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• Case | HBS Case Collection | September 2019

  Port Competition in the Pearl River Delta

  Willy Shih

  This case examines the competition between ports and port operators in the Pearl River Delta over the last four decades. The cities surrounding the Pearl River estuary are the "workshop of the world," and the development of manufacturing in the region was heavily dependent on efficient container shipping. As China has opened up and drawn more direct trade traffic to Shenzhen and Guangzhou ports, the operators in Hong Kong have had to adapt. More change is afoot, and Hong Kong may have to reinvent itself again.

  Keywords: globalization; trade links; global business; supply chain; Logistics; Globalization; Trade; Logistics; Asia; Hong Kong; China;

  Citation:

  Shih, Willy. "Port Competition in the Pearl River Delta." Harvard Business School Case 620-038, September 2019.  View Details

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• Case | HBS Case Collection | August 2019

  Kazakhstan Railways: From the Middle of Nowhere to a Center of Trade?

  Willy Shih and Esel Çekin

  This case describes the evolution of Kazakhstan's rail connectivity strategy post-collapse of the Soviet Union and its now central role in China's Belt and Road Initiative. This meant shifting from a north-south orientation towards east-west, as well as the development of new border-crossing facilities, special economic zones, and a new middle route that crossed the Caspian Sea. Unlike many other BRI initiatives that involved loans from China, Kazakhstan funded the modernization and upgrade by itself. Now the question was how soon demand would grow to fill the waiting capacity, as other bottlenecks on the Trans-Eurasian land route connecting China with Europe were beyond the country's control.

  Keywords: geopolitics; China’s Infrastructure Exports: The ‘Belt and Road’ Initiative; Logistics; Trade; Economic Growth; Geopolitical Units; Geography; Rail Transportation; Rail Industry; Transportation Industry; Central Asia; Kazakhstan; China;

  Citation:

  Shih, Willy, and Esel Çekin. "Kazakhstan Railways: From the Middle of Nowhere to a Center of Trade?" Harvard Business School Case 620-020, August 2019.  View Details

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• Teaching Note | HBS Case Collection | October 2017 (Revised August 2019)

  Fuyao Glass America: Sourcing Decision

  Willy Shih

  This case is about globalization: a Chinese company has decided to locate a production facility close to its customers in the U.S., but a recent contract bid means it will lose money, at least initially, by supplying product from that factory. The purpose of this case is to expose students to the key drivers of sourcing location choices in a global economy and the trade-offs associated with local versus offshore sourcing. It provides an opportunity to examine labor arbitrage and factor costs, as well as the practical questions of when it makes sense to ship products great distances. This is foundational for understanding international trade and globalization today, and provides the motivation for the structuring of global supply chains. Though the numbers in the case are scaled and therefore disguised, they offer a rare opportunity for students to examine realistic labor and factor cost differences between China and the United States, and to consider the broader implications of labor arbitrage, trade, and government policy. Teaching Note for HBS No. 618-007.

  Keywords: supply chain; supply chains; labor market; labor supply; arbitrage; tradable sector; Supply Chain Management; Supply Chain; Labor; Globalization; Globalized Markets and Industries; Geographic Location; Auto Industry; United States; China;

  Citation:

  Shih, Willy. "Fuyao Glass America: Sourcing Decision." Harvard Business School Teaching Note 618-032, October 2017. (Revised August 2019.)  View Details

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