CHINA'S ECONOMY

International Business Environment

International Business Environment

Introduction

The countries of this world have witnessed and experienced a journey of roller coaster over the decades with respect to the social, political, environmental, as well as economic changes taking place. If a cognitive mind endeavours to ponder over the causes of the respective changes or the periods of positive and negative events in the history of a respective country, then the mind will be in a sound position of detecting numerous aspects or causes, which can be astutely attributed to the respective connotations. Over the time, several reasoning minds have attributed the changing economic, social and political conditions, especially to the advent of technology and advancements, as well as globalisation, which are believed to be the endowments of the modern times and era.

Free Market

In the stern economic terms, the concept of free market eloquently articulates the phenomenon where there exists an economic system that does not employ any stern regulation with respect to the trade, wages or even prices. In fact, it is the competition within different businesses that plays a pivotal role in determining the prices.

China's Economy after Independence

It is rather tough for any country to endure a stable and flourishing economy, which has just sought the independence from the shackles of control of another authority. Somewhat similar was the case with china and its economy. However, soon after gaining independence, the respective ruling authorities of china were rather adept at astutely gauging the situation, and amalgamating it with the vision of fast growing and thriving economy. This endeavour opened the door of success for a nation that had been demented by the dents of occupation by other forces.

However, right after the independence, the communist government assumed the absolute control of country, as well as all the economy and the respective imperative sectors. What brought the economy of china on right tracks were the essential steps taken by the contemporary government, such as the swift implementation of policies, such as the land reforms, assuming control of the sectors, such as the shipping companies, the financial sector, railways, light and heavy industry, the energy sector, , agriculture processing, and the communications sector (Dernberger, 1980, P. 36). Amidst all that, the most essential step executed by the government, was undoubtedly, the assumption of control of the country's tariff administration and foreign trade. Apart from the economic factors, the government also catered to numerous social factors, such as the eradication of the production of opium and its ever growing addiction; moreover, issues such as homelessness, healthcare and other issues regarding corruption were also astutely handled. According to reports and researches, these imperative and swift measures by the Chinese government, brought the economy and country's condition on the right track, and from there on, the economy expedited at almost a constant increase of 4 % per year (Fairbank & Merle, 1998, P. 69).

Free Market and China's Economy In '70s

As discussed earlier, china was determined to take a joyful ride on the course ...