BBB4MI – Chimerica Assignment
1. Read the article on “Chimerica” on p120-121 in the text.
2. What is meant by Chimerica? Explain its origin.
Chimerica is a neologism and portmanteau coined by Niall Ferguson and Moritz Schularick describing the symbiotic relationship between China and the United States, with incidental reference to the legendary chimera. In March 2010, anticipating the risk of tensions between the two nations escalating into a currency war, Ferguson published a paper forecasting that Chimerica would soon unravel.
3. What are SEZs? Explain.
SEZs are designated areas in countries that possess special economic regulations that are different from other areas in the same country. These regulations tend to contain measures that are conducive to foreign direct investment. Conducting business in a SEZ usually means that a company will receive tax incentives and the opportunity to pay lower tariffs.
4. Summarize “The View from China” and “The View from America”.
Over 200 million Chinese farmers have left their jobs over the last 30 years and moved to middle class jobs in the new SEZs. Really good at encouraging foreign investment.
It’s good for workers because they can earn more money this way. America:
Not so good – collapse of major US financial institutions
People lose their jobs because of outsourcing
5. What has been the price of China’s economic miracle? i.e. What issues have been created? They don’t have the infrastructure to support the millions moving into the cities which causes social unrest. China will not receive the same revenue caused by global demand decreasing Excess of American Cash
6. Do a search for 3 or 4 Chimerica news articles and make a short summary of what you find in each article. Try to find some recent articles as well as some from 2006 and 2007 when this term first originated.
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