This website uses cookies to ensure you have the best experience. Learn more

Risk And Economics In The United States Vs. China

1626 words - 7 pages

The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters (Zuckerman, 2013) and The Big Short: Inside the Doomsday Machine (Lewis, 2011) are two books that each tell a story of how normal citizens in a capitalist society became incredibly successful. In The Frackers, Zuckerman tells the story of oil and gas wildcatters that changed the face of the American energy market. These bold wildcatters pioneered a new method of extracting oil and gas known as fracking. Fracking had been considered to be impractical by established names in the oil and gas industry due to its high cost. However, the entrepreneurs described in the book proved the industry “experts” wrong by taking the risk of investing in fracking and making huge profits, helping to fuel the new age of American energy exploration. The Big Short tells the story of how a small number of investors made huge profits by correctly predicting the economic collapse of 2008. The financial bubble that grew until 2008 was fueled by complicated investment models that even sophisticated investors at prominent institutions did not fully understand. However, a small group of savvy investors foresaw the pending financial disaster and made huge profits by betting against the market. Hence, both books tell the story of how intelligent and bold entrepreneurs amassed huge wealth by taking risks and betting against the conventional wisdom.
The Party: The Secret of China’s Communist Rulers (McGregor, 2012) tells a very different story. McGregor describes the communist political and economic system in China. The communist system prohibits entrepreneurs and risk takers like the ones described above from amassing wealth through investment. As a result, the economic system in China does not reward risk taking in the way the American capitalist system does. Instead, the way to become economically successful in China is to become a prominent member of the Communist Party. Economic resources in China are allocated by the government in such a way as to combine and maintain the Party’s power, and working towards that cause is the way to become economically successful under such a system. So, the books described above provide a clear difference to the economic and political system described in The Party.

Section 1
As described in the introduction, The Frackers tells the story of how a small group of brave wildcatters became very successful through the new method of removing oil and gas known as fracking. Fracking is known as the method that drillers use to inject fluids into the holes they drill at very high pressures. This causes the shale formations under the ground to break apart, which releases more oil and gas that can be extracted. While the method increases the amount of oil and gas that can be extracted, it was dismissed by industry experts as being impractical. It was dismissed because fracking is very expensive, and it was thought that the marginal cost of fracking was...

Find Another Essay On Risk and Economics in The United States vs. China

Comparing the Internet in China and the United States

2275 words - 9 pages Introduction The aim of this study is to determine the differences between the Internet in China and the United States. China was chosen due to the restrictive and closely scrutinized nature of its Internet, in contrast to the internet in United States which has significantly more freedom and protected by the freedom of speech and expression. This study will include: • Distribution and segmentation of the medium in both countries • Ownership

Comparing Business Life in China and the United States

1649 words - 7 pages time warp, in many aspects, as compared to the United States. A clear example of this time warp is the lack of affirmative action in China. Policy still practiced in China was eliminated in the U.S. more than 50 years ago. For example, certain jobs in China are reserved specifically for women. Statistics prove this, it’s communicated by employers, and it’s understood in their society. No one challenges it. In China nursing, customer

Different media systems in China and the United States

1115 words - 5 pages As of the year 2010, Google battle with the Chinese government over Internet censorship has drawn increased international attention to media system in the country. The conflict between Google and Chinese government is mainly because of the different media systems that serve in the United States and China. Basically, the media system consists of different types of communications media, such as television, Newspapers, Internet, books and other new

Relations Between the United States and China

924 words - 4 pages The sovereignty of a nation, the integration of territories and national reunification and safety are the focus of Sino-US relationships. The US refuses to accept a powerful China. The previous secretary of the US Assistant Secretary of State Winston Lord once told reporters that at the beginning, America and China focused to settle down the problems on how to treat each other in a strategic way and the problems will determine the Sino-US

