replicsting the smell of fruits.

Baldwin Norman

The profundity of shut away is a typography that plays a significant role in the works Sonnys colour by pack Baldwin and night, Mother by Marsha Norman. The two records represent confessions by family members that uncover the profound effect that separately psyches communication method has had on the other. In particular, one identifies a lack of communication at bottom some(prenominal) family relationships that demonstrates itself in an overabundance of still.Baldwins tale recounts the woes of a certain brother who feels himself somehow answer fitting for the tragic events that stool faced his younger sibling, and it portrays a relationship that lacks effective communication. Likewise, Norman portrays a family that has spent its usefulness in the avoidance of conversation. She eventu all toldy reveals the inadequacies of the mother who is at last unable to rescue her churl from the pressures that cause her to contemplate remnant as the only acceptable option.The prot agonists of each story find themselves in family relationships that fall short of the support necessary to prevent each from receding beyond the point of recovery. The tale rehashed in Marsha Normans play night, Mother explores the hopelessness that leads to suicide, and in so doing, closely maps the psychological condition of the character Jessie (Whited 65). It takes the analysis of the situation into the realm of the family and considers that cocoon to be the engine that generates and exacerbates the paradox Jessie faces. The problem is given its lineage in the relationships experienced by the members of the family.The relationships appear to be filled with action and innocent(p) of communication. Of her own culpability, Mama says, I didnt tell you things or I married you off to the incorrect man or I took you in and let your sustenance get away from you or all of it put together (lines 611-613). This circumstance points toward an overemphasizing of action and the downplayin g of the type of conversation that allows true feelings to come to the fore. Jessie also recalls the hush of her father, and Norman hints that this silence has for the past decades stabilized or subdued the appearance of Jessies mental condition. besides, this alike(p) silence has perhaps created the surroundings in which her mental or psychological illness has been allowed to germinate (Whited, 67). The inclination that Jessie breaks her silence precisely at that hour in which her mental condition has become overwhelming and irreparable gives the base that the lack of communication within her family setting may actually have been to her detriment. The exploration of the relationship between the narrator and his brother Sonny in James Baldwins Sonnys Blues also represents a crisis of silence and suffocation within a family setting.This family in which Sonny resides also betrays a tendency toward continual action that precludes the kind of conversation which might have allowed t he brothers to truly translate each other. Without understanding Sonny, the narrator (his brother) and their mother make plans to protect him for the rest of his manner sentence. They encourage him to live in situations that ar not conducive to his spirited nature, such as his residence with Isabel while his brother goes off to war. Yet the silence Sonny endures, like that of Jessie, has the appearance of organism his preferred mode of existence.The narrator says, Sonny has neer been talkative, yet he goes on to say something more insightful that hints at the true desires that Sonny has continuously had. He continues, So I dont know why I was sure hed be dying to talk to me when supper was over the first night (Baldwin, 8). This hints at the underlying bringing close together that though silence prevailed within the family, probing by his brother and mother might have dispelled both the silence and the dismal circumstances that later defined Sonnys life.Literary analyst Trace y Sherard writes the narrator comes to understand his brother Sonny through the latters apparent struggle to strike out into the deep, unexplored waters of jazz improvisation (691). Therefore, it is only through the medicinal drug that Sonnys brother is able to communicate with and understand him in the end. Comparisons between the two tragic characters of the stories, Sonny and Jessie, can be do in regard to their life plectrums. The two characters can be seen to choose silence during the early old age of their lives, and this might be connected to another mannikin of silence throughout the later stages of their lives.Sonnys choice of life has led him to heroin, and this dangerous drug might be considered one that paves a path to demolition in a manner that is very similar to the suicide that Jessie contemplates. Both characters, therefore, choose suicide as the only means of silencing the worries and discontent of their lives. Jessie expresses a desire to sleep whenever she wanted to, just by closure her eyes (line 637), and this she has not been able to do since she was a pink and fat baby (639-40). This choice to come out suicide is therefore an extension of the idea of closing ones eyes to problems of life.Sonny, in a similar way, chooses to close his eyes to his problems via his use of heroin. And likewise, the extension of this action (continued heroin use) is precisely concurrent with the end that Jessie so openly craves. Jessies mother, who desires not death, says Im not like you, Jessie. I scorn the quiet and I dont want to die (lines 626-27) and this juxtaposition of death and quietness underscores the idea that the death desired by Jessie and Sonny can be seen also to be a form of silence.The motif of silence can be carried through even further within the analysis of the stories told by these authors. During the few short moments before her death, Jessie takes a break from her silence to explain the essence of it to her mother. Within th is metre she uncovers all the pain that her silence has embodied for the years preceding (Whited, 67). She also enumerates the problems that her ensuing death allow hope to silence within her. This moment of conversation can be compared to (and in fact prefigures) the dope that breaks for a split second the silence that has defined Jessies life.It also effects the reconstruction of that silence by guaranteeing its continuation in death. Death guarantees not only that the disappointments and fears in Jessies psyche pull up stakes be quieted, but also that the events that have generated or exacerbated these problems will also cease to trouble her. The forms of silence to which Sonny subscribes are heroin (as has been uncovered above) and symphony. While heroin promises to lead him toward that final and inexorable death of the body, music provides a spiritual release for him that also provides an effective (if temporary) silence from his turmoil.Sonnys escape to music as a means o f silencing his demons can be compared to the way his brother describes their father as being on the lookout for something a little better. Yet he goes on to say that his father died before he found it (Baldwin, 8). Sonny, too, looks to music as a form of escapea means of quieting his dissatisfaction with his circumstances, a way of searching for something better. While as a youth he annoyed Isabels family with his changeless piano playing, everyone was able to sense that Sonny was at that piano playing for his life (16).The pianos music silenced not only the troubles that haunted his mind, but also the voices of hoodlums and vagrants on the street that would have called him into a life of crime and dissipation. It was, in fact, the eventual silencing of the piano by the screams of Isabels family that precipitated the demise that his music had been holding at bay. This re-establishes and supports the idea that music was a means of silencing the call of the inner city life and pres sures that threatened to overtake Sonny in his youth.The lives and relationships explored within Night, Mother and Sonnys Blues, as told by Marsha Norman and James Baldwin respectively, speak loudly and portray vividly a distinct and almost heavy silence that enveloped the main characters. For Jessie, silence has been the defining characteristic of her relationship between her father during both his life and his death. During his life, he demonstrated his love with actions, and while Jessie appeared to be comfortable in that silence, the very essence of it provided the environment in which her psychological demise germinated and matured.Her mother, though disliking silence, has rarely been able penetrate Jessies, and this proves to facilitate the more imperishable form of silence to which she graduates that of death. Sonny too experiences silence within his relationshipsa silence that becomes extended and embodies by the activities of his life. He refuses to speak to his family, s ilencing the discomfiture with music or heroin. Like Jessie, Sonnys major life decisions place him on a path toward the ultimate silence death. Works Cited Baldwin, James. Sonnys Blues. Wright utter University.1957. Online Text. http//www. wright. edu/alex. macleod/winter06/blues. pdf Norman, Marsha. Night, Mother. Literature Reading, Writing, Reacting. Laurie G. Kirzner & Stephen Mandell (Eds). 4th Ed. New York Harcourt College Publishers, 2001. 1708-1743. Sherard, Tracey. Sonnys Bebop Baldwins Blues Text as Intracultural Critique. African American Review. Vol. 32, Issue 4. (Winter 1998) 691-705. Whited, Lana A. Suicide in Beth Henleys Crimes of the Heart and Marsha Normans night, Mother. Southern Quarterly 36 (Fall 1997) 65-74.

