Social media giant Twitter announced that it will open an office in Hk instead of  China next year. Because of the Chinese policy that came out from government in recent years, the social media like Twitter and Facebook were banned to prevent the protest against government. However, for business companies, the potential for asian market is huge, especially in social media market, therefore, Twitter wanted to expand into asian regions like greater China.

According to the SWAT strategy, Twitter sets the office in HK will help them achieve their goals as the opportunities for the external analysis. For example, they acquire to know China social media market deeply through their office in HK in order to better design their network or even specialize for Chinese customers. what’s more, as half of all internet,mobile and social media users worldwide in Asian regions, Twitter see more opportunities through their expansion to HK. Meanwhile, because of the policy that Chinese government enact for social media, Twitter may still confront a tough time to achieve its goals. Government policy become the most tough barrier to get into the mainland, as the external threat dose exist in Asian regions, Twitter company still need to seek to an approach to get into mainland market in China. However, as a large international company all over the world, Twitter already has its branch company in some asian counties like Japan, Singapore, Tokyo, Seoul and Sydney, which means their strengths of internal company is huge and well-organized. This can help the company take their advantage of operation to make strategies to get into new market. Similar as india which is the biggest market of Twitter currently, China still have many local social media with the features that suitable for Chinese to use, so Twitter has to take the competition from local brand into consideration as well.

Sources:

http://www.bbc.com/news/business-29947422

Image: http://news.bbcimg.co.uk/media/images/78820000/jpg/_78820933_twitter.jpg

According to the blog, land value tax is an efficient way to regulate the real estate market. Land value tax is a levy on unimproved value of land only, which means the owner of the original land will be taxed on the extra improved or constructed value of land. The economically rent of land will also be taxed. From the perspective of blog’s author, the land value taxation is so great, because the competition within the land market is drastically. According to the law of demand, as the price of products increase, the quantity demand will drop; therefore, the land value taxation can help market keep up running in a benign circulation. When thinking about any tax, economists focus on how it affects decision-making. With the land value tax, all things will not be better off.

Though the LVTs are wonderful, it is rare. One explanation is that it is too difficult to value land separately from what sits on it. There’s not much market and have many barriers. For example, the policy issues. The landowners who face a new tax bill and reduce of sale price would be cost more after tax, which means the demand will fall under this policy. Therefore, the problem is hard to overcome by this situation, because the economists will continue advocating land value tax, and the politicians will continue ignore this issue. However, anyway, the benefit of land value taxation will spread equally to today’s owners and their generations, which means the taxation is good for the economic growth overall.

Sources:

http://www.economist.com/blogs/economist-explains/2014/11/economist-explains-0

http://en.wikipedia.org/wiki/Land_value_tax

Image:

http://cdn.static-economist.com/sites/default/files/imagecache/full-width/images/2014/10/blogs/economist-explains/20141101_blp508.jpg

Since the foundation of Canada, government enact laws trying to assimilate the first nations in Canada, who is Indian. However, as more and more Indian children was taught by English and forgot their first original language, the popularity of first nation decrease dramatically in recent year.

After the formal apology that made by governor in 2008, the provision of Indian act is enacted to protect their cultural, language, their lifestyle and behaviours. The government has obligations to protect their aboriginal land, interests. However, some aboriginal people denounced it as an ambivalent protection, but simultaneously don’t want give up theses kind of protection, for instance, in tax exemption.

This Indian Act does bring some barriers to local even entire Canada’s business. Through this act, First nations can manage their own business affair, which bring strong competitive to other brands. They have advantage in tax as well; most of their businesses are protected by tax exemption in reserves, which induce an impact on the price of market. Within this business mode in the market, other Canadian companies may experience a tough period to earn money from their trade-off with first nations.

sources:

http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988

Image:

http://i.cbc.ca/1.1593333.1394227073!/httpImage/image.jpg_gen/derivatives/16x9_620/li-residential-schools-620.jpg