- because: transportation a challenge: less infrastructure
- because: hard to adapt to different business environment
- because: different legal systems
- because: different working philosophies
- because: HK workers more adaptable than mainlanders
- because: difference of culture between Hong Kong and China
- because: Chinese focus on Guan Xi, westerners on business
- because: China's market is less free
- but: China's market is under ongoing liberalization
- because: CEPA is convenient for PRC and HK
- but: advantages fading due to WTO forcing openness
- because: difficult to assess PRC consumer credit-worthiness
- because: widening income gap could cause social upheaval
- but: USAs income gap similar to China's but no upheaval
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- but: much cheaper labor and resources
- but: They lack management skills
- because: It costs a lot to provide them with training
It is difficult for Hong Kong entrepreneurs to set up businesses in mainland China - but: no communication problem
- because: we speak the same language
- but: Cantonese and Mandarin different
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- because: difficult to research and identify market sectors
- but: many mainland companies set up by HK entrepreneurs
- because: Hong Kong businesses invest a lot in the mainland
- because: 80,000 Hong Kong companies employ 11 m. people
- but: quantity is not equal to quality.
- but: quality irrelevant: discussion about setting up
- because: markets subject to govt econ policy changes
- because: local players with lower cost operations & prices
- but: problem of China's policy on intellectual property
- because: pirated products cause loss of profit
- because: The diversity of the Chinese market is significant,...
- but: HK entrepreneurs understand market segmentation
- but: HK-run businesses can sell to niche markets
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