THE SUNDAY Telegraph printed this article about the economic prospects for China, Russia, the USA and India.
As always, there is the opportunity for you to improve your economic analysis here, if you agree to take the challenge young Jedi.
For Russia, the article suggests possible difficulties may come from over-reliance on oil and gas exports, and resistance to required reform. Think about how you would explain these problems in the context of an essay.
For China, problems may arise from the economy continuing to grow too quickly, particularly increasing inflationary pressures and asset bubbles. Again, think about how you would explain these difficulties if you were writing about them.
Let me know what you think about the article and/or the future economic prospects for your country....
sorry sir, maybe i am wrong but i think that for China,the problem is over productivity(i dont know whether i am using the correct english words).I mean the quantity we produce is more than the quantity we need to produce. If it is only over productivity,it will not be a big problem. In fect the problem is rate of consumption is less than that of production. Many companies even cannot get their
ReplyDeletecost of production back so they go bankrupt. It will also cause another problem. Taking the house market as an example, in my city,Dalian, the quantity of houses is enough for the population in my city but there are still many houses are being bulit. The price should be low because Supply is more than Demand, but those people who buying and selling house for profit, buy those houses and make many people cannot buy a house so the Demand now is more than Supply. The price of house increase, leads more people cannot afford a house,and government ask to build more house but such things happen again, if this situation continous it might cause negative effect. Rioting might break out. Just like in the early days of China, many capitalists work together to withstand the government. They keep rice instead of selling it, that made the price very, which you know why. Government tried to sell more rice in low price but they were again bought by the capitalists. Since people did not have food, some of them rob others. Our minister of finance came up with an idea, he ask to transport a large quantity of steel,cotton and other kinds of raw materials to sell in a low price. At the same time, he transport a large quantity of rice clandestinely. After selling out those cheap raw materials, capitalists had already use all their money and they didn't have enough money to buy these rice. So the government sell these rice with a low price. Because the price of rice had decreased, so those rice which were bought by the capitalists didn't worth too much at all. So they went bankrupt. ---------James