Why was the international trade model a logical option for Hong Kong and singapore?

Explanation:

Singapore and Hong Kong have always had a rivalry when it comes to business, influence in the region, attracting investors and hosting global giants in finance, media, law, and other professional services. While this can also extend to even sillier extremes – who has the better food? – or to the political and cultural – who enjoys the most freedom or has the best entertainment and lifestyle choices? However, the debate aside, Hong Kong and Singapore enjoy a symbiotic relationship with each other.

This is highlighted by Wenda Ma, senior economist at the Hong Kong Trade Development Council, who pointed out in a November 2015 report that Hong Kong and Singapore have much in common. “Both are small, open economies with no natural resources, but have developed into international trade and services centres in Asia. From a regional development perspective, the two economies are nodes connecting the hinterlands of mainland China and Asean countries, which are set to strengthen economic ties and integration,” Ma wrote.

A helicopter from Singapore’s air force takes part in the National Day celebrations. Photo: AFP

A helicopter from Singapore’s air force takes part in the National Day celebrations. Photo: AFP

At the end of 2015, Singapore’s investment in Hong Kong was US$38.4 billion and, as of June 2016, companies from the Lion City had established 40 regional headquarters, 102 regional offices and 240 local offices in Hong Kong. Singapore could be considered critical for Hong Kong, being the city’s eighth largest export market and the biggest trading partner in Asean, although Vietnam has become Hong Kong’s largest export market within that organisation.