Economics Hsc China Essay

The Chinese president is looking to boost consumption and import as part of efforts to restructure its economy (Hu Looks to Boost China's Consumption, Imports, (April 15, 2011). The Chinese energy consumption has been predicted to soar to 68% higher than that of the USA by the year 2035(China, India to lead energy consumption, (September 20, 2011). Investment spending is also set to increase from $12,633 billion (2011, 48% of GDP) to $29,628 billion by 2030 (38% of GDP) (CHINA - Gross fixed investment (% of GDP) from 2011 to 2030, EIU Country Data). In 2006 China had a rating of 5.00 and was seen ranked at 101st in terms of the degree of economic freedom as measured

6. If you have a private-ownership right to something, what does this mean? Does private ownership give you the right to do anything you want with the things that you own? Explain. How does private ownership influence the incentive of individuals to (a) take care of things, (b) conserve resources for the future, and (c) develop and modify things in ways that are beneficial to others? Explain.

Globalisation has considerably changed the face of how economies and countries operate in today’s world, enabling the openness of transactions with one another. It is due to the humanistic desires for the pursuit of prosperity that the concept of globalization paves a pathway to which economies can achieve this – facilitating the capacity to strengthen and condition existing relations between these countries.

* Marginal Cost – The opportunity cost that arises from an increase in that activity

Globalisation is the progression towards a growing assimilation between different countries in order to gain a single world market. It strongly encourages overseas trade, the removal or the reduction of trade barriers to increase economic growth and development. Globalisation ultimately presents to everyone a world which is increasingly liberalized and market-orientated. Associated with globalisation there is increased and intensified competition and greater interdependence among countries. In numerous ways China has taken this opportunity and used it to its full advantage which has enhanced economic growth and significantly improved

The process of globalisation in China has been a rapid one. China’s exponential growth since the fall of Mao has lead to increased international influence – with China now operating on an international scale.

China as an economy has change rapidly over the past few decades. It has gone from a war struck country prior 1978, in which the economy was greatly effect, to one of the largest

China is a growing country; its population is about 1.4 billion, and as of 2014, the Chinese economy is the world’s second largest (in terms of nominal GDP,) totaling approximately US$10.380 trillion, with a growth rate of 7.4%, and the GDP per capita is US$3,619.4. From last century to this century, China has had significant improvements in their economic development. China had been in three major crises during the last century: the 20th century. The Fall of Qing Dynasty, World War II, and Civil War in China, all of them struck China in a destructive way. From the end of the 20th century, China was in a fast-developing mode.

Globalization is a process that refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Over the last 50 years, globalization has had a tremendous impact on the Chinese economy. The impacts brought forth by globalization can be both positive and negative and effect both economic performance, economic growth and the development of China’s economy. Globalization is the main factor responsible for China’s significant growth that has taken place over the last two decades. However, globalization itself is not entirely responsible. The Chinese economy has also implemented strategies which have been very effective in promoting economic growth and development. These strategies include the implantation of“Open door policy”, “Reformation” of China’s agricultural system and joining the World Trade Organisation.

From 1980 to 2010, China relied on a uniquely successful investment- and export-led development model for its 30-year miracle of double digit GDP growth. However, to make rapid industrialization possible, China directed most of its investments to the cities, financed massive urban infrastructure and development projects. In result of

China applies significant restrictions on foreign investment. But still maintains one of the world’s best economies. There are three main principle industries in China; Agriculture, Industry, and Services. Each contributing 9.7%, 43.9%, and 46.4% respectively to the overall GDP of China. The state government of China however has a huge influence on industry, out of the 61 Chinese enterprises on the Fortune 500 list, only four of these enterprises

This essay aims to show the successful policies of Chinese government has used to increase the rate of economic growth from 1998 to 2006 and evaluate them. Economic growth rate is the percentage increase in output over a twelve-month period (Sloman, 2010: 562). From 2000 to 2007, China 's average growth rate was 9.2% in per year, and nearly 35% of world GDP growth (In term of PPP). As a big country, its population making up over one-fifth of the world 's population, but this rapid of growth is unprecedented (Fenby, 2008). Madison (1997) summarized the development history of the world economy of two hundred years, and considered that, in the long term, the big four factors determine the sustained high growth of output per person: technology、the accumulation of material capital、and accumulation of human capital.

Globalization is an important term that is partially responsible for an economic revolution that took place around the world. Theodore Levitt, a former Harvard Business Review editor, coined the term “globalization” and used it for the first time in one of his articles in 1983 (Los Angeles Times magazine, 2006). According to the Business Dictionary, globalization can be defined as “the worldwide movement toward economic, financial, trade, and communications integration” (businessdictonary.com). China can be considered as an excellent example to demonstrate globalization. When Deng Xiaoping was elected as the Communist Party leader, he brought about economic reforms that opened the Chinese economy to the rest of the world and later introduced itself into the World Trade Organization (WTO) in 2001 (bbc.co.uk, 2006). Hence, expanding the growth rate of the Chinese economy, which has been constantly rising over the past decade. As of 2016, China is the second largest economy in the world with a GDP of $12.9 billion USD, and will continue to grow following the trail the United States (money.cnn.com, 2016). The emergence of China and its success as a powerful economy in the world can be partially credited to globalization. The following paper focuses on both the positive and negative ways in which China has been affected by globalization and its outcome that has placed China to where it is today.

Paper prepared for an international conference on “China’s Economy in the 21st Century”, to be held on June 24-25, 2002, Hong Kong. We would like to thank Alan Siu and Richard Wong for their encouragement.

Globalisation refers to the reduction of manmade barriers to allow for economic integration in trade, investment and financial flows. China, due to globalization has seen increases in economic growth leading it to become the 2nd largest economy in the world based on nominal GDP. Economic growth refers to increases in the productive capacity in an economy over a period of time. It is measured as the percentage increase of real GDP for the current year over the GDP of the previous year. Economic development is a measurement of welfare in a nation indicated by health, education and standard of living. Globalisation has lead china to experience both positive and negative effects in terms of growth which has lead to the implementation of many successful policies to promote economic development but all this has come at the cost of various negative consequences.