To what extent has globalisation been benefical to China's economic growth?
To what extend has globalisation (through trade and Foreign Direct Investment) been beneficial to China's economic growth? Introduction China's economic transformation is one of the most dramatic economic developments of recent decades. Indeed, during the period 1979-2005, China's growth rate has averaged 9.7% per annum, and its integration into the world trading system has been as remarkable: its share in world trade has increased from less than 1% in 1979 to 6.4% in 2005. China became the third largest trading nation after the United States and Germany in 2005. China's major trading partners are the European Union followed by the United States and Japan. Together, they provided markets for over 51% of China's total exports in 2005, and made up almost 34% of China's import bill. During the past 50 years, China's industrial structure has evolved in three phases. Firstly, there was a period of heavy industrial development during 1952-78. The government prioritised the development of heavy industries such as steel, machinery and chemicals. Secondly, in 1979-94, China diversified its industrial structure by emphasising on lighter manufacturing industries, such as food and textiles. However, since 1995, the Chinese industry had suffered from massive over-capacity resulting from extensive industrial investment. To rectify structural weaknesses, China entered its third period of
international trade
E1 A detailed explanation of how international trade leads to the benefits and costs identified using relevant theories. David Ricardo: David Ricardo was born at April eighteenth 1772 in London and died on the eleventh of September 1823. He was one of the most important British economist in 1800. In economics, the theory of comparative advantage explains why it can be beneficial for two countries to trade, even though one of them may be able to produce every kind of item more cheaply than the other. What matters is not the absolute cost of production, but rather the ratio between how easily the two countries can produce different kinds of things. The concept is highly important in modern international trade theory The Theory of Comparative Advantage Consider Table 1. It can be seen that Portugal can produce both wheat and wine more cheaply than England than it has an absolute advantage in both commodities. What David Ricardo saw was that it could still be mutually beneficial for both countries to specialise and trade. Table 1 Country Wheat Wine Cost Per Unit In Man Hours Cost Per Unit In Man Hours England 5 30 Portugal 0 5 In Table 1, a unit of wine in England costs the same amount to produce as 2 units of wheat. Production of an extra unit of wine means foregoing production of 2 units of wheat so, the opportunity cost of a unit of wine is 2 units of
A Comparison Of The Path Of Development In
Topic 2 A Comparison Of The Path Of Development In New France & The 13 American Colonies From 1600 To 1750 The path of development in New France and in the 13 colonies was quite dissimilar resulting in extremely different rates of growth. Cod fishing led to contact with the land of New France while fur dominated the trade throughout the period of occupation by France and led to the growth of the economy. In contrast, the thirteen colonies were quite diversified in the staples trade: tobacco, rice, indigo and timber in the form of ships being some of the major ones. The following paragraphs will attempt to explain the divergence in growth rates experienced in the period 1600 to 1750 in the two geographical areas. John Cabot was the first Englishman to find the great numbers of fish off the coast of Newfoundland. He went back with this discovery and returned the following year with many fishermen to exploit this natural resource. Hence, men came to what would soon be called 'New France', with the objective of catching and taking back fish to sell in their mother country or foreign markets not with the view to explore or settle in the 'New World'. Contact with land was accidental and arose out of the need to use the dry cure method to preserve fish. In this method fish were gutted, lightly salted and laid out in the sun to dry. This method was superior to the green cure
Are We Now Living in One World?
Are We Now Living in One World? The concept of the world becoming 'as one', is a concept which has been widely been contested by many writers on subjects such as modernisation, globalisation, and equality to name a few. It is quite clear from out everyday lives in how some aspects of our lives are clearly influenced by other cultures, such as the availability of Indian takeaways on every high street. Robertson (1992) suggests that the world began to become more integrated with the European voyages of discovery and colonisation in the 15th Century.1 Turner (1994) has shown how there has been a global economy since the 17th Century.2 Yet other theorists claim that it is a much more recent development. In this essay I intend to look at many of these theories and in particular look at theories of modernisation, and globalisation. Modernisation replaced the older traditional forms of societies based on agriculture. Parsons (1966) has referred to the evolution of societies as a "process of modernisation". This presumes all societies to be eventually heading towards the modern stage. This can be applied to the theory of globalisation in that he is saying that all societies will become similar and 'modern'.3 Rostow (1971) used a similar model to explain human society, in his eyes it was both evolutionary and possessed an 'inner logic' which leads
Are recessions inevitable?
A2 Economics coursework - Unit 4 Are economic recessions inevitable? (Maximum of 80+4 marks) Over the past year or so, there has been much debate about recessions, not only concerning the UK economy, but globally as well. As there are ongoing discussions and constant media speculation, I thought it would be interesting and worthwhile to base my coursework around this topic. My objective is to eventually understand whether a recession is avoidable, in particular for the UK economy; I believe that recessions are bound to happen, because sooner or later there will be a period in any economy when consumer confidence declines. As part of my investigation, I will be judging the UK economy against other international economies, in addition to analysing a few historical comparisons. In order to reach my conclusion, I will be will required to answer several essential questions: . What is the meaning of a recession and how can it be measured? 2. What are the causes of a recession? 3. Is a recession good or bad? 4. How can the government deal with a recession? . What is the meaning of a recession and how can it be measured? The technical definition is met when a country experiences negative economic growth for at least two successive quarters. This means there must be a shrink in productive capacity, measured by a fall in real GDP, for a minimum period of six months.
