Economic Case Study
China’s economic growth and development One of the many ways that China was able to develop and grow at such a high growth rate is due to the four factors, land, labor capital and enterprise. The fact that China is such a huge country they can use that land as minerals, since china has lot of minerals available china are able to use that minerals into exports or to be inject into the economy by building roads or building to further increase GAP.
Another way why china is growing so fast is that china had around 1.
3 billion people, Hereford the labor power of china is higher than most countries around the world, Ninth that much labor power and the price of the labor china was able to use that advantage into creating facilities, mining, and producing goods instead of making machines which may in the long run cost more that labor.
When labor is that high the capital out from the labor and land is also going to be high, with that much capital most of the products won’t be used by the people inside the country therefore exports are the only way to make a buck or two out of the capital, this also increases he GAP, and lastly the way that china’s growth rate has increase is due to enterprise.
Even though china is a communist country, the government was smart to allow private properties and possession this means that it will allow the people of the country to buy and spend money, choose a Job, and most importantly have their own business. Some business can contribute more than half the country economies; this is another reason why china is growing so fast.
Some other less important plans that china is growing are supporting greener growth, by helping China shift to a more sustainable energy path; enhancing urban environmental services; promoting low- carbon urban transport; promoting sustainable agriculture practices; piloting sustainable natural resource management approaches; demonstrating pollution management; and strengthening mechanisms for managing climate change, and finally advancing mutually beneficial relations with the world, by supporting China’s South-South cooperation and China’s role as a global stakeholder.
Trade, finance, investment and TNT Since China has a lot of resources and goods that are produced by the labor force hey were not all used, and dumping Just didn’t seem to have a good side of it so therefore trading was the best idea. China is one of the world’s largest economies and an important trading partner for the ELI. China is also an increasingly important political power. China’s accession to the WTFO in December 2001 was a major step. It required China to take bold reforms and liberalism important parts of its economy.
Both China and the wider WTFO membership nave benefited greatly trot China’s integration into the global economic order.
China had a balance of trade of IIS$32 billion in 2004 and US$38. Billion in 2003. These amounts reflect the general course of a trade balance during the previous eight years. In 1996 China’s trade balance was IIS$12. 2 billion, peaking at US $43.
4 billion in 1998 but declining to IIS$24. 1 billion by 2000 before starting its new increase While the investment buzz surrounding China clearly includes some hype, the undeniable facts about China easily explain why China deserves all the attention it is getting.
According to the World Bank, as of 2012, China held 1. 3 billion of the Normal’s 7. 1 billion people. Almost 20 percent of the world’s population resides in China.
Where the excitement kicks in is the makeup of this 20 percent. According to the National Bureau of Economic Statistics, in 2011 China’s urban population exceeded its rural population for the first time in the country’s history, at 690 million people versus 656 million, respectively. China’s arbitration is what has single- handedly led to the country’s impressive economic growth over the past couple of decades.
And China continues to urbanize. It’s taken three decades for China’s population to be more urban than rural, and it’s expected that China has another 20 [ears or more of arbitration ahead of it.
Distribution of Income and Wealth As we all know that China is still an emerging economy with quarterly GAP growth rates averaging 9. 31% for the past two decades, powered mainly by strong exports, it is a strong indicator that China will continue to enjoy sustainable growth in the long run.
However, despite being the largest exporter for world’s demands, China is still far from being a developed country. The country is plagued by many problems and one of the most pressing issues is the increasing income disparity between different groups of citizens. The unequal distribution of growth dividends among the people is en of the factors contributing to the differences in the income.
To date, approximately 150 million people in China live below the United Nations poverty line of 1 US dollar per day.
China continues to be a developing country despite the rapid growth in GAP. Furthermore, the average urban to rural household per capita income ratio is 3. 2 times in year 2004. So in order to restore as much equality as possible the government has introduced taxation. The statistics show that China’s tax revenue came to 6.
31 trillion Yuan ( billion U S. Dollars) in 2009, up 9 percent on 2 art of IIS$586 billion economic stimulus package of November 2008, the government plans to reform the VAT which could cut corporation taxes by 120 billion Yuan.
Environmental Issues China has many environmental issues, severely affecting its biophysical environment as well as human health. Rapid industrialization as well as lax environmental oversight has contributed to the problems. According to Thomas V.
Hardwood Ill, 16 of the 20 most polluted cities are in China. The Chinese government has acknowledged the problems and made various responses, resulting in some improvements, but the espouses have been criticized as inadequate.
As of 2012, there is increased citizen activism regarding government decisions that are perceived as environmentally damaging, and a retired Chinese Communist Party official has reported that more than 50,000 environmental protests occurred in China in 2012 raiment Economic Polices China unwrapped its boldest set of economic and social reforms in nearly three decades on Friday, relaxing its one-child policy and further freeing up markets in order to put the world’s second-largest economy on a more stable footing.
The weeping changes helped dispel doubts about the leadership’s zest for the reforms needed to give the economy fresh momentum as three decades of breakneck expansion shows signs of faltering. However, the reforms may take years. This means that it won’t allow the population to grow more than it already is.
Strategies to Promote Economic Growth and Development Supporting greener growth, by helping China shift to a more sustainable energy path; enhancing urban environmental services; promoting low-carbon urban transport; promoting sustainable agriculture practices; piloting sustainable natural source management approaches; demonstrating pollution management; and strengthening mechanisms for managing climate change.
Promoting more inclusive development, by increasing access to quality health services and social protection; strengthening skills development programs, including for migrant workers; enhancing opportunities in rural areas and small towns; and improving transport connectivity for more balanced regional development. Advancing mutually beneficial relations with the world, by supporting China’s South-South cooperation and China’s role as a global stakeholder.