...THE RISE OF CHINA’S ECONOMY By Thomas G. Rawski Thomas G. Rawski, Professor of Economics and History, joined the University of Pittsburgh's faculty in 1985 after fourteen years at the University of Toronto. His research focuses on the nature and implications of recent developments and long-term changes in the economy of China. He delivered this paper at A History Institute for Teachers, March 19–20, 2011 on “China and India: Ancient Civilizations, Rising Powers, Giant Societies, and Contrasting Models of Development,” held at the University of Pennsylvania. This History Institute was co-sponsored by The Foreign Policy Research Institute’s Wachman Center as well as by three centers at the University of Pennsylvania – Center for East Asian Studies, South Asia Center, and Penn Lauder CIBER (Center for International Business Education and Research). 1 China’s remarkable economic boom, now in its fourth decade, has spawned numerous discussions of “China’s Rise.”2 Beijing’s self-congratulatory slogan “China’s peaceful rise” has advanced this theme. From a historical perspective, however, this terminology seems misplaced. Both the Ming (1368-1644) and Qing (1644-1912) empires occupied key positions in Asian trade and diplomacy. Crude figures compiled by Angus Maddison, author of several sweeping studies of global economic history, show China contributing nearly one-third of global output as late as 1820. The great boom of the late twentieth century has enabled China to regain some of...
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...China and India in the World Economy What challenges to the world economy do India and China pose? There are many challenges to having the world’s two most populous countries enter the world trading system. Just the sheer size of these two countries is a challenge to other countries that are smaller. More people in China and India means more opportunities (and increased demand) to grow their economies, to increase education, to manufacture more goods, provide more services, use up more of the world’s resources, etc. These are all challenges that other countries face with India and China. India’s service sector has grown tremendously and many people have begun outsourcing service jobs such as information technology and computer jobs to India as well as other service jobs such as call-center customer service jobs. Outsourcing reduces the price of these services and allows businesses to increase profits by having lower costs. This poses as a challenge to the economies that are outsourcing jobs to lower fare countries because it reduces the number of jobs in its own country and leaves more of its own people unemployed or having to look for other type of work. China has emerged as an export platform and a high volume manufacturer of consumer goods. China has very low wages and its manufacturing wages are estimated to be about one-fourth of the amount paid in Brazil and Mexico. But apart from low wages, China has several other sources of comparative advantage which poses...
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...China's economy during the past 30 years has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy. Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment. Annual inflows of foreign direct investment rose to nearly $108 billion in 2008. China has generally implemented reforms in a gradualist or piecemeal fashion. In recent years, China has re-invigorated its support for leading state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, China in July 2005 revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. Cumulative appreciation of the renminbi against the US dollar since the end of the dollar peg was more than 20% by late 2008, but the exchange rate has changed little since the onset of the global financial crisis. The restructuring of the economy and resulting efficiency...
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...Economy of the People's Republic of China The People's Republic of China is the world's second largest economy after the United States. It is the world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China became the world's top manufacturer in 2011, surpassing the United States. For 2010, inbound foreign direct investment into China surpassed $100bn for the first time, and investment overseas by Chinese companies in non-financial sectors totaled $59 billion. The country's per capita GDP is $7,518 in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of that economy. In the modern era, China's influence in the world economy was minimal until the late 1980s. At that time, economic reforms initiated after 1978 began to generate significant and steady growth in investment, consumption and standards of living. China now participates extensively in the world market and private sector companies play a major role in the economy. Since 1978 hundreds of millions have been lifted out of poverty: According to China's official statistics, the poverty rate fell from 53% in 1981 to 2.5% in 2005. However, in 2006, 10.8% of people still lived on less than $1 a day (purchasing power parity-adjusted)...
