...3 Apple is the company that I am going to be talking about in this assignment; I will be talking about how different economic environments affect two countries Apple operates in (China, USA) and what countries they are manufactured and assembled in. They’re stores are usually located in the central main shopping centre of a city especially their stores in the UK. The company Apple is a private limited company and the company is open to the public to buy shares in the organisation. The company is based in the secondary sector of business. Here is a table stating some of the economic factors that may affect Apple. China United Kingdom GDP China GDP is worth 5879 billion dollars or 9.48% of the world economy, according to the World Bank. from 1960 until 2010, China's average GDP was 839.37 billion dollars reaching a massive rate 5878.63 billion dollars in December of 2010 and a record low of 46.46 billion dollars in December of 1962 The United Kingdom GDP is worth 2246 billion dollars or 3.62% of the world economy, according to the World Bank. From 1960 until 2010 the United Kingdom's average Gross Domestic Product was 862.04 billion dollars reaching 2810.97 billion dollars in 2010. Inflation The inflation rate in China was last reported at 4.1 percent in December of 2011. From 1994 until 2010, the average inflation rate in China was 4.25% reaching 27.70 percent in October of 1994 and a record low of -2.20% in March of 1999. The inflation rate in UK was last reported at...
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...entirely the result of human action. One of the most polluted nations is China; contrarily, though many Americans fight to protect the environment from such harm, there still exists pollution in our nation, today. Unfortunately, pollution affects everyone; however, children are suffering everywhere from their lack of knowledge of how to protect themselves from such harm, as well as the fact that much of the detrimental effects of pollution in children’s health occurs before they are even born, when they are still in the womb. Negative reports of reproductive health in China prompted scientists to look further. The effects of pollution on the development of children in China and America, though different, are comparable. Pollution in China has increased due to the rapid industrialization of the nation in the past 30 years. According to the World Bank reports in 2007, “of the 20 most polluted cities in the world, cities in China account for 16 of them.” And according to Environment and Reproductive Health in China “Air quality in China is among the worst in the world, with air pollution levels in many cities well above permissible limits, and half of the water resources in China are considered too polluted for human use.” (Weihua et al. 2012) Reproductive health in China continues to be considerably negatively affected as industrialization grows. Due to the abundant population in China and the low working wage, China was forced to rapidly grow, using little precautions when it came to...
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...Module Title: Principles of Economics Essay Title: A part of China’s economy Contents Introduction of China economics…………………………………………..…..….4 Summary of article…………………………………………………………………...….4 Aggregate supply (AS) models……………………………………………………..…5 Aggregate demand (AD) models………………………………………………..….....6 Government policies to overcome above problems and effectiveness…………7 Conclusion…………………………………………………………………………………..8 Reference list…………………………………………………………………………………9 Introduction of China economics China’s economy is rapidly huge and expanding in these years. It is the fourth largest country in area after Russia, Canada and USA has experienced multifarious changes in its economic system which has seen it become the second largest economy in the world after USA if measured on the Purchasing Power Parity (PPP) scale. However, China still considered as an emerging economy as per capita incomes fall in the lower-middle level, China is making its presence felt in the global stage by taking big strides in opening up its economy to international trade. There are many economic problems faced by China during the years. And the inflation has become a serious challenge for the developing economy; the surplus of population and the rising unemployment rate and price. According to statistics, more than 250 million migrant workers and their dependents had removed to urban areas to find work. Hence, as China’s economy slows down due to falling external and internal...
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...Introduction In order to provide effective anti-virus protection VMTEC Sys must think globally. With cyber crime on the rise, no country should be overlooked as the next viable source of a computer virus (Muncaster, 2009). Because China has the most economic opportunities and presents the greatest threat to the personal and small business computer VMTECH Sys has identified a strategic need to establish a research and development division to be physically located in China. This research paper will analyze and review the economic opportunities and threats that VMTECH R&D can expect to encounter as well as other market conditions which will affect the operations of a division located within China. Market Entry Method It is essential for VMTEC Sys to establish a presence in China. Rather than trying to import goods or services to sell, the company has chosen to establish a research and development division in China. VMTEC Sys will form a corporative joint venture known as VMTEC R&D, which will operate as a division of VMTEC Sys. The parent company will provide capital funds to entice participation of a local owner who will provide labor and manage the research and development division. In a recent article, written by a CPA, there are several reasons for establishing a business in China: Lower labor costs, opportunities for growth, and access to highly motivated and educated workforce (Rowbotham, 2009). By forming a corporative joint venture, the company will be able...
