Income and Wealth Distribution Essay

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Globalisation refers to the process of increased integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity. Globalisation has been integrated into the Australian economy; it has embraced the global economy and pursued policies to integrate its economy with those of its region and around the world. China is now moving from a planned economy to an increasingly market base economy now being the world’s third largest economy with increasing globalisation. Strategies such as the open door policy, trade policy, microeconomic policies, welfare and the environment policy and the macro policies have directed China into becoming more Globalised; recent high growth performance has led to a rapid economic development.

The Open door policy is a statement that reaffirmed the principle that all countries should have equal access to any Chinese port open to trade. In China it was adopted towards foreign trade and investment, with Special Economic Zones (SEZ’s) established in the southern and eastern coastal provinces of China. These zones attracted foreign investment and enterprises through a range of incentives. Trade in exports and important grew from 10% of GDP in 1978 to 36% in 1996. For China the importance of foreign capital lay in trade and access to overseas markets transfers of Western technology, and the receipt of management and marketing skills from MNC’s. China has introduced a ‘One child policy’ in order to sustain China’s population growth and improve China’s economic performance. In order to achieve growth in GDP, it must be greater than the population therefore they have to reduce the population to achieve this. Agricultural reforms between 1978 and 1994 involved the abandonment of the commune system and its replacement of the Household Responsibility System. This new system led to dramatic increases in food production and surplus income was invested in privately...
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