Deciding to Invest in Something? Bear in Mind the Opportunity Cost

By using the principle of opportunity cost and understanding exactly what value they are getting, companies can make smarter investment decisions. The old saying claims that, “A bird in the hand is worth two in the bush.” As more Chinese firms purchase assets overseas they may want to keep in mind that this is not always good advice. When deciding whether to own anything, economists recommend an idea which is a little less catchy but that could save firms a lot of money–the idea of opportunity cost. The opportunity cost of an asset is what you give up by owning it. What you give up is the highest price that anyone else would pay for it. Sometimes this is fairly straightforward. Suppose … [Read More...]


India-China Relations: Silk Road 2.0

Will India’s new Prime Minister Narendra Modi change India-China business relations? The ancient Silk Road was a treacherous route, beset by bandits, dangerous mountainous paths, and dizzying … [Read More...]


Those Before Alibaba: The IPOs of Chinese Technology Companies

A look at other significant Chinese technology companies that went public before Alibaba. If we go by market capitalization, online gaming and … [Read More...]


Smackdown! Alibaba vs Amazon vs eBay

How do the three e-commerce giants stack up? We take a look at Alibaba vs Amazon vs eBay. With Alibaba poised to join the US stock markets in … [Read More...]


Hermann Simon on Lessons for Companies from the World Champion

Germany is the football world champion. This great success has not materialized from out of thin air and is not based on one single cause. What can … [Read More...]


Business Lessons from the Football World Cup Champions

Why the Germans, winners of the 2014 football World Cup, are so good at the other game the world cares about—business. A football World Cup victory … [Read More...]


Innovation Works and its Silicon Valley Dreams

Innovation Works, the Beijing-headquartered incubator founded by former Google China chief Kai-Fu Lee, has set up a base in Silicon Valley. Chris … [Read More...]

Chinese flage in a keyboard

China Roundup: No Good News Yet for China’s Economy; and the Spectacular Alibaba IPO Roadshow

This week, new worries about China’s economy came to the fore even as Beijing reemphasized its intent to continue with reforms; the Alibaba IPO … [Read More...]


Infiniti China: Taking On the Country’s Luxury Car Market

Infiniti, a relatively new entrant in China's luxury automobile sector, is growing at a phenomenal pace. Daniel Kirchert, MD, Infiniti China, talks of … [Read More...]


Face-off! MNCs versus Chinese Companies

In China's fast-changing business environment, multinational companies are finding it increasingly hard to compete with Chinese companies. Our experts … [Read More...]


China by Numbers: The China Data You Need to Know

A look at the China data that you should care about: from net outflows of non-foreign direct investment to the marketshare of various search engines … [Read More...]


China Roundup: The Chinese economy and structural changes; Baidu Eye; and Apple’s New Problem

This week, figures from the HSBC/Markit PMI implied that the Chinese economy might finally be on the path to the much-need structural change; local … [Read More...]

Compass on renminbi

CKGSB Business Conditions Index: Time for the Chinese Economy to Buckle Up!

For the first time since November 2012, CKGSB's Business Conditions Index has dropped below 50 showing that China’s entrepreneurs are settling into … [Read More...]


The Role of Land Sales in Local Government Financing in China

Land sales contribute significantly to local government financing in China as well as provincial GDP targets. But this is both unsustainable and … [Read More...]


How CEO Zhang Ruimin Reinvented Haier – Three Times Over

Bill Fischer, author of Reinventing Giants, on how CEO Zhang Ruimin transformed Haier from a lumbering giant into the world's largest white goods … [Read More...]


The Alibaba IPO and How Chinese Companies Bypass Foreign Investment Restrictions

The upcoming Alibaba IPO has brought to the fore the contentious issue of how Chinese companies bypass foreign investment restrictions using a legal … [Read More...]


China Roundup: China’s Economy May Need a Boost and Alibaba Triples Profits Ahead of IPO

This week, we contemplate whether China's economy needs another stimulus given that the state of various economic indicators. In other news, the … [Read More...]