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... As China grows so does its pollution. The “new normal” in Beijing is to send your child to school wearing a gas mask that retails for about $60 a piece. (Larson, 2013) Recent reports state that the particulate matter (PM), which is damaging to health, reached a record high in January of 2013. These levels were 993 micrograms per cubic meter. According to the World Health Organization, PM levels over 25mcg/m3 are considered unhealthy. (WHO, 2011) China has begun drafting rules that would include shutting down factories that produce iron, steel and building materials, plus limit the number of vehicles on the road during heavy pollution days. Fines could possibly range from 50,000 Yuan to 500,000 Yuan. China produces 70% of the world’s iron and steel along with half the world’s cement. (Times, 2013) The biggest problem China’s government faces are that the country needs these jobs for the millions of new migrants to the big cities. Shutting down factories will slow growth and limit the number of new jobs that will become available. However, if China does not implement a solution for the pollution the air will only become more hazardous and will begin to affect other people around the globe. Very simple, China must take action and measures to lower the pollution. China has started in the right direction by becoming the globe’s biggest producer of wind turbines. Additionally, the country has begun pushing efforts to build nuclear power plants. By doing this, China would not...
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...Hong Kong Diploma of Secondary School Education History School-based Assessment Task One Study Outline Name of Student : Cheng Ho Wai, Gavin Class : 5A Class No.: 06 Title : Compare and contrast economic policies of Stalin (5 Years Plan) and Mao (First 5 Year Plan & Three Red Banners) Study Outline : The first half of the 20th century saw the rise of some single-party states and the rise to power of some of the famous and controversial figures. Leaders of these states, such as Hitler, Mao and Stalin, not only influenced other countries around the world, but also changed their countries internally as well. In Russia and China, Stalin and Mao built themselves up as a great and god-like leaders, they promoted personality cult and also forced their countries to go under a series of reforms, especially in the aspect of economy. As both of them are leader of communist countries, their aim of economic policies are likely to be the same. However, there are still some differences to be seen. Now, I would like to compare the economic policies of the supreme leaders in the world history. Compare of Stalin and Mao .The conditions of Stalin and Mao are similar. Their countries both faced a hand-to-mouth existence at that time. In order to improve the livelihood of the people and to solid the rule of the communists, they both introduced economic reforms. However, their reforms were different from each other and brought different blessing to their...
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...Problem?” Problem Statement In 2006, China has undergone pressure by many countries including the United States. The U.S. believed that the renminbi (RMB), failed to appreciate eliminating job opportunities for other countries. However, China’s officials reacted by implying that China was a sovereign country with the right to choose its exchange rate policy. Pertinent Facts The exchange rate is one of the key factors that could possibly affect foreign profitability. In the case, Fung and Wong indicated in 2006, that China had become the world’s third-largest exporter with an estimated $970 billion and earning $1.2 trillion in foreign currency reserves (Fung). The U.S. and other countries are concerned that the Yuan was undervalued which will ultimately raise the demand for Chinese exports and decrease China's demand for imports from other countries. Becker states that if China keeps the dollar and the currencies of other countries artificially expensive compared to its currency it will create a problem towards other economies (Becker). The U.S. believes that China is manipulating the exchange rate to increase trade and dollar assets. The United States have also expressed extreme concern with China’s way of trade. For example, the U.S. questioned the fact that the renminbi is being a peg against the dollar. This case analysis will subsequently identify the following answers to the questions: * Should China allow the Yuan to appreciate? * Will...