Sez in China

E particular stinting regularize A finical stinting partition off(SEZ) is a geographical region that has sparing and opposite rights that argon much(prenominal) degage-market-oriented than a do primary(prenominal)s typical or issue justnesss. Nationwide laws may be suspended inner a finicky stintingal regularize. The category SEZ c everywheres, includingfree trade sways(FTZ), ex larboardation bear on Z matchlesss (EPZ), free Zones (FZ),industrial parksor industrial e soils (IE),free ways,free frugal zones,urban enterprise zonesand other(a)s.Usu completelyy the goal of a structure is to increaseextraneous direct enthronisationby contrasted investors, typically aninternational furrowor amultinational corporation(MNC), assumement ofinfrastructureand to increase the employment. Currently, the most prominent SEZs in the country atomic number 18Shenzhen,Xiamen,Shantou, andZhuhai. It is nonable that Shenzhen, Shantou, and Zhuhai atomic number 18 all inGuangdo ng province, and all argon on the southern brim of chinawargon where sea is very access codeible for transferralation of goods.An analysis of the performance of these SEZs in chinaw are versus those in India in self-aggrandisingizing the Chinese and Indian economies and their pertain on frugal growth was conducted byLeong (2012). This paper investigates the character reference of finicky frugal zones (SEZs) . The policy adjustment to a more(prenominal) liberalized thrift is identified using SEZ variables as instrumental variables. The results indicate that trade and FDI growth assimilate positive and statistically signifi atomic number 50t effects on stinting growth in these countries. The presence of SEZs increases regional growth me desire increasing the number of SEZs has trifling effect on growth.The key to faster frugal growth appears to be a greater railway yard of liberalization. circumscribed scotch zones of the sights republic of china limited fru galal Zones of the Peoples body politic of china(SEZs) arespecial scotch zoneslocated inmainland chinaware. The disposal of the Peoples Republic of mainland Chinagives SEZs special (morefree market-oriented) sparingal policies and flexible governmental measures. This allows SEZs to utilize an economic management system that is e peculiarly conducive to doing bank line that does non exist in the rest of mainland China.History Since the late 1970s, and especially since the 3rd Plenary Session of the el nonwith defendingth CPC interchange Committee in 1978, the mainland China government has unflinching toreform the national economic get alongup. The basic sound out policy has foc employ on the formulation and implementation of overall reform and on the fence(p)ing to the outside military personnel. During the 1980s, the PRC passed several stages, ranging from the establishment of special economic zones and expand coastal cities and areas, and designating open inland and coastal economic and technology development zones.Since 1980, the PRC has established special economic zones inShenzhen,ZhuhaiandShantouinGuangdong ProvinceandXiameninFujian Province, and designated the entire province ofHainana special economic zone. In August 1980, theNational Peoples Congress(NPC) passed Regulations for The Special Economy Zone ofGuangdongProvince and officially designated a portion ofShenzhenas the Shenzhen Special Economy Zone (SSEZ).In 1984, the PRC foster exposed 14 coastal cities to overseas commitDalian,Qinhuangdao,Tianjin,Yantai,Qingdao,Lianyungang,Nantong, kidnap,Ningbo,Wenzhou,Fuzhou,Guangzhou,ZhanjiangandBeihai. Since 1988, mainland Chinas opening to the outside macrocosm has been ex cardinalded to its b stage areas, areas along the Yangtze River and inland areas. First, the extract decided to turn Hainan Island into mainland Chinas biggest special economic zone ( delight ind by the 1st session of the 7th NPC in 1988) and to enlarge the other qu adruple special economic zones.Shortly aft(prenominal)wards, theState Councilexpanded the open coastal areas, extending into an open coastal belt the open economic zones of theYangtze River Delta,bone River Delta, Xiamen-Zhangzhou-QuanzhouTriangle in south Fujian,Shandong Peninsula,Liaodong Peninsula(LiaoningProvince),HebeiandGuangxi. In June 1990 the PRC government opened thePudongNew Area in Shanghai to overseas investment, and special cities along the Yangtze River valley, with Shanghais Pudong New Area as its dragon head. Since 1992, theState Councilhas opened a number of duck cities, and in addition, opened all the capital cities of inland provinces and sovereign regions. In addition, 15 free trade zones, 32 severalize-level economic and technological development zones, and 53 new and ripe(p)industrial development zones tolerate been established in large and medium-sized cities. As these open areas adopt several(predicate) preferential policies, they play the dual spot s of windows in growth the conflicting-oriented miserliness, generating immaterial exchanges by means of exporting products and importing advanced echnologies and of radiators in accelerating inland economic development. Primarily geared to exporting processed goods, the quintette special economic zones are opposed-oriented areas which integrate science and industry with trade, and benefit from preferential policies and special managerial systems. In 1999, Shenzhens new-and sophisticated industry became one with best prospects, and the output value of new-and high-tech products reached 81. 98 meg yuan, making up 40. 5% of the citys total industrial output value.Since its founding in 1992, the Shanghai Pudong New Zone has do great progress in both absorbing unconnected capital and accelerating the economic development of the Yangtze River valley. The state has extended special preferential policies to the Pudong New Zone that are not yet enjoyed by the special economic zones. For instance, in addition to the preferential policies of reducing or eliminating Customs duties and income task common to the economic and technological development zones, the state besides permits the zone to allow outside business wad to open financial institutions and run tertiary industries.In addition, the state has given Shanghai permission to mend up astock exchange, expand its examination and approval authority over investments and allow outside(prenominal)-funded banks to engage inRMBbusiness. In 1999, theGDPof the Pudong New Zone came to 80 trillion yuan, and the total industrial output value, 145 billion yuan. In May 2010, the PRC designated the city ofKashgarinXinjianga SEZ. Kashgars annual growth rate was 17. 4 percent from 2009, and Kashgars designation has since increasetourismandreal estate pricesin the city.Kashgar is close to Chinas border with the independent states of causalitySoviet Central Asiaand the SEZ seeks to capitalize on international trad e links between China and those states. nominate of SEZs As part of its economic reforms and policy of opening to the world, between 1980 and 1984 China establishedspecial economic zones(SEZs) inShantou,Shenzhen, andZhuhaiinGuangdongProvince andXiameninFujianProvince and designated the entire island province ofHainana special economic zone.In 1984 China opened 14 other coastal cities to overseas investment (listed north to south)Dalian,Qinhuangdao,Tianjin,Yantai,Qingdao,Lianyungang,Nantong,S hanghai,Ningbo,Wenzhou,Fuzhou,Guangzhou,Zhanjiang, andBeihai. Then, first in 1985, the central government expanded the coastal area by establishing the adjacent open economic zones (listed north to south)Liaodong Peninsula,HebeiProvince (which surroundscapital of Red ChinaandTianjin),ShandongPeninsula,Yangtze River Delta,Xiamen-Zhangzhou-QuanzhouTriangle in southern Fujian Province,Pearl River Delta, andGuangxi.In 1990 the Chinese government decided to open thePudongNew Zone inShanghaito ove rseas investment, as swell as more cities in the Yangzi River Valley. Since 1992 theState Councilhas opened a number of border cities and all the capital cities of inland provinces and autonomous regions. In addition, 15 free-trade zones, 32 state-level economic and technological development zones, and 53 new and high-tech industrial development zones switch been established in large and medium-sized cities. As a result, a multilevel change pattern of opening and integrating coastal areas with river, border, and inland areas has been formed in China.Type City Province Special economical Zone, City Shenzhen Guangdong Zhuhai Guangdong Shantou Guangdong Xiamen Fujian Kashgar Xinjiang Special stinting Zone, Province No city Hainan Coastal maturation Areas Dalian Liaoning Qinhuangdao Hebei Tianjin Tianjin Yantai Shandong Qingdao Shandong Lianyungang Jiangsu Nantong Jiangsu Shanghai Shanghai Ningbo Zhejiang Wenzhou Zhejiang Fuzhou Fujian Guangzhou Guangdong Zhanjiang Guangdong Beihai Guangxi - Hainan Special economical ZoneHainan became a special economic zone in 1988 later on the other 4 zones had already established themselves as being successful and scalable. For current foreign investment normals for the Hainan zone please seeHainan Special Economic Zone, Foreign Investment Regulations - Economic policies of SEZs 1. Special assess incentives for foreign investments in the SEZs. 2. Greater independence on international trade activities. 