Examine how globalisation has impacted the economic growth and development of an

economy other than Australia (China)

The rise of globalisation has had far-reaching impacts on the global economy. Increased economic
integration has lowered obstacles between countries, allowing them to expand and deepen their
ties. International trade, finance, investment, the free movement of people, labour, and
transportation, as well as information and communication technologies, have all contributed to this.
Since the 1970s, China has been undergoing social and economic reforms aimed at improving the
quality of life and living conditions of its citizens while also allowing its economy to integrate with
the rest of the world. The shift from a purely planned to a "market driven" or free-market economy
has aided development, commerce, and growth in per capita income, all of which have paved the
path for reducing inequality.

Economic growth is a percentage rate of rise in real GDP that measures a country's output of goods
and services over time. This is not to be associated with the concept of economic development,
which relates to numerous qualitative indicators of living conditions. China's embrace of
globalisation has had a favourable impact on its recent domestic growth rate which is currently at
7.7% as of November 2015, yet previous to economic reform in 1978, China's growth was stagnant
due to a protracted period of economic slump. Throughout the 1950s, China's traditional household
farms were amalgamated into vast communes. During the 1960s and 1970s, the central government
made large-scale investments in physical and human capital to promote rapid industrialisation. As a
result, by 1978, centrally managed, state-owned firms produced approximately 75% of industrial
output, according to centrally planned output targets. The Chinese government's main goal was to
make China's economy largely self-sufficient (the polar opposite of globalisation), and overseas
commerce was confined to getting items that couldn't be created or purchased in China. China's
economic growth has been supported by a flow of physical capital in the form of Foreign Direct
Investment (FDI) and foreign portfolio investment. Since the onset of economic reform in 1978,
China's foreign investment policy has shifted from considering foreign investment as a kind of
exploitation to welcoming it as a source of growth for the country. From 2001 through 2010, the
amount of direct FDI inflows that were used was $49.7, $55.0, and $56.1 billion US dollars (PPP).
There are also monthly FDI outflows of $240 billion from China. Chinese enterprises decreasing
foreign-exchange liabilities by repaying debt in other currencies and taking advantage of cheaper
domestic funding costs could be a possible source. China has benefited from foreign investment in
terms of physical and financial capital, technology, and management talent and experience.
According to the ASEAN 2011 Congressional Report, foreign investment is not a fundamental
economic component in China's dramatic growth, but rather a vehicle feuling that expansion. There
are three key factors. Firstly, an abundance of high-quality human capital, which includes skilled and
hardworking workers as well as resourceful entrepreneurs. Secondly adequately well-functioning
market institutions and lastly the position of a latecomer capable of adopting modern technology
from more developed countries. These three key factors have allowed China to attract foreign
investment, otherwise, the cash flow would have gone elsewhere. Furthermore, foreign portfolio
investment in equities and debt securities has roughly tenfold increase over the last decade, from
$500 billion to $1.75 trillion from 2005 to 2014. Due to the impact of globalisation, from 1980 to
1983, exports expanded faster than imports, resulting in trade surpluses. Imports, on the other
hand, increased dramatically over the next six years as a result of increased foreign reserves,
decentralised international trade administration, and massive purchases of foreign plant and
equipment for domestic companies. To address the resulting trade deficits, a number of new policies
were implemented, including an import and export licencing system, tighter controls on foreign
exchange expenditures, and the gradual devaluation of the Renminbi by over 60% over the next 11
years, giving China's already low-cost exports a competitive edge while also feuling international
criticism of currency manipulation. Despite this, trade volumes have risen steadily over the last
decade, from slightly under $500 billion on average in 2001 to over $2.5 trillion in 2010.
Economic development, defined as the qualitative process of structural change involving the
development of an economy's economic and social infrastructure, is distinct from economic growth,
which is defined as quantitative expansions in real GDP over time. The "trickle-down effect," in
which the advantages of economic growth are distributed to the entire population, has resulted in
actual increases in living standards throughout China's development process. Despite its status as a
prominent actor in the global economy, China remains a developing country, with a per capita
income of $6,807.43 USD, according to the World Bank, which is a fraction of that of advanced
economies. Nonetheless, the UNDP believes that the past three decades of continuous economic
growth have resulted in a reduction in poverty of 500 million people, the majority of whom were
previously living in extreme poverty. The HDI, or Human Development Index, is a numerical measure
of quality of life that considers average years of schooling, gross domestic product per capita, and
life expectancy at birth on a scale of 0 to 1, with a higher index score indicating a higher degree of
development. Between 1980 and 2000, China's economy doubled, resulting in a substantial growth
in real income, owing mostly to its integration with the global economy, which was enabled by an
export-oriented trade strategy (financed via inflows of FDI). China's HDI is 0.719 as of October 2015,
ranking 91st out of 187 nations, compared to 0.368 in 1980. As a result, there has been a
measurable increase in development that is completely proportional to economic growth. Other
markers include birth weight and life expectancy (which increased from 63.2 years in 1975 to 80.3
years in 2013). Since 1980, the average number of years spent in school has increased from 6.7 to 10
years, while adult literacy rates have increased by 85 percent (according to the IMF). These patterns
show that globalisation is continuing to drive economic development. China's rapid economic
development, driven by the impact of globalisation, has resulted in excessive resource use,
significant environmental degradation, and resource depletion. According to a research undertaken
by the OECD (Organisation for Economic Co-operation and Development), unless pollution in China is
managed, 600,000 premature deaths in metropolitan areas will occur each year, with 20 million
occurrences of respiratory sickness. It also discovered that pollution costs China over 7% of its GDP,
and that this figure could climb if stricter environmental rules aren't enacted and enforced. Other
issues include acid rain caused by power plant emissions, acidification of lakes and reservoirs, and
deteriorating water quality, which endangers aquatic life and the seafood export industry. Many
foreign investors are attracted to China because of the low cost of labour, which leads to increased
levels of noise, air, and water pollution. TNCs are firms that operate in more than two countries and
are involved with the production of international goods or services and foreign investments. China
has 40,910 transnational corporations, which consist of firms like KFC, Starbucks, McDonalds, Nike,
Apple and many more. Transnational corporations have greatly influenced the Chinese economy.
This is because TNCs have been rapidly expanding in China which has resulted in more job
opportunities, many investment opportunities for investors, and has become one of the world's
most hyped investment locations, which increases their economic growth. This is because
investment is an injection that increases economic activity, as it injects money into the economy.
The more money injected into the economy, the more money that can be funded to improve
economic development.

China's development as a global economic powerhouse may be traced back to a number of

significant changes implemented by the Chinese government to embrace the globalisation process,
as seen by its rapid growth. Agriculture, commerce, health, investment, finance, technology, and
economic development are all part of these major reforms. Overall, the Chinese government's varied
economic strategies have been successful in elevating China's position in the global economy to
unprecedented heights. Rapid growth, as well as increased FDI inflows and outflows, as well as trade
and economic development, have all benefited from such policies. Despite China's modernity, there
are still significant inefficiencies and complexities, some of which can be ascribed to the globalisation
process itself. Inflationary pressures resulting from high rates of economic growth are another
difficulty for China's economic policy, which has been successfully addressed in recent years through
contractionary policy. However, as many as 400 million people have been lifted out of extreme
poverty in the last three decades, reflecting an overall benefit from globalisation. There are also
signs that new agricultural and fiscal policy reforms are needed to address enforceable land rights
and budget deficits which are frequently generated by subsidies to unproductive SOEs. Due to
insufficient provision of public goods and the necessity for social security measures to deal with an
ageing population, major infrastructure development is necessary.