6 Economics_Trade_QA_Cards Flashcards
What has been the average annual GDP growth rate of China since the 1978 reforms?
China’s GDP has grown at an average annual rate of 9% since the 1978 reforms.
What were the key goals of China’s ‘Double Air Lock’ trade system?
To monopolize imports and exports through 12 state-owned FTCs and maintain an inconvertible foreign exchange system.
What are Special Economic Zones (SEZs) and their role in China’s economy?
SEZs are zones with duty-free imports for export production, attracting FDI and facilitating export-led growth.
How did China’s WTO membership in 2001 impact its economy?
It led to increased exports, reduced tariffs, improved industry efficiency, and a trade surplus due to RMB appreciation.
What is the significance of Export Processing (EP) trade in China?
EP trade allows duty-free imports for export production, contributing to China’s transformation into a global manufacturing hub.
What are the economic benefits of China’s Belt and Road Initiative (BRI)?
The BRI expands export markets, promotes RMB internationalization, reduces trade friction, and enables large-scale infrastructure investments.
What are the key gains from international trade?
Trade increases output, efficiency, variety, innovation, lowers prices, and fosters economic growth.
What role does FDI play in China’s economy?
FDI boosts aggregate saving and investment, facilitates technology transfer, and enhances competition and industry upgrading.
What are the effects of tariffs and quotas on home monopolies?
Tariffs limit monopolistic pricing power, while quotas allow monopolies to exercise more control and charge higher prices.
How did infant industry protection benefit China’s automobile sector?
Tariffs and quotas incentivized joint ventures, leading to local production growth but at the cost of higher consumer prices.
How much has China’s SEZ’s grown since 1979
It has grown from 4 in 1979 to 2,543 in 2018