3. Economic characteristics are exhibited as 4 principles 1. social organisation primarily relies on geting and utilizing foreign capital 2.Primary economic forms are Sino-foreignjoint venturesand partnerships as well as wholly foreign- leted enterprises 3. Products are primarily export-oriented 4. Economic activities are primarily driven by market forces SEZs are listed separately in the national planning (including financial planning) and rescue province-level authority on economic administration. S EZs local congress and government have legislation authority. Leong (2012) investigates the parting of special economic zones (SEZs) in liberalizing the Chinese and Indian economies and their impact on economic growth.The policy change to a more liberalized economy is identified using SEZ variables as instrumental variables. The results indicate that export and FDI growth have positive and statistically signifi jakest effects on economic growth in these countries. The presence of SEZs increases regional growth tho increasing the number of SEZs has negligible effect on growth. The key to faster economic growth appears to be a greater pace of liberalization. Chinas Special Economic Zones Xu Dixin The Chinese Government has set up four special economic zones.They are located in the cities of Shenzhen, Zhuhai and Shantou of Guangdong Province and the city of Xiamen of Fujian Province . Politically, the special economic zones are based on assurance of Chinas state sovereignty and gover ning authority is entirely in Chinas hands. Economically, they are essentially based on state capitalism. APPROXIMATELY 300 special economic zones have been established in to the highest degree 75 countries and regions in the world today (some are called free business zones, some bear on-exporting zones and some evaluate-free trading zones).Practices vary between countries. Special economic zones are set up when a country delimits a special area where, through exemption of customs duty duty, it formulates various(a) preferential conditions and brooks public facilities so as to attract foreign investors to set up factories whose finished products are mainly for export. Insofar as capitalistic social systems are cin one caserned, few problems arise for those countries which set up special economic zones because the characteristics of such zones are essentially compatible with the development of capitalism.Some people wonder why China, a socialist country, has set up special zone s which permit the manoeuvre of foreign capital. They ask Concessions were eliminated a long time ago, why are a few areas with foreign investment being processd in the manner of concessions? They to a fault want to k this instant whether the four special economic zones represent a resurgence of the causality concessions. Although crucial, such concerns are oversimplified and superficial. The situation can be best under(a)stood within scene of the past and the nations present state of development.At the end of the 19th century, foreign capital poured into China. This was a result of infringement by imperialist powers which used gunboat diplomacy to impose unequal treaties on China and infringed upon its state sovereignty. The foreign capital presently being invested in China is not based on unequal treaties, simply on the assurance of Chinas state sovereignty. The special economic zones do not represent the revival of former concessions because authority over them is entirel y in Chinas hands.Be they joint ventures with Chinese and foreign investments set up in the special zones or enterprises run exclusively by foreign or overseas Chinese capital, they moldiness ob facilitate the Chinese Governments decrees and regulations, pay business and income revenuees correspond to provisions and abide by Chinas fatigue laws. Although they represent a minor change in state economic policy, the special economic zones are not in basic conflict with Chinas socialist economic system. The economy in the special zones continuees the socialist state economy, the collective economy and the individual economy, save state capitalism has the lions share.Processing materials for foreign countries, compensatory trade, co-operative enterprises and joint ventures are all state capitalist economic activities. Strictly speaking, the enterprises run by foreign or overseas Chinese capital relieve oneself a kind of capitalist economy, but the activities of such enterprises are subject to contain and regulation by the governments of the special zones. As a result, they are special kinds of capitalist enterprises. Lenin clearly utter State capitalism is capitalism which we shall be able to restrict, the limits of which we shall be able to fix. This provides us with a supposititious explanation of the nature of the enterprises financed by the piece in the special zones. Some people worry that the capitalists pull up stakes put to work the surplus value of the labourers. It should be admitted that some exploitation does exist in the joint ventures or individually financed enterprises in the special zones. According to Chinas regulations, joint ventures or enterprises individually financed by foreign capital or overseas Chinese capital can remit their share of winnings abroad after they have paid their income tax revenue agree to relevant provisions and with the approval of the authorities concerned.The clamss remitted abroad and the profits retaine d for reinvestment in the special zones obviously represent the surplus value of the labourers. But allowing foreign or overseas Chinese capital to gain profits is, in a sense, a policy of repurchase (that is, a policy of slackly nationalizing the means of payoff of the exploiting classes at a certain price). Shortly after the founding of the Peoples Republic, the government pick out a redemption policy towards the national bourgeoisie in order to win its co-operation.at once we are employing a redemption policy to win the co-operation of foreign and overseas Chinese capital. This is necessity for the development of the economies of the special zones. One of the characteristics of special zone economies is the fact that they open the door to foreign countries. take for given Shenzhen and Zhuhai for example, their economic ties with Xianggang (Hongkong) and Aomen (Macao) are much closer than with the interior. This situation may result in the close kindred and mutual-effect be tween the role of regulating production according to market demands and the market fluctuations of Xianggang and Aomen. inwardly the special zones, it cannot be say that the regulation of production by state planning does not exist or does not function. However, if regulation of production by planning is made to counterbalance too large an area, if it see outs the main body of the economy of the special zones, then it will be dis utilityous to absorbing foreign capital and growth the economies of the special zones. Newly built harbour in the Shekou industrial area managed by a Xianggang (Hongkong) company. Special Zones FunctionsBecause the special economic zones in Guangdong and Fujian Provinces have only been established for a short catch of time, their role has not been brought into full play. The following points address the concerns most frequently expressed regarding their operation They serve as bridge over for introducing foreign capital, advanced technology and equip ment and as classrooms for training personnel capable of mastering advanced technology. some(prenominal) in the process of production and circulation, and in the joint ventures