The Global Economy

Globalisation refers to the process of increasing integration among different countries throughout the world; this results in the establishment of a single world market.   Globalisation encourages overseas trade and the reduction or removal of trade barriers hence allowing for economic growth and development.   One economy that has been drastically affected by globalisation is China.   The main areas that have been affected in this economy are: financial markets, income distribution, trade, investment, and environment.   To promote the growth of China’s economy the government has employed various strategies that have propelled China forward giving it the most rapid economic growth status in the world.   These strategies have aided the economic growth of the nation as well as propelling the overall quality life upwards.

In recent decades China as a nation have encountered drastic increases in international trading and investment flows with thanks being owed to globalisation.   These increases have then lead to high levels of economic growth in China’s economy.   Between the years of 2001 and 2007 China experienced an average economic growth rate of 8.5% per year, with 2007 seeing an all time high of 13% .   The Human Development Index (HDI) in China has risen from 0.527 in 1975 to 0.777 in 2005 .   There has also been an increase in the education level and, on average throughout the country, a decrease in poverty.   Unfortunately these improvements are not shared evenly and this will be discussed later in the essay.
Up until China lowered restrictions on its foreign polices it had a banking system that was both inefficient and weakly structured.   However globalisation has given China’s banking system the encouragement required to propel itself forward in an attempt to match global standards and attract foreign involvement.   Since the banking sector was opened by the government to foreign competition at the end of 2006, China’s regulators have been ensuring that state...