Evaluate the Positive and Negative Effects of Globalization in China

Good Essays
Evaluate the positive and negative effects of globalization in China

Globalization, which is the process of enabling financial and investment markets to be operated widely and internationally, usually refers to the increasing global relationships of culture, people, and economic activities (Simon. J, 2002). It is generally used to represent economic globalization including the global distribution of the production of goods and services, through reduction of barriers to international trade such as export fees, and import quotas. “Globalization has become one of the most talked about debates of the past 10 years and as been the subject of numerous books and videos and the cause of many global demonstrations in most of the major cities all
…show more content…
And with the process of reformation and opening and in-depth socialistic modernisation, China is becoming increasingly closer to the world’s whole economy. To be sure, globalization has three main positive effects on China. First of all, globalization contributes to attracting foreign investment for the opening to the whole world. For western countries, China’s development has provided a huge market for them. At present, China has become one of the world’s biggest investment countries via foreign trade, and basically it is a country with complete inflow of capital. Second, globalization helps with the expansion of external trade. With more than 20 years’ efforts, external trade has become an important increasing point of China’s domestic economy. Overholt (2005) commented that about a quarter of economic growth every year depends on the external trade with China. Third, globalization is helpful with absorbing rural surplus labour force (Dauderstadt M, 2005). So far, China is still a less-developed country with a large population. In the process of industrialisation, large rural population and surplus labour force are a serious problem to solve all the time. However, in recent years, the success of a great many township enterprises and the development of joint ventures have brought a chance to transfer rural labour force.

Compared with creating opportunities, globalization inevitably brings some challenges as well. Some of them are already evident, and some have
Get Access