How Shanghai Won in the Competition with Hong Kong, Busan and Singapore as a Global Logistics Centre in East Asia

Polemic Paper from the year 2018 in the subject Business economics - Supply, Production, Logistics, grade: 1, , language: English, abstract: Shanghai appears to be facing enormous challenges in developing into a global logistics center in East Asia owing to the steep competition from Singapore, Hong Kong and Busan. These cities share geographical features primarily with regard access, and they are known to host the top five international seaports in the Asian continent. Their strategic location has been found to be one of the most significant features which have enabled the Asia-Pacific Region, primarily East Asia to experience extensive expansion in global logistics and business leaders in the Asian continent. For instance, Singapore’s logistic capabilities have enabled it to become a global hub for foreign multinational corporations. It has also experienced logistic development in transportation, financial, commercial and telecommunication sectors. On the other hand, Hong Kong has been experiencing extensive economic development owing to the impacts of globalization and urbanization which seem to have enhanced its logistic capabilities. It is believed that Busan, Korea’s second largest city does not pose great competition to Shanghai as it is the case with Singapore and Hong Kong. However, its rapid expansion in the recent years implies the advancement of its logistic capabilities, so it may become a significant competitor as a global logistics center in the region. Economic models indicate that Shanghai possess a competitive advantage in global logistics, owing to its expansion in the hospitality industry which seem to have attracted foreign multinational corporations. It is predicted that Shanghai will win in competition with Busan, Hong Kong and Singapore as a global logistics center if its logistic strategies are implemented. It is also favored by the current wave of globalization because it has seemingly become one of the most preferred destinations by foreign investors.Therefore, this research paper will discuss several ways on how Shanghai can win in competition with Singapore, Hong Kong and Busan as a global logistics center in the next decade.