The Economy of China (Globalization Effect)
Research Essay – Lewis Carroll
The effects of globalisation on Economic growth and the quality of life in China.
China holds the second largest economy in the world, measured by Purchasing Power Parity (a technique used to determine and compare the relative value of different currencies). From the late 1970’s, the Chinese economy has become more market orientated, rather than its former closed and planned political system. This change has played a major role in the development of their economy and impact of globalisation. At present, it is the world’s fastest growing major economy. Growth rates in the Chinese economy have averaged 10% throughout the past 30 years. By utilising Chinas perfect environment for manufacturing with low minimum income levels compared to other countries, and little to no policies surrounding work place health and safety, in 2010 China became the world's largest exporter. In 2010, 19.8% of the world’s manufacturing output was produced by China, and Industry and Manufacturing account for 46.8% of China’s GDP.
Apart from the thriving Manufacturing industry, China also produces 45% of the world's steel and is the world’s third largest Automotive Manufacturer. Over recent years, China’s Urban wages have received a 13-19% increase to an average of $2472USDp.a.
The Chinese Economy has gained both benefit and been disadvantaged by globalisation trends. One advantage is China has received extensive amounts of high GDP over recent years, although it sometimes due to the over exploitation of their unbelievably cheap labour compared to other countries. China has become almost an essential to the global supply chain because of its cheap labour leading to the massive growth we have seen over recent years.
Other Positive effects of globalisation include the improvement of living standards due to higher employment and therefore larger income and contribution to the economy. The amount of employment in china has increased due to the rise in growth
The effects of globalisation on Economic growth and the quality of life in China.
China holds the second largest economy in the world, measured by Purchasing Power Parity (a technique used to determine and compare the relative value of different currencies). From the late 1970’s, the Chinese economy has become more market orientated, rather than its former closed and planned political system. This change has played a major role in the development of their economy and impact of globalisation. At present, it is the world’s fastest growing major economy. Growth rates in the Chinese economy have averaged 10% throughout the past 30 years. By utilising Chinas perfect environment for manufacturing with low minimum income levels compared to other countries, and little to no policies surrounding work place health and safety, in 2010 China became the world's largest exporter. In 2010, 19.8% of the world’s manufacturing output was produced by China, and Industry and Manufacturing account for 46.8% of China’s GDP.
Apart from the thriving Manufacturing industry, China also produces 45% of the world's steel and is the world’s third largest Automotive Manufacturer. Over recent years, China’s Urban wages have received a 13-19% increase to an average of $2472USDp.a.
The Chinese Economy has gained both benefit and been disadvantaged by globalisation trends. One advantage is China has received extensive amounts of high GDP over recent years, although it sometimes due to the over exploitation of their unbelievably cheap labour compared to other countries. China has become almost an essential to the global supply chain because of its cheap labour leading to the massive growth we have seen over recent years.
Other Positive effects of globalisation include the improvement of living standards due to higher employment and therefore larger income and contribution to the economy. The amount of employment in china has increased due to the rise in growth