chinese present 1

8/14/2019 Chinese Present 1

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Honors Observation OfHonors Observation Of

The Chinese EconomThe Chinese EconomMyths, misconceptions, and rumorsMyths, misconceptions, and rumors..


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Myths about businessMyths about business

Many westerners view China as an economicthreat. In 2006 China had overtaken the United States

to become the worlds largest exporter ofinformation and communications-technologygoods.

Westerners have a tendency to fear out-

sourcing because it is believed that it will lowertheir standard of living. In some circumstancesthe search for more productive efficiency hascaused fluctuations in equity.


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Myths about businessMyths about business

How does increased trade withChina help everyone?

As the utilization of the Chinese production

sector advantages increase, the welfare of thesociety increases. This allows new opportunityfor western firms to reach new markets forthose goods that the firms specialize in.


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Myths About BusinessMyths About Business

Does Chinas increasing presencein the world market threaten U.S.

Businesses? Over 60% of exports from China, are made

by Foreign invested Companies.

China specializes in the production ofcheap, high-volume goods, but because ofthe increased welfare of the society, themarket for high quality goods is now


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A few more notesA few more notes

China is a leading manufacturer in processingtrade, consisting of over 45% of their exports. Processing trade is when foreign producers send

materials typically high tech components, into

another country for the labor intensive portion offinal production.

Concerns over health and safety issues has leadto more regulation over whole process goodsexported from China such as toys, clothing, andfood. The Chinese govt takes these concerns very

seriously, and has recently executed the formerhead of the Chinese Food and Drug Administrationfor taking bribes from drug companies.

Whole rocess oods are those oods roduced


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China and the u.s.China and the u.s.

Gross domestic product is the standardmeasurement of the overall market value ofall final goods and services produced within a

country in a given period of time.

U.S. GDP in 2007 was 13.84 trillion dollars

Labor force is around 155.2 million people

Unemployment is currently 7.2 %

GDP per capita (2007) is 45,725 dollars

Average median household income is 50,233dollars


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China and the U.S.China and the U.S.

China GDP in 2007 was 3.251 trillion

Labor force is around 800.7 million

Unemployment is 4% but may not reflect rural

areas. GDP per capita is 5,400 dollars

Annual family income possibly around 6,000dollars but no substantial sources were found.

The U.S. has almost 8.5 times the domesticproductivity in market value than China per


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They took our jobs!They took our jobs!

Many western workers in the manufacturing sectorbelieve the use of outsourcing was the directcause of their unemployment, and governmentpolicy has been shaped based on the protection of

domestic sectors. At the same time China facedmillions of job losses due to the restructuring ofState-Owned enterprises.

The recent economic recession is not limited tothe U.S. but can be greatly felt by our Economiccodependent partner China.A video on the effects on the Chinese economy

Based on Liberal economic principles, argued forby economic front-runners Adam Smith and DavidRicardo, specialization, competition, and free
http://video.google.com/videosearch?q=Chinese%20Economy%20video&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&sa=N&tab=wvhttp://video.google.com/videosearch?q=Chinese%20Economy%20video&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&sa=N&tab=wv


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Why trade with china isWhy trade with china is

Consider Wal-Mart the largest corporation inthe world. They offer consumers prices thatare incredibly low, simply because they

pressure producers to uphold their sloganeveryday low prices, increasing efficiencyand focus. This approach increases consumersurplus. Wal-Mart in 2002 purchased over 12billion dollars in Chinese imports. This

consists of close to 10% of all Chinese exportsto the U.S. This consumer surplus is argued tobenefit the poorest of the population becauseit reatl increases their urchasin ower.


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Not everyone agreesNot everyone agrees

Certain advocacy groups are actively combatingthe Chinese-Wal-Mart system

http://www.youtube.com/watch?v=Nx2ltoqyrEw

http://www.youtube.com/watch?v=xEzm27Xjmmg

On the other hand Wal-Mart helps economies grow

http://video.google.com/videoplay?docid=73333864
http://www.youtube.com/watch?v=Nx2ltoqyrEwhttp://www.youtube.com/watch?v=xEzm27Xjmmghttp://video.google.com/videoplay?docid=73333864271388292&ei=Bw5-ScPtMoS4-QHTs-i2BQ&q=walmart+and+chinahttp://video.google.com/videoplay?docid=73333864271388292&ei=Bw5-ScPtMoS4-QHTs-i2BQ&q=walmart+and+chinahttp://www.youtube.com/watch?v=xEzm27Xjmmghttp://www.youtube.com/watch?v=Nx2ltoqyrEw


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One ChinaOne China

Many westerners fail to realize that the Chinamainland is a composition of many differentareas with regional and local differences and

is said to have over 200 languages andcountless dialects. It has various differentclimates, foods, and lifestyles. Thesedifferences are as diverse as what is seen inEurope.


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ChinaChina


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DefinitionsDefinitions

Purchasing Power is the number ofgoods/services that can be purchased with aunit of currency.

Consumer surplus is the amount a buyer iswilling to pay for a good minus the amountthe buyer actually pays for it

Labor Force is the total number of workers,including both the employed and theunemployed


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One last noteOne last note

It is good to note that the economic growththat China has experienced in recent timesshould not be viewed as an emergence of the

Chinese in the overall share of the World GDP.Less than 200 years ago the Chinese heldover 30% of the total World GDP.

According to The Economist, a popular

periodical, during the 1820s China held 33%of the worlds productivity.


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Want more infoWant more info

U.S. Census Bureauhttp://www.census.gov/

Boyden Report (business periodical on western myths of China)http://www.boyden.com/media/96/the_boyden_report_china_/in

Los Angeles Times article (Chinese myths)

http://www.howardwfrench.com/archives/2005/05/29/examining_

Great video on the Great Wall of China

http://video.google.com/videoplay?docid=716276781228267206
http://www.census.gov/http://www.boyden.com/media/96/the_boyden_report_china_/index.htmlhttp://www.howardwfrench.com/archives/2005/05/29/examining_the_myths_the_china_outsiders_dont_know_beyond_cocktail_party_wisdom_about_1_billion_neighbors/http://video.google.com/videoplay?docid=7162767812282672062&ei=Xwd-SYq3Co3m-AGVx8m1BQ&q=great+wall+videohttp://video.google.com/videoplay?docid=7162767812282672062&ei=Xwd-SYq3Co3m-AGVx8m1BQ&q=great+wall+videohttp://www.howardwfrench.com/archives/2005/05/29/examining_the_myths_the_china_outsiders_dont_know_beyond_cocktail_party_wisdom_about_1_billion_neighbors/http://www.boyden.com/media/96/the_boyden_report_china_/index.htmlhttp://www.census.gov/

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