China Global Economic Impact

hina’s Global Economic ImpactChina offers an interestingpicture of a political and business environment. Its economic presence heavily dependson manufacturing and its inexpensive labor resources. As a result, thisdependence has led to over-investment and overcapacity in certain industrysegments such as oil, steel and cement. Also, China’s socialist banking tactichas complicated an already intense economy. As a result, the country’sveracious economic growth has sent inflationary and deflationary impacts acrossthe world by raising prices of the globally traded commodities like oil,cement, steel and other metals. China’s old growth model, driven byinfrastructure investment and driven by cheap credit, has run out of steam.China has made leaps andbounds in the economic landscape of the global economy. Changes in policiesenabled private sector and global competition that were previously monitored bythe government to pick up steam as new laws in place to increase the number ofchildren household to one plus and lastly, Xi Jinping’s (the leader of China)announcement to support a more sustainable consumer driven expansion in China(Silverstein, 2013). China’s mission inthe era of Jinping is to have a technology driven economy high in quality andproductivity performance. Their goal isto be the number one Superpower.It has taken time to rebootthe ideology of the political system which has provided optimism for economicgrowth. According to Fox (2013) China’s goal is not be a revolutionary power,yet, a revisionist power. Revisionists want more for themselves, whereas,revolutionists want to overturn the government.As of 2018, there are 120Chinese corporations on the Fortune Global 500 list. As far as brand recognition, the number isvery low. To sustain a competitiveadvantage product branding in this region is a high priority. Huaweiestablished in 1987 made its 2019 100 Best Global Brands debut, atsixty-eight. Huawei is a basic researchorganization focusing mainly on technological innovations and solutions that isfully owned by its employees.It has been an uphill road forChina to overcome the stigma of its production quality. To address a poor reputation, several areasmust be addressed: having a moreculturally diverse organization would help their leaders understand globalneeds and open channels of communication; China must shift from low quality,low value to high quality, high value; lastly, China must address countryrelated political issues including cyberespionage, xenophobia and increasedtariffs.Historically, China’s grossdomestic product (GDP) has shifted from the public sector to the privatesector. This has enabled joint ventureswhich facilitates a smoother transfer of global communication, technologicalknowledge and cultural acceptance which is needed for growth. Studies posit China’s growth is largely dueto its labor force (Yueh, 2015). China has been ahigh growth economy for over thirty years reaping a double-digit growth (Mangus. 2018). Today, the rate has slowed down to about sixpercent in the next twenty years.Issues facing China todayaccording to Mangus (2018) are: China needs toimprove its financial misbehavior over the last twenty years; China also seeksto be a more prominent player in the global monetary system; also, there is asignificant aging population and middle-income trap.Looking at China, we cansuggest that economic conditions, economic policies and the economic systemsare the significant external factors that constitutes the economic environmentof a business. The economic conditions of a country for example, the nature ofthe economy, the stage of development of the economy, economic resources, thelevel of income, the distribution of income and assets are very importantdeterminants of business strategies. Because there is no universal strategy forall industries, only those strategies that are tailored to an industry and tothe skills and assets of a firm succeed.
Discussion Questions:1.What is an economic system? What are the basicproblems of an economic system?2.What are the features of a mixed economicsystem?3.Explain the role of government in solvingproblems that arise from different economic systems.4.Define privatization and trace the history ofprivatization.5.Explain the different routes of privatization.6.Give your arguments for and againstprivatization.7.Why is China’s privatization different?8.Bring out the nature and causes forglobalization of business.9.Explain the stages involved in the economictransition of globalization.10.Evaluate the impact of globalization on China’seconomy.11.List the strategies used for globalizing abusiness.12.Natural resources are the wealth of a country’seconomy. Discuss China’s key resources.13.Evaluate China’s government policies towardsmanagement of their natural resources.14.Evaluate the impact of economic development onenvironmental issues.
Please prepare a 3000-minimum paper that includes thefollowing information. Your paper should be in APA essay format which includesa Cover Page, Abstract, Citations and a Reference Page. There should be a minimum of fivereferences. The questions listed aboveshould be answered in the essay; however, not listed. Please no bullets or lists. Please use the Game Theory to discuss China’sstrategy.
References:Fox , J. (November, 2013} TheChinese Steamroller is Already Sputtering. International Business. HarvardBusiness Review. Digital ArticleMangus, G. (2018) Red Flags: WhyXi’s China Is in Jeopardy. University Press.Silverstein, M. J. (November 2013) Ten Predictions forChina’s Economy in 2014. Economy, Harvard Business Review. Digital Article.Yueh, L. (December 2015) China’sGrowth: A Brief History. Business Economics.Harvard Business Review. DigitalArticle.