The school has provided me with the question for my coming exam, hence I would need a model answer for the question in order to practice and memorize before I sit the exam. Please note that this is the exact question that will come up. The key readings are listed in the file. I preferred who are expert in writing the criteria of the China Business.

The module is

East Asian Business in the Global Economy.

The exam question is

What is project execution capability of business groups? How does it differ from institutional void or market imperfection theories?

And the minimum required for this exam question is

 A good knowledge of East Asian business group development in a country example (China, for example: are there large diversified groups in China? Have they grown quickly? Have the governments’ policies been successful? What kind of policies were used, and so on).

 An industry example (we look at the auto industry in detail: what has happened to the global industry and what are the implications for East Asian businesses).

 An understanding of the diversified business group. Why do such groups emerge and what are the difficulties such groups may face today?

 Definition

 Market imperfection (failure), institutional voids

– Labour, capital, factor/product

 Risk sharing, mutual insurance

 Project execution capabilities

 Pyramidal ownership structure

– Tunnelling, propping

 Key sources: Lecture 3-4, Carney, Khanna and Pelapu; Morck, Amsden and Hikino

 Try to use examples and data

– We never expect you to recall exact data like some sort of human parrot

– Some data (order of magnitude) and examples distinguishes the excellent from the good and the ‘so so’ type answer