The Effects Of Globalisation On China.

2690 words - 11 pages

Globalisation is the process of increased integration between different economies of the world to create a unified global economy. Economists believe that this movement will lead to a more efficient allocation of resources as countries produce goods and services where they have a comparative advantage. For globalisation to work, it is necessary to promote free trade between nations to enable goods and services to flow between various economies."The future of China's economic development is bound up inextricably with the global economy" (Dr Augimeri). Through radical economic and political reforms introduced by President Deng in 1978, China has successfully transitioned from a planned economy to a more open, price mechanism determined economy. Only 1/3 of the economy is state owned with state enterprises falling from 78% in 1978 to 34% in 1994. Since its welcoming of global integration, China has enjoyed an annual average growth rate of 10% since 1978 and is currently ranked 7th largest economy in the world. Ironically, China remains a developing country as its GDP per capita of $5600 remains relatively low compared to the rest of the world and more than 26.1 million of the population still live in absolute poverty. China's success in the face of globalisation can be assessed in terms of their trade, foreign investment, financial flows, the international business cycle and labour movements.The prominent effects of globalisation on China are their growth in foreign trade and FDIs. Globally, trade has dramatically increased from US$8.5 trillion (39.3% output) in 1990 to US$17.3 trillion (50.1% output) in 2003. China's economy has benefited significantly through globalisation and as the "manufacturer of the world", China depends on its large exports for growth. In 2002, China contributed 10% to global growth and 17% to global imports. China's emphasis on trade has seen its exports increase at 17% per year on average since its integration into the global market. A clear indicator of the positive effects of globalisation is that 64% of China's export growth has come from Western companies established in China.China's openness to globalisation and greater market orientation meant that their exports especially in areas of labour intensive manufacturing (88% of total exports) continue to maintain its greatest comparative advantage. The composition of China's most competitive exports include building materials, coal, processed food, textiles and clothing. China also accounts for around 25% of world demand for crude steel and 27% for Iron Ore. Most recently, the EU has complained to the WTO about the sudden surge of textiles export and wants safeguard measures against China. China as an export dependent country will continue to pursue undervalued currencies, because a cheap currency aids exports and punishes imports. Also its cheap currency and large population means that production in China would be less costly and more productive. China's demands for...

Find Another Essay On The effects of globalisation on China.

Globalisation and the effects on australian society

1663 words - 7 pages What effects has globalisation had on Australian society?Globalisation can many different definitions and is constantly changing, and there does not seem to be a widely accepted definition and will take on different cultural, political, social and other connotations as time goes on . It is indeed an economic phenomenon, involving the increasing interaction, or integration of national economic systems through the growth in international trade

Harmed or Harnessed? The Effects of Capitalism on China

2474 words - 10 pages overall positive effect on China. To better understand the current influence capitalism has in China, it is necessary to have both a basic knowledge of the communist system which preceded it, as well as an understanding of the nature of Chinese economic reform, which began in 1978. In 1949, Mao Zedong, the leader of the Communist Party in China, defeated his longtime rival Chiang Kai-shek, and established the People’s Republic of China. Upon seizing

The Effects of Western Imperialism on China and Japan

628 words - 3 pages The Effects of Western Imperialism on China and Japan      China and Japan had very different experiences with Western Imperialism . Their reactions to western interference would lay a foundation for their destiny in a world that was rapidly progressing forward , leaving the traditional world behind .      China viewed themselves as totally self sufficient , superior , and the only truly civilized land in a barbarous world. They were

Outline the effects of globalisation on the Australian economy in recent years. Focus on trade, investment, finance, technology, and labour.

889 words - 4 pages In recent years, globalization has spread layers of influence in all directions of the world, including Australia. Globalisation is the growing economic interdependence amongst nations, as reflected in actual movements of trade, investment, finance, technology, and labour. Globalisation is not new, but the pace of integration of economies has quickened and economies are more closely integrated now than at any previous time. In many ways the

The Impact of Globalisation on Japan

1639 words - 7 pages % during 2002) and as of 17/11/08, Japan was officially declared in a recession, with a fall of 0.4% on an annualised basis, marking the first time the economy has contracted for two successive quarters in 7 years. Hence, the Japanese economy has seesawed between stagnancy and anemic growth in the past 10 years, and we are yet to see the full effects of the World Economic Slowdown, catalysed by Globalisation, on Japan. However, the Japanese government

The impact of globalisation on business.

