A few ideas regarding china.
(in a nutshell, this is about 5% of what you can talk about, you'll have to research much of this yourself
)
Reforms.
- under Deng Xiopeng; move to a mixed economy, allowing the price mechanism to function.
- Tax reform, Special economic zones, removal of trade barriers
-These reforms allowed the effects of globalisation to occur
Trade
- 3rd biggest exporter, Exports are greater than imports (meaning a significant Current Account Surplus)
- Composition and direction, moving from agriculture to manufacturing.
Joined WTO in 2001
Investment
- Flows of FDI.
- Many foriegn companies investing due to their low labour costs.
- The potential market is a billion people! (Growing middle class, whoes growing demands for more expensive goods are going largely unsatisfied)
Foreign Exchange
- Yuan, crawling peg to the US dollar ( Introduced in september 05)
- Is 25% undervalued, This causes a significant competitive advantage!
- US calls for the adoption of a flexible system.
- Wont happen quickly, due to their insolevent banking system.
Economic growth
-Fueled by effeciency improvments (.ie technology from foreigners, removal of protection forcing industry to become efficent to compete)
-Investment in Capital goods
-GDP growth Sustained at 9% over the last decade
Quality of life
- HDI
- Development, larger disposable income etc
- However Inequality is great, East v West. Most wealth is now concenrated on the eastern and soutehrn coastlines.
-Rural china still relies on subsitence living
