A forum for Hawaii's
business community to discuss
current events and issues
A forum for Hawaii's
business community to discuss
current events and issues
Distance learning | Rate bottom near?
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Recently one of my colleagues, Dr. Shu-hsing Li of the National Taiwan University, and I visited several locations in China and Taiwan. Our objective was to evaluate the possibility of offering accounting distance education to the Chinese market. We had a successful trip. I am sure the University of Hawaii at Manoa College of Business Administration will be a contributor to accounting and business education in China very soon. Distance learning
Hawaii has an opportunity to educate
the future business leaders of ChinaBy Hamid Pourjalali
I believe it is important for Hawaii to become more involved with this developing market. Economic growth in China cannot be ignored as a considerable number of factories have been established during recent years and the numbers continue to grow. A significant amount of wealth has been created in the country and the number of wealthy individuals is steadily rising.
DAVID SWANN / DSWANN@STARBULLETIN.COM I am a firm believer that China will soon be considered the preeminent financial market in Asia. Both the economic growth and increase in the number of wealthy individuals in China can create opportunities for the state of Hawaii. Our state can expand its professional services to Chinese companies -- or foreign companies located in China -- and can become the leader in training future Chinese professionals. Furthermore, Hawaii can be the location of choice for Chinese searching for an exotic and not too distant vacation destination.
Hawaii's manufacturing companies, although not large in numbers, and import/export companies should also get involved in the Chinese market.
Some companies have already started to become a part of this burgeoning market. For example, all the Big Four accounting firms -- KPMG, PricewaterhouseCoopers, Deloitte & Touche, and Ernst & Young -- have established offices in China with services ranging from tax advice and investment feasibility studies, to setting up accounting systems that are in compliance with Chinese law. Among accounting firm clients, multinationals are shifting their focus from market entry strategies to business operation efficiency. This indicates that in some parts of the Chinese market, companies' needs have evolved to require more detailed information for decision making. A more competitive market requires more accurate accounting information. Given continued economic growth, the need for more professional accountants will rise proportionately (some suggest that more than 200,000 accountants are needed for the growing Chinese economy). Smaller accounting firms might benefit from being present in the Chinese market to capture the small business market.
The University of Hawaii is the natural candidate to deliver professional training in China and we cannot afford to ignore this opportunity.
The Chinese market needs attorneys, consultants, advertising agencies, bankers, and so on, in addition to accountants. For example, more than 100,000 companies are active in the Chinese consulting industry, of which 65 percent are foreign firms that generate 85 percent of consulting industry revenue, according to the U.S. State Department. Licensed and unlicensed firms compete in the market, and the regulatory environment for this service sector is not clear. The need for professional education is so high that Peking University is able to charge $30,000 for its executive MBA program. To provide a point of reference, UH Manoa's executive MBA program costs less than $25,000 and its Master's of Accounting degree costs less than half of this amount. Furthermore, in contrast to Peking University, almost all of UH Manoa's MBA and Master's of Accounting classes are taught by Ph.D.-holding faculty members. Both the quality and price of a UH education make it a valuable commodity in the Chinese market and the university should seize the opportunity to capitalize on this asset.
There are two ways we can improve our presence in this market. One option would be to provide Chinese citizens with educational services in Hawaii, as we have historically done. Another alternative would be the establishment of UH departments in locations close to developing areas, such as Shanghai. This second alternative might be the better option given the difficulties for Chinese citizens in obtaining U.S. visas and the financial rewards of having a presence in China. Furthermore, the action would be in harmony with the university's strategic plan of emphasizing Asia-Pacific studies.
One word of caution ... China is full of contradictions. China is the world's most populous nation, yet the China market is small and concentrated in a few areas along the eastern seaboard. Courtesy toward guests is a virtue in Chinese culture, and Chinese people can be extraordinarily hospitable and kind; yet everyday discourse in China is marked by confrontation, and renegotiation upon renegotiation is often the accepted business norm.
Hamid Pourjalali is a professor and director of the School of Accountancy at the University of Hawaii at Manoa College of Business Administration. Reach him at hamid@hawaii.edu.
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The looming conflict with Iraq will once again overshadow all else in the financial markets in the coming weeks. Absent the Iraqi crisis, businesses would likely be spending more vigorously, adding jobs and the economy would be gaining momentum. Unfortunately, until the yoke of war is lifted, it is almost a given that the economic recovery will be a slow, grinding process. Looking for a new house?
You might want to buy
before the Iraq war’s overBy Scott Farley
Most economists and industry experts think mortgage rates are likely to rise if a successful war in Iraq takes place.
As the threat of war grows closer to reality, it is more likely that stock prices will retreat while mortgage rates move a little lower. Once the first shots are fired, look for stocks to rally while mortgage interest rates move higher.
Mortgage interest rates have remained steady to slightly lower, mostly because of war worries. The lowest mortgage interest rates in 40 years have contributed to strong existing home sales. Until the geopolitical dust surrounding Iraq clears, it looks to me as though rates will put in a major bottom sometime in the next three weeks.
I anticipate this bottom will likely mark the official end of a move to lower interest rates that began all the way back in 1981.
In the past, war uncertainties have held mortgage rates down, whereas rates have risen if the war is short and successful.
In the case of the first Gulf War, war worries had little effect on mortgage rates. However, effects of the Gulf War on mortgage rates in the early 1990s may not be applied to the current situation because of the very distinct economic and political factors involved. We are now at the end of a two-year Federal Reserve Bank rate-cutting cycle; back then, we were at the beginning. In addition, we are a year into another jobless recovery; back then, we were in a recession. And this time rates are at 40 year lows; back then, they were over 9.5 percent.
Scott Farley is the Oahu retail manager for Charter Funding of Hawaii, a subsidiary of First Magnus Financial Corp.
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