Globalisation and security in the Taiwan Straits

Only recently the Sino-Taiwanese issue has again been in the headlines of the international media. On Saturday, 3 August 2002, Taiwan's President Chen Shui-bian insisted in a passionate speech that there is 'one country on each side' of the Taiwan Strait. He went even further by calling for new legislation that would allow a referendum to be held on changing the island's current international status, saying that this would be a 'basic human right'. Chen's remarks resulted in a furious response from the mainland. Although the conflict between Beijing and Taipei can be interpreted as a legacy of the Chinese Civil War, the tensions intensified during the 1990s. The following article suggests that the linkages and dynamics between the globalization process and international security are increasingly important for a better understanding of the development of relations at the international level in general and in the China-Taiwan conflict in particular.

Optical communications applications of ultra-long Raman fiber lasers

Recent work on ultra-long Raman fiber lasers has shown that it is possible to create quasi-lossless transmission conditions in fiber spans long enough to be considered for high speed optical communications. This paper reviews how quasi-lossless transmission conditions are reached and presents experimental results of 40Gb/s transmission in a quasi lossless system. The performance is compared with a conventional EDFA based system.

An econometric analysis of international tourism demand in Hong Kong : a cointegration and error correction approach

The purpose of this study is to develop econometric models to better understand the economic factors affecting inbound tourist flows from each of six origin countries that contribute to Hong Kong’s international tourism demand. To this end, we test alternative cointegration and error correction approaches to examine the economic determinants of tourist flows to Hong Kong, and to produce accurate econometric forecasts of inbound tourism demand. Our empirical findings show that permanent income is the most significant determinant of tourism demand in all models. The variables of own price, weighted substitute prices, trade volume, the share price index (as an indicator of changes in wealth in origin countries), and a dummy variable representing the Beijing incident (1989) are also found to be important determinants for some origin countries. The average long-run income and own price elasticity was measured at 2.66 and – 1.02, respectively. It was hypothesised that permanent income is a better explanatory variable of long-haul tourism demand than current income. A novel approach (grid search process) has been used to empirically derive the weights to be attached to the lagged income variable for estimating permanent income. The results indicate that permanent income, estimated with empirically determined relatively small weighting factors, was capable of producing better results than the current income variable in explaining long-haul tourism demand. This finding suggests that the use of current income in previous empirical tourism demand studies may have produced inaccurate results. The share price index, as a measure of wealth, was also found to be significant in two models. Studies of tourism demand rarely include wealth as an explanatory forecasting long-haul tourism demand. However, finding a satisfactory proxy for wealth common to different countries is problematic. This study indicates with the ECM (Error Correction Models) based on the Engle-Granger (1987) approach produce more accurate forecasts than ECM based on Pesaran and Shin (1998) and Johansen (1988, 1991, 1995) approaches for all of the long-haul markets and Japan. Overall, ECM produce better forecasts than the OLS, ARIMA and NAÏVE models, indicating the superiority of the application of a cointegration approach for tourism demand forecasting. The results show that permanent income is the most important explanatory variable for tourism demand from all countries but there are substantial variations between countries with the long-run elasticity ranging between 1.1 for the U.S. and 5.3 for U.K. Price is the next most important variable with the long-run elasticities ranging between -0.8 for Japan and -1.3 for Germany and short-run elasticities ranging between – 0.14 for Germany and -0.7 for Taiwan. The fastest growing market is Mainland China. The findings have implications for policies and strategies on investment, marketing promotion and pricing.

International technology transfer and development of capabilities in Chinese state-owned manufacturing enterprises:lessons from 20 years of case research

Technological capabilities in Chinese manufacturing have been transformed in the last three decades. However, the extent to which domestic market oriented state owned enterprises (SOEs) have developed their capabilities is not clear. Six SOEs in the automotive, steel and machine tools sectors in Beijing and Tianjin have been studied since the mid-1990s to assess the capability levels attained and the role of external sources and internal efforts in developing them. Aided by government policies, acquisition of technology and their own efforts, the case study companies appear to be broadly following the East Asian late industrialisation model. All six enterprises demonstrate competences in operating established technology, managing investment and making product and process improvements. The evidence suggests that companies without foreign joint venture (JV) collaborations have made more progress in this respect.

