These reforms led to China’s integration into the global economy, which promoted growth and development. Since the integration of China to the global economy, its annual growth of real GDP has averaged 10% between 2004 and 2008, which is very high. However, due to the Global Financial Crisis (GFC), this rate of growth in real GDP slowed down to 8.7% in 2009. China’s government, suspecting this, implemented a US$586b fiscal stimulus package in November 2008 to maintain a growth of 8% between 2009 and 2012. This stimulus package did greatly for China’s growth as its real GDP was at 10% in 2010 and 9.2% in 2011.
Moreover, it prevented the currency in being a commodity, and stabilized the value of medium of exchange. The standardization of currency simplified trade procedures, reduced confusions, hence encouraged foreign investment in China. The building of infrastructure also improved China’s economy in economic terms. Railways and roads were expanded in order to improve accessibility of China. From 1931 to 1937, railways with an average of 700 miles were added in China each year.
China is the largest country in terms of population size and has recently become the second largest economy in PPP US$ terms. China has made rapid progress in economic and human development by reforming its economy. Between 1978 and 1997, the Chinese government made vast changes allowing its economy to become more efficient and opening up its doors to the global market to reap the benefits globalisation. China’s recent high growth performance has led to rapid economic development. China sustained an average annual rate of growth in real GDP of 10.1% between 2003 and 2009.
Globalization is beneficial to developing countries because it raises income, creates jobs and creates an economy where it is possible for people to afford nice things. Throughout Meredith and Hoppough’s article readers are presented with strong examples of logos. Meredith and Hoppough give hard facts and evidence that support globalization and make readers see the good in globalization. The author’s choose to show the positive effects of globalization through facts and statistics. For example Meredith and Hoppough state “Per-person income in china has climbed from $16 a year in 1978 to $2,000 now” (Meredith and Hoppough 393).
Inflation fell as they started preparing for the euro and, since its introduction, has remained around 2% in the euro area. Price stability means that ordinary citizens’ purchasing power and the value of their savings are better protected, which helps make the future more certain. However joining the
Although the party is a lot more relaxed then other communist such as the Stalin government in the Soviet Union, it still owns industries such as the energy sector and various important sectors which contribute to the countries economy. The figures don’t lie, they clearly state that China is growing at a very rapid as a global super power. The main reason why the countries political system has lead to economic growth is due to the ability to exploit the workforce of China. China has a population of around 1.344 billion which means that millions of jobs are required to keep the country moving. Around 937.27 million people work in China which is a huge amount and manly due to the countries democracy system.
In order to combat this deficit spending, taxes are increased to generate more revenue to pay off this spending. In response, consumers will spend less money and save more, thus causing a decrease in consumption and less money in the economy. Soon, there is a decrease in investment because products are not being sold. Prices drop, and the economy lowers into a recession.
However, the future of the Yuan policy later became a popular topic, with many experts agreeing on the fact that it would be necessary to revaluate it in order to play fair with its commercial partners or to simply let the market play his role through a floating exchange rate. The following document: * Shows the advantages and disadvantages of China’s current exchange rate system, namely it gives its economy a competitive advantage on all its exporting activities over other economies, which are known to be significant (it has become the largest exporter in the world in 2010). Other consequences tend to qualify this statement, such as the inflationary pressure it puts on the Chinese economy. * Illustrates how China’s exchange rate policy, is a part of a monetary policy that has been used by the Chinese authorities as a tool to protect the Chinese market and facilitate its development. * Through the study of the impact of a drastic reduction in the U.S trade balance deficit, concludes that a switch to a floating exchange rate change should be taken into serious consideration by the Chinese authorities, as the resulting appreciation of the Dollar would deteriorate the value of the Yuan * Ends with the gradual and careful way this new system should be implemented, as the banking sector needs to be progressively reformed and prepared to face
Transnational corporations, or TNCs, are corporations that have their headquarters in one country and operate wholly or partially owned subsidiaries in one or more other countries. Some people benefit from the growth of transnational corporations than others. Developed countries benefit as they get cheaper imports from developing countries which benefits the consumers and companies in the developed countries as everyone pays less and companies can compete with others easier. Another benefit is that developed countries lose industry to developing countries, improving the environmental quality in the developed country, reducing CO2 emissions helping to combat climate change. Developing countries also benefit as the population get access to employment and the development of new skills, leading to more money being spent helping the economy to improve infrastructure and services improving the quality of life in the country.
To what extent would high rates of economic growth benefit developing countries Economic growth is the rate of increase in the national output per year, and real growth is the growth of GDP after inflation has been accounted for. Firstly, high rates of economic growth can lead to the benefits of increased infrastructure and a building boom in the nation, which can be shown in China with bridges, roads and skyscrapers all being built with economic benefits. The developing countries attract entrepreneurship and when successful the original entrepreneurs can make billions from their work in the nation. Increased entrepreneurship leads to an increased amount of fortunes in the nation, which leads to a double benefit as the entrepreneurs businesses spends money increased consumption in the nation, and the entrepreneur themselves spend further increasing consumption. Companies can grow faster in a developing country than they can in a MEDC which has more competition, and with company growth comes increased investment from the company in machinery and workers, which increases consumption and an increased level of employment, who work for the company.