(10 marks) Geography

I think it is IMPOSSIBLE for Hong Kong to be another industrial miracle.

Firstly , Hong Kong has a high land rent ,

which directly increases the production costs.

Secondly , Hong Kong is lack of fuel and raw materials ,

which are important to develop industry (especiallt heavy industries).

Thirdly , Hong Kong 's labour productivity is low .

Also ,

there is lack of investments inR & D .( research and development)

CAN:

Reasons:
1) Close relationship with China - Hong Kong responsible for R&D/marketing/financial Planning,etc. China responsible for manufacturing
2) Human Capital - highly educated
3) International finacial centre
4) Simple tax system

Cannot:

Reasons:
1) Relatively expensive labour
2) Shartage of industrial land
3) Lack of government support
4) Strong international competition