KRAKEN ROBOTICS

RESEARCH PLAN
 PART A

MACROECONOMIC DATA

GDP & GNP

The Gross Domestic Product (GDP) in Hong Kong was worth 346.59 billion US dollars in 2020,
according to official data from the World Bank. The GDP value of Hong Kong represents 0.31
percent of the world economy.

Figure 1: Hong Kong GDP (https://www.macrotrends.net/countries/HKG/hong-kong/gdp-gross-domestic-product)

The Gross Domestic Product (GDP) in France was worth 2630.32 billion US dollars in 2020,
according to official data from the World Bank. The GDP value of France represents 2.33
percent of the world economy.

Figure 2: France GDP (https://www.macrotrends.net/countries/FRA/france/gdp-gross-domestic-product)

The GNP of HONG KONG has raised gradually from the year 2016 ($315.26) up to the year 2019
($378.94) as the GNP of France has been decreased in  the year 2017 ($2564.09) as in
comparison to the year 2016 ($2564.09) as in the year 2020 it has shown the massive growth
where it has reached ($2846.91), in the year 2019 to 2020 the GNP of Hong Kong has dropped 
with a slight amount (363.85).  

FOREIGN EXCHANGE TRENDS (GRAPH COMPARING THE RATE OF EXCHANGE VERSUS CDN
DOLLAR)

HONG KONG

Figure 3: Hong Kong FX Trend of 5yrs ()

FRANCE
Figure 4: France FX Trend of 5yrs

AVERAGE DISPOSABLE HOUSEHOLD INCOME

The average disposable household income of HONG KONG has increased in the past 5 years in
the year 2016 it was $3,208.82 USD which has reached the mark of $3,465.52 USD in the year
2021, were the average household of France is way much more in comparison to the Hong
Kong but still it has a quite descent growth mark in the past 5 years as it was in the year 2016 it
was $22,212.715 USD, in the year 2021 it has reached to $24,633.715 USD which is a good
symbol towards the nation’s progress.  

INFRASTRUCTURE WITHIN THE COUNTRY

HONG KONG ranks 1 out of the top 10 cities index in terms of their cities infrastructure and the
joint score is 5.5, as the France enjoys one of the most sophisticated infrastructures in the
world 5 out of the index.

LEVEL OF URBANIZATION
The Urban population in the Hong Kong as per the recent stats of the year 2020 is 7,507,400 as
the France’s urban population is 54,570,334 as per the latest stats of 2020, the rate of
urbanization in the France is 80.98%.
CULTURE AND LIFESTYLE
Social Norms and Business Protocols
Hong Kong
Although businesspeople in Hong Kong do not require long-standing personal relationships to
do business, many businesses are family- owned, so personal relationships are an integral part
of the enterprise. Once you have begun to work with a Hong Kong businessperson, it is
important to maintain the relationship. When you first meet, expect a fair amount of small talk.
Your Hong Kong colleagues will want to get to know you well enough that they are comfortable
working with you. Do not be surprised if you are asked questions that might be considered
extremely personal in your home country.
France
French executives tend to focus on long-term business relationships. Business people in France
are usually straightforward, questioning, and probing. They tend to treat the business
discussion as an intellectual exercise. Therefore, logic will dominate discussions, which at times
might become intense. The French won’t normally accept anything that goes away from their
cultural norm and will avoid taking high risks. However, note that they are receptive to new
information; just make sure you present strong arguments. The decision-making pace in the
French business etiquette is rather slow. Decisions are usually not made at the first meeting,
because business people prefer to discuss things in detail with somebody at the top. Therefore,
patience will be appreciated whereas pressure will be taken negatively. Likewise, aggressive
selling techniques will not generate a positive response; focus on discussion and exchange of
information.
Material Culture and Social Organizations
Hong Kong
Classes and Castes. The gap between rich and poor is extremely large in a territory with a
capitalist economy and minimal government interference. Economic inequality is increasing,
although from 1986 to 1996 all groups had real growth in income. The only caste-like group is
the Boat People. This occupational group of fisherfolk was traditionally marginalized and ritually
humiliated. Most have now moved onto land and melted in with the rest of the population. A
disproportionate number of the members of the political and economic elite are of
Shanghainese descent.
France
Classes and Castes. France is a class-stratified society whose middle class did not develop
significantly until the 1960s. Historically, society was divided among the nobility, the
bourgeoisie, the peasants, and the urban proletariat. The French system was the basis for much
of Karl Marx's analysis of class struggles during the nineteenth century. The dominant class now
is referred to as the bourgeoisie, although this term is difficult to define. Primarily, this class is
considered to be the group that controls education and industry. A major source of debate is
the issue of social mobility for people of different social origins.