The influence of face and group orientation on the perception of luxury goods:a four market study of East Asian consumers

Purpose: The paper aims to further extend our understanding by assessing the extent to which two prominent cultural values in East Asia i.e. face saving and group orientation drive consumers' perceptions of luxury goods across four East Asian markets. Design/methodology/approach: A multi-methods research approach was adopted consisting of: an expert panel of close to 70 participants, group discussions with five extended East Asian families, personal interviews with eight East Asian scholars, a pilot test with over 50 East Asian graduate students and a multi-market survey of 443 consumer respondents in Beijing, Tokyo, Singapore and Hanoi. Findings: The authors extend previous conceptual studies by empirically investigating the impact of these two cultural values on the perception of luxury among East Asian societies. Specifically the study reveals that across all four markets face saving has the strongest influence on the conspicuous and hedonistic dimensions of luxury, group orientation meanwhile is the strongest predictor of the quality, extended self and exclusivity dimensions of luxury. Collectively these two cultural values significantly influence East Asian perceptions of luxury. Overall, the findings reiterate the importance of understanding different cultural values and their influence across different East Asian societies. Practical implications: The findings have important implications for managers of western luxury branded goods that are seeking to penetrate East Asian markets or seek to serve East Asian consumers. Specifically, to assist with developing suitable brand positioning, products, services, communications and pricing strategies. Originality/value: This study contributes to our understanding of the subject by exploring the impact of face saving and group orientation on the perception of luxury goods across four East Asian countries. Several directions for future research are suggested. © Emerald Group Publishing Limited.

On an Extremal Problem concerning Bernstein Operators

* The second author is supported by the Alexander-von-Humboldt Foundation. He is on leave from: Institute of Mathematics, Academia Sinica, Beijing 100080, People’s Republic of China.

Effectiveness of Olympic sponsorship by foreign and domestic companies: the influential role of consumer ethnocentrism

This study investigates Chinese consumers' responses to foreign and domestic sponsors engaged in the Beijing Olympic Games. It identifies direct causal relationships between consumer ethnocentrism, attitudes towards the sponsor and product judgement. Findings reveal that event involvement mediates the positive relationship between consumer ethnocentrism and attitudes towards the domestic sponsor. Attitudes towards foreign sponsors are found to be a significant mediator in the relationship between consumer ethnocentrism and judgements of the sponsors' products. Theoretical and managerial implications are discussed.

Application of intervention analysis to evaluate the impacts of special events on freeways

In China in particular, large, planned special events (e.g., the Olympic Games, etc.) are viewed as great opportunities for economic development. Large numbers of visitors from other countries and provinces may be expected to attend such events, bringing in significant tourism dollars. However, as a direct result of such events, the transportation system is likely to face great challenges as travel demand increases beyond its original design capacity. Special events in central business districts (CBD) in particular will further exacerbate traffic congestion on surrounding freeway segments near event locations. To manage the transportation system, it is necessary to plan and prepare for such special events, which requires prediction of traffic conditions during the events. This dissertation presents a set of novel prototype models to forecast traffic volumes along freeway segments during special events. Almost all research to date has focused solely on traffic management techniques under special event conditions. These studies, at most, provided a qualitative analysis and there was a lack of an easy-to-implement method for quantitative analyses. This dissertation presents a systematic approach, based separately on univariate time series model with intervention analysis and multivariate time series model with intervention analysis for forecasting traffic volumes on freeway segments near an event location. A case study was carried out, which involved analyzing and modelling the historical time series data collected from loop-detector traffic monitoring stations on the Second and Third Ring Roads near Beijing Workers Stadium. The proposed time series models, with expected intervention, are found to provide reasonably accurate forecasts of traffic pattern changes efficiently. They may be used to support transportation planning and management for special events.

Soft power as the new norm: How the Chinese-Russian strategic partnership (soft) balances American hegemony in an era of unipolarity

This study explores how great powers not allied with the United States formulate their grand strategies in a unipolar international system. Specifically, it analyzes the strategies China and Russia have developed to deal with U.S. hegemony by examining how Moscow and Beijing have responded to American intervention in Central Asia. The study argues that China and Russia have adopted a soft balancing strategy of to indirectly balance the United States at the regional level. This strategy uses normative capabilities such as soft power, alternative institutions and regionalization to offset the overwhelming material hardware of the hegemon. The theoretical and methodological approach of this dissertation is neoclassical realism. Chinese and Russian balancing efforts against the United States are based on their domestic dynamics as well as systemic constraints. Neoclassical realism provides a bridge between the internal characteristics of states and the environment which those states are situated. Because China and Russia do not have the hardware (military or economic power) to directly challenge the United States, they must resort to their software (soft power and norms) to indirectly counter American preferences and set the agenda to obtain their own interests. Neoclassical realism maintains that soft power is an extension of hard power and a reflection of the internal makeup of states. The dissertation uses the heuristic case study method to demonstrate the efficacy of soft balancing. Such case studies help to facilitate theory construction and are not necessarily the demonstrable final say on how states behave under given contexts. Nevertheless, it finds that China and Russia have increased their soft power to counterbalance the United States in certain regions of the world, Central Asia in particular. The conclusion explains how soft balancing can be integrated into the overall balance-of-power framework to explain Chinese and Russian responses to U.S. hegemony. It also suggests that an analysis of norms and soft power should be integrated into the study of grand strategy, including both foreign policy and military doctrine.