Geography A-Level - Globalisation

Globalisation Case studies + notes

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The transformation of the Chinese economy 1

State how the economy of China has changed since 1978. Describe the strategies adopted to acheve these changes. 

Changes made to the Chinese Economy:-

1945 - 78 : Centralized control, isolated, inward looking state based on collectived agriculture and heavy industry,

1980's - 90's : More Exported orientated, iron and steel, petrochemicals, textiles, consumer goods and electronic products.

2000 - Present: Continuation of the above, but significant growth in service sector, mainly tourism and retailing to cater for a rapidly expanding affluent domestic market.

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The transformation of the Chinese economy 2

State how the economy of China has changed since 1978. Describe the strategies adopted to acheve these changes.

Strategies Adopted:- 

  • 1945 - 78: Economic policy based on a collective agriculture and the need for China to industrailse. Government strategy is to use a series of 5 year plans
     
  • 1980's - 90's: Policies become more market  orintated, foreign direct investment (FDI) from TNC's is encouraged through the setting up of 'open cities' and special economic zones (SEZ's)
  • China adopts a policy of exporting manufactured products that undercut existing prices for goods. 
  • Small scale private enterprizes are encouraged centralised control relaxed.
  • China joins the WOT in 2001 
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The transformation of the Chinese economy 3

Evaluate the impacts of rapid economic growth of the people & enviroment of China. Refer to specific locations within China to illustrate your answer.

Since China's economy grew at such a rapid rate; a dramatic increase in the income gap between rich and poor became more evident despite high GDP growth of China; such as export worth from 2001 was $266 billion but in 2006 it grew to $969 billion. 
Areas such as central and western China which are more inland suffer from serious poverty. Due to this and pull factors such as a high employment rate in the eastern sea board  cause mass migration from central and western China to the eastern sea board.
This has lead to unemployment rates in some areas found inland  to rise as people are moving away to field worl. Furthermore the consumption of energy far outstrips the production. Since the energy costs are fixed at a low price, there is no real incentives for companies to create efficient and enviromentally friendly energy poewr plants or the need to conserve power. In addition the enviroment overall is deteriorting in many areas such as soil erosion and the reduciton of arable land with serious concern about air pollution due to industries pumping out waste gases at a unpresidented rate. 
Finally the economy is driven by exports and investment rather than consumption, this means the government has no real power over the economy and external factors could  seriously affect the future of the Chinese economy as it is controlled by TNC's/  

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