Globalisation is the worldwide movement toward economic, financial, trade, and communications integration (Business dictionary) the word had hardly been used up until the 1970s. But with new technology and increased trade, the word globalisation is now considered a very important concept throughout the world, Particularly in China. Where over the last forty years it has gone from an important opponent of globalisation, a supporter of global disorder (WILLIAM H. OVERHOLT (2005) and an opponent of free trade. To one of its biggest supporters with it now already being the worlds third largest trading nation in the last forty years with Trade in goods over 60% of its GDP (Razeem, S. (2007). In many peoples view this spread of…show more content… However many problems have occurred during this economical explosion. Asking the question is it sustainable for the future?
Since the time of Deng Xiaoping China has become one of the biggest exporters of goods, through their huge surplus of labour (Michael Dauderstädt* and Jürgen Stetten, 2005) and cheap production costs China has become the ideal place for Multinational corporations to set up shop. But does this effect the government and state, and reduce the states power or do these MNC’s carry on being tied to their home states causing benefits and ties to continue to arise from these home states. But from what evidence has shown us, China has seen a majority of benefits from globalisation through its own political, social and economical sectors to worldwide gains. China has gained from less expensive imports and, more broadly, increased global competition driving huge welfare gains, which continue to grow. (Oberhansli, Herbert, 2011)
As well as this, China is now a massive exporter of cheap consumer goods keeping global consumer goods prices down. (Razeem.S.2007) Which in theory is a great thing for a country so bound on trade with other nations. Through this China has In consequence effectively become an ally of U.S. and Southeast Asian promotion of freer trade and investment (WILLIAM H. OVERHOLT (2005)