China Case Study- NIC Flashcards

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1
Q

What was the GDP of China as of 2009?

A

$4.99 trillion, second to the USA

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2
Q

What is the Chinese economies growth rate?

A

Average growth rate of 10% over the last 30 years

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3
Q

China is the ________ largest trading nation in the world

A

Second

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4
Q

What has increased along with personal income in China?

A

The production of goods for the domestic market

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5
Q

What is China’s growth due to?

A

Massive investment in manufacturing-based industry and global trade expansion

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6
Q

What did 1978 mark in China?

A

The change of policy in the government, the new leader Deng Xiaoping moved towards a market orientated economy, opening China to TNCs which wanted to use the country as an export platform

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7
Q

Who did China become a competitor to after becoming an export platform for TNCs?

A

Other Asian TNCs such as South Korea

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8
Q

Initially where was FDI encouraged in China?

A

Special economic zones along the coast

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9
Q

What did China lack to make SEZ’s sufficiently attractive?

A

Legal infrastructure and knowledge of international practices

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10
Q

What happened in the early 1980s in China?

A

An expansion of the number of areas which could receive FDI, with a minimum of red tape and accompanied by significant improvements to infrastructure.

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11
Q

Where became designated for FDI in China in the early 1980s?

A

14 coastal cities (including Shanghai and Shenzhen) and three coastal regions became ‘open areas’ for foreign investment, providing tax incentives and other benefits

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12
Q

What did China become after opening up further to FDI?

A

A factory of the world

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13
Q

In 2001 China became the worlds largest recipient of FDI. How much did it receive in that year?

A

$53 billion

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14
Q

Which organisation did China enter in 2001?

A

The world trade organisation- allowing better access to global markets

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15
Q

What has China developed since becoming a member of the WTO?

A

A huge current account surplus

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16
Q

What preconditions did China posses which were key to growth?

A
  1. Cheap labour
  2. A stable political system
  3. Increasingly skilled and educated workforce
17
Q

China’s production costs are extremely low. How low are they compared to Japan’s?

A

10% of the Japanese equivalent

18
Q

What did China invest in? (Related to growth)

A

High technology

19
Q

Name 3 industries key to China’s growth

A
  1. The energy industry
  2. The manufacturing industry
  3. The service sector
20
Q

What are some characteristics of China’s energy industry?

A
  1. It has grown dramatically since 1980
  2. 80% is from fossil fuels
  3. Rich energy potential but the developed sources are inefficient and cause pollution
21
Q

What are some characteristics of China’s manufacturing industry

A
  1. The petrochemical industry has grown rapidly since 2000
  2. Machinery and electrical products are China’s leading exports
  3. China is the worlds leading manufacturer of chemical fertilisers, cement and steel
  4. Steel industry is important to all industrialising countries, China is no different. Steel was very small scale but it is now concentrated e.g. around Anshan
  5. China is one of the worlds leading producers of nitrogenous fertilisers
  6. Motor industry- shown most clearly how China’s economy has changed
  7. Consumer goods: main emphasis on textiles and clothing- major parts of China’s exports
22
Q

Facts about China’s service sector

A
  1. Ranks 7th in the world and will continue to expand
  2. GDP per capita is still low compared to MEDCs, agriculture still employs a large workforce
  3. Since economic reforms in the 1980s retail trade has expanded quickly. Urban areas have shopping malls, retail shops, restaurant chains and hotels
  4. Tourism. Biggest boost to this industry came after the 2008 olympics. Forecast to be top the worlds tourist industry by 2020
23
Q

With regards to the income gap in China there are millions of people who live on less than $1 per day. How many did this number fall by from 1990-99?

A

150 million

24
Q

Where are the poorest areas in China and what does this lead to?

A

The rural, landlocked areas in the centre of the country. This leads to huge rural-urban migration.

25
Q

What has grown in some areas leading to out migration? (China)

A

Unemployment

26
Q

What has deteriorated in China leading to global concerns?

A

The environment

27
Q

What has soil erosion led to in China?

A

Large losses of arable land

28
Q

What type of pollution is a danger especially in China?

A

Air pollution

29
Q

What was the Chinese economy driven by (not good)?

A

Economy was driven by exports and investment rather than by consumption

30
Q

What are some of the concerns to outside observers of China?

A
  1. Internet censorship
  2. Suppression of religions theatre not officially sanctioned, especially evangelical Christianity
  3. Lack of minority rights, especially Tibet and the western provinces where there is a large Muslim population
  4. Strict limits on freedom of speech and freedom to publish dissenting views