Education Levels on Average and is it Equal or Gender Based

Hong Kong
The Hong Kong education system is based on the British model, although these days the
medium of education is Chinese. The first 9 years are compulsory although most students
complete all 12. Even primary school is highly competitive. During the 6 years of this a series of
examinations are taken. Subjects include Chinese, English, mathematics, music and arts,
science, social studies, and physical education.
France
The French education system is particularly known for being complicated when it comes to
different categories and types of diplomas and tests. The French schools are known for being
strictly educational. Meaning they don’t have much extracurricular activities at least related to
the school (they don’t have much funding due to the low or no costs of tuition), no school
dances or major events, no posters like you see in other schools in Europe. It is very common in
France to repeat a school year if the students do not achieve the average grades, they need to
pass the classes. The French education system consists of three stages: primary education,
secondary education, and higher education.
Religious Influences
Hong Kong
Most Chinese residents practice Chinese folk religion which is an amalgam of Taoism,
Buddhism, and ancestor worship. Many individuals say they have no religion, but nearly all
people have religious ceremonies at funerals. There are 540,000 Christians, and Christianity is
growing among the young and university educated. There are eighty thousand Muslims, twelve
thousand Hindus, one thousand Sikhs, and one thousand Jews. There are many beliefs
regarding luck and fortune. Certain numbers are considered lucky, while others are unlucky.
Many people visit temples for fortune-telling, to consult gods about specific problems, and to
ask for protection and good luck.
France
France has been dominated by the influence of the Catholic Church, yet the constitution
declares it to be a "secular" country. Secularism does not reject religion but attempts to bar any
single religion from gaining political control. The minister of the interior is also the minister of
religions, an office established to ensure the representation of various creeds. About 80 percent
of the population is Roman Catholic. The second largest religion in terms of adherents is Islam.
There are about a million Protestants; 700,000 Jews; and 200,000 Orthodox (Russian and
Greek) Christians. There is also a significant Buddhist population. About 15 percent of the
population claims the status of a nonbeliever. Religious practice has diminished during the last
fifty years, and less than 10 percent of the population attends religious services.

Ethics and Values as a Nation

Hong Kong
Confucianism has had a significant influence in Hong Kong. This way of thinking puts emphasis
on the importance of healthy human interactions by promoting the idea that relationships
between people should be unequal but with clearly defined hierarchical roles (for example,
ruler and subject, husband and wife, father and son). It is thought that when this natural
inequality is accepted and respected, it becomes easier to maintain harmonious, stable
relations among individuals and society.
France
In France, social stratification is determined by two main factors. The first-class indicator is
one’s economic status. People’s class in this sense is often noticeable in their taste in music, art,
food and leisure activities. The dominant class is often referred to as the ‘bourgeoisie’ and is
considered to be the group that has a high amount of influence over education and businesses.
Though social mobility is difficult, one avenue of moving into the upper economic classes is
through education. Indeed, education is highly valued in France, with many higher-paying
careers requiring a high level of education. Some do not challenge the hierarchical social
structure and tend to accept differences of status within society. Meanwhile, others challenge
the status quo and openly criticize the ‘bourgeoisie’. Due to societal views of socio-economic
class distinctions, inquiring about one’s salary and finances is generally seen as highly
inappropriate.
POLITICAL AND LEGAL INFORMATION
History of Political Stability / Instability and Structure of Government
Hong Kong
Hong Kong: Political stability index (-2.5 weak; 2.5 strong), 1996 - 2020: For that indicator, we
provide data for Hong Kong from 1996 to 2020. The average value for Hong Kong during that
period was 0.87 points with a minimum of -0.22 points in 2019 and a maximum of 1.34 points
in 2005. The latest value from 2020 is 0.09 points. For comparison, the world average in 2020
based on 194 countries is -0.07 points. See the global rankings for that indicator or use the
country comparator to compare trends over time.

