Australia vs. China: An Economic Comparison

Essay by _Gem_High School, 11th gradeA, October 2007

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Australia and China adopt very different economic systems in order to cater the best for their society. However, Australia's economic system is more successful than China's and, due to the writer's right-wing value system, will be measured in terms of environmental efficiency, labour and entrepreneurial resource efficiency and the standard of living.

The basic economic problem for any country is that resources are scarce while wants are infinite. This means that countries must decide what to produce, how to produce and for whom to produce in the most efficient and equitable way possible. Australia and China both take different approaches to solving this economic problem, even though both can technically be classified as a mixed economy (Year 11 Economics, 2007). Australia approaches the problem from the perspective of 'what is best for the individual' however China believes in doing 'what is best for the country' (Year 11 Economics 2007). These ideals are more clearly shown in the importance of market forces to each country.

Australia and China allow different degrees of market forces and government interference in order to best solve the basic economic problem. Australia allows a lot more market-based forces to determine what, how and for whom things are to be produced. This means that the competitiveness of the market combined with the need for profit allows Australia to have high quality products at competitive prices (Mixed Economies, 2007). However, market forces also determine for whom things are to be produced, which means people with little or no income can be forgotten and this is where the government interferes. The government works to protect the rights of workers so that they are not abused by large companies and tries to be more equitable by providing welfare to the disadvantaged (Mixed Economies, 2007). China believes in a lot...