Globalization in china: the good and the bad.

China has recently fallen into an economic slump. Because it is so involved with other countries around the world, this economic slump that China is going through is also affecting the other countries as well. The environment has also been affected negatively by globalization. There are many polluting industries, wastes, ecologically destructive practices, and air and water pollution. The reason this is happening is because people see China as a vastly growing country, corporations and companies want to move there because of the great opportunities they see to grow.

An increased amount of debt owed to China therefore works to counter the US influence in world politics in favor of China. Moreover, this has aided to keep the interest rates in the US low. This is to the advantage of the US economy though. Were the interest rates to rise, the recession of the US economy would soar uncontrollably. Therefore, the holding of a big US debt by China leads to China having huge influence over US policies; foreign relations policy and also economic policies.

We should that China have a great change in economy and abstract lots of foreign company to invest in China. However, the increasing rent, labor, pollution. That make too many companies consider that China is still a better place to invest. And now, India and Vietnam may be a next choice for them to invest. Reference: Citizen.org.

Therefore, due to textile industry’s labor-intensive property, it’s obvious that China has a comparative advantage at producing textiles. After China entering into the WTO and U.S. clearing lots of trade barriers between China and U.S, the quantities and value of textile exports from China to U.S. should show an increasing trend. Besides, China should always keep trade surplus in textile trade. C. However, the stagnation in 2008 and the slight decrease in 2009 shouldn’t be ignored. Almost simultaneously, great recession occurred in the U.S. and caused damage to U.S’s imports.

Considering the Mixed re... ... middle of paper ... ...current trade deficit. Yes there will be benefits associated with increase global competitiveness of the US products. However, there are other factors not associated with Chinese currency affecting the US global trade competitiveness. A case in point is the fact that from 2005 to 2008 when China allowed it currency to appreciate by 21%, a 30.1% rise of US trade deficit with China was still experienced. In addition by further putting pressure on China to devalue its currency, US runs a major risk of losing on capital inflows coming particularly from Chinese investors.

However evne though China has succeedd in it’s in economy and consequently assited other econmonies in doing the same China has also hindered other global econmonies in the process. For example, in 2004 China took mexico’s palce of importing factory goods to the US. China’s econmony has not always beren so great as it recently has, former leaders such as Mao Zedong may have pushed the couty toward a brighter econmonic future but actually lead a goverbment that hindered the Chinese econmony. Overall in the past 60 years ,China has experienced many changes, such as their government,political sturcutre, and leaders. China has changed to communism off and on thorguhout the years but always has had some typeof a dictator.

The North American Free Trade Agreement (NAFTA) has been a Disaster Not long ago, the global economy didn’t matter much to the average American. But the North American Free Trade Agreement (NAFTA) and Most Favored Nation status (MFN) with China taught millions of Americans that economic forces beyond our borders can powerfully affect us, helping determine whether our jobs will be moved away, or whether our wages and benefits will be lowered. One of the great crises facing American workers is “the race to the bottom” within the global economy. As a result of increased capital flow, various “free trade” agreements, and the role of international financial organizations like the International Monetary Fund, workers in the United States are increasingly being put in the position of having to “compete” with desperate Third World workers in Mexico, China, Vietnam and other countries who are forced to work for wages as low as 20 cents an hour. Clearly, Congress must make radical changes in our trade policies and our relationship to such international financial organizations as the IMF and the World Bank.

Thus, precarious situation of the Chinese economy in the world is still having a significant impact. Which accounts for the largest portion. First, it’s the instability of the job market. 1.3 billion market as well as a cheap and abundant labor has provided emergence of the Chinese economy. Because of this, many national companies leave their countries by moving factories to China, so Japan, South Korea and Taiwan as well as damage to the U.S. labor market.

It goes without saying that the economic meltdown will affect Japan’s politics dramatically differently than Malaysia’s. However, events during the last week have drawn our attention to one area of commonality: the effect of the economic crisis on the military in China and in Indonesia. These two countries are not usually lumped together; they differ in profound ways. But they share this: they have both used their military forces for three missions – protection against foreign enemies, enforcement of internal security and development of the economy. During the previous generation, the latter role became more and more important for both the Chinese and Indonesian militaries.

The one major... ... middle of paper ... ...f the Yuan increases the risk for default on non-performing loans for the country’s banking sector. China’s banking system has a significant amount of non-performing loans and although there’s been a mobilization to solve this problem, with many of the non-performing loans being exported and bought by large US investors, it is still a problem that exists to some extent. An increase in the value of the Yuan will automatically increase the value of the non-performing loans. Also, the Chinese government has massive amounts of US dollar assets, which they used to peg the Yuan. These assets will lose value in proportion with the revaluation of the Yuan.