Unemployment Issues in Germany
UNEMPLOYMENT ISSUES IN GERMANY CASE STUDY Geographic situation Germany is located in Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark. The country is sharing boundaries with Austria, Belgium, Czech Republic, Denmark, France, Luxembourg Netherlands, Poland, and Switzerland. Germany can be divided into three major geographic regions: the low-lying German plain, the central German uplands, and the ranges of the Central Alps. The climate is temperate and marine with cool, cloudy, wet winters and summers. Germany has many natural resources such as iron ore, coal, potash, timber, lignite, uranium, copper, natural gas and many others. Coming into the 62nd position, the country has an area of 357,021 sq km. 33% of Germany's land is for arable land, 1% is permanent crops, 15% is permanent pastures, 31% is made of forests and woodla```nd and there's a 20% of other. General information The population of Germany is 83,252,000 million but 7 million of them are foreign residents. The age structure is 0-14 years: 14.1%, 15-64 years: 66.4%, and 65 years and over: 19.4%. The capital of Germany is Berlin, which is the largest city with nearly six and a half million inhabitants and the official language spoken is German. Germany is the 62nd largest country of the world with an area of 356,910 sq. km. The ethnic make-up of the
A Study of Globalisation - A study of multinationals and their effect on our local communities
Globalisation A study of multinationals and their effect on our local communities (Above: Guatemalan farmers show a carefree front as their simple lives are turned upside down by multinational food retail giants.) Presented to: Dr. Peter Sheldrake By: Steven Leptos (s3053319) Table of Contents Section Page Executive Summary 3 Introduction to Globalisation 4 - 6 Definition 4 Pro-Globalisation 4, 5 Anti-Globalisation 5, 6 Globalisation & Multinational Companies Social Impact 7-9 Branding 7 Multinationals 7-9 The Food Chain; Survival of the Biggest - (Case Study) 0-15 Introduction 0-12 Guatemala's Local Farmers 3-15 Conclusion 6, 17 References 8-20 Executive Summary This paper attempts to make sense of globalisation from a social and business perspective. Initially I will talk briefly about globalisation within our community and the different stand points those communities and individuals have taken; for and against globalisation. I will then talk about the multinational companies that have made the phenomenon of globalisation possible and these companies various impacts on societies and local communities around the world. The topic is further analysed by using multinational food retailing companies in Latin America as a case study. Displayed to the reader through this case will be a clear indication of how local communities and in particular
"Legal control of multinational corporations: problems and prospects".
LAW 410 ASSIGNMENT 2 Suggested Topic #25 "Legal control of multinational corporations: problems and prospects" The greatest evil is not now done in those sordid "dens of crime" that Dickens loved to paint. It is not done even in concentration camps and labour camps. In those we see its final result. But it is conceived and ordered (moved, seconded, carried and minuted) in clean, carpeted, warmed and well-lighted offices, by quiet men with white collars and cut fingernails, and smooth-shaven cheeks who do not need to raise their voices. (C.S. Lewis, The Screwtape Letters) As the name "Multinational" suggests, today's corporate giants are no longer shackled by the constraints of international borders. Previously the bulk of world production occurred within national boundaries, but in recent decades trade and production has become increasingly globalised, and corporate activity has diversified and multiplied. The market is now global, as is capacity for production. Legal and political framework is traditionally based on the nation state, however economic activity is no longer such, and it is this mobility of capital that threatens to undermine the power of national governments to deal with traditional economic and social issues1. Critics charge that the ability of multinationals to manage production on a global scale and leap national borders in search of lower costs and
The Causes of Global Inequality
The Causes of Global Inequality In an attempt to explain the existence of global inequality, poverty and possible change, it will be necessary to look back in history to the era of the British Empire and the subsequent collapse of colonialism, and as some would argue the exploitation and enslavement of both human and natural resources. Over the years academics have sought to explain and understand why global inequality still exists today, with millions of people worldwide living in absolute poverty despite Western governments attempts at alleviating the suffering in these 'Third World' countries despite the creation of powerful bodies such as the World Trade Organisation. During the 1960's politicians and social scientists especially in the USA and Europe were concerned with these issues, and realised the advantages to be gained if they could penetrate new markets and at the same time gain some control of these newly independent nations. The views of key theorists such as WW Rostow, Gunder Frank and their contemporaries will be discussed to explain poverty and inequality. More recently since 1970's/1980's there has been what sociological academia perceive as an 'Impasse' which has resulted in a crisis - the old paradigms of Dependency and Modernising Theories have reached a dead end. The general consensus being that until there are new theories, development will have
Telecommunications in Latin America "The dawn of a new economy"
TELECOMMUNICATIONS IN LATIN AMERICA "THE DAWN OF A NEW ECONOMY" By Sydney Jones Tila Neto J.J. Centurion Chris John October 6, 2004 The current environment in the Latin American telecommunications market is one of perpetual change. After many years of significant investments made in infrastructure, many players are considering reducing their presence in the region due to the global economic situation. While many countries in the region have liberalized their markets (market leaders are Chile, Brazil and Mexico), there are still significant pockets of areas and market segments with restrictive competition practices as well as state-owned operator monopolies (Cost Rica, Ecuador, Honduras, and Uruguay). After many years, the region's key markets are witnessing open competition. However, in some markets this open competition is not yet a REALITY. In addition, we have seen major growth in the deployment of wireless, data and broadband services across the Latin American region. Much of the focus has been on Internet access and not content. But, there is a huge potential marketplace for the distribution of Spanish- and Portuguese-language content in many countries. It is easy to get excited about investment in Latin America in general, and in telecommunications in particular, particularly in such "hot spots" as Peru, Mexico, Chile and others, as evidenced by the hundreds of