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...Ethical Issues in Three Economies: China, Jamaica, and the U.S.A. Ethical issues arise in many different forms across very different cultural, economic and even geographic situations. In a paper written by Lillian Fok, et al, the question is raised whether participants in three significantly varied economies will tend to have similar responses to ethical questions encountered during typical business scenarios. Business professionals from China, Jamaica, and the United States were presented with situations and ethically questionable decisions (and in some cases, illegal). The subjects were then asked how likely they would have been to make the same choices and their probable justifications. The researchers found both similarities and distinct differences that they concluded can be attributed to cultural and environmental variations between the respondents’ countries of origin. Five different scenarios were presented to the participants to gauge their ethical positions under certain circumstances. In only one of the five was there any statistically significant difference in the respondents’ propensity to agree with the ethically questionable position. The scenario concerned a willingness to pursue a profitable venture that would knowingly result in increased pollution. The Chinese and American participants were less willing to engage in the polluting behavior than the Jamaicans. The researchers posit that Jamaica is more apt to tolerate violations of pollution regulations...
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...FEBRUARY 2010 Policy Brief ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Economic Survey of China, 2010 What are the key challenges facing the economy? How should the monetary policy framework evolve? What reforms are needed in financial and product markets? How should social safety nets be strengthened? How has the labour market evolved? Can pensions be enhanced? How should health care be improved? For further information For further reading Where to contact us? Summary Since the OECD’s first Economic Survey of China in 2005, China has continued to expand rapidly. The economy is also weathering the global crisis remarkably well, not least thanks to prompt and vigorous macroeconomic policy action. Economic expansion is projected to continue over the medium run, and China’s share in the world economy is set to grow further. Despite the recent decline in the current account surplus, some imbalances remain, notably an overly high national saving rate, but ongoing reforms can be expected to help alleviate them over time. Structural reform has continued on a broad front in recent years, with an increasing focus on the need for social cohesion. Even so, efforts are under way or still needed in a number of areas to sustain improvements in living standards over the longer run. Further upgrading the monetary policy framework. China’s monetary policy framework has gradually become more market-based, with money growth as the main intermediate target. Going forward, it...
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...ESCOLA SUPERIOR DE PROPAGANDA E MARKETING PROJETO DE GRADUAÇÃO INTERNACIONAL MONOGRAFIA JEAN-PIERRE DE AZEVEDO LUIZ LUÍS RAMÓN SIERRA FILHO MATHEUS TALLAVASSO VASSOVINIO ECONOMIA VOLTADA PARA A EXPORTAÇÃO: vantagens e desvantagens para a China São Paulo 2013/1 JEAN-PIERRE DE AZEVEDO LUIZ LUÍS RAMÓN SIERRA FILHO MATHEUS TALLAVASSO VASSOVINIO ECONOMIA VOLTADA PARA A EXPORTAÇÃO: vantagens e desvantagens para a China Trabalho apresentado como requisito parcial para avaliação da disciplina Métodos e Técnicas de Pesquisa no quinto semestre do curso de Graduação em Relações Internacionais com ênfase em Marketing e Negócios da Escola Superior de Propaganda e Marketing – ESPM. Prof. Felícia Alejandrina Urbina Ponce São Paulo 2013/1 SUMÁRIO 1 1.1 1.2 1.3 2 2.1 2.2 2.3 2.3.1 2.3.2 2.3.3 INTRODUÇÃO ............................................................................................................... 3 CONTEXTUALIZAÇÃO DO TEMA ........................................................................... 3 DEFINIÇÃO DE PROBLEMA, OBJETIVOS GERAL E ESPECÍFICOS .................. 4 JUSTIFICATIVA ........................................................................................................... 5 METODOLOGIA ........................................................................................................... 7 ABORDAGEM .............................................................................................................. 7 MÉTODO...
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...major economy in the world has grown at the speed of China’s, and no other country has been able to do it year after year, for over a decade. And on Thursday China did it again, saying that its economy grew by a whopping 10.7 percent in 2006, the fastest pace in more than a decade, with only modest signs of inflation. “This is pretty impressive,” said Shen Minggao, an economist in Beijing for Citigroup. “I’d say 2006 was about the best year in a decade — fast growth and low inflation.” The 10.7 percent growth recorded in 2006 was the fourth consecutive year of double-digit economic growth and China’s strongest year since 1995, when the economy grew 10.9 percent. The economic miracle — fueled by soaring exports and huge investments in buildings, roads and cities — goes on even in the face of frequent warnings from government officials and private specialists about asset bubbles, excessive bank lending and an overheating economy. “Right now, the economy is growing at the upper limits of what is acceptable,” said Li Lianfa, an economist at Peking University. “The government is facing a lot of challenges.” Chief among them are balancing the supersize growth and heavy investment, and trying to distribute the riches as evenly as possible. Analysts say the government is determined to keep the economy revving, but is also wants to prevent anything from spoiling the party before 2008, when Beijing is to play host to the Olympic Games. To help cool the economy, Beijing...
