EPA summary Sept.

*憑記憶打的.感謝某人編過, 9月EPA 唔教得好多...1課多少少啦 Unit 1 係 Structure Unit 2 係 Feature Hong Kong Economic structure and basic feature Production is process that turning input to output. e.g. producing food is that cook the raw food to be a dish. -Three types of production: Primary production(industry), Secondary production, tertiary production. Primary production is extracting directly from nature to get raw materials. Natural resources→Raw materials Primary production in Hong Kong: The work of primary production is hard and the income is unstable, so that the people are willing to sold their land to developer(farming industry) to get money and find work on tertiary production. Since Hong Kong turning from fishing village to free port, it has been declined. Secondary production is turning raw materials to semi-finished product(as input of tertiary production) or finished product. e.g. factory that makes pencil is secondary production (wood+ lead→pencil) Secondary production in Hong Kong: The production cost (salary, rent, raw material price, etc.) is higher than mainland, so that the factories owner chose to move the factory to mainland to lower the production cost, therefore the selling price can be lower and the competitive power will be higher. Therefore, the secondary production in Hong Kong is declining. Tertiary production is turning semi-finished product to finished product. They always be the provision of service e.g. Transportation is using car to earn money. Banking service. Tertiary production in Hong Kong: As Hong Kong is a international financial centre, the financial service and transportation service is very important for Hong Kong so that the tertiary production in Hong Kong is developing. Inter-relationship among the three types of production: Primary production supplies raw material for secondary production to work and tertiary production needs some raw material for their production (e.g. oil for transportation). Secondary production supplies tools or products to primary production and supplies semi-finished product to tertiary production. Tertiary production provides services. The private property rights refer to a set of rights: Right to use is that the owner can use it and refuse other to use it. e.g. You can use your phone and decide weather you borrow it to your friend. Right to transfer is that the owner can sell it. e.g. You can sell your collection to others. Right to derive income is that the owner can use it to earn money. (NOT earn money by selling it) e.g. Using the taxi to earn money. This right can let people make best use of their property to invest money. Imagine in the communist society, everybody are having the same amount of property, they won’t do their best to earn money because what they earn aren’t theirs. The government set laws to protect the people’s property and the government can’t get away people’s property even legally by the law but still needs compensation.