5138 words - 21 pages the World Bank.Taiwan figures is taken from Key Indicators 2002 of Developing Asian and Pacific Countries by the Asian Development Bank.FIGURE 3: ASEAN population breakdown.From the table it is understandable why Texchem has been aggressive in penetrating the ASEAN market to capture the demand. ASEAN has a combined population of 500 million.3. GLOBALISATION EFFECTS ON TEXCHEM INTERNATIONAL BUSINESS STRATEGY.Before a company expands abroad, it must

The Effects of the Communists’ Policies Towards Women on the Communists’ Rise to Power in China

2308 words - 9 pages This investigation will cover women’s participation in the Long March, the People’s Republic of China Constitution in 1949, Mao’s policies for foot binding, the 1950 Marriage Law, and women’s increased participation in society. I will analyze journal articles and books from Western and Asian authors to evaluate various historians’ views on Communists’ policies towards women and the effects they had on Communists’ rise to power. Kellee Tsai’s

The Effects of Population Growth in China

2336 words - 9 pages who have more than one child will face fines, wage cuts, loss of their jobs, and the prospect of social disapproval. To ensure the one child policy, the government publicized many forms of propaganda athat listed all the advantages of one-child families all over the country. The effects of the one child policy was that more woman have access to birth control in China. About 87 percent of Chinese females and most of the Chinese females

Essay about the negative effects of colinization on India and china using specific facts

1397 words - 6 pages growing food products to un-food products, famine and in China, economic corruption. Those effects took and will take years to fix, and heavily outweighing any benefits Asia may have gained.Europe's colonization of India and China had negative effects on local political systems, leading to corruption and disunion of the peoples and governments. The movement to remove British from power in India, the Indian National Congress (INC), was one of the

The Globalisation of Obesity

3777 words - 15 pages countries with relatively open economies is an indication – perhaps even a proof – that the effects of globalisation are not inevitable; that political intervention has not been rendered impossible by globalisation Conclusion “There is no question that the rates of obesity and Type 2 Diabetes …follow a socioeconomic gradient, such that the burden of disease falls disproportionally on people with limited resources, racial-ethnic minorities, and


5468 words - 22 pages fold effects. It affects economic development and prosperity, culture, environment, political systems, and human physical well-being in societies around the world. There are however, controversial opinions and findings on the impact of globalization on a country. Supporters of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that

Similar Essays

The Effects Of Globalisation On China, A Developing, Newly Industrialised Economy

2383 words - 10 pages trade liberalisation) as well as an invitation to foreign companies to invest in China. Despite a number of transitional and other fundamental problems besetting China, Deng Xiaoping's seemingly radical vision of the likely beneficial effects of globalisation on China's developing economy, has thus been vindicated.End Notes1. Excludes Hong Kong, Macau and Taiwan2. A statement made by Shi Guangsheng, China's Minister of Foreign Trade and Economic

Effects Of Globalisation Case Study China

1159 words - 5 pages China is the world's seventh largest economy and the largest country in terms of population size. It has also become the 8th largest world exporter of manufactured goods and the second largest economy in the world, after the United States, on the basis of purchasing power parity. The impact of globalisation on China has been profound, having an impact in a number of different areas.Government Strategies to promote economic growth and

An Evaluation Of The Role Of Globalisation In China.

878 words - 4 pages the rich and the poor. It might have boost the economy of certain cities in LEDCs such as Beijing, Shanghai of China, Jakarta of Indonesia, or Brasilia of Brazil . However, the income inequalities within the countries would be larger than ever which are still expanding. Compare this phenomenon to the definition of gloabalisation, we can see that globalisation never happens. It is more like an ideal phase that people wouldn't get to due to a lot from the inifitive wants. However, it may eventually turn the world into a monopoly controlled capitalism world where the high cost skyscrapers built on the graves of people died from starvation and poverties.

An Essay On Globalisation And China

1527 words - 6 pages consequences that it has had as a result of the desperation of nations to attract foreign investment and higher export revenue. The transferability of capital has meant that companies have moved environmentally damaging production processes to countries which have low environmental standards and safeguards. The impact of globalisation on the Chinese economy has been momentous. China has initiated a set of policies conducive to reform and liberalise in