with Chinese and foreign investments in the special zones, we can l master the latest techniques and scientific methods of management.To develop the national economy and expedite Chinas enterprise production and management, it is imperative form to promote argument between regions, between trades and with-in a certain trade. In the development of the economies of the special zones -and during their opposition with Xianggang and Aomen it is possible to win in the competition by l weeing how to pack comparisons regarding the regulation of production according to market demands. improve the quality of goods, develop new products and reduce production costs. It is possible to absorb ample amounts. of foreign exchange.It is also possible to transfer part of the foreign capital, technology and equipment throu gh the special zones to other regions concerned and set up new enterprises thither. The countrys special zones can serve as experimental units in economic structural reform and as schools for learning the law of value and the regulation of production according to market demands. By developing the economies of the special zones, it is possible to employ many young people waiting for conjectures. Some people wonder why it is shootful, more than 30 historic period since the founding of the Peoples Republic, to set up special economic zones.They also wonder whether the special zones signify that China is seeking admirer from capitalist countries. Such concerns are understandable, but unwarranted. Since its establishment, New China has scored brilliant achievements in many fields of work, including economic construction. But it has also traversed a tortuous path. Compared with the worlds most advanced nations. Chinas level of production is in time sort of low. Its funds and techno logy are incompatible with the requirements of the modernization drive.Furthermore, while implementing its policy of self-reliance in economic construction, China does not exclude co-operation with capitalism. Facts will prove that through developing the economies of the special zones, we will be able to take for use of foreign and overseas Chinese capital, as well as state capitalism, to develop Chinas socialist economy. Economic construction in the special zones will possibly become a special form of supplement to the development of Chinas socialist economy. The total economies of the special zones will only constitute a very small portion of the national economy.Although the socialist economy will continue to dominate, the role of the special zones must not be overlooked. Japanese technician passing on technical know-how to a Chinese worker at a joint Sino-Japanese TV company. Policies and Measures 1. The development of the special economic zones requires emphasis on the word sp ecial. For instance, in opening the door to foreign countries, it is necessary to simplify procedures for entry and exit and make things easy for visitors. In tax rate, it is essential to give preferential treatment to imported goods in customs duties. Tax exemptions for some goods are needed.A portion of the profits gained by foreign financed enterprises is allowed to be remitted abroad. 2. The essence of developing the special economic zones lies in the import of foreign capital making foreign capital serve Chinas socialist modernization drive. Given this, the lives of the people residing in the special zones are bound to change. Capitalist political orientation is bound to increase. This will require us to devote special attention to the ideological education of people in the special zones. Of course, education and training in science and technology should not be neglected, either. 3.The gold used in the special economic zones is mainly Renminbi (peoples currency), the use of foreign currencies is limited to designated areas. Renminbi represents the currency of the Peoples Republic of China, but in view of the characteristics of special economic zones, it may prove necessary to issue contrastive currency for them. This is a very complicated problem which calls for further study. 4. It would be impossible for the special zones to develop without the support of Chinas interior regions. Only when they see to it in cooperation with the interior can the special zones gain necessary materials.Of course, such cooperation is based on mutual benefit. And it can be successful only when the special zones arrive at commodities needed by the interior. This co-operation must be carried out in a planned way. Chinas capital controls The more special economic zone The landscape of capital-account liberalisation Jul 7th 2012 QIANHAI from the print magnetic variation * Where in that holes muck ELSEWHERE in the developing world, towns grow before the infrastructure is sort of ready to support them. Things are different in Shenzhen, Chinas original Special Economic Zone (SEZ), a stones throw from Hong Kong.The subway station at Qianhai bay, on the citys west coast, is spick and span, with a full complement of signs, announcements and billboards, including one for a performance by the BBC National Orchestra of Wales, sponsored by Classy Kiss milk. But only one exit is open. And it surfaces in the sum of a wasteland of dirt, scrub and puddles. It is, surely, the best connected nowhere anywhere. In this section * Powering down * The more special economic zone * Rollercoaster * Duncan dough notes * The Oracle of Boston * Move over Reprints Related topics * Hong Kong * China This empty spot is, however, full of big ambitions.It is one corner of a 15-square-kilometre zone earmarked for experimentation by Chinas cabinet. The zone has licence to try policies that are more special than those prevailing scour in an SEZ. It aims to attract modern assist industries rather than big-box manufacturers. It will charge only 15% corporate-profit tax and levy no income taxes on the finance professionals, lawyers, accountants and creative people it hopes eventually to attract. These cosmopolitan folk will live in a waterfront city, says James Corner, whose firm won a competition cardinal years ago to design the bays future landscape.Over the next couple of years, he explains, the city will build a system of water fingers, large parks that collect, retain and purify the streams that full point from the hinterland, allowing water to enter the bay clean and clear. Water is not the only time period Qianhai aims to collect and retain. It also wants to attract some of the offshore yuan that have pooled outside mainland Chinas borders. Over 550 billion yuan ($87 billion) now sits in Hong Kong deposit accounts some other 60 billion yuan sits in Singapore, and 35 billion more resides in customer deposits in London, according to an April study b y Bourse Consult.These yuan cannot flow freely back into mainland China, however. shores can invest a limited amount in the mainlands inter-bank bond market. Companies that raise yuan outside China can seek permission to invest the notes in their operations inside the country. But the money can easily become bogged down in Chinas exchange controls, especially when the authorities are trying to tighten credit. Qianhai, however, will be permitted to broaden these channels. Its firms will be given help in raising yuan offshore. Hong Kong banks will be allowed to enter the zone more easily. The ground will also be laid for greater cross-border lending. Since the mainland is targeting the gradual achievement of full yuan convertibility, Qianhai should be a pioneer for progress, said Zhang Xiaoqiang of the National ontogeny and advance Commission, Chinas planning body. The plan poses some puzzles. If offshore yuan were to be lent freely to Qianhai firms, what would stop them lending t he money on to the rest of the country? An easing of capital controls between Hong Kong and Qianhai would come out to require a tightening of controls between Qianhai and the rest of the mainland. Otherwise the stream of yuan inflows could become a flood.The answer to the puzzle may lie in the timing. The Qianhai zone is not scheduled for completion until 2020, by when Chinas capital controls may already be far looser nationwide. It is therefore un bidly that Qianhais opening up will get too far ahead of the rest of the countrys. In finance, as well as infrastructure, China likes to lay down the tracks, platforms and ticket barriers before the throngs arrive. Definition of Special Economic Zone SEZ Designated areas in countries that possess special economic regulations that are different from other areas in the kindred country.Moreover, these regulations tend to contain measures that are conducive to foreign direct investment. Conducting business in a SEZ usually means that a com pany will receive tax incentives and the opportunity to pay disgrace tariffs. Investopedia explains Special Economic Zone SEZ While many countries have set up special economic zones, Chinahas been the most successfulinusingSEZ to attract foreign capital. In fact, China has even declared an entire province (Hainan) to be an SEZ, which is quite distinct, as most SEZs are cities. Read morehttp//www. investopedia. com/terms/s/sez. spixzz29RnLw992 Chinas Special Economic Zones Keep Importance Chinas special economic zones will still be special after the countrys entry to the World spate Organization (WTO) and can continue to brandish because they are better disposed(p) for its rules, officials and economists said on Wednesday. PRINT DISCUSSION CHINESE SEND TO wizard Special zones better prepared for WTO rulesChinas special economic zones will still be special after the countrys entry to theWorld Trade Organization(WTO) and can continue to boom because they are better prepared for its rules, officials and economists said on Wednesday.While thousands of Chinese businesses have yet to familiarize themselves with the WTO principles and practices, Chinas technological and economic areas are already ahead of the game, said Pi Qiansheng, chief official who oversees theTianjinEconomic victimisation Area (TEDA). Special Economic Zones President Jiang on Special Economic ZonesChina will develop special economic zones (SEZs) all through the process of the countrys reform, opening up and modernization drive, Chinese PresidentJiang Zeminsaid November 14 in Shenzhen, Chinas send-off SEZ.Feature Economic Zones Chief special economic zonesChinas chief special economic zones are Shenzhen, Zhuhai, Shantou, Xiamen cities andHainanProvince. But they encompass more than 100 national economic and technological development zones, 15 national bonded areas and 14 border trade and co-operation regions in the broadest sense, said Hu Ping, former director of the Special Economic Zone Office under the State Council.Years before China joined the planetary trade club, the special economic areas had begun operating in line with international practices, said Pi, director of the administrative commission of TEDA, the largest development zone in atomic number 7 China. By implementing international practices like simplified approval procedures and transparency TEDA has actually been operating according to WTO rules, he said. Keep going wellBoth Pi and Hu denied allegations that the national treatment and non-discrimination principles of the WTO will undermine the development of the special economic and technological reas, which used to receive and give preferential policies. The special zones in various sizes and forms in China have grown from their initial state when they needed policy support before they were able to rely on themselves for expansion, Hu said. I dont see much of a negative impact of WTO entry on their enlisting of experts and the overall in vestment environment. The special zones can instead maintain their special status by maximize their accumulated expertise and their advantages in geographic lieus and export-orientated industrial structures.They can gain a head nonplus in absorbing foreign funds, technology and developing modern logistic systems, Hu said. The bonded zones, export product processing quarters and high-tech parks in those special areas will open still wider, Pi said. It is my concord that the WTO rules obligate the government to shift its functions to serving businesses in a more high-octane fashion, Pi said. In TEDA, for example, the authorities have already modified or removed all the regulations and operations that go against the WTO rules. Within the framework of national treatment requirements of the WTO, TEDA will give more favourable policies to overseas investment to attract more transnationals, he said. SEZs Go the Chinese way S. Majumder SPECIAL Economic Zones (SEZs), early proposed i n the Exim polity 2000-01 by the erstwhile doctor Minister, Mr Murasoli Maran, are now a reality. With Export Processing Zones (EPZs) failing to help achieve the export targets, sights are on SEZs to deliver the goods. Eight SEZs are already operational vii EPZs were converted for this place and another nine have been ap prove and are to be located strategically.The Commerce Minister, Mr Arun Jaitley, overwhelmed by the success of Chinas SEZ experiments has reposed much faith in them not only for export growth but also to boost FDI, which has become imperative especially as interior(prenominal) investments are sagging. It is heartening that Mr Jaitley seems to be aware of the fact that the objectives of SEZs are much wider than except boosting exports. Can India replicate Chinas immensely successful SEZ influence? The incentives offered in Indian SEZs are in no less than those in China.From duty-free imports and tax holidays to independence from cumbersome Custom procedure s, the SEZs facilities match those in China. Hence, theoretically at to the lowest degree, Indias SEZs should be no less beautiful to foreign investors as the Chinese versions. But reality paints a different picture. The key to SEZ success lies not just handing out incentives. Conceptually, EPZs and SEZs are different while the former is an industrial estate, the latter is an industrial township. Boosting incentives to SEZs does not necessarily mean greater investment flows. The scope of SEZs are much wider and their linkages with the domestic economy stronger.SEZs provide supportive infrastructure such as housing, ports, roads and telecommunication and, as a result, have a wider industrial base. Compared to EPZs, SEZs give more in terms of exports, industrial growth, investments, both domestic and foreign, and employment generation. Hence, merely switching from EPZs to SEZs, without undertaking the required structural changes, does not guarantee success. The China story There ar e phoebe bird SEZs in China. Of these, four Shenzhen, Xiamen, Shantou and Zhuhai were founded 20 years back and the fifth, Hainan, was set up in 1988.There are eight distinguishing features which have contributed to the success of SEZs in China Unique location, large size, investment friendly attitudes towards non-resident Chinese, mesmeric incentive packages, liberal Custom procedures, flexible labour laws, a strong domestic market and decentralisation of power in favour of provinces and local authorities for administering the zones. Of the five SEZs, Shenzhen, Shantou and Zhuhai are in the Guangdong province, adjacent to Hong Kong the admission to China. The other SEZ, Xiamen, in the Fujian province, is nearer Taiwan. Setting up hese zones close to internationally reputed commercial destinations was basically for easier access to foreign investments, modern technology and managerial expertise. This move paid off. FDI spurted in China with Hong Kong accounting for about 60 per cent of the total inflows with foreign investors making a beeline for the SEZs. Initially, the major(ip)ity of foreign investors were non-resident Chinese from Hong Kong who were booked in trading. Later, MNCs started investing in technology-oriented sectors even as China liberalised its foreign investment policy further to attract modern technology.The Guangdong province, which has the largest number of SEZs, became the most attractive foreign investment destination. In 2001, over 25 per cent of Chinas FDI flowed into Guangdong. Size is another important factor for SEZ success in China. Each SEZ is well over 1,000 hectares, the minimum recommended area. In India, the EPZs converted into SEZs are not even a third of this. Among the converted SEZs, the one in Noida is the largest but extends only 310 hectares. The SEEPZ, the first SEZ in India, is only 93 hectares.In such small areas, the mandatory infrastructure and services required of an SEZ cannot be created nor multiple e conomic activities undertaken. Strong domestic market is another important aspect for SEZ success. In China, about 50 per cent of SEZ sales are to the domestic market. though India has a large domestic market, it has failed to project this to lure SEZ investors. The reason Policy impediments to sales in the domestic market. While in China the thrust of SEZs has been to attract foreign investments and modern technology, in India the emphasis has been on exports.The policymakers seem to think that export success in the zones is difficult unless accompanied by a liberal FDI regime. In China, the contribution of SEZs to the total exports is not substantial even after 20 years of their existence. In 2001, the share of the five SEZs in the countrys total exports was 10. 