Case Study: China, the new Economic Giant

Background Information:

• In 30 years China has gone from being an agricultural economy to a strong manufacturing economy. 
• The Percentage of China's GDP that came from agriculture fell from 30% to <15% between 1978 and 2004.
• Number of products produced has increased rapidly e.g. 1978 China sold 4000 TVs. 2004 China sold 75 million TVs.
• China manufacture a large range of goods e.g. computers, clothes and furniture.
• Many TNC's have factories in China e.g. Nike and Disney.

Reasons for growth in Manufacturing in China:

• Cheap Labour - There is no single minimum wage in China; it differs from province to province. e.g. in Shenzhen the mini. wage is $180/month, whereas in Beijing it is $140/month.  in the Uk…