India and China in Global Economy

Added on - 28 May 2020

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Running head: FINANCIAL MANAGEMENTFinancial ManagementName of the StudentName of the UniversityAuthor Note
1FINANCIAL MANAGEMENTTable of ContentsIntroduction......................................................................................................................................2China: A global economy................................................................................................................3Impact of economy of China on global economy............................................................................4Impact of Chinese economy on the economy of Australia............................................................11Conclusion.....................................................................................................................................15References......................................................................................................................................16
2FINANCIAL MANAGEMENTIntroductionThe global economy, over the years, has experienced considerable dynamics andmodifications, owing to changes in both exogenous as well as endogenous factors. In the recentperiod, phenomena like Globalization, Liberalizations in different economies and technologicalinnovations have helped in making the global economic environment more inclusive andintegrated, contributing to greater mobility of goods and services as well as resources forproduction. This has, in its turn, has facilitated trade and commerce across the differentcountries, thereby making the economies across the world dependent on each other’s productiveand economic activities.In this context, several economies have gained immense economic impetus and showedimpressive growth trends in all the aspects of economic and industrial sectors. These economieswith their robust growth trends and increasing domain of operations have the power to influenceother economies in the global scenario, as much of the economic and industrial activities of thelatter are subjected to the economic decisions and conditions prevailing in the former countries.One of such countries, which has grown immensely in terms of economic and industrial aspectsand has emerged as one of the primary globally influencing economies in the contemporaryperiod is the economy of China (Gopinath, Helpman and Rogoff 2014).Keeping this into consideration, the concerned assignment tries to discuss the currentdynamics existing in China and the effect of the dynamics in the economy of the country on theoverall global economic scenario. Taking the same into account the assignment also emphasizeson the effects of the economic conditions prevailing in China on another dominant global
3FINANCIAL MANAGEMENTeconomies, that is the economy of Australia, which has developed significant commercial,economic and political relations with China over the years.China: A global economyThe economy of China, being socialist market economy in nature, has emerged as thesecond largest economy in the contemporary global scenario, in terms of the Nominal GDP. Thecountry has also emerged as the largest global economy in terms of the purchasing poweradjusted GDP. With an annual GDP of 23.1 trillion USD (2017; PPP adjusted), the countryremained as the fastest growing economies in the world until 2015, with the average GDPgrowth rate being 10% for last three decades.Much of this economic growth of the country can be attributed to the immense industrialgrowth of the country and the extraordinary technological progress, which has helpedsignificantly in taking the country on the path of economic progress and long-term sustainability.The industrial sector of the country contributes nearly 47% to the Gross Domestic Product of thecountry in the recent period. The primary industries ruling the industrial sectors of the countryinclude construction, manufacturing, power and mining sectors. Almost 27% of the totalworkforce of the country is absorbed in the industrial and the manufacturing sector of thecountry. China being a socialistic economy, the government of the country enjoys more controlon the economy as compared to other market economies.Over the years, the Chinese economy has emerged as one of the globally influencingeconomies, with the consistently increasing international tie-ups of the country with othereconomies across the world, both in terms of business, trade and in political and socio-economicterms. This has been immensely facilitated by the global economic phenomenon like
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