HSC Economics: Globalisation- China Essay
Analyse the impact of Globalisation on an economy other than Australia.
Chosen Economy- China
Globalisation is the growing interdependence of the world’s people and world trade. It involves shrinking space and time and breaking down borders in order to allow people access to new technology, markets, tools and organisations such as the WTO.
Globalisation impacts positively on China’s economy by increasing trade and
GDP, encouraging foreign investment from Transnational Corporations
(TNC’s) and national economies, providing extra opportunities in the labour market and exposure to global markets, and in the case of China, lifting 400 million people out of poverty between 1978 and the present day. Adult illiteracy rates have also fallen in China from 37% to 5% between this time, and infant mortality rates from 41 per 1000 births to 32. However, these positives come at some cost. Negatives such as environmental damage influence the sustainability of growth in China, which is nearing its peak. Other negatives include short-term inequalities in the distribution of income and added competition for domestic producers from foreign competitors. These positive and negative impacts need to be identified and managed, and this is where international treaties and organisations, as well as governments, intervene to ensure that development strategies provide maximum benefit for an economy with minimal negative impact.
Thanks to Globalisation, between 1990 and 2000, the number of people living on less than one US dollar per day in China fell by 170 million. During this time, the population grew by 125 million. However, 135 million people still live on less than one US dollar per day, mostly due to their geographical position within China making it hard for industry to develop. This shows the limit of the positive impact that Globalisation can have on an economy like China without
Government intervention to spread growth to these inconvenient areas. The
Chosen Economy- China
Globalisation is the growing interdependence of the world’s people and world trade. It involves shrinking space and time and breaking down borders in order to allow people access to new technology, markets, tools and organisations such as the WTO.
Globalisation impacts positively on China’s economy by increasing trade and
GDP, encouraging foreign investment from Transnational Corporations
(TNC’s) and national economies, providing extra opportunities in the labour market and exposure to global markets, and in the case of China, lifting 400 million people out of poverty between 1978 and the present day. Adult illiteracy rates have also fallen in China from 37% to 5% between this time, and infant mortality rates from 41 per 1000 births to 32. However, these positives come at some cost. Negatives such as environmental damage influence the sustainability of growth in China, which is nearing its peak. Other negatives include short-term inequalities in the distribution of income and added competition for domestic producers from foreign competitors. These positive and negative impacts need to be identified and managed, and this is where international treaties and organisations, as well as governments, intervene to ensure that development strategies provide maximum benefit for an economy with minimal negative impact.
Thanks to Globalisation, between 1990 and 2000, the number of people living on less than one US dollar per day in China fell by 170 million. During this time, the population grew by 125 million. However, 135 million people still live on less than one US dollar per day, mostly due to their geographical position within China making it hard for industry to develop. This shows the limit of the positive impact that Globalisation can have on an economy like China without
Government intervention to spread growth to these inconvenient areas. The