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...Political Systems Democracy relates to a political system that equates to one person holding one single vote in the decision-making process. As a political system, its proponents deem it as a fair and just way as the whims of the majority are preferred over the desires of the few. It becomes necessary to comprehend how democracy works to be able to effectively understand the principles and assumptions behind it. Majority of the countries in the world relate to a democratic system with differing variations depending on the resident country’s constitution. However the basic premise is that people in a country vote for their preferred candidate and the one with the most votes becomes the leader of the particular country. It is the same when applied to simpler elections such as class president or the chairman of a group. There are certain assumptions that are made with regards to the democratic system and it is important to view them in depth. This is so as to be able to come up with a concrete understanding of the way in which democracy works. For instance the main belief is that the majority know best. It is the foundation in that if most of the people are happy then that is the best route to take. It does not necessarily mean that the majority will actually elect the best candidate. In most cases it is usually based on the candidate they feel most comfortable or in extreme cases where they may have no preference, the one they dislike least. In such scenarios it certainly seems...
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...transportation, construction, retail and it keeps our ports running strong. Providing jobs throughout the United States is a great advantage of having imports coming to our country. On the negative side, the higher number of imports that we have shows a down side in our own manufacturing sector. The cost of materials and manufacturing overseas impacts what we can produce here. “Auto sales since the depths of the recession have increased more than twice as fast as employment in auto parts in part because of the rapid growth in auto parts imported from China—the fastest-growing source of U.S. auto-parts imports” (Scott, 2012). The auto industry has been on a rise since the United States government help them out and turned around there sales margin. With the number of parts that are being brought in from China is having a direct effect on the industry here. Again the reason is the low cost of materials and labor that china can offer compared to the Americas. International trade is a lucrative part of every...
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...In advising ABC Motor Company on the subject of opening manufacturing facilities in Asia, Karim Global Consulting Firm would like to present the risk factors of two companies in the automotive industry which already operate in two different Asian countries. In order to present two very different regions for consideration, we have selected to review General Motors operations in China and Ford operations in India. We will examine risk factors that should be taken into consideration before entering the global market, such as political and economic risks. There is considerable concern regarding the economic stability in India, as the country’s stock market, the Sensex, fell by twenty-five percent last year, which put the country in last place among all major world economies. Additionally, the country’s currency, the rupee, fell sixteen percent, which was the worst in all of Asia. These decreases are in large part due to worries regarding the country’s current account deficit as oil imports trump the country’s level of exports. With the rupee falling, inflation has been high in India. However, inflation in food prices fell drastically in December, raising hopes that general inflation rates will follow in the long run (Daniel, 2012). Although India is the third largest economy in Asia, growth has fallen to its lowest rate in two years, 6.9 percent, by the middle of last year. (Daniel, 2012). However, though this information looks grim, India is not in any immediate danger...
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...a hot topic for policy makers in both developed and developing countries as a raise in minimum wage affects the economy in terms of economic growth, standards of living for the poor, survival of businesses and employment. A lot of research and literature has shown that a hike in minimum wages do not particularly affect the developed nations but the same hikes in developing countries can cause damage to firms depending on the size of the firms and their profitability. This paper attempts to show that the garments sector in Bangladesh (Ready made Garments Industry) faces the same dilemma. Since the Savar tragedy in late 2013 where a garment factory, Rana Plaza, collapsed which killed more than 1,100 people and injured and more than 2,500 people injured, garment workers and civil society demanded a raise of minimum wage from 3000 tk to 5,300 tk every month. This tragedy and similar events in developing countries lead us to think how businesses especially in the developing countries where wage rates and productivity are low can operate if minimum wage is suddenly increased threefold and why workers in those countries work under horrible conditions. This paper will also compare the situation of Bangladesh to other manufacturing countries and state why Bangladesh is different by looking at existing literature on the topic of effects of employment and profitability in firms due to rise in minimum wage. Overview of Bangladesh’s...
