The Effects Of Globalization On China Economics Essay

Globalization is the process of expanding the business into the world markets. It improves the economic growth. It includes the globalization effects to conclude the business in going global. The company entering the new market should select the market first in knowing the investment. It also shows the union of the trade cycles among the economies. Globalization keeps on raising the global phenomena figure. The countries like china benefits the new comers with the Labour costs, working environment, Resources and Customers. Going global increases the integration between the countries and the economies. China is the best option for the newcomers, as they encourage the newcomers into the market in improving the economy. During the last decade poverty is reducing regularly in china. The system in china is ruling by the communist party which rates the corruption as zero throughout the decades.

According to(), Globalization facilitates the economic development of the countries involved through increased cross border flows of trade, investment, and financial capital.

Firstly, the main positive effect of globalization on china is, the labour costs and working environment. The labour cost in china is completely low all the time when compared to the rest of world. Most of the manufacturing companies all over the world targets china because of their labour costs. The Chinese are the highly emerging economically because of the foreign investments considering the labour costs and manufacturing costs. China consists of many manufacturing countries due to the resources available and labour costs. The labour in china plays major role in the international business investments. The movement of labour from one place to other in china makes flexible to operate in different operational regions. Generally, every day the rural labours working in china crosses 20 millions.

The expansion of world trade increases regularly. The global GDP rises by 3.5 % to 8.2% on an average per year statistics. The global production sector is taking the root in the Chinese market. Integration of financial markets is one of the positive effects on the globalization of china. Before globalization, China is very poor and less job opportunities and now it increasing rapidly.

Global economy exposure from china will result in the salary cut and job loss based on the global market change. Globalization is leading to use of labours like child workers and prisoners working inhumane conditions. The culture plays the major role in china as the Chinese citizens can be more advantageous than others. The government policies for the Chinese citizens are favourable and for others it differs in starting or investing in the business. The job insecurity in the professional employees started because of the recession and also due to the competition. The globalization on china affects the people’s health in taking the food from Mc donalds and kfc restaurants. The globalization is getting beneficial for the rich to become richer and for poor becoming poorer. The pollution from the many manufacturing industries are affecting the health and causing many diseases.

2. REPORT:

INTRODUCTION:

Ducati, the Italian manufacturer recently started their business in china with Mr. Handel Lee a Chinese entrepreneur in the large scale retail trade. Ducati started the new generation in motorcycle grand prix in china.

MARKETING STRATEGIES:

The marketing strategies implemented for the Ducati entry into the Chinese market is done with three strategies. Importing bikes, accessories and spares directly from Italy and planned for opening the company outlets at Beijing and shanghai. They focussed china because of the potential growth expected. The worldwide market has proven the Ducati sales with ultimate results in selling the maximum racing bikes to the world.

The second strategy is, they launched the clothing distribution with the collaboration of ‘Three on the bund’. They have opened the exclusive store at shanghai to trade Ducati Gear. Ducati Gear is running successfully with the extra ordinary sales in the market they launched. The brand name helps in improving the market sales and strategies in creating, developing and implementing.

The third strategy is all about the racing (Grand Prix). The Italian trend is to follow the history set by the manufacturers. At present, Ducati the one and only manufacturer participated in the Moto GP and organised two riding schools in circuits. The two riding schools are located at Beijing and Shanghai where the bikes are provided to enjoy the ride in race. There is no demand for bikes in china, but for creating the new era.

3. THESIS STATEMENT:

Brief introduction:

The statement shows the positive and negative effects of globalization on china. Analysing and suggesting the way to overcome the effects of globalization on china. There are many positive and negative effects. The positive effects of globalization are to compete with the global markets of the particular product on global scale. It projects the advantage of working market place and benefits the consumers. Because of this, they may or may not do compete with the global markets. The companies also look at the market sectors in which they were better at. It means to say that the labour in china can do better in manufacturing. The labour costs are pretty low in china when compared to the other countries around. The Chinese labour preferably good at the manufacturing sector. The consumer plays the major role in the market. The labour in china may not be good at education but the way they work shows the outcomes very high.

SUGGESTIONS:

The China Market is getting improved from the recent years because of the foreign investors in the china market. It improves the economy and provides job opportunities for the unemployed in china. As well, the growth rate of manufacturing companies rises rapidly resulting in making the market stable. Recently, some of the companies are facing some of the issues with the government of china as it is communist party. The high level management employees are recruited or brought up from their parent countries without giving an opportunity to the Chinese citizens. The main suggestion is like, no issues on going global on china. There are many advantages than disadvantages in globalization of china. The negative effects are even considered accordingly but they can neutralise the effects on china as the resources can help the business in china. The positive effects increase the economic growth of the country.

4.ARTICLES:

Article 1.

Topic

Effects of globalisation on China.

Title of article

Policy variations of multinational

enterprises’ labor practices

in China

Date (current?)

2008

Name of author or organization

Kenichiro Chinen, Ruth L. Wang and Chiang Wang

Author’s credentials:

Qualifications, title, employer/affiliations

Tutors

College of Business Administration, California State University,

Sacramento, California, USA

Contents (brief summary)

Supporters of globalization highlight a major increase in the standard of living for many

workers in China while critics argue that the amazing economic growth has led to an increase in

pollution and harsh labor conditions in the country. It appears that as firms expand globally and have more overseas experience, they comply with

minimum wages, benefits, health insurance, and legal requirements in China

Is the article reliable?

Yes

Why?

It has been downloaded from emerald insight article database which is known for trusted research content and also the article points out towards more bibliographic references.

Article 2.

Topic

Effects of globalisation on China.

Title of article

How Does Globalisation Affect Regional Inequality within A Developing Country? Evidence from China

Date (current?)

Issue 4 April 2003

Name of author or organization

Xiaobo Zhang ;Kevin H. Zhang

Author’s credentials:

Qualifications, title, employer/affiliations

Researcher and Author

International Food Policy Research Institute (IFPRI)

Contents (brief summary)

This paper develops an empirical method for decomposing the contributions of two major driving forces of globalisation, foreign trade and foreign direct investment (FDI), on regional inequality and applies it to China

Is the article reliable?

yes

Why?

The author is working with the research institute and most reviewed and rated article online.

REFERENCES:

http://books.google.co.uk/books?hl=en&lr=&id=ox7137vOAhsC&oi=fnd&pg=PA103&dq=globalization+on+china&ots=i2uup8gFfL&sig=bRiYhnchNX6JLqu8iy-cDoS5CSM#v=onepage&q=globalization%20on%20china&f=false