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Unlike most developed economies around the world, Hong Kong did not have a minimum wage law to protect workers' livelihoods. Attempts by the Legislative Council to motion for legislation governing minimum wage and standard working hours had ultimately been unsuccessful. A major reason was considerable opposition from the business community, which feared that deviating from a purely market-dictated wage regime would hurt Hong Kong's position as the world's freest economy and aggravate unemployment. In late 2006, the Hong Kong government launched the Wage Protection Movement, a program designed to protect the wage level of cleaning workers and security guards through voluntary and non-legislative means. It was, however, met with vicious attacks from members of the Legislative Council who advocated a minimum wage, accusing the government of not heeding the plight of low-income earners and instead allowing the issue to drag on without legislation. This case is about economics and business, introducing the topics of minimum wage legislation, Hong Kong's unique economic situation and the probable effects of a minimum wage on the world's freest economy.

The number of international tourist visits will more than double in the next dozen years. As demand for access to hot spots outpaces capacity, some companies will profit by creating destinations. And all businesses will need to adopt strategies for claiming - or avoiding - prime turf.

The diamond industry has been subject to significant change. There is increased competition from low-wage countries such as India and China, the concern about blood diamonds, and policy issues affecting the viability of trading diamonds. In this case, we study how Antwerp's dominant position in the diamond trade is being challenged and eroded. The case offers a good opportunity to introduce and discuss comparative advantage and relate it to Heckscher-Ohlin type of trade.

Toshihiko Fukui, Governor of the Bank of Japan, faced a complex situation in the fall of 2007. An economic recovery had allowed the central bank to abandon its zero interest rate policy, which had been in place for years, and raise rates to 0.5%. The Bank of Japan was eager to increase them to more 'normal' levels to exert effective monetary policy. Yet the appropriate timing and approach was a controversial issue, especially as the government did not want a rate hike that could potentially hinder economic growth and increase its already large fiscal debt burden.

In the early 20th century, public outrage at certain life insurance practices led to an investigation in New York State that threatened to curtail growth in the industry. Charles Evans Hughes guided the four-month-long Armstrong Investigation, which made startling revelations, and offered a number of controversial recommendations, several of which would forbid the most popular form of life insurance (tontine insurance), limit the growth of life insurers (which included several of the nation's largest financial institutions at the time), and prevent insurance firms from owning the stock of other companies. The New York State legislature approved all of the recommended measures, and sent the bill to the Governor for his signature. The life insurance industry objected, however, claiming that some of the new rules would reduce consumer choice and unnecessarily lower returns on company investments.

China and India are burying the hatchet after four-plus decades of hostility. A few companies from both nations have been quick to gain competitive advantages by viewing the two as symbiotic. If Western corporations fail to do the same, they will lose their competitive edge--and not just in China and India but globally. The trouble is, most companies and consultants refuse to believe that the planet's most populous nations can mend fences. Not only do the neighbors annoy each other with their foreign policies, but they're also vying to dominate Asia. Moreover, the world's fastest-growing economies are archrivals for raw materials, technologies, capital, and overseas markets. Still, China and India are learning to cooperate, for three reasons. First, these ancient civilizations may have been at odds since 1962, but for 2,000 years before that, they enjoyed close economic, cultural, and religious ties. Second, neighbors trade more than non-neighbors do, research suggests. Third, China and India have evolved in very different ways since their economies opened up, reducing the competitiveness between them and enhancing the complementarities. Some companies have already developed strategies that make use of both countries' capabilities. India's Mahindra & Mahindra developed a tractor domestically but manufactures it in China. China's Huawei has recruited 1,500 engineers in India to develop software for its telecommunications products. Even the countries' state-owned oil companies, including Sinopec and ONGC, have teamed up to hunt for oil together. Multinational companies usually find that tapping synergies across countries is difficult. At least two American corporations, GE and Microsoft, have effectively combined their China and India strategies, allowing them to stay ahead of global rivals.

Executives of multinationals partnering with Chinese firms should be alert to Mao Zedong's lingering influence on some of the country's most successful executives--and, in particular, watch for a leadership tactic that can undermine a joint venture.

In 2007, Khaldoon Khalifa Al Mubarak, the CEO of Mubadala Development Company (Mubadala), had every reason to be optimistic about the future of his home, Abu Dhabi, one of the emirates comprising the United Arab Emirates (UAE). The tiny, sandy, and dry emirate with a population of 1.5 million, only 420,000 of whom were citizens, was nestled upon nearly 10% of the world's known reserves of oil and the 4th largest proven reserve of natural gas. With the price of oil doubling every 10 years between 1970 and the 2000s, the state-owned Abu Dhabi National Oil Company (ADNOC) had enjoyed an era of increasing profitability. Another state-owned firm, Abu Dhabi Investment Authority (ADIA), had been investing extra oil revenues outside of the county for more than 30 years, and the intensely secretive organization had amassed assets worth an astonishing--and still rapidly growing--$500 billion to $900 billion. A common refrain held that Abu Dhabi nationals could live off of the returns generated by ADIA forever. Some accordingly referred to the emirate as "the richest city in the world." Yet Al Mubarak, trusted advisor to the crown prince Mohamed bin Zayed Al Nahayan, and Mubadala were charged with transforming the economy of the emirate. Many were concerned that Abu Dhabi was in danger of suffering from the so-called "resource curse," as its economy focused on fossil fuels and little else. Not only would Abu Dhabi's economy continue to be subjected to the vagaries of world energy prices, there would be little for its citizens to do. Not everyone could work for ADNOC or ADIA. Not everyone was from one of Abu Dhabi's handful of incredibly wealthy families. To be a developed country, Abu Dhabi needed change. Fortune had already played perhaps too large a role.

