(Note that economists might have trouble recognising these as ‘economics’. They are more along
the realm of business, or applied economics, and therefore hopefully of some directly practical use to
you. For the most part they are as easily done by non-economics students as by economics
1. “Clearly guanxi does not give Chinese firms a competitive advantage. What it does
do, is reduce the large disadvantages and high costs that Chinese firms have faced in
the Chinese economy since 1978.” Critically discuss this statement (remember, you
do not have to agree with it). In your essay make sure to specify what you think the
costs and disadvantages referred to might be.
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