Economic Analysis Assignment Help On Economic Growth

Economic Analysis Assignment Help On Economic Growth Growth in Output Per Capita and In Population Growth

The growth in output per capita in China during the period of 2010 to 2012 is 9.8, 8.9 and 7.6 respectively. These rates show that there is a slowdown in the output per capita. On the other hand our economics case analysis assignment help experts say that, the population growth rate in China during the period of 2010 to 2012 is 0.49, 0.49 and 0.48 respectively. It shows that the population growth rate of China is constant in the year 2010 and 2011 and decreased to 0.01 points in the year 2012 (Index Mundi. 2011).

Quality and quantity of China’s Labor Force and Inputs of Production The quality of the labor force in China depends on education and training, physique and health. There is also an increase in the standard of living, because of reduction in family size. Better health has raised productivity by a reduction in absenteeism (Lu, 2009). The size of a China’s labor force within a given total population depends on proportion of the total population. For example, activity rate for the male is higher than female in China from the last years. Country has increased production potential and country is reducing the cost through the production (Spielman & Lorch, 2012).

China’s Economy In 1978, China was largely a closed economy, with a trade-to-GDP ratio of 9 percent. But, currently the economy of China is considered as an open economy. It is because now China is conducting several business activities outside the economies. For example, the country is continuously importing and exporting products as well as services from outside the country. It means China is conducting trade with outside regions (Keating, 2004). In this way, the county has strong business or trading relations with other countries or with the rest of the world. On the other hand, it should also be noted down that the economic activities of the China also affect the outside world and the economic activities of the other countries (Gitman & McDaniel, 2008).

Competitive Advantages for China According to the business analysis assignment helper, China has several competitive advantages. For example, labor-intensive and skill-intensive industries in China’s are comparative advantage for the country. Additionally, the compensation costs are relatively low as compared to USA (Spielman & Lorch, 2012). China’s dominant role in the export of many labor-intensive manufactured goods surely reflects its combination of relatively abundant labor and relatively high manufacturing competence. In addition, the fast economic growth, large FDI in flow, strong export and increases in the not-state sectors are other competitive advantages of China. These trends and competitive advantages reflect that the country is strongly involved in the local and global trade (Keating, 2004).

Type of Economy China is one of the fast developing countries that use command or central planned economy, because all the decisions regarding the production, infrastructure and investment are formulated by central authority and government of China. In this economy, the central government of China has a strong control on the production and investment activities (Lu, 2009). Additionally our assignment help experts says that, the government of China allocates all resources according to the central plan and use the nation’s capital, labor and natural resources in the most effective manner. It is also founded that in China, the government creates a central economic plan for all sectors and regions of the country for the social welfare (Gitman & McDaniel, 2008).

Balance Of Payments According to the State Administration of Foreign Exchange (SAFE) of China, currently, the balance of payments of the country shows that the capital and financial account has turned negative in the second quarter of 2012. It means the capital as well as financial accounts has turned negative (Goldstein & Lardy, 2009). On the other hand, the sum of current account and capital & financial account has turned negative, which necessitated a positive number for the reserve account. A positive number for the reserve account means that China is selling off reserve assets which mean foreign exchange reserve. This is the first balance of payments deficit since 1998. But, from the last two year, the shape of BOP was good (Klein & Ichimura, 2000).

Foreign Exchange Overvalued or Undervalued China’s foreign exchange is overvalued not undervalued, because country’s consumer prices have risen by 68.8 percent, when the government brought in a single Yuan currency. On the other hand, China operated a separate system of Yuan specifically for foreign exchange and use by foreigners (Hufbauer, Wong & Sheth, 2006). Over the same time, China’s inexpensive exports helped to hold down inflationary pressures in the United States. Central Bank of the Republic of China (Taiwan) is the central bank of the country that has intervened in the foreign exchange market on behalf of the country’s currency valuation. For example, Central bank intervention is making Taiwan’s dollar one of the most stable currencies in Asia, giving the island’s exporters an edge over regional rivals as U.S. monetary easing weighs on the greenback (Zhang, 2004).

Trade Agreement Yes, China is also benefited from different trade agreements such as: free trade agreement with the US and WTO trade organization. With the help of these trade agreements, the Chinese companies are taking the competitive advantages by reducing custom duties that are accessed on goods when they are imported in to country (Katada & Solis, 2008). These trade agreements also reduced landed costs. Through this, China is continuously improving market accesses, competitiveness and profitability. In this way, with the help of these trade agreements, China is expanding the variety of products for purchase by consumers and business and encouraging investment and more rapid economic growth (Chauffour & Maur, 2011). From the above information, it is identified by case study assignment experts that from the last three years, the growth rate of the country is decreasing due to reduction in the industrial production and lower export. Additionally, micro-economic policies adopted by the country are also increasing the production level and maximizing the growth of the country effectively. So, with the help of these policies, China would achieve higher growth. References Chauffour, J. & Maur, J. (2011). Preferential Trade Agreement Policies for Development: A Handbook. USA: World Bank Publications. Gitman, L.J. & McDaniel, C. (2008). The Future of Business: The Essentials. USA: Cengage Learning. Hufbauer, G.C., Wong, Y. & Sheth, K. (2006). United States-China Trade Disputes. USA: Peterson Institute. Index Mundi. (2011). Historical Data Graphs per Year. Retrieved from: Issue 112 of Essays in Public Policy. USA: Hoover Press. Katada, S.N. & Solis, M. (2008). Cross Regional Trade Agreements: Understanding Permeated Regionalism in East Asia. Germany: Springer. Keating, M. (2004). Who Rules? How Government Retains Control of a Privatized Economy. USA: Federation Press. Klein, L.R. & Ichimura, S.I. (2000). Econometric Modeling of China. USA: World Scientific. Goldstein, M. & Lardy, N.R. (2009). The Future of China’s Exchange Rate Policy. USA: Peterson Institute. Lu, X. (2009). China’s Capacity to Manage Infectious Diseases: Global Implications : a Report of the Freeman Chair in China Studies. USA: CSIS. Spielman, D.J. & Lorch, R.P. (2012). Proven Successes in Agricultural Development: A Technical Compendium to Millions Fed 2010. USA: David J. Spielman. Zhang, J. (2004). The Debate on China’s Exchange Rate: Should Or Will It Be Revalued? Get 24×7 assignment help from our expert. Our Australian assignment help experts assure you that you will get perfect assignment help services within the deadline.