Showing posts with the label hub and spoke

Developing Economic Activity through Hub and Flagship Models

Researchers Kim and Le-Yin investigated the economic develop of the province of Qingdao, Northern China, to determine how foreign direct investment clustering set up by local government helped to create an electronic industry renaissance (2008). Using the hub-and-spoke model of geography with the flagship-and-five partner’s model of strategic management offers an additional theoretical lens to spur economic activity.   The key is to encourage the economic hub to drive and influence the global network versus being perpetually dependent on it. Direct investment in China has superseded most countries of the world and has consistently beaten the U.S. since 2002. Chinese leaders have set up economic zones in urban areas that are the center of economic activity. As the investments in internal businesses rises so does the exports of the nation. Electronics is one field in which the Chinese have exceeded expectations.   There is a dependent and a developmental type structure. In