Describes the economic development of Indonesia from independence after World War II to 2006 and the post-Suharto period. The coverage of the post-Suharto period provides evidence of how political and economic conditions are intertwined after a change in the political regime. Profiles the business environment in 2006, including a documentation of past and present policies that shaped the current situation. A particular focus is Indonesia's stance towards attracting foreign direct investment (FDI). The country has a checkered history of oscillating between seeking and fighting foreign investors. Provides a perspective on the relative importance of FDI policies, general economic policies and business environment conditions, and the nature of competition from other locations on FDI flows.

Describes the economic development of Iceland since 1945, focusing in particular on the years since 2000, when Iceland experienced strong growth and Icelandic companies aggressively internationalized.

"China Rising: An Economic Snapshot" provides readers with an overview of China's economic transformation, relying on economic data from a variety of sources. It is organized into three sections: (1) "The Big Picture" explores macroeconomic indicators, as well as those associated with the opportunities and constraints of the business environment; (2) "Regional Variation" makes a strong case for situating any analysis of China's economy in context; and finally (3) "China and the Global Economy" shows how China's engagement with the global economy has changed overtime. These materials should be of interest to observers and participants of Chinese business, and as a means to consider the bigger picture shaping the environment in which they must operate. In addition, they may be used as a basis for class discussion and lecture, or as a complement to cases focused on companies doing business in China.

Offers a detailed overview of the structure and operation of the Chinese political system today. Key issues that are discussed include: 1) the relationship between the Communist Party of China and the state; 2) the relationship between central and local levels of government; 3) the Chinese electoral system; and 4) current pressures for change. Also includes a number of useful exhibits on Communist Party membership, political structure, and the administrative system. Can be assigned alone as an introductory piece to a course on the Chinese business environment or used along with any individual case.

Supplements the (A) case.

South Korea, as one of the Asian "tiger" economies, transformed itself into the world's 11th largest economy and major exporter by 1996, emerging from being one of the lowest income countries in the region back in the 1960s. Yet one year later in 1997, Korea was swept up in the Asian financial crisis and sought a record $58 billion bailout from the International Monetary Fund. The crisis exposed fundamental weaknesses in the Korean economy, from bad loans to reckless growth policies pursued by large conglomerates. Sweeping reforms took place and the Korean economy rebounded quickly. Yet as Korea approached the 10-year anniversary of the crisis, the nation found itself pondering whether it had implemented enough institutional and structural reforms, or whether more had to be done, such as searching for a new economic development model to ensure its future.

The case has been used in a first-year required course called Global Economies and Markets in a module on monetary policy. On October 24, 2005, President Bush nominated Ben S. Bernanke to be chairman of the board of governors of the Federal Reserve System for a term of four years along with a 14-year term on the board of governors. With the U.S. Senate confirmation widely anticipated, Bernanke was expected to take over stewardship of the U.S. monetary policy from Chairman Alan Greenspan when he retired in January 2006. While the U.S. economy was in good shape at the end of 2005, Bernanke had to prepare to deal with two challenges when charting a course for managing U.S. monetary policy. First, the sharp rise in energy prices that began in 2002 had the potential to bring back the specter of inflation and dampen desired consumer and business spending. Second, the housing boom could turn into a housing bust, throwing the mortgage industry into turmoil and weakening consumer business confidence. There was also the possibility that the housing bust could affect broader financial markets. Bernanke had to consider his options for dealing with contingencies in the not-so-distant future.

In 2003, pharmaceutical manufacturer Eli Lilly created the MDR-TB Partnership to fight MDR-TB, a form of tuberculosis. An estimated 450,000 new cases of this disease were reported each year, primarily in China, India, and Russia. The Partnership, an alliance of 14 public and private organizations, attempted to transfer technology to increase the supply of drugs that could cure MDR-TB; train health care workers to design successful strategies for diagnosis and treatment; and publicly promote proper treatment of MDR-TB through community support, patient advocacy, and workplace awareness. The Partnership emerged as an organizational success but the reality of transferring technology across the borders of both organizations and countries was a significant challenge. It was also challenging for Lilly, a large pharmaceutical company, to establish its credibility with the NGOs whose focus was treating the patients afflicted with MDR-TB in remote areas of the world. Lilly's initial investment of $70 million was insufficient and their commitment was subsequently increased to $120 million. The case allows for discussion of questions including: What public value was created and how would it be sustained by Lilly's initiative? What were the risks of transferring pharmaceutical manufacturing technology to partners in a variety of countries? What were the motivations of the partners in this case? What could the ministers of health for each country do to make the Partnership more effective? What were the benefits and risks for a company of Lilly's stature to initiate and manage a partnership of this complexity? Were there lessons from the Lilly partnership that could be applied to other global health care challenges? HKS Case Number 1871.0

This case will lead students to a discussion of the causes and effects of hyperinflation. The link with fiscal deficits is explored, and so is the link with societal changes. The particular focus is on the hyperinflation in Zimbabwe under President Robert Mugabe whose government implemented a controversial land redistribution program. The case can be taught with a class experiment-see teaching note UV2706.

Failing to reduce poverty by supporting the wrong microcredit program can tarnish a company's good name. Executives in charge of corporate social responsibility should insist on clearly defined measures of success, invest in improving microcredit's effectiveness, and support the growth of small companies in regions of poverty.