Running head: SHIFTS IN WORLD ECONOMY 1

Individual Assignment 1: Shifts in World Economy

Victoria Nguyen

MGTU 400

Professor Omole

Brandman University
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Economy Turned Modern

In today’s society, the development of economics has vastly grown in our world. China is

a prime example of the complex shifts in economy through the past 30 years. There is a broad

discourse about the modern world and all of the import and export business that is between

United States, Germany, and China. China is the world’s leading export nation. Their business

with countries has expanded and proven to the world that not only is their economy rising, but

also impacting other nations to excel at the same pace. There is a false facade that is being por-

trayed. Although China is the has the highest export business, their ways of economics has been

decreasing by capitalism. There is too much power in China and this affects the people that live

there. Poverty has been instilled into their country due to the power of exporting and tariffs. Not

only has their economy become unstable for people to live there, but also challenging. Politics

also play a turning role in the downward spiral that China’s economy is experiencing. While

their business-savvy ways are flaring, the instability and difficult living conditions are becoming

more transformative with state dominance. Several factors that manifest into the China’s econ-

omy are provoking and compelling as to why the transitions for their country are becoming more

insecure.

China’s market is growing more each day with the contributions of economists and politi-

cians. This is a complex due to China’s political power that creates uncertainty in their country.

In The Chinese Economy: Introduction, Alex Bryson mentions, “Growth has been slowing, albeit

from a remarkably high rate, fueling unrest among those afraid of losing their new-found gains.

Inequality has been rising at an alarming rate” (Bryson, 2013, p. R1). There is too much social-

ism and capitalism involved that makes China incompatible with long-term growth. Bryson also

expresses, “China’s road to a market economy has been laid by sound political decision-making,
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especially at provincial, regional and city level where many of the policy experiments behind

China’s success have been devised, piloted and implemented” (Bryson, 2013, p. R1). For exam-

ple, as China expects to progressively expand, they face inflation like other countries that will

negatively impact the market economy. Their economic fundamentals are not practical; there-

fore, they will continue to compile easy trades to try and sustain the market rather than find long-

term goals that will navigate them towards a resilient economy.

Factors such as politics, socialism, capitalism, and dominance represent China in a cor-

rupted manner. There is a lack of balance that is being consumed through the power of exporting

and tariffs. The taxes that have been implemented are alarming figures that are causing environ-

mental problems. In China’s Changing Economy, Lawrence H. Leith states, “Changes have no

come without costs, such as rising income inequality between the urban and rural areas, growing

social unrest, and worsening environmental problems. Employment trends in China over the last

several decades provide further evidence of the manifold changes that have occurred since the

economic reforms began” (Leith, 2006, p. 56). Statistically in the course of 30 years, employ-

ment in China exceeds 1.3 billion which is 5 times more than United States labor force. Their

population has increasingly been sufficient in some areas, but does affect the small areas where

employment and pay decreases. These shifts in China follows with shifts in countries such as

United States and Europe. Demand for products become greater with a formidable price. The

world economy is moving in a drastic ebb and flow. There is no excelling in the economy with-

out the repercussions in the market through inadequate strategies and imbalance. For instance,

Leith also states, “To take up the slack from failing state-owned enterprises and other businesses
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shedding workers, the Chinese government has been encouraging entrepreneurship and self-em-

ployment by relaxing some of the registry requirements for starting a business and providing

training” (Leith, 2006, p. 57). At a shocking rate, China has become its own self-sufficient state.

China has a high value on the market and has increasingly continued to strive for being

the nation’s highest exporter. The modern economy has impressed their country with numbers

that are beyond what they can provide for which results in an imbalance between cities and areas

where people do business and live. In China’s Economic Development in Historical Perspective,

Samuel P. S. Ho writes, “Foreign economic activity may also have retarding effects on growth.

To balance the advantages of foreign activity against the disadvantages is far from easy as many

of the effects are difficult if not impossible to measure. There is a tendency among economists to

under-emphasize the social and political aspects of development” (Samuel, 1977, p. 461). The

lack of recognizing the downfall of the economy in China has become a greater pursuit for more

power and control. Social and political structures are leading factors in shaping China’s econom-

ical development.

While China continues to grow with more dominance in the market, their society is with-

ering to destruction, chaos, and imbalance. This essentially will only put a dent in the country

long-term. Chinese people implement many values and traits that have been carried through the

past 30 years. With the economic development, China has become more modern than any other

country in exporting goods and services. Within the past few decades, China’s power in the mar-

ket has significantly been reached, but through the process of considering a percentage of their

population and disregarding the effects on others. These factors manifest into their modern econ-

omy to construct what they are today.

References
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Bryson, A. (2013). THE CHINESE ECONOMY: INTRODUCTION. National Institute Eco-

nomic Review, (223), R1-R3. Retrieved from http://www.jstor.org/stable/43574426

Leith, L. (2006). China's changing economy. Monthly Labor Review, 129(6), 56-57. Retrieved

from http://www.jstor.org/stable/41861876

Samuel P. S. Ho. (1977). China's Economic Development in Historical Perspective. Pacific

Affairs, 50(3), 460-466. doi:10.2307/2757172