• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Evaluate the impact of the policies available to the Chinese Government to deal with their declining competitiveness.

Extracts from this document...

Introduction

Ben Ezekiel Test (40 Mins) Evaluate the impact of the policies available to the Chinese Government to deal with their declining competitiveness. (30 Marks) One policy available to the Chinese government to deal with their declining competitiveness would be to try to increase labour productivity through increasing spending on education and training to help develop skills and close any skills gap. Government may also promote a more flexible labour market, such as reducing trade union power, encouraging part-time work, and encouraging new business start-ups.This would lead to greater competition within the Chinese economy leading to increase in working effort from workers and therefore higher incomes and GDP per capita However, improving education takes time to come into effect ...read more.

Middle

Finally, investment may be stimulated by reducing the interest rate elasticity of investment, which means it is easier to raise interest rates without a negative effect on investment. This could be achieved by investment grants and tax relief on investment. However, the danger with too low interest rates is that they could trigger an increase in household spending (C) causing demand pull inflation, which would worsen, rather than improve, competitiveness. The level of competition in product markets can also be improved by deregulation to reduce barriers to entry, In addition, privatisation of industry is also likely to improve competitiveness, but there are few industries left in the UK to privatise. ...read more.

Conclusion

A country such as China could also resort to becoming more protectionist in order to increase domestic competition. One strength of protectionism is that it keeps the domestic economy flowing. Since there is a decrease in imports, domestic firms have less competition, and so are able to continue. The domestic economy also strengthens, because the unemployment rate will be minimal. This is because the domestic firms are able to produce and sell more goods with a lot less difficulty, giving firms less incentive to decrease its cost by decreasing its work force. The people with jobs will keep consuming, allowing a flow of the economy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Free essay

    does uk housing market warrant government intervention

    Also for the working population, the South East seems more attractive with the average earnings for full time employees on adult rates in the north east were �440.20 for males and �335.0 this is 10 and 13 percent below the national average, contrasted with the south where the average male

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    the old-style non-reciprocity that did such damage to developing countries pre-Uruguay Round. Unfortunately, this looks like the position of one block of developing countries, particularly the "Like-Minded Group" led by India, Pakistan and Egypt, whose focus is the implementation agenda.

  1. Globalisation of GAP

    Singapore and will hold exclusive rights to distribute Gap and Banana Republic products in Malaysia. This franchise agreement between Gap and F J Benjamin demonstrates the company's first step toward expanding the Gap and Banana Republic brands via international franchises.

  2. In what ways is the government attempting to increase the willingness to wor

    Improved training, especially for those who lose their job in an old industry has improved the occupational mobility of workers in the economy. This has help to reduce the problem of structural unemployment. If people don't have the skills for a particular jobs, they need training and education to learn

  1. Can there be certainty?

    By 1984, it became a public limited company. Up to the year 2000, The Body Shop has aided in campaigns that involved saving whales, helping Romanian orphans and funding healthcare projects. The Body Shop wants to get larger and increase sales and profits. The Body Shop sells a variety of goods.

  2. "Strategies Applied in Organization in Big Chinese Society"

    Businesses in Hong Kong and mainland China make sensible use of electronic databases and analytic software applications than their North American counterparts but greater use of private telecommunication technologies. Businesses in Hong Kong and mainland China's also send more of their electronic mail messages to external addressees while intra-organizational information broadcasts are quite odd.

  1. Comprehensive Anatomy of China

    Hong Kong, classified as the freest economy in the world, has an extremely busy seaport in addition to a vibrant stock exchange. Macau is well known for the bustling service and tourism sectors with some indicators that the banking and insurance sectors will be the next to boom for this SAR.

  2. Critically assess the impact of the Internet and E-commerce on Tax Regimes in the ...

    Subjectability to tax in the Commonwealth Caribbean The Commonwealth Caribbean's present taxation policies are based on corporations and individuals being in a fixed place (permanency), which has limited applicability to e-commerce. An individual's subjectability to tax is usually dependent on the source9 of the income sought to be taxed and

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work