Country Case Studies: China & Russia

Question 1

RUSSIA: GDP (2021-23)

Answer 1

2021: $1,836
2022: $2,244
2023: $1,836 (ukraine war = decrease)

Question 1

RUSSIA: Exports

Answer 1

• largest natural resource value worldwide
• dependent on the energy industry (partially state controlled)
• mineral products occupy 56% of total exports
• energy import bans imposed due to ukraine war

Question 2

RUSSIA: HDI

Answer 2

2021: 0.822

Question 3

RUSSIA: Unemployment

Answer 3

29% monthly rate

Question 4

RUSSIA: average monthly nominal wage

Answer 4

57.2k RUB = $621

Question 5

RUSSIA: weaknesses

Answer 5

• exchange rate of the ruble
• inflation (7% - 17% due to the war)
• capital flight
• population decline

Question 6

CHINA: trade

Answer 6

• attracts massive amounts of FDI
• member of the WTO
• strained trading partners because of the trade surplus and piracy of goods
• main exports = manufactured goods
• cheap labour
• largest investor in Africa
• Japan’s main trading partner

Question 7

CHINA: exchange rate & currency

Answer 7

• trade surplus = raise value of renminbi
• would make exports more expensive
• instead beijin eased restrictions on trading in the renminbi

Question 8

CHINA: inequality

Answer 8

• economic disparity between urban and rural citizens
• income rise for those in cities is greater than those in the countryside

Question 9

CHINA: pollution

Answer 9

• poor environmental policy
• largest oil consumer after the US
• invested in hydro-power
• reducing pollution = increasing costs
• effects on state owned and political vs private and competitive
• reduced demand for labour
• worlds greatest emitter of green house gas

Question 10

CHINA: corruption

Answer 10

• officals smuggled $120 bn since mid 1990
• resentment

Question 11

CHINA: standard of living

Answer 11

• increasing population = needs to feed 21% of the worlds population with only 9% of cultivated land
• china tourism = 3rd biggest spenders
• 200 mill don’t have access to safe water
• 5000 mill live on less than $2 a day

Question 12

CHINA: growth

Answer 12

• rate of growth slowing?

Question 13

CHINA: foreign aid

Answer 13

• more prominent in aid relationships
• Africa = source of energy and raw materials
• FDI into African continent
• domestic politics controversies

Question 14

RUSSIA: strengths

Answer 14

• human capital
• taxation policy
• high economic growth rates
• judiciary, law-enforcement and administrative institutions
• ## affluence of oil & gas