Comparison of Economic Growth in China and USA Name Institution Date Introduction 1 . What are some of the most prominent cultural differences between the chosen country and the United States? What could be the impact of these differences on business activities with each other? Historical developments and cultural affiliations of various communities often define the economy of a country. The culture is critical in dictating the traditions that led to the realization of a given economic state both in the past and at present.
A number of author have employed the cultural lenses in mistreating the growth registered by various countries have a bearing on their cultural affiliations (Feeler, 2008). A case in point is China, which has recorded a massive growth in the past decade. In contrast, United States, the country has become the global leader in the fast growing economy. Critics pointing commenting on growth and commerce use cultural perspective to evaluate the growth or economic base of the said country (Feeler, 2008). Culture tends influence aspects such as perception of the society to engage in economic development.
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Whereas the ultra lenses tend to dictate the economic prowess of a given country, factors such as politics and religious inclination go hand in hand with culture. A number of scholarships perceive culture as productive force. The interaction between culture and economic growth is not a new concept. The Chinese community for instance, has developed structures of integrating culture into its economic development agenda. Thus, culture acts as the centerpiece, which propels the fast growth of its economy.
In an attempt to relate the economic environment of China and United States, the duty focused on cultural aspects, which are instrumental in defining the growth of the two countries. Largely, the performance of any business depends on the perception of the communities involved in it. In this sense, attempt to compare the growth of the two countries; the study would focus on developmental aspects including the economic environment as shaped by the culture. Available scholarships indicate that China has been reluctant to accept the western cultures an aspect that is instrumental in defining the economic growth f the country (Feeler, 2008).
Largely, the Chinese community strongly believes in Confucianism. The culture encourages saving and investing in education. In contrast, the American culture which roots for capitalism. As a result, the wealth distribution in the two countries tends to be different. The wealth distribution in China is more even as opposed to wealth distribution in United States. In both cases, state policies tend to define investment. Arguably, the difference in the growth pattern of the two countries emanates from policies enacted by their respective governments.
The American politics tend to dieter Witt the Chinese politics in the sense that the later tend to activate a number of activities, which the public can access as opposed to the other. China for instance, has integrated its manufacturing industry to address the concerns of various economic standards of the society. The phone manufacturing companies for instance, tend to manufacture products depending on the ability of the consumers to buy (Feeler, 2008). This aspect has contributed to massive production in China as well as developing external ties with countries in Africa and Latin America.
This approach does not only create competitive ground for the Chinese products, but also enhances the ties built between China and other Mounties. The Chinese business environment is conducive for industrial investment because of a number of factors including provision of cheap labor and raw material. In most instances, factors such as taxes levied by the government influence the production costs. The Chinese government sought to take advantage of this aspect by reducing the cost of investing in China (Marcus, et. Al. 1999). In return, it has created employment opportunities for its large population.
Further, the religious inclination of the Chinese community enables them to work for long hours. Excerpts from phone manufacturing companies in China indicates that employees of this firm tend to work for very long hours an aspect that is critical in defining the number of products that the company manufactures. The government has deliberately allowed such production pattern to occur. 2. What are the most critical drivers or engines of growth in this country? Some sources indicate that Chinese economic stimulus program has been instrumental in steering its growth.
During the financial crisis in 2008-2009, the country focused its economic development plan in increasing access to affordable housing while at the same time lifting the restrictions for mortgage Doing Business 2013). The shift in the interest of the country cushioned it from the reverberation of the economic slump that nearly affected all countries. Unlike the United States that grappled to save its face from the crisis, the Chinese government has continued to lower the taxes on both sales and acquisition of real estate. The Chinese government has directed a lot funds in infrastructure development.
The country has sought to modernize its railroad, ports, telecommunication, and roads in a bid to prepare the country not only for the investors, but also for better service delivery. Arguably, these developments have been instrumental in influencing the economic base in the country. The recent developments in the country believed to fueling the economic development in the country is the Chinese contribution in the international community. China has often voted against controversial policies, an aspect that makes it a desirable destination for international investment. 3.
