Comparison of Economic Growth in China and Usa

Topics: Economic development, United States, Economics Pages: 6 (1881 words) Published: July 10, 2013
Comparison of Economic Growth in China and USA
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Introduction
1. What are some of the most prominent cultural differences between the chosen country and the United States? What could be the impact of these differences on business activities with each other? Historical developments and cultural affiliations of various communities often define the economy of a country. The culture is critical in dictating the traditions that led to the realization of a given economic state both in the past and at present. A number of author have employed the cultural lenses in demonstrating the growth registered by various countries have a bearing on their cultural affiliations (Fellner, 2008). A case in point is China, which has recorded a massive growth in the past decade. In contrast, United States, the country has become the global leader in the fast growing economy. Critics pointing commenting on growth and commerce use cultural perspective to evaluate the growth or economic base of the said country (Fellner, 2008). Culture tends influence aspects such as perception of the society to engage in economic development. Whereas the cultural lenses tend to dictate the economic prowess of a given country, factors such as politics and religious inclination go hand in hand with culture. A number of scholarships perceive culture as productive force. The interaction between culture and economic growth is not a new concept. The Chinese community for instance, has developed structures of integrating culture into its economic development agenda. Thus, culture acts as the centerpiece, which propels the fast growth of its economy. In an attempt to relate the economic environment of China and United States, the study focused on cultural aspects, which are instrumental in defining the growth of the two countries. Largely, the performance of any business depends on the perception of the communities involved in it. In this sense, attempt to compare the growth of the two countries; the study would focus on developmental aspects including the economic environment as shaped by the culture. Available scholarships indicate that China has been reluctant to accept the western cultures an aspect that is instrumental in defining the economic growth f the country (Fellner, 2008). Largely, the Chinese community strongly believes in Confucianism. The culture encourages saving and investing in education. In contrast, the American culture which roots for capitalism. As a result, the wealth distribution in the two countries tends to be different. The wealth distribution in China is more even as opposed to wealth distribution in United States. In both cases, state policies tend to define investment. Arguably, the difference in the growth pattern of the two countries emanates from policies enacted by their respective governments. The American politics tend to differ with the Chinese politics in the sense that the later tend to dictate a number of activities, which the public can access as opposed to the other. China for instance, has integrated its manufacturing industry to address the concerns of various economic standards of the society. The phone manufacturing companies for instance, tend to manufacture products depending on the ability of the consumers to buy (Fellner, 2008). This aspect has contributed to massive production in China as well as developing external ties with countries in Africa and Latin America. This approach does not only create competitive ground for the Chinese products, but also enhances the ties built between China and other countries. The Chinese business environment is conducive for industrial investment because of a number of factors including provision of cheap labor and raw material. In most instances, factors such as taxes levied by the government influence the production costs. The Chinese government sought to take advantage of this aspect by reducing the cost of investing in China (Marcus, et.al. 1999). In...

References: Fellner, A. (2008). Role of culture in economic development: Case study of China and Latin America. Retrieved on 10 July 2013from http://scholarcommons.usf.edu/cgi/viewcontent.cgi?article=1235&context=etd
Marcus, G. et.al. (1999). China and long-range Asia energy security: an analysis of the political, economic, and technological factors shaping Asian energy markets. Retrieved on 10 July 2013from http://www.bakerinstitute.org/publications/social-cultural-and-religious-factors-influencing-chinas-energy-supply
Doing Business 2013. Smarter Regulations for Small and Medium-Size Enterprises. Retrieved on 10 July 2013from http://www.doingbusiness.org/reports/global-reports/doing-business-2013
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