Figure 5: Hong Kong Political Index

(https://www.theglobaleconomy.com/Hong-Kong/wb_political_stability/ )

The Basic Law guarantees that the principles and policies regarding Hong Kong will remain
unchanged for 50 years, and designates a system of governance led by a Chief Executive and an
Executive Council, with a two-tiered system of representative government and an independent
judiciary.
France
France: Political stability index (-2.5 weak; 2.5 strong), 1996 - 2020: For that indicator, we
provide data for France from 1996 to 2020. The average value for France during that period was
0.45 points with a minimum of -0.1 points in 2016 and a maximum of 0.93 points in 2002. The
latest value from 2020 is 0.31 points. For comparison, the world average in 2020 based on 194
countries is -0.07 points. See the global rankings for that indicator or use the country
comparator to compare trends over time.
Figure 6: France Political Stability
Index.(https://www.theglobaleconomy.com/France/wb_political_stability/ )

The political system of France consists of an executive branch, a legislative branch, and a
judicial branch. Executive power is exercised by the President of the Republic and the
Government.
Hostilities to Foreigners / Immigrants and Hostility to Foreign Trade (Ex. America Only)
Hong Kong
On economic issues, Hong Kong generally pursues a free market philosophy with minimal
government intervention. The Hong Kong government (HKG) generally welcomes foreign
investment, neither offering special incentives nor imposing disincentives for foreign investors.
Hong Kong provides for no distinction in law or practice between investments by foreign-
controlled companies and those controlled by local interests. Foreign firms and individuals are
able to incorporate their operations in Hong Kong, register branches of foreign operations, and
set up representative offices without encountering discrimination or undue regulation. There is
no restriction on the ownership of such operations. Company directors are not required to be
citizens of, or resident in, Hong Kong. Reporting requirements are straightforward and are not
onerous.
France
France is very careful to ensure that the agreements would not weaken sectors and that they
are in line with agricultural policy conducted at the European level.
Therefore, France defends, alongside its partners, provisions ensuring fair competition and also
encourages the introduction of safeguard clauses or adjustment mechanisms so as not to
destabilize the most vulnerable sectors.
France has also worked with the Council to bolster its trade defense by modernizing
instruments and overhauling anti-dumping methods. As a result of these efforts, a regulation on
the screening of foreign direct investments entered into force on 10 April 2019, which aims to
increase European involvement with regard to acquisition strategies in approaches by state
actors
Corruption Index of Country
Hong Kong
The "Corruption Perceptions Index" for the public sector showed 23 points in Hong Kong for
2020. The scale has a range from 0 to 100, in which corruption raises, the higher the number is.
With this result Hong Kong ranks 13th. So, compared to other countries it is better than
average.
Compared to the previous year, in 2020 the level of corruption decreased a bit. In the long
term, it has nevertheless risen moderately in recent years.
France
The "Corruption Perceptions Index" for the public sector showed 31 points in France for 2020.
The scale has a range from 0 to 100, in which corruption raises, the higher the number is. With
this result France ranks 23rd. So, compared to other countries it is at an average.
Compared to the previous year, in 2020 the level of corruption stayed without change. In the
long term, it has nevertheless risen moderately in recent years.
Legal Protections and Intellectual Property Rights (fair court system, how and is IP protected)
Hong Kong
In Hong Kong, trademarks, patents, designs, and domain names can be registered, whereas
copyright does not require registration. It is necessary to determine the necessary scope of
protection as products and services often embody a number of IP rights.
Registration of IP rights in Hong Kong is territorial in that they do not extend to China, and vice
versa.
France
According to the Intellectual Property Code, any original work derived in any form can be
subject to copyright protection. The work that can be protected includes literary and artistic
creations, industrial designs, inventions that can be patented, audiovisual works, computer
works, software or database, paintings and sculptures, photographic work.
Provide the HS Code for your product
Hong Kong
9014.80.2000
France
9014.80.2000
PRODUCT POTENTIAL
Packaging and Labelling Concerns or regulations (languages you will need to translate into,
any labelling requirements?
Hong Kong
There are no major packaging or labelling concerns or regulations for the product.
But to advertise it well they can use Chinese language on their packaging along with English.
France
There are no major packaging or labelling concerns or regulations for the product.
But to advertise it well they can use French language on their packaging along with English.
Distribution Considerations. Are there any logistical concerns for your product such as
storage, protection, security, getting it to the end consumer?)
Hong Kong
China may envision exports of unmanned systems as a profitable way of improving its position
in the global arms market and a means of strengthening its diplomatic and security ties with
recipient countries.
France
"Sensitive" or "dual purpose" products (high technology products): Require an export permit,
an import permit and destination control.
COMPETITORS
Name of competitors and the name of the competing products they produce (direct or
indirect competitors)
Hong Kong
Deepfar – White Shark Max
Shinning Industries – Underwater Drone 4K HD Camera
Shenzhen Sinrui Technology ltd. - T1 Pro underwater drone with Omni Scan Sonar
France
Blue eye – The Blue-eye X3
ECA GROUP - AUV A18D underwater drone
 PART B
1-Global market size of robotics industry was valued at $62.75 billion in the year and experts
have the prediction it may reach up to $189.36 by the year 2027. Growth opportunities are a
lot in both countries because during this Covid period technology was the one which has played
a role in fulfilling the essential needs when everything was shut down and globally government
kept on asking for the social distancing, so during that period robots came in demand and all
the sudden demand got increased.
#In France, France has 132 robots per 10,000 population, France ranked globally 18 in robotic
employee, France is heading to become the global leader in 4.0 industry with the revenue of 6.8
billion Euros in the year 2017. Predicted, growth rate of the industry in France is 12.3% and
numerically to reach the benchmark of $75.3 billion USD which is a clear symbol that the France
is a good market to invest.
# In Hong Kong, Hong Kong based robotics company invented a humanoid robot doctors named
Grace, it was introduced in the year 2017 and launched in the market 2021. Market size of
robotic industry in the year 2019 it was $28.9 million, and it is growing with the growth rate of
9.5% and government of Hong Kong receiving the applications from various companies to invest
in the Hong Kong, for that government is also giving several subsidies.
2- In France, this market is very much reachable as the growth rate is quite good in comparison
to the other growing markets, Government of France is offering several kinds of subsidies and
even post covid government of France has even gave the fund to the industry to boost up and
stand again. Government of France, is very much serious to make the growth rate as high
possible because due to that they are even introducing the new laws to make the business in
France easy and accessible for everyone to create more business and job opportunities because
they are understanding it very much that the future is going to be robotic and more technology
influenced that’s the reason in the global index the growth rate of France in this industry is top
most. The government is making people more educated about this industry that’s why they
have even raised the funding for the institutions, so that they can upgrade themselves and
make the people more influenced about robotic culture and make them understand that how
much the future going to be dependent on technology instead of human labour. Business
opportunities in the France in this industry are really grate there are several success stories of
the companies those started as a Start Up but now they are one if the most successful company
of France such as Blue-eye and ECA Group. This is a great example to reflect globally that
France has a healthier business environment across the country.