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...a decade, China fixed its exchange rate to the dollar and bought or sold dollars to maintain the exchange rate. By early 2005 though, the country was feeling pressure both at home and abroad to let its currency, the Yuan, float freely against the dollar. [1]Why do you think the Chinese government originally pegged the value of the Yuan against the U.S. dollar? What were the benefits of doing this to China? What were the costs? Comments: Most of the Chinese exports are made from dollar-denominated imported materials and energy. By pegging to the dollar, China managed its foreign exchange risk in these areas. It also mitigated the risk for investors coming into China. Also, China’s economy, through its peg to the dollar, has remained stable. It was not drawn into the Asian meltdown in 1997. One of the costs of pegging is that the Chinese government has to manage the peg. Thus, it is active in the foreign exchange markets. Another cost is that the dollar’s movement, up or down, affects the Chinese economy. [2]Over the last decade, many foreign firms have invested in China, and used their Chinese factories to produce goods for export. If the Yuan is allowed to float freely against the U.S. dollar on the foreign exchange markets, and appreciates in value, how might this affect the fortunes of those enterprises? Comments: Since they are moving raw materials into China, using Chinese labor, and then exporting, their production costs will rise in China (Yuan strengthening...
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...China’s Impact on Global Economy Batson and Dean (2007), Today, China represents not only a fast-growing source of revenue for many multinational companies, but also a rising source of profit. The Open Door Policy in 1978 brought China a massive increase in interaction with the global economy and a tremendous economic growth rate . An analysis of recent statistics illustrates that China will overtake U.S. economy and become the world’s biggest economy structure by 2030. What makes China has such huge impact to the world economy? The structural transformation is most likely the answer due to the rapid population growth, technological development and government policies. China’s economy transforms from primary sector (self subsistence) to tertiary sector (provides goods and services to worldwide customers). With a higher quality of goods and services which allows market expansion, this enhances the competitiveness of market position among other developing and developed countries such as India and USA respectively. Similarly, the secondary sector and the tertiary sector also play a very important role in export. Although it had to wait 15 years to be admitted to the World Trade Organization, it is now the world’s third largest exporter (Hutzler, 2005). Entering the WTO allows more and more free trades occur in China, it creates a lot of job opportunities for local workers in China. However at the same time, it causes a growing unemployment rate in other...
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...many issues. The main issue China will face is an overall environmental strain. There would be a shortage of food supply, which would increase the hunger and death rate in many Chinese people but mainly children. The water storage would be insufficient, which would result in individuals getting improper water intake. The gases that build up would make the air quality rather poor and causes more asthma and breathing issues. Oil and gas would probably reach its peak and cause prices to rise tremendously. The air pollutions will not only affect breathing, it will also contribute to the already thinning ozone layer. The oceans would be affected and will not sustain quality sea life. Then an issue many do not focus on is top soil. Many farmers and gardeners will not be able to do any deep planting but only shallow. These are the long-term of China overpopulation. The main stakeholder involved in the overpopulation in China issue is the government. The government is the unit that creates and passes the laws that are needed to deal with the issue of over population. One well known government issued policy is that every couple in China can only have one child. It is believed that with the one child policy, there can be a better management on the population growth. Just like any law passed, it is not always followed. For example, if a couple has twins they are and exception to the rule. Now many women are taking fertility methods and there has been a rise in the number of twins being...
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...The rise of China – a new leader for a new world? The rise of China – a new leader for a new world? * Table of Contents 1 About China (GEOGRAPHY, facts) 1 2 Current Situation 3 3 Political Situation 6 4 China and US 7 5 References 9 The rise of China – a new leader for a new world? In the world, China is the third largest country which is situated just behind Canada and Russia. But the population of china is one-fifth of world's population approximately 1.2 billion people live in China. About China (GEOGRAPHY, facts) China is quite diverse land containing mountains, fertile river basins and deserts. Most of the western China is mountains with Tian, Pamir ranges and Himalaya. The western China also covered with the large desert. However, the Central China contains mountainous regions. The Rivers similarly play a main role in the China, both for irrigation and for the transportation. Most of the southern rice fields and northern wheat fields are irrigated from the rivers. Some interesting Facts about China: 1) The Great Wall is famous in whole world. This wall was built over 2,500 years before to protect against the invaders from north. The Troops would patrol wall to protect China against the attack. Just the once over the 6,000 miles long, this wall is currently around 3,750 miles long. 2) In china we can see major industries. For numerous years, China is working for the economic development of the country. But, most of the China people...
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