Made In China example essay topic

An important trend occurring in the world economy is the process of globalization. Globalisation is the progressive integration between national economies and the breaking down of barriers between trade and financial flows around the world, which will eventually lead to the emergence of a single world market. Globalisation has affected many different nations in different ways, depending on their degree of development and extent to which they are open to the flows of the world economy. China is said to be the next economic super power. Many guru economists such as Lawrence Summers predict that in the opening decades of the 21st century, china will match the US and Japanese economies. China currently ranks seventh strongest economy on a global scale.

Chinas economic success has not been confined to raw economic growth, especially with a huge trade surplus of over 40 billion according to world guide from 1998. China has an annual per capita Gross Domestic Product (GDP) of $750. China has shown amazing growth averaging 10 per cent per year and shows no slowing down because of globalization. Today China would have to be the most alluring country, ever since November 1999 when the country began talks with the US. The international community and US business sector have seen the Communist country as offering immense opportunities. With a market of more than a billion potential customers, a figure equivalent to one fifth of the world population who would disagree.

China also now has plans in joining the World Trade Organization (WTO). China has taken many steps in globalization and it has definitely impacted greatly. Over the past two decades, with many radical economic reforms, China has achieved great success. Firstly by muting all international conflicts and geopolitical ambitions, China followed the examples of other newly industrializing economies (NIEs), giving priority to industries and sectors where limited government investments would produce rapid growth. Farms were given back to the farmers and they were now free to plan production, distribution, which lead to huge increases in productivity, surplus income and output.

This new system led to surplus income being invested in the privately run town or village enterprises for light manufacturing. Young workers were now offered a contract system of employment instead of the previous lifetime assignment to a production unit. Permission to start small businesses such as restaurants and shops were now given to families and individuals. The government introduced a phased program of removing price subsidies on consumer good, which allowed the market to determine the price of goods to spur economic growth and encourage consumption.

As these reforms began to stabilize in the Chinese economy, more goods appeared in shops and wages increased for several years. Amazingly the enduring problem of unemployment and underemployment reduced because of more and more people becoming self-employed. Also China was very encouraging to foreign investment due to globalization, it announced a dramatic new openness to foreign trade, investment and borrowing. To achieve Chinas goals of reintegration with Taiwan and Hong Kong and an acceleration of outward economic development, four Special Economic Zones were established.

Three of these Sets were situated in Guangdong Province, Shenzhen, north of Hong Kong; Zhuhai, north of Portuguese enclave of Macau; and Shantou, opposite southern Taiwan. The fourth was Xiamen, which is in the southern part of Fujian Province along the Taiwan Strait. These Special Economic Zones offered a range of enticing incentives to attract foreign investors, such as exemption from taxes for a maximum of five years and permanently lower taxes, cheap land and labour and less stringent regulations. With these in place, trade grew from 10% of GNP in 1978 to 36% of GNP by 1996. In major department stores today, shoes, shirts, sweaters and toys that once carried labels saying Made in Korea or Made in Taiwan now predominantly say Made in China..