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...market share of 16% substantially lower of the 51% that we used to have eight years ago. We also are loosing our position of leadership in the market. There are many causes why this is happening. First, China is growing but we are not. In the last years many of Chinese move from the lower class to the medium class. The economy in China was growing for the last 20 years and citizens are seeing their personal incomes increase. While economy in China was growing, sales in the market were growing and incomes of citizen were growing, we were not growing. A second factor is that we build our leadership based on a strategy of simple-technology and simple-product because in that time the market bought that. But now the market changes. Consumers not longer conform to that and they expect new products based on new technologies and designs. Related with that appears another factor. There are more competitors in the market than ten years ago. Those competitors are producing and selling new products with the characteristics that consumers expect. They are offering to the market what we are not. This has resulted in our sales to decline and lose our competitiveness. Our high cost structure, caused because we must to reduce prices, is another factor why we are loosing market share. Context China is a country that is growing at amazing rates and the government is encouraging foreign investments. Many people are moving from the fields to the cities and also they...
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...comes to the ever growing market of real estate. As location varies, a different assortment of ethnicities gather to become one with the elite distribution of properties found throughout the United States. As such, the demand for luxurious homes will continue to rise in the near future; for those who are able to afford a secondary residence tend to focus mainly on elegance and style rather than capital and finance. Location Diversity Miami is largely known for its beautiful beaches and diverse population, now holding a vast of amount of Latinos as its primary international race. However, the Asian population has accounted for 8% of Florida’s international property buyers in the year of 2014, of those, 2% belong directly to the Chinese economy. On a much larger scale though, the entire Chinese market for international buyers within the United States comes to a staggering 16% according to the National Association of Realtors during the 2014 data collection. It is no wonder that the developers and marketers in charge of the project are looking towards the east now. Product The Miami Worldcenter is considered to be a project of many investors, holding it all together. Some of the following are, Marriot Marquis, Bloomingdales, Macys, along with several other best-in-class retail...
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...NAMASTHE SOLAR Introduction Namasté Solar is a leading Colorado solar installer in the residential market. Colorado’s favorable market conditions attract new competitors, putting pressures on price and market share. Unusual management structure and values systems, and public incentive structures complicate a pending decision to grow the residential market or develop a commercial installation business. (http://leeds.colorado.edu/casestudy/169#overview) The Pros and Cons of Namaste’s Three Options Path A: to “sell the whole kit and caboodle” Advantages: * By more invested capital the company can grow much faster than the market. The invested capital can be used to acquire more resources and for more research and development projects which ultimately might increase the company’s profit. * Very high expansion is possible because the company can hire more people which enable them to reach more customers and more installations. By this process the company’s reputation can be kept high and increase the profitability. * The disadvantages in decision making strategy which was originally followed by the company can be eliminated. * The stack holders and stock holders can receive a huge return for their invested capital. * The investment risk of the employers can also be reduced. * Last but not the least, employers feeling of tired and overworked can be reduced to a great extent. Disadvantages * The company’s core values like Care for the Earth, Care...
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...| IMPACT CHINA ASEAN FREE TRADE AGREEMENT (CAFTA) ON INDONESIA ECONOMYWritten by Yuliana (15 Jan 2015)Overview of ASEAN – CHINA Free Trade Agreements In November 2001, ASEAN and China agreed to launch negotiations for an ASEAN-China Free Trade Area (ACFTA). In the following year, ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China.The objectives of this Agreement are to: (a) | strengthen and enhance economic, trade and investment co-operation between the Parties; | (b) | progressively liberalise and promote trade in goods and services as well as create a transparent, liberal and facilitative investment regime; | (c) | explore new areas and develop appropriate measures for closer economic co-operation between the Parties; and | (d) | facilitate the more effective economic integration of the newer ASEAN Member States and bridge the development gap among the Parties. | | | | The Agreement on Trade in Goods was signed in 2004 and implemented in 1 July 2005 by the ASEAN countries and 20 July 2005 by China. Under this Agreement, the 6 original ASEAN members and China have to eliminate tariffs on 90% of their products by 2010, while Cambodia, Lao PDR, Myanmar and Vietnam, have until 2015 to do so. | | | | | | The Trade In Services Agreement entered into force in July 2007. Under this agreement, services and services suppliers/providers in the region will enjoy improved market access and national treatment...