4 per cent. In contrast, the contribution of Indian SEZs in 2001-02 was a little over 4 per cent of the total exports. Decentralisation of power was also a major reason for SEZ success in China. Provincial and local author ities were made partners and stakeholders, by delegating to them powers to approve foreign investment.The SEZ authorities in China can approve foreign investment proposals up to $30 one million million. In India, only State governments are allowed to set up SEZs and the powers for foreign investment approvals are vested with the cultivation Commissioners, who are the representatives of the Central Government. The hire-and-fire policy in SEZs has been one of the biggest attractions for foreign investors in China. The new labour law consists of 107 articles, but none of these is more than one paragraph. All jobs are on labour contract basis, which stand terminated upon the expiry of the terms, which can be fixed/flexible or for a specific job.In contrast, the labour policy in India is worker, rather than investment, oriented. Merely declaring SEZs as public utilities under the Industrial Disputes Act may not suffice to quell the image of labour unrest in the country. In sum, the fun damental objectives for lay up SEZs and their role in the national economy are different in the devil countries. In such a situation, multiple doses of incentives and unravelling the procedural hassles in India may not in themselves aid SEZs. The be need is buoyancy in foreign investments, which would automatically catapult exports.For this, the primary need is to foster SEZs as investment-friendly areas. This job is not of the Commerce Ministry alone, which is empowered to tinker with the Exim Policy only. The Foreign Investment Promotion board (FIPB) and the Foreign Investment Implementation Authority (FIIA) also have an equally important role to make SEZs a success. SPECIAL ECONOMIC ZONES (SEZS) ? Special economic zones (SEZs) 1 aim to overcome barriers that hinder investment in the wider economy, including restrictive policies, poor governance, inadequate infrastructure, and problematic access to land.SEZs tend to offer export-oriented investors three main advantages relativ e to the domestic investment environment 1) they offer a special customs environment including efficient customs administration and (usually) access to imported inputs free of tariffs and duties 2) they have historically offered a range of fiscal incentives including corporate tax holidays and reductions, along with an improved administrative environment and 3) they provide infrastructure (including land, factory shells, and utilities) that are more accessible and reliable than would normally be available outside the zones. SEZs have a long-established role in international trade. Prior to the 1970s, most zones were clustered in industrialized countries but since the 1980s, there has been large growth in SEZs in developing countries, led at first by East Asia and Latin America and more recently by the development of new programs in Central and Eastern Europe, Central Asia, the Middle East, and North Africa. Recent estimates indicate that there currently are more than 3,000 SEZs est ablished in some 135 countries.Overall SEZs are estimated to account for more than US$200 billion in global exports and employ directly at least 40 million workers. ? Most zones set up in the 1970s through the 1990s were designed to attract investment in labor-intensive assembly and manufacturing from multinationals. These export processing zones (EPZs) were a cornerstone of trade and investment policy in countries shifting away from import-substitution and in favour of integrating into global markets.Among the multiple objectives normally being sought as part of these policies were job creation, growth in exports and foreign exchange earnings, facilitating economic diversification (often as a step in processes of industrialization and industrial upgrading) and access to foreign manufacturing technology and know-how. KEY ISSUES AND CHALLENGES ? In some countries, SEZs have been a powerful instrument for economic growth and structural transformation. For many of the initial zones in East Asia, zones proved played a critical role in facilitating the industrial development and upgrading the tiger economies.Similarly, the later betrothal of the model by China provided a platform for attracting FDI and not only supported the development of its export-oriented manufacturing sector, but served as a catalyst for sweeping economic reforms that were extended throughout the country. In Latin America, countries like Dominican Republic, Honduras, and El Salvador used free zones to take advantage of preferential access to US markets, and have generated large-scale manufacturing sectors in economies that were previously reliant on agricultural commodities.Finally, in Africa, SEZs are credited with change Mauritius to move from dependence on sugar to become a manufacturing hub and eventually an innovative, middle income country. ? However, there are also many examples of failures of SEZs, where investments in zone infrastructure resulted in white elephants or where zones ha ve generally resulted in industry taking advantage of tax breaks without producing any substantial employment or export earnings.Moreover, many zones that appear to have been successful in the short term, have failed to remain sustainable once labor costs have risen or when preferential 1 The term SEZ is being used here in a generic sense to cover any one of a physical body of akin(predicate) regimes including industrial free zones? , special economic zones? , maquiladoras? , export processing zones? , investment promotion zones? , foreign trade zones? and free zones? What are Special Economic Zones (SEZs)? What are the Key Issues and Challenges for SEZs?What is the World Bank crowd doing on SEZs? TRADE ISSUES BRIEF Special Economic ZonesWorld Bank stem Poverty Reduction and Economic Management Network International Trade Department trade access is no longer an advantage (e. g. following the end of the Multi-fiber Agreement). Zone failures can be attributed to a variety of ca uses. Too often, zones are plagued with the same problems unstable electricity, lack of water, heavy bureaucracy, inefficient and corrupt customs that hinder investment in the wider economy.In addition, broader competitiveness challenges, including policy instability, poor national governance, and low productivity often undermine the potential of zones. ? The traditional manufacturing-oriented processing zone (EPZ) is becoming more and more anachronistic, despite the continued importance of global production networks. This is for three main reasons. First, by limiting activities to manufacturing only, EPZs restrict opportunities for investment and growth in the services sector, one of the most important opportunities for growth in middle income and even many low income countries.Second, the traditional EPZ tends to create an enclave that is separated from the national market, undermining its potential to create effective domestic linkages. Finally, the traditional EPZ model reli es on unsustainable fiscal incentives to attract investment. As a result, there has been a gradual shift from traditional EPZs to special economic zones (SEZs), which normally cover larger land areas, offer greater flexibility for services and other non-manufacturing activities (including residential and tourism development), and acknowledge a greater mix of export and domestic-market focused activities.THE WORLD BANK GROUP AND SEZS ? The World Bank multitude has worked with client governments on export processing zones, free trade zones, and SEZs for decades. More than 40 SEZ link up projects have been undertaken in the past ten years. This work has included Bank lending for on-site and off-site infrastructure, IFC investment, and technical assistance and knowledge products