Verified Document

Economic Analysis Of Government Intervention Term Paper

CHINA'S IMPROVING ECONOMY SUSPECTED PROBLEMS

FINANCIAL OPPORTUNITIES

FOR PARTCIPATING NATIONS

CHINA'S MOST SURPRISING TURN

GDP INFORMATION

CHINA'S IMPROVING ECONOMY

China has been an independent nation since the beginning of time, specifically its financial institutions are state owned. Although under developed, and one of the slowest developing countries, China was a proud and self-sufficient country, desiring to be individual, and dependent upon no other nation. Many years of being independent have severely limited the incoming and outgoing of financial funds and support, and as a result, China has reached its lowest economic downfall in history. Last December, China agreed to sustain an agreement with the World Trade Organization, after debating over the idea for the past fifteen years. The goals of entering an agreement with the World Trade Organization, were reducing the unemployment rate, and improving the China's economy. One of the obligations on China's part was they must submit to openness of their previously closed markets, such as banking, insurance, telecommunications, and agriculture. Although the overall outcome is optimistic, they are anticipating some problems, which the China government is unsure how this will be handled. (Lardy, Nicholas, 2002)

SUSPECTED ARISING PROBLEMS

Although in some instances, employment is expected to drastically improve, in some other cases, unemployment is expected to increase. Being an underdeveloped country for so many years with little or no progress, it is unrealistic to expect positive changes to take place immediately, regardless of how extreme and beneficial the new business arrangements and developments.. At the present moment, before any progressive economic changes can be expected, China must concentrate on staying afloat. Avoiding bankruptcy and total financial collapse, is the Chinese governments immediate concern. China has lost all inside resources, and must now depend on the acceptance and willingness to trade from other nations. (Lardy, 2002)

Other nations may be reluctant to trading with China, because China has not established credibility and trustworthiness with other countries. In addition to this, China has contributed nothing to these other nations, government or financially wise, that it must now depend upon, for...

The sudden change, or reluctance to change, may cause conflict between China and the United States, Taiwan or Japan. The China government has a reputation for being corrupt and untrustworthy. Any high developing country entering into an agreement with China is considered risky. (Lardy, 2002)
There are no guarantees of China's economic growth and productive success, and investing in the international project carries no certainties. Unfortunately, at the beginning of this year, some economic draw backs concerning China's financial recovery, did occur, although this is not an overall indication of their progress or level of risks Recovery of the retail sales loss was rapidly regained. (editors of Xinhua News, 2002)

Another major impact on the recovery of China is the recent attack on the United States, which weakened an already weak economy. Although the attack on America was probably one of the greatest tragedies in history, the U.S. leaders are preventing an economic recovery. The suggestion of building a memorial out of New York's Twin Towers would greatly reduce America's financial recovery, and holding on to an incident that prolongs suffering, and enhances a negative image. In addition to this, it is giving the terrorists more power than they deserve. America's hesitation to continue with its normal business functions is inhibiting the power to help China, and which is limiting our own economic growth.

FINANCIAL OPPORTUNITIES FOR PARTICIPATING NATIONS?

Despite the anticipated problems and reluctances, China is one of the fastest growing economic countries, and would definitely be an advantage to invest in one of China's financial markets. Demand for financial support and services from China are rapidly increasing. In addition to the financial growth express of China, China will have access to all the newest and latest banking technologies, because they are just arriving into the economic market. (N. A. Xinhua News Agency, 2002)

Evidence is indicating that China will exceed all expectations and experience an immediate growth rate within the first few months of accepting the World Trade Organization Agreement, and progress even faster than this after the initial seven months. The most efficient source of stimulated economic growth is by boosting the investments of treasury bonds. China's…

Sources used in this document:
NA, DOMESTIC NEWS ITEMS FORM XINHUA, XINHUA NEWS AGENCY 04/17/2002

LARDY, NICHOLAS, THE DRAGON OUT OF PUFF, BROOKINGS INSTITUTION PRESS,

WASHINGTON DC, 2002
Cite this Document:
Copy Bibliography Citation

Related Documents

Government Economy Government Intervention in
Words: 669 Length: 2 Document Type: Discussion Chapter

Government managing of the economic using fiscal policy typically amounts to spending more, as governments rarely use fiscal policy to slow an overheated economy, preferring to rely on the more effective monetary policy tools that central banks have at their disposal. An increase in government spending provides a short-term boost to the economy. If the money is spent on investments for future growth such as transportation infrastructure and education,

Government Intervention in the Steel Industry 2002
Words: 4097 Length: 14 Document Type: Term Paper

Government Intervention in the Steel Industry The Bush administration announced the imposition of sweeping tariffs of up to 30% on steel imports to the United States for a period of 3 years in March 2002 purportedly to save the ailing steel industry from collapsing. Predictably, the action has invited particularly harsh criticism from the U.S. trade partners that have been directly affected by the tax, i.e., the European Union, Japan, and

Economic Analysis: The International Trade Market International
Words: 1291 Length: 4 Document Type: Essay

Economic Analysis: The International Trade Market International trade plays an historically large role in the growth and prosperity of countries around the globe. Similar to the benefits that open trade within a country brings to that country's respective economy, trade on the international front improves the global market economy significantly. Trade generates competition, promotes the transfer and utilization of new technology and allows countries, customers, and businesses alike to access to

Economic Analysis: Durbin Amendment As Part of
Words: 580 Length: 2 Document Type: Essay

Economic Analysis: Durbin Amendment As part of the Dodd- Frank financial regulatory overhaul passed in 2010, the Durbin Amendment was designed to "reduce costs for merchants that accept debit cards" (Sidel, R. December 8, 2011. PP. 1) by imposing a ceiling on the interchange fees which the banking service industry could charge their clients. As with most government intervention into economic activity, there is well intention to ameliorate perceived market failures,

Economic Analysis: Electronic Arts Inc. Ea in
Words: 820 Length: 2 Document Type: Essay

Economic Analysis: Electronic Arts Inc. (EA) In this text, I concern myself with Electronic Arts, Inc. (EA). In so doing, I will amongst other things describe the business, its operations, and why I chose to focus on the company in my application of economic ideas. Further, I will also analyze Electronic Art's financial health using the relevant tools of financial analysis. Electronic Arts, Inc. (EA) Electronic Arts Inc. according to Yahoo! Finance (2013)

Economic Analysis for a Company
Words: 3452 Length: 13 Document Type: Essay

The below chart illustrates the overall amounts of sales growth that have taken place between 2004 and 2009. (Financial Info 2010) This is significant, because it shows how the underlying sales of Groupe Donone will depend upon the amounts of inflation and its impact on consumer spending. As periods of price increases, will be followed by: a severe slowdown in sales. In many ways, this highlights how the company's vulnerability

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now