Comparison between economy of UAE and China

This paper compares and contrasts the economy of United Arab Emirates and China based on various indicators such as global, ethical, political, physical, and societal. It also discusses the relationship between capitalism and democracy, the impact of the internet in these countries, and the role of capitalism in politics. Additionally, it explores the economic growth and personal freedom in both countries.

Running head: ECONOMICS
Economics
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Table of Contents
Introduction................................................................................................................................3
Comparison based on global, ethical, political, physical, and societal indicators.....................3
Relationship with capitalism and democracy.............................................................................4
Impact of internet in these countries..........................................................................................4
Capitalism in relation to politics................................................................................................5
Economic growth and personal freedom....................................................................................5
Reference list..............................................................................................................................6

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Comparison between economy of UAE and China
Introduction
This particular paper is known to compare and contrast the economy of United Arab
Emirates and China. The economic factors state that UAE has an exceptionally high gross
domestic product per capita. Chia is also growing at a fast rate and will excel much more than
the western countries after few years.
Comparison based on global, ethical, political, physical, and societal indicators
The political factors which are known to impact China are the government regulations
where most of the people claims that the political force is the most unsettled one. The
government have known to take strict actions for preventing this situation and also create safe
environment for foreign investors (Mahroum, AlSaleh & Al-Hashmi, 2016). Since the year
1990s, the legal reform will be becoming a priority for the government. The legal framework
for e commerce is still in its early stage.
In case of the United Arab Emirates, it has healthy trade relations with many countries
worldwide. The country also known to have political conflicts with the nearby countries
about the ownership of the oil reserves (Al-Shayeb & Hatemi-J, 2016). The social and
cultural aspect of China also known to play an important role where the literacy rate of China
is more than ninety percent and it emphasizes on education. China is a collectivistic culture
which is based on Hofstede’s value dimensions. On the other hand, the citizens of UAE live
comfortable lifestyles. Religion is an important factor in the area which will be affecting
society.

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The economic factors state that UAE has an exceptionally high gross domestic
product per capita and also known to have very low rate of unemployment. The country also
known to have one of the highest amounts of foreign direct investment.
Relationship with capitalism and democracy
From the last five years, the economy of China has experienced high rate of GDP
growth and will also excel at this rate. Capitalism is an economic system which is based on
the private ownership of the means of production with their operation for profit. UAE is
termed as the paradise of capitalism. The per capita income of UAE has been around $50,000
which is known to be one of the highest in the world. Dubai is also termed as one of the
safest sanctuaries of global capital (Geng, Sarkis & Ulgiati, 2016). There is also presence of
large amount of income inequality in Dubai. There is also brutal exploitation of immigrant
labor in the United Arab Emirates.
China have also known to went to capitalist from the communist. In the year of 1949,
it a socialist country. Presently, the economy of china had been the second largest in the
world and will also overtake the United States after few years. The Shanghai Stock Exchange
is also known to be the third largest in the world by market capitalization. This particular
Asian country is also known as the commodities powerhouse.
Impact of internet in these countries
Internet have helped China to grow fast over the last thirty years and internet have
become one of the most important tools for increasing business as well as developing
markets. The internet Plus strategy had been launched for promoting the integration of mobile
internet, big data and cloud computing (Kwong, 2015). The low-cost methods along with
high connectivity have helped in making large collective impact.

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The digital technology has known to transform UAE at a high rate. The United Arab
Emirates also known to lead the internet economy in the Middle East. The UAE leads the
Middle East when it comes to the maturity of the internet company. This country is also
known to rank 30th globally with an e-Intensity score of 129 and is also ahead of Russia and
China. It has also achieved unprecedented growth in the economy as a regional hub. The
urbanization in UAE have mainly taken place due to the invention of internet.
Capitalism in relation to politics
Government is known to influence in capitalist outcomes and most of the proponents
of capitalism have known to support some level of government influence in the economy
(Abdulla, 2017). Unlike socialism, capitalism does not assume a role for a coercive and
voluntary trade is the mechanism which drives activity in capitalist economy.
Economic growth and personal freedom
It has been found out that free countries are lot richer. Democracy is also known as
the pre-condition in case of economic growth. The index of economic freedom has shown
that improvements in the economic freedom are positively associated with the country’s
GDP. China’s rating of economic freedom is below the world average which have also not
improved over time. On the other hand, it has been found out that UAE leads the Arab world
in economic freedom and therefore is lot richer than many other countries.

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Reference list
Abdulla, Y. (2017). Capital structure in a tax-free economy: evidence from UAE.
International Journal of Islamic and Middle Eastern Finance and Management,
10(1), 102-116.
Al-Shayeb, A., & Hatemi-J, A. (2016). Trade openness and economic development in the
UAE: an asymmetric approach. Journal of Economic Studies, 43(4), 587-597.
Breslin, S. (2016). China and the global political economy. Springer.
Geng, Y., Sarkis, J., & Ulgiati, S. (2016). Sustainability, well-being, and the circular
economy in China and worldwide. Science, 6278(Supplement), 73-76.
Kwong, J. (2015). The political economy of corruption in China. Routledge.
Mahroum, S., AlSaleh, Y., & Al-Hashmi, S. (2016). Measuring Innovation in Government:
An International Review and Case Study of the UAE. In 21st International
Conference on Science and Technology Indicators-STI 2016. Book of Proceedings.