In Hong Kong, the market is also associable for all the people of diverse background, the prove
of it is the growth rate of the robotic industry in the Hong Kong with 9.5% which is one of the
topmost globally. Though a off now the size of this industry in the global table is not that large
as in comparison to the other countries but still the Hong Kong has several success stories such
as of Human able Doctor and lot more. The political and business aspect in the Hong Kong is
quite descent because of the support of the government which is reflecting in the growth rate
of the industry, business is also very much growing in the Hong Kong because of lot of
successful companies those started as a Start Up but now they are one of the most reputed and
well-known company such as Deepfar, Shinning Industries , Shenzhun Sinrui Technology ltd etc.
The people in the Hong Kong are preferring robotic culture nowadays in comparison to the in
human service after the pandemic period because of that the government of Hong Kong has
made the several changes in their rules to make the business access easy on their country.

Our, final choice is France because of the more growth opportunities and because of the Hong
Kong has the more influence of China in it’s country due to which the global image of China has
been hampered a lot during covid period as such in the France these all factors doesn’t exist.
 REFRENCES

Macrotrends. (n.d.,) World Bank.

https://www.macrotrends.net/countries/HKG/hong-kong/gdp-gross-domestic-product
Macrotrends. (n.d.,) World Bank.
https://www.macrotrends.net/countries/FRA/france/gdp-gross-domestic-product
XE.com. (n.d.)
https://www.macrotrends.net/countries/FRA/france/gdp-gross-domestic-product
XE.com. (n.d.)
https://www.xe.com/currencycharts/?from=CAD&to=EUR&view=5Y
CIEC. Hong Kong GDP. (n.d.)
https://www.ceicdata.com/en/hong-kong/gross-domestic-product-by-expenditure-
annual/hk-gdp-gross-national-disposable-income
CIEC. France GDP. (n.d.)
https://www.ceicdata.com/en/indicator/france/annual-household-income-per-capita
Commisceo Global. Hong Kong - Culture, Etiquette and Business Practices
https://www.commisceo-global.com/resources/country-guides/hong-kong-guide
Countries and their Cultures Forum. Hong Kong.
https://www.everyculture.com/Ge-It/Hong-Kong.html
Countries and their Cultures Forum. France.
https://www.everyculture.com/Cr-Ga/France.html