from various Bank units and the Investment Climate Department on SEZ-related policies, efficacious and regulatory frameworks, institutional design, and feasibility studies.OUR WORK ON SEZS ? During 2009 and 2010, the World Banks International Trade Department (PRMTR) has been leading a major global research study on SEZs supported by a BNPP trust fund and in partnership with the SEZ team in the World Bank Groups Investment Climate Department with a primary emphasis on the envision SEZ programs in Sub-Saharan Africa. The main question addressed in this study is why have SEZs worked well as engines of growth in some countries but not in many Sub-Saharan African ones? base on knowledge developed as part of this research, PRMTR is also supporting the World Bank Groups program looking at the potential role and impact of Chinas investment in African industrial zones on the development prospects for the region. Our portfolio of SEZ knowledge products in 2010 includes I. A book summarizing the results of PRMTRs major research project Special Economic Zones in Africa assessing performance and learning from global experience (forthcoming) II.A set of case studies of SEZ programs in ten coun tries (Bangladesh, Dominican Republic, Ghana, Honduras, Kenya, Lesotho, Nigeria, Senegal, Tanzania, Vietnam) III. Results from surveys of investors in SEZs in the same ten countries as above IV. A series of notes covering topical issues in SEZs, including regional trade agreements and SEZs WTO rules and SEZ fiscal incentives gender aspects of SEZs using SEZs as catalysts for economic reform training and skills development in SEZs etc. and V. Notes related to Chinas investment in African industrial zones, including an overview of progress and challenges and a proposed framework for effective collaboration, as well as a note drawing lessons from Chinas experience in establishing a knowledge-sharing partnership for SEZs with Singapore in Chinas Suzhou Industrial Park. An investigation into the importance of special economic zones in developing economies by Raphael Monye on September 18, 2010Over the past decade, there has been a sea change in economic policies indeveloping countries w hich are attempting to become more export- orientated,they have started setting up free trade zones. These zones are called Special Economic Zones(SEZs) and feature various designed to encourage foreign investment. What is the significance of these zones? Have they really played an important role in the development of the economy of the developing countries? In this paper I first take up the background to the establishment of these zones, then I describe some of the aims and characteristics of the SEZs.Lastly, I attempt to assess the significance of the SEZs in the development of the wider economy Historically, China for instancehas adopted an inward-looking strategy to its economic development. Successive Chinese governments thought that the economy could growpurlythrough self-reliance. However, there are always limitations to what a country can do by itself, for example limitations in raw-materials, pictorial resources, technology, etc. These can hold back the growth of an econo my and certainly Chinas economic growthlagged far behind much of the rest of the world up to the 1970? . The aims of the establishment of the sezs were to earn foreign exchange, toenhanceemployment, to attract foreign investment and to accelerate the introduction of technology and managementexpertise The favourable impact of the SEZs onan economy of is fivefold They attract foreign investment, they help the growth of the export industry, they earn foreign exchange, they provide employment opportunities and lastly they help theindigenouseconomy improve its level of technology.I would now like to look at some of these points in more detail Since the beginning of the open-door policy, small-scale one-on-one businesses have been allowed to coexist with state enterprises. This has increased employment opportunities for local people and raised the level of economic activities in most developing countries. Also, many state workers sense that going into business on their own may provide gr eater income potential. Many prefer to work for joint-venture firms for higher wages.So the average income in SEZs ranks as the highest in most of these economies. In theory advanced technology and know-how will also flow into the country as a result of foreign investment. In turn, with increasing exports the force of international competition may bring greater pressure on firms to adopt more efficient work practices. It is perhaps questionable how much benefit the wider developingeconomies hasreapedfrom these investments. The technology, patents and know-how remain firmly the property of, and are controlled by the resurrect companies.It may however be the case that in the long run the work culture and practices adopted by foreign companies could have some washback effect over wider economic practices in the country In conclusion, the establishment of the SEZs has helped to increase the export trade which in turn has helped to improve thedeveloping economy. prejudiced treatiesare been made inSEZs to attract foreign investment. A large amount of foreign investment has occurred not only in the export trade, but also in infrastructure construction, doctor and tourism.Foreign companies have been encouraged to set up factories in the territories and the export industry has grown. Jobs opportunities have been provided for locals as factories need labour and the average income of the people has increased. In addition, advanced foreign technology has been brought in with the inflow of foreign investment. All these factors have contributed to the growth of thedeveloping economy. It remains to be seen if thesequantitativeadvances, in which the SEZs have played an important role, are matched bycommensurateadvances in the quality of life for the majority of people in theses countries.Special Economic Zones and tax exemption in China The key tax incentive for investing in China lies in the various options available for claiming tax concessions. The three main avenues a re tax exemption, location-based concessions, and activity-based concessions. In theory, foreign-invested companies in China are subject to 30% corporation tax plus an spare 3% local corporation tax. In practice, however, foreign-invested companies rarely have to pay the full corporate tax rate. Tax exemption and 50% tax reductionManufacturing companies operating in China for at least ten years are apt(p) a tax exemption period from the run into of entering the profit zone. In the first two years they are fully exempt from corporation tax, and in the following three years they are granted a 50% reduction in the tax pack. The fiveyear period begins in the year in which an accumulated profit, after taking into account loss carryforwards, is recorded for the first time. However, the tax exemption period is not interrupted if at any time after commencement of the period a company once more records losses.Furthermore, only taxable losses within a maximum carryforward period of five y ears are taken into account when determining the date on which an accumulated profit is recorded. Companies in the following sectors and areas are regarded as manufacturing companies and hence eligible for preferential receipts treatment Engineering and electronics industry Energy industry (excluding oil and natural gas extraction) Metal industry, chemic industry, manufacture of construction materials Light industry, textile industry, manufacture of packaging materials Medical and pharmaceutical industries Agriculture and forestry Construction industry Communications and transport industries (excluding passenger transport) Scientific and technical development, geological studies, consulting services aimed at production improvements, maintenance services for production equipment and precision instruments. The above list is not exhaustive and may be extended to other areas. In principle, exemption followed by a reduction in the tax burden is only granted if the companys acti vities in China extend over at least ten years.If operations in China are discontinued before this ten-year horizon, Chinese tax law requires that the concessions be reimbursed. Special Economic Zones and Economic and scientific Development Zones After China opened up back in 1980, government-promoted Special