Globalization Impact: A Case-Study of an Individual Country
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OUTLINE
Outline of the effects of globalization on China.
I. Place of China within the global community.
A. Launched solid economic reforms that would allow country to transform and earn an advanced place in the global community
B. Lifted over 50 million of its citizens out of poverty
C. Second largest economy and is an export superpower
II. Historical context, descriptive and demographic information.
A. Located in East Asia
1. Vast landscape covering more than 14,000 km of coastline, water bodies, mountains, desert and grassland
B. As of 2016- 1.379 billion people with a population growth rate of 0.5 percent
C. The GNI per capita is 15, 5000 PPP dollars
D. Not an economic powerhouse until about three decades ago
E. The prosperity of the economy was significant to the longevity of the Chinese Empire throughout the preindustrial era
1. Prior to the 18th century, the economy of China shared some features like sophisticated markets and productive agriculture only found in Europe
III. Dimensions of globalization (economic, political, and cultural forces).
A. Benefits and costs of foreign investments.
1. Foreign investments have increased in China, foreign investments have their benefits and costs
2. Economic development stimulation
a) FDI has stimulated the economic development of China, creating conducive business environments for investors and promotes the local industry.
3. International trade
4. Economic boost and provision of employment since foreign investments increases opportunities.
5. Development of human capital resources
6. Tax incentives
7. Reduced disparity between revenues and costs
8. Increased productivity.
B. Costs
1. Hindrance to domestic investment
2. FDI has hindered the growth of local industries
3. Risk from political changes
4. Negative influence on exchange rates
5. Modern-day economic colonialism
6. Expropriation
C. Effect of civil society
1. Promoted structure in China
2. Championing civil societies as a way of overcoming exploitation in the free market economy and domination in government
3. Foreign investments
D. Global impact upon the culture.
1. Attracted various people from different cultural backgrounds in to the country.
2. When cultural exchange takes place, there is usually erosion of culture caused by relationships and associations between populations.
IV. Impact of globalization on China.
Globalization has had both positive and negative impacts on China.
A. Economic development.
1. Improvement of volume of trade between China and the rest of the world
2. Investments and capital has flowed in and out of the country, which has encouraged economic development
3. Second-largest economy to the United States because of globalization and robust reforms.
B. Exploitation.
1. Cheap labor
2. Relocation of companies from the West for manufacturing firms and operations
C. Urbanization.
1. Many industries have begun due to increased investments.
2. Raised living standards
3. Triggered by search for employment and business opportunities
D. Technological development.
1. Developed ties with Western countries and has become a key exporter of technology
E. Cultural exchange.
1. China has opened its doors for people from different cultural backgrounds.
V. Key macro-actions to improve the quality of life.
A. Better healthcare
B. Employment opportunities
C. Creation of conducive business environment
Annotated Bibliography
Agrawal, G., & Khan, M. A. (2011). Impact of FDI on GDP: A comparative study of China and India. International Journal of Business and Management, 6(10), 71.
In this journal, Agrawal and Khan (2011) explores the Foreign Direct Investment (FDI) and its’ on the Gross Domestic Product drawing comparisons from China and India. According to the two business scholars, the economic growth and development of China has been aided by FDI. The journal explores how FDI has contributed largely to costless capital and technology in China which has spurred exponential economic growth. Globalization has opened access to marketing networks and global production, as an impact of FDI.
Breznitz, D., & Murphree, M. (2011). Run of the red queen: Government, innovation, globalization, and economic growth in China. Yale University Press.
Three factors have impacted the economic growth in China: government, innovation, and globalization. The economic growth of China has been promoted largely by globalization and government policies. When the Chinese government decided to open its market and economy for foreign investment, many multinationals have increased their presence in China opening the doors of employment, improved human resource, innovation, and more manufacturing.
Han, J., Liu, R., & Zhang, J. (2012). Globalization and wage inequality: Evidence from urban China. Journal of international Economics, 87(2), 288-297.
Globalization influences wage inequality. This article makes use of Chinese Urban Household Survey information between 1988 and 2008. The article determines whether areas that face globalization have larger changes in wage inequality than those that do not face globalization. This article established that the accession of WTO was largely associated with increasing wage inequality. This article is significant to the topic since it explains one of the negative impacts of globalization on China- that of wage inequality.
Luo, Y., Xue, Q., & Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of world business, 45(1), 68-79.
According to this article, Outward Foreign Direct Investment, or OFDI, is in up and coming market enterprise that has become common in the current business environment. From the perspective of political economy, the authors elucidate how and why emerging market governments stimulate outward foreign direct investment from a Chinese perspective. The article is important since it presents governmental institutions that affect Chinese OFDI because of globalization.
Shambaugh, D. L. (2013). China goes global: The partial power (Vol. 111). Oxford: Oxford University Press.
This article evaluates the partial power in China’s globalization. According to the authors, China has gone global but most experts from the country in the American academic community are going domestic, they have moved in the opposite direction. Because of globalization China’s experts have increased their presence on the global stage, handling several aspects.
Wang, H., Zweig, D., & Lin, X. (2011). Returnee Entrepreneurs: Impact on China's globalization process. Journal of Contemporary China, 20(70), 413-431.
Globalization has impacted education in China. Because of globalization, China has opened its doors to international students and its students are exposed to global institutions. The study demonstrates the level and depth of brain circulations that occur. Returnee entrepreneurs present many benefits to the economy of China. Because of globalization, the country has gained deep insights in education.