Ease of doing business in the world A review of ease of doing business indicates that China was among the 108 countries that implemented 201 regulatory reforms in 2011/12. These reforms have made the entry to be third place after Singapore and Hong Kong respectively. The following table illustrates the top ten countries in the ranking. Country Rank Singapore 1 Hong Kong 2 Chinas New Zealand 4 Denmark 6 Georgia 7 4. What is the current political system in the country? Have some major political changes taken place in the recently which has made a dramatic impact on the nation’s economy?
Does the current political system help or hinder the economic development in that country? Do you foresee any political system changes in the future? Politics and economic development are integral factors. The Chinese politics has been instrumental in fueling the economic development of this country. The political system has limited the western culture an aspect that has direct influence on the country economy. The political system restricts the democratic space for her citizens. Arguably, this restriction has been beneficial to the country because many people tend to strive towards building their lives.
Additionally, a number of political changes such as accommodation of the capitalistic view have led to more than surplus production. Instead, the country political system is in support of commercial production. In the recent past, the country voted a new president; however, his government has upheld the previous development policies. The succession politics often improve or destroy development agenda of the previous regimes. In the Chinese case, the new regime seems to be part of the previous regime because it has not introduced new policies that seem to threaten the economic development progress.
The country current political system has been instrumental in influencing international ties. Largely, the country has sought to invest in developing countries in Africa. Such investment depends on the political ties between the country and the Chinese government. Presently, China is not only conducting oil exploration in various continents, but also the major developmental partner in these countries. The country move to seek international investment opportunities has enlarged the economic base of the country in the past decade.
Arguably, economists have projected Chinese massive growth if it will continue with its political agenda. Additionally, the country has been reluctant in engaging in military operations in the international scene. Although the Chinese political system has been adamant to admit or increase the lattice democratic space, I believe it might register political changes in the future. In the past, the country had restricted a number of western cultures, but the youth revolution forced the government to change its stand on the same.
Arguing from this point, the country might change its strict political stand in the next two decades. However, that might not affect the strides it has made in economic development. 5. What are the most current economic indicators for the assigned country that clearly demonstrate that whether or not this country is on a consistent growth path and that his will play an important role in the 21st century world economy? A review on the country latest economic development record shows that China is consistent in its growth path.
The World Bank Economic growth report for instance, project that the China is the leading fast growing economy (Doing Business 2013). This revelation borders on the fact that China has been able to expand its economic base by developing infrastructure, building new economic ties with the developing countries, as well as promoting policies that allow investors to throng into the country. According the World Bank Report on economic development, China is the second arrest economy after the United States (Doing Business 2013).
This development tends to indicate that the country would probably overtake its key rival, United States if it upholds it development agenda. The political atmosphere in the country seems to be supporting such growth. 6. Any recommendations you would make for creating greater international business success between the target country and the United States. Chinese international policy seems to be instrumental in influencing its economic agenda in the international scene. Arguably, by developing accommodative structures the country would be better place.
I recommend that the country should develop tenable structures that will advance its international agenda. The corporation in the international scale defines the market of the finished goods and the source of raw materials for the industries. China can use its natural endowment to expand its economic base owing to the fact that the country cheap labor which is a vital resource in industrial development. On the other hand, United States can borrow from Chinese industrial policies in building or opening new grounds for the investors. The costs associated with production often dictate the choice of production action.
In the past two decades, many investors have sought to invest in China because of the business environment. Similarly, United States may choose to borrow this idea or create policies that will encourage investors to invest in the United States. United States should also consider its tax policy if it intends to influence investors. Finally, both countries should enhance their international investment by developing products suitable for the economic conditions of the targeted country. References Feeler, A. (2008). Role of culture in economic development: Case study of China and
Latin America. Retrieved on 10 July perform http://clamorousness. USAF. Du/CGI/ Marcus, G. Et. Al. (1999). China and long- range Asia energy security: an analysis of the political, economic, and technological factors shaping Asian energy markets. Retrieved on 10 July perform http:// www. Abstractionist. Org/publications/social-cultural-and-religious-factors-influencing- Chinas-energy-supply Doing Business 2013. Smarter Regulations for Small and Medium-Size Enterprises. Retrieved on 10 July perform http:// www. Domineeringness. Org/reports/global-reports/doing-business-2013