Globalisation - China

1971 Words8 Pages
Globalisation is the process by which each individual country and economy is converging into a larger global economy. Globalisation has many impacts both positive and negative. In recent decades globalisation has had strong impacts in China and thus is predicted to be one of the 4 largest economies by 2050(BRIC). China has benefited greatly from the onset of globalisation and their economy would not be the size it is today if it was not for globalisation, however globalisation has had some strong negative side effects on China. China has been impacted on globalisation through international convergence, economic growth and the quality of life, trade investment and TNC’s, distribution of income and wealth, environmental consequences, financial markets, international business cycle and the implementation of government policies. International convergence refers to the increasing similarity of economic conditions in different countries. China as a transition economy, transitioning from a socialist economy to a market economy, has made many changes to converge with ‘western economies’. Changes include the joining of the WTO in 2001, the establishment of the stock exchange in 1995. FDI flows have also increased rapidly in recent years. These have all benefited China greatly and have allowed continual record growth levels. Some economists believe that globalisation is actually causing a divergence in economies rather than a convergence. This can be seen within China itself. In rural areas there is obvious income disparity in contrast to the industrialised area’s of China where all the benefits of globalisation have been flowing to. As International convergence occurs, so does the convergence of economies business cycles. The International Business Cycle refers to the fluctuations in the levels of economic activity in the global economy over time. During the
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