Analyse the impact of globalisation on an economy other than Australia.

Essay by ElbatemitHigh School, 12th grade May 2006

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China has a unique and unusual economy. The country runs under a split economy, where it is partially communist, and partially free-market. The recent emergence of China as one of the world's major economic powers is resulting in greater regional integration in East-Asia, and the world. Its integration within the economy has indicated a tremendous move toward Globalisation, and the removal of the barriers that have previously surrounded the country.

The integration of China into the world trading scene has been shown through its increase in international trade flows, growth of investment between itself and other nations, the transfer of technology, increase in international financial flows and partially the movement of labour. China has undoubtedly contributed to the increase of trade in goods and services, which had exploded to over $US 12.4 trillion in 2001. The country is clearly not reaching its full potential, due to the amount of its population still living under communism in the rural areas.

Because China's population is so large, and the people living in the Special Economic Zones are so rich, China is still a very advanced economy. The people living in the rural areas, are still very poverty stricken and do not have advanced technology - they tend to live more culturally and traditionally.

The fact that China is so segregated means that it still has a long way to come before it is a solid competitor in the international trading market. By 1994, the economy in China had changed significantly, the proportion of the economy controlled by central planning had plunged, collectives were still significant in manufacturing but not in agriculture which had shifted to the household contract system. Private enterprises in the country were increasing in city areas and so also were the number of Special Economic Zones. Market forces...