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...A study on China and the World Economy of Today: A look at the impact of China’s Global economic integration and Prices. Chapter one: Introduction 1.1 Introduction Since 1978, the People’s Republic of China (PRC) government has stood out in restructuring its economy from a Soviet-style centrally planned economy towards a market-oriented economy nonetheless within the political framework, provided by the Communist Party of China. This system has been called "Socialism with Chinese characteristics" and is one type of mixed economy. “These reforms started since 1978 has helped lift millions of people out of poverty, bringing the poverty rate down from 53% of population in 1981 to 8% by 2001” (OECD 2002a). Over the preceding decades, the existence of China in the world’s economy is full-fledged. Laterally, China is properly or erroneously seen to have a massive impact on the world’s economy. In today’s trade market, China is at present generally regarded to be the world’s workspace, there-by relocating some traditional exporters of labor-intensive goods, irrespective of the fact that its economy is constantly woven into the fabric of progressive split chain of making (Menzie D.2009). The emergence of China as an industrial and export livewire is undoubtedly one of the most significant forces reshaping the present-day world economy. Barry E and Hui T in 2005 stated that “A now standard way of conveying this point is to observe that the increase in employment...
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...What are geographic features? Geographic features have are things such as mountains, lakes, rivers, or natural events such as hurricanes and monsoons. Geographic features such as the Yellow River, and the Monsoon floods help fuel the economic expansion of China. China’s economy has been fueled by these geographic features so much that it is considered a major player in the world. In this paper I will discuss of America. the Yellow River floods, the monsoon rains, and the effect they have on both the Chinese economy and the economy of The United States First, physical features of a nation can have a tremendous effect on that country’s history and culture. One example is the Yellow River floods. The Yellow (Huang He) River is the most important single land form in China. Over one hundred million people live along its banks, trying to make a living off the extremely fertile soil it carries in its current. However, this amazing resource is also referred to as "China's Sorrow". It is referred to as “China’s Sorrow because yearly it floods, killing hundreds to thousands of people who could not flee. The main reason these people die is because there is no early warning system to indicate they should evacuate. Next, another example is monsoon rains. They come yearly, and are much more predictable than the Yellow River floods. You can usually tell two days previous to its arrival when it will come. The monsoons start with a slow start and stop rain. However, they will build...
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...Group 2 Group Members Kouadio Dieudonne XPGDM-18 Rohit Khandelwal XPGDM-28 Shruti Tibrewal XPGDM-32 COUNTRY AT A GLANCE Population | 1.364 billion | 2014 | GDP | $10.35 trillion | 2014 | GDP growth | 7.3% | 2014 | Inflation | 2.0% | 2014 | CHINA Economic Overview The Chinese economy experienced astonishing growth in the last few decades that catapulted the country to become the world's second largest economy. In 1978—when China started the program of economic reforms—the country ranked ninth in nominal gross domestic product (GDP) with USD 214 billion; 35 years later it jumped up to second place with a nominal GDP of USD 9.2 trillion. Since the introduction of the economic reforms in 1978, China has become the world’s manufacturing hub, where the secondary sector (comprising industry and construction) represented the largest share of GDP. However, in recent years, China’s modernization propelled the tertiary sector and, in 2013, it became the largest category of GDP with a share of 46.1%, while the secondary sector still accounted for a sizeable 45.0% of the country’s total output. Meanwhile, the primary sector’s weight in GDP has shrunk dramatically since the country opened to the world. China weathered the global economic crisis better than most other countries. In November 2008, the State Council unveiled a CNY 4.0 trillion (USD 585 billion) stimulus package in an attempt to shield the country from the worst effects of the financial crisis. The...
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