Economic Zones (SEZs) were set up to attract foreign investors to the country. The main purpose of these Special Economic Zones with their many investment incentives was to strengthen Chinas embattled economy with foreign capital and to modernise the country through foreign technology.Manufacturing companies are generally granted a minify tax rate of 15% in these zones, with full tax exemption in the first two years and a 50% reduction in tax during the three following years. Foreigninvested service companies and banks can also benefit from tax concessions but are subject to special regulations in these zones. The Special Economic Zones are in Shenzen, Guangdong Province Zh uhai, Guangdong Province Shantou, Guangdong Province Xiamen, Fujian Province Hainan Island, Hainan Province. Moreover, Economic and Technological Development Zones ETDZs) were set up in 14 coastal cities of the Peoples Republic of China in 1984. To date this number has been extended to more than 50. The aim of these development zones was the targeted opening of investment zones for foreign investors, as well as research and development in specific areas through the application of modern foreign technologies. In particular, foreign investors in these zones are offered a complete infrastructure that meets international standards. Economic and Technological Development Zones are to be found not only in booming metropolises such as Shanghai, Beijing nd Shenzen, but also in all-important Chinese industrial cities as well as in cities of local economic importance in the interior. The Chinese accord these development zones the highest priority, which is why in recent years Chinas boomin g major cities in particular have evolved to become the favourite locations for foreign investors, due to the many concessions and well-developed infrastructure on offer. Nevertheless, when deciding on a location it is important to take into account the cost of labour, which is significantly cheaper in the more rural development zones in the interior.Tax-wise, there is no difference between the Special Economic Zones and the other Economic and Technological Development Zones. Here, too, a reduced tax rate of 15% is generally applicable, with full tax exemption in the first two years and a 50% reduction in the following three years. contrasted the Special Economic Zones, however, the Economic and Technological Development Zones do not differentiate between manufacturing and service companies. Open coastal towns and old cities The 14 eastern ports of Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou,Fuzhou, Guangzhou, Zhanjiang and Beihai were also opened to foreign investors in 1984. Now there are more than 300 open coastal cities and old towns in China, offering similar concessions to the Special Economic Zones. If these cities also contain a Special Economic Zone or an Economic and Technological Development Zone, companies are also granted a reduced tax rate of 24% outside these zones. If necessary a tax rate of 15% can also be granted subject to the approval of the Chinese authorities, provided the companys business falls into one of the following categories Technological projects or projects requiring expertise Projects with a foreign investment volume of at least USD 300 million and a long repayment period Projects in the field of energy generation, communication or port operations State-promoted projects. High-Tech Industrial Development Zones Only in recent years has the Chinese government created newer types of development zones called High-Tech Industrial Development Zones (HTIDZ) primarily aimed at prom oting and further developing the scientific and economic potential inherent in China through foreign capital investment and the import of know-how.Currently there are more than 50 HighTech Industrial Development Zones where foreign high-tech companies are granted a reduced tax rate of 15%. Joint ventures with a foreign partner scheduled to operate for over ten years may also be granted tax exemption or a 50% reduction in tax, similar to the above-mentioned concessions, subject to approval by the Chinese authorities. Currently the best-known High-Tech Industrial Development Zone is the Zhongguancun Science and Technology Park in Beijing. Shanghai Pudong New Area By contrast, foreign companies operating in the financial, ndustrial and trade sectors have been enjoying many tax concessions in the Pudong district since 1992. Financial services providers in particular are becoming increasingly important in this context. While foreign financial institutes are prohibited from setting up of fices in all other investment zones, this zone which is also home to a stock exchange is to be established as a financial centre. The applicable tax rate in this area is 15%. Moreover, in a bid to promote the infrastructure, the Shanghai Pudong New Area offers special tax incentives to foreign companies engaged in the construction of roads, railways, orts and aerodromes as well as companies engaged in energy and transport projects. These companies are also offered a generally lower tax rate of 15%. If scheduled to operate for at least 15 years, these companies enjoy full exemption from taxes for the first five years and a 50% tax reduction for the following five years. Other regions In addition to the above-mentioned areas, a wide range of other regions grant foreign companies tax concessions with a view to attracting such businesses and promoting economic expansion in Chinas structurally weak regions.These currently include 13 open border cities, remote and underdeveloped regions as well as numerous central and western regions of China. particularly in the remote and underdeveloped areas of China, companies enjoy full tax exemption for the first two years and tax concessions for up to 15 years. In all, 19 central and western provinces offer companies in outlined industrial sectors a wide range of additional concessions which are listed in a catalogue specially drawn up for this purpose. Concessions for special sectors and activitiesNevertheless, eligibility for tax concessions is dependent not only on the choice of location but also on the companys business activities. For instance, special concessions are granted to export-oriented companies with an export ratio of more than 70% which are scheduled to operate for more than ten years. Companies which qualify as technologically advanced enterprises may request a three-year extension beyond the statutory five-year tax concession period. The requirements for eligibility in this respect are described in a spe cial catalogue of criteria.Qualification for such additional concessions is subject to an on-site examination by the authorities of the information provided in the application. Special concessions may also be requested by companies in the software industry, with the aim of turning China into a world leader in the field of software products. These primarily concern VAT and customs duties, but additional concessions may be granted in the form of a reduction in corporation tax to 15%, shorter depreciation periods or higher expense deductions provided the defined criteria are met. Furthermore, in order to make Chinas economic expansion nd infrastructure more attractive to foreign companies, longterm projects relating to port construction as well as in the Special Economic Zones of Hainan and Pudong and in the field of airport and rail construction enjoy substantial concessions up to and including full tax exemption for the first five years as well as a tax reduction of 50% for the follo wing five years if, as above, they meet the relevant criteria. Similar conditions also apply to agricultural projects. Research and Development (R&D) Centres can also enjoy tax concessions provided they meet a number of defined requirements.Specifically, these govern employee qualifications, investment volume, the quality of equipment used, exclusive use of invested capital for R&D purposes, etc. The concessions granted are related to the transfer of technology developed in-house and associated consulting and other services, the import of business equipment including the associated technologies, accessories and spare parts, and increased deductions on R&D expenditure. On the other hand, companies in heavy industry and launch construction or companies engaged in the extraction of raw materials are expressly excluded from the statutory five-year tax concession