The strength of the economy of China and the future of the economy Dissertation

The strength of the economy of China and the future of the economy - Dissertation Example This essay discusses that economic development of a country measured by certain factors related to economics. The factors are the gross domestic product of the country, which relates to the standard of leaving of the people of the country. For developing a country, the government has to take certain measures. For making a sustainable development, the government has to assure that the financial base of the country is good. For making the financial base robust, the government has to use the sources available to them efficiently and should do sector wise development. In the era of globalization, when the economies of the countries connected with each other, the problem in one country can create problem to the whole world. In the year 2007, the economy of the United States has come under trouble. The reason behind the financial depression was that a large number of people got default, as they were unable to pay their housing loans. The bad debt amount of the bank increases at a level tha t the banks had to declare themselves default. The banks like Lehman Brothers bankrupted. As a result, the economy of the United States tumbled. As the economy of the country was down, the stock market indices also came down at that point of time. As an effect of the incident, the economy of all the countries get into problem as this is an era of globalization. The United States is the biggest economy of the world. When the largest economy of the world was under problem, all the economies get under trouble. The countries, which had trade relations with that country, came under a direct problem. This incident threw questions on the base of the United States economy. If the base of the economy was good, then they could avoid this kind of situation. This paper will research about the strength of the economy of China and the future of the economy. The researcher will analyze whether the economy is strong, or the base of this is as weak as the United States. Problem Statement Economy of China: The Cause of the Development and the Future of the Economy. Aims and Objectives The aim of the research is to analyze the economical condition of China, the developments made by the Chinese government, which made the country one of the most developed countries in the world. The researcher will also analyze that whether the future of the economy is also strong. To make the economy strong, the government has to make certain policies so that the base of the economy becomes strong. The base of the economy means the per capita income of the fellow citizens, the average educational qualification of the people of the country, the purchasing power parity of the persons. If the base of the country is strong, then the resources available to the companies in the country will be good. If the company can utilize the available resources efficiently, then the production will be at its best. If the company managed efficiently by the professionals, then the profit will also be good. The development of a country depends on the performance of the companies also. If the industrial production of the country is good and the number of export-oriented company is a lot, then the country will earn foreign currencies more. The objective of the project is to analyze the robustness of Chinese economy. The researcher will find about the policies of the Chinese government. It is to analyze that whether the policies of the government are favourable for the companies to do business in the country and whether the policy motivates the companies to export to other countries. The researcher will also an alyze the sources available to the companies i.e. the labours, raw materials etc. The qualities of the labours will also analyze by the researcher i.e. their competencies, educational qualifications. The purchasing power