write a paper on domestic economy analysis

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Please write the paper on domestic economic analysis. Paper should have atleast 2000 words. please follow all the instructions mentioned in the following document. Also format should be APA. And please make sure proper in-text citations and references. Also there are some sources mentioned in the document, please try to use those sources. If you couldn't find the data you are looking for, then go for the other sources. Please include the summery tables where it was specified in the document.

Country should be : China

Product should be: Medicated skin product.

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Week 4 Assignment Assignment: Domestic Economy Analysis (2000 words) The product you select will be integrated into an existing economy. That economy will be very important to the success or failure of a marketing strategy. In some cases, a product may not depend on a macroeconomic analysis but that micro-economy still functions within the larger national economy. Some critical economic characteristics need to be considered: • • • • • • • • What is the size of the GDP? (Total and Per-Capita) What is the rate of unemployment? What is the rate of inflation? What is the growth forecast for the country’s economy? What talents does the labor force have? What is the age distribution of the labor force? What key resources does the country have? Are there critical concerns in the country as to its economic performance? Here is what you need to do for this assignment: 1. Provide a summary table of core economic data and growth rates for: • Inflation • Unemployment by race and gender and age, underemployed and long term unemployment • Real GDP • Stock Market Performance • Budget Deficit • Trade Deficit • Exchange Rates • Wage levels • Inequality measures in income, education, assets You can find some of this core data at the Economist link below or even the Euromoney link has good summary data: 2. Situate the country on the policy cross (see handout) 3. Read economic analysis about the country from credible sources such as research institutes or international organizations such as the World Bank, International Monetary Fund or OECD to provide a summary of economic risk in that country. Suggested Resources: • • • • • • http://www.economist.com/indicators http://www.euromoneycountryrisk.com/ http://nationalequityatlas.org/ ( for equity data) http://www.imf.org/external/index.htm https://www.cia.gov/library/publications/the-world-factbook/index.html http://www.oecd.org/
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Attached.

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Running Head: Domestic Economic Analysis of China

Assignment: Domestic Economic Analysis of China
Institution Affiliation
Date

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Running Head: Domestic Economic Analysis of China
Domestic Analysis in China: GDP and Per Capita income
According to IMF, China is a socialist country and one of the fastest growing economies
and the second largest economy in the world in terms of GDP and it has the largest Purchasing
Power Parity. The growth rate was estimated to be at an average rate of 10% for over 30 years.
China has a major hub for manufacturing and the largest exporter in the world. China being the
world’s fastest exporter, it is also the world largest consumer therefore importing the highest
amount of goods and services. The GDP of china was highest in the year 2015 at an average of
$6300.78 trillion. China’s per capita is equivalent to 51% average of the whole world. China
started the economic reforms in 1978 and it was ranked top ten in the nominal GDP of $200
billion and after 35 years it was at its peak having more than $9 trillion. Secondary sectors
represented the greatest reason for china growth. China’s citizen’s accounts for more than $650
billion in spending and in 2013 it accounted to 34% of the entire world online trading and
shopping. It is estimated that China by the year 2020 it will be spending more than the world
combined can spend.
China’s both current accounts and capital accounts records the most solid in the world.
Capital account had only two deficits for the last 20 years. These surpluses helped the central
bank to plan most of the economic and foreign policies. The economic situation is China is solid
and a controlled one. Therefore; it is never easy to convert local assets into foreign financial
assets. The People’s Bank of China usually accelerates the interest rates and the conversion of
capital accounts. The Chinese government started implementing certain rules like removing
foreign currency deposits rates in Shanghai and controlling the currency. For this reason, the
capital accounts benefited from large inflows of Foreign Direct Inflows. The flow has been
recorded as high as $115 billion at the end of 2013. The countries which have heavily invested in

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Running Head: Domestic Economic Analysis of China
China are Japan, Taiwan, United States, Hong Kong, Singapore, and Thailand among others.
Between 1978 and 2005 China’s per capita income growth has steadily increased to $70 billion
in the current accounts while capital account has grown to $1280 billion.
According to CIA World Fact book, the reason behind this growth is that China has low
wage to its employees in sectors like clothing, plastics, footwear, computers, phones,
automobiles and pharmaceuticals too. System of National Accounting was introduced in 1985 to
measure the GDP of the whole national economy. China’s GNI and GDP over the years have
been on steady increase than any other country in the world. China removed all the Soviet Union
MPs and economic factor was the first priority. China predicted an 8% growth rate where it had
to improve its production, improve the citizens’ living standards and reduce the inequalities the
country faced. The five-year phase also included the agricultural sector, foreign investors and the
banking sectors. China helped the banks improve from the debts they were sunk into; these debts
amounted to over $200 billion due to non-performing loans rendered in the past and country’s
exchange rate regime.
Unemployment Rate in China
China being the most populated country in the world, its working population constitutes
more than 770 million people. The astonishing thing is that the middle class earner is a small
fraction and less than 3% of workers earn to save after paying their taxes. National People’s
Congress even after announcing 10 million jobs creation; this affects only a smaller group of
people. The average Chinese consumer consumes less than $8 a day, recreation services takes
around 9% while food and clothing takes half of the earnings.

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Running Head: Domestic Economic Analysis of China
According to authorities in china, they say they have contained the unemployment crisis
but a private researcher by name Fathom Consulting showed that the unemployment rate in china
is three times the estimated amount. The government urges that it is in between 4% and 5% but
in actual sense it is around 13% for the last 5 years despite the country having a n annual growth.
Fathom suggested that the number of unemployment keeps on rising and the hours covered while
working is decreasing. From his research it shows that job security is key issues but the
government does not offer. Job security deteriorated after economic reforms were introduced in
China where the excess labor was cut and led to increased demand for skilled labor in the
industries. Competitions in early 1990 have made a lot of people lose their employment. During
this period a textile industry in Shanghai terminated millions of employees without replacement.
Entrants in the market from 2002 to date are worsening the conditions of the Chinese citizens
making them loose jobs even more. Also, the restructuring of State Owned Enterprises has
resulted to the unemployment crisis.
Inflation Rate in China
According to National Bureau of Statistics, the rate of inflation is estimated to be 4.5%
by 202, for the next one year it’s projected to be 2.6% and currently stands at 2.4%. This
research therefore indicates that, the average prices of goods and services have risen. The
consumer price index has also risen by 1.3%. Major producers of goods and services raised their
prices targeting higher profits without the knowledge that it affected the consumers negatively.
An inflationary rate in China sometimes is created deliberately. This is because the
government undervalues the Yuan currency for them to increase the profits and surpluses from
exports. In return these dollars are converted to Yuan for domestic purposes therefore leaving the

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Running Head: Domestic Economic Analysis of China
country in supply of excess currency hence creating inflation. This currency undervaluing makes
the purchasing...


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