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China

The document discusses China's economic growth over the past thirty years, highlighting the factors of supply and demand that attract investment. It notes the challenges China faces, including labor market instability and intellectual property issues, while also comparing its situation to India's economic struggles. The document concludes with a discussion on the potential impact of increasing tariffs on US-China trade relations.

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16 views2 pages

China

The document discusses China's economic growth over the past thirty years, highlighting the factors of supply and demand that attract investment. It notes the challenges China faces, including labor market instability and intellectual property issues, while also comparing its situation to India's economic struggles. The document concludes with a discussion on the potential impact of increasing tariffs on US-China trade relations.

Uploaded by

ttopcik84
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Vova

How China Grew Rich


Part 1. 5 Economic Concepts
1. Economic failure is when a country’s economy stops working well,
leading to problems like job losses, high prices or other troubles.
2. Economic growth – an increase in a country’s economy over a period.
3. Economic forces – conditions and resources that affect the economy in
different ways, such as income levels, prices, employment, and
investments.
4. Famine – the most critical type of hunger crisis
5. Market failure – an economic situation determined by the inefficient
distribution of services and goods in the free market.

Part 2. Summary
China's economic offensive began thirty years ago. There are two
powerful forces
that attract economic investment to China: supply and demand. There are
1.4 billion people in China, and that number is increasing by 6% every year.
In terms of supply, China has many high-class workers in China, and many of
them can speak English. Chinese firms are proving to be formidable
competitors not only at home, but also abroad. There are big problems in
Japan due to higher wages than in China, but technology is getting worse
than in China. However, China's labor markets are unstable and changing
quickly. From 2000 to 2010, wages increased by 60 percent. Many firms have
had to raise workers' wages to keep them in their jobs. Higher wages will
lead to increased demand for goods produced abroad, which means not only
that China has become the largest supplier, but also that it has become a
powerful demander of other services. The impact of the Chinese economy on
demand in American markets is starting to appear a little, for example, China
is buying billions of dollars’ worth of garbage. The long-term effects of
China's growth will mean a change in the American economy - America will
become a richer country. “Voluntary exchange creates wealth.”(205) Another
giant, India, is becoming more active in southwestern China. Entering the
Indian market led to communicate with employees who know English. It was
in many respects this very movement that brought outsourcing into the
American consciousness. But India is also experiencing difficulties with
economic growth. India is suffering from huge infrastructure problems: Most
of the roads are overcrowded or in disrepair. This prevents India from
becoming a major manufacturing center. India is a democratic country, but
things are different in China. China's rich future may be dim if it fails to solve
two problems. First, there is the issue of resolving the tensions inherent in
the communist dictatorship, which is trying to use capitalism as an engine of
economic growth. Secondly, China has a problem with its cultural attitude
towards intellectual property. Copyright laws in China are much weaker than
in Western countries.

Part 3. Question
Should Donald Trump increase tariffs?
Donald Trump should increase tariffs because China has become a major
supplier because of cheap labor. It would be also good in the case of imports;
tariffs may reduce US dependence on imports. However, there are a lot of
disadvantages of increasing tariffs. For example, increase in prices for
American good. But China even buys a garbage from USA: “Voluntary
exchange creates wealth”.

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