The Difference between the United States and China

1243 words - 5 pages States since 1978 had returned. The hard choice of whether stay in The United States or come back to China makes more and more Chinese people concentrate on a basic question: what is the difference between life in the United States and China. Although both The United States and China are major world economies, there are still major differences between the United States and China in terms of work culture, access to information, teaching style and work

How the United States Must Handle China and Its Military in the 21st Century

4515 words - 18 pages should be skeptical of China’s claim that their military modernization is “purely defensive in nature” and only for defending China’s interests. DoD officials must stress, because of the lack of transparency on China’s part regarding its military and security spending there is an increase risk on the United States part for misunderstandings (why is China on the buildup) and miscalculations (U.S. gets caught when China launches an offensive

A Comparison Between China and The United States

674 words - 3 pages world. China is the world's second-largest country by land area and also the third or fourth-largest by total area. The United States is one of the most world ethical diverse and multicultural nations in the world. With 317 million, the United States is the fourth-largest country by total area and third largest by population. The histories of both countries are also well known of life events including its economy. China was one of the world

Cross-Cultural Difference netween the United States and China

1552 words - 7 pages Task 4 A.  Cross-cultural differences between United States and China Cross-cultural differences in verbal and non-verbal communication styles The issue of verbal and non-verbal communication styles is an important cross-cultural difference to consider when seeking expansion of business in China, because it can help Company ABC facilitate successful business transactions and outperform its competitors. According to a survey by the Economist

Compare and Contrast: The Difference Between the United States and China in Terms of Living and Working

1038 words - 4 pages According to Chinese bureau of statistics, some 70% of student who come to the United States from 1978 to 2010 stayed in The United States. The hard choice of whether stay in The United States or come back to China makes more and more Chinese people concentrate on a basic question: what is the difference between The United States and China. Although both The United States and China are world’s major economies, in terms of living and working, The

How can Republic of Korea foreign policy towards Japan and China affect the United States in the region?

1317 words - 6 pages their ties. Second, the constraining factors in the South Korean-Chinese relations will be analyze. Finally, this section will analyze the extent to which these relations affect the United States in the region. The Ties that Bind Largely, South Korea and China have developed their relationship with an unprecedented speed through expanding bilateral economic cooperation. The development in these areas is the driving force promoting cooperation

Doing Business in China as it relates to the United States

1289 words - 5 pages AbstractDoing business in China has many challenges and many advantages. Many trade-offs happen to help both the United States and China become successful. Americans with aspirations of obtaining a piece of the Chinese-market pie, must invest the time to understand the trade offs and benefits China offers.Doing business in China as it relates to the United StatesWorld Trade OrganizationChina, with a population of more than one billion people, is

Similar Essays

Business Culture: China Vs. The United States

669 words - 3 pages Business Culture: China vs. the United States      Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new

China And United States Essay

2342 words - 10 pages The history of United States-China relations tells a story of distrust, exploitation, naivety, and conflicting viewpoints, but also one of a struggle to bypass those differences. In recent decades, the two nations have been increasingly reliant on one another, but America still cannot overcome many of the divisions established between the U.S. and Maoist China Michael Schaller argues. Though relations became hostile the era following the end

Current Economics Conditions In The United States

1455 words - 6 pages includes, and GDP excludes, net receipts of income from the rest of the world. (5)The Economic OutlookAlthough the outlook is clouded by a number of uncertainties, the central tendencies of the projections of the Board members and Reserve Bank presidents imply continued good economic performance in the United States. Most of them expect economic growth to slow somewhat this year, easing into the 3-1/2 to 3-3/4 percent area. The unemployment rate

Racial And Ethnic Attitudes In The United States And China

802 words - 4 pages According to the United States 2010 census, the United States population is make up of eight different racial categories: white, black or African American, Hispanic or Latino, American Indian and Alaska Native, Asian, Native Hawaiian and other Pacific Islander, some other race, and two or more races. (Humes 2) “’White’ refers to a person having origins in any of the original peoples of Europe, the Middle East, or North Africa.” (Humes 3) White