Student NO: 3171183
The Essay Question: Briefly compare the political regime type in China and the United States. Which of the two would you prefer to do business in and why? (If you want to you may specify the type of business.)
The course code and course title: POLI3001 Organizations, Politics and Society
My tutorial day and time: Thursday 12:00-13:00
My tutorial name: Gazi Hossain
Due day: 23 August
As economy expansion in recent decades, China becomes a severe threaten to other countries, especially to USA which is the most powerful country in the post-cold war world (Zhao, 2007). China and USA base on opposite political regimes: China is a socialist country embodying Marxist ideology, whereas the USA is a capitalist country embodying Liberal ideology. In the individual freedom aspect, communism pays more attention to society as a whole, while capitalism focuses on individual freedom; in term of society, communism supports an egalitarian, classless society where there will be no distinctions among different races, classes, nationalities and even religions, while capitalism boosts class differences (Phatak, n.d.). The opposite ideology causes US directly treats China as a hostile instead of a partner. This essay aims to compare the advantages and weaknesses of doing business between China and US in terms of economy environment, transport system, broadcast, childcare, education and manufacture, and explains the reasons why I choose to do business in US.
Compared with China, the US owns a better economy environment. According to Qureshi, Fahad and Zhang (2011), economy environment is defined as an association of all the economic elements such as employment, inflation, income and economic system. The USA is the most flourishing economic center in the world because of its GDP, which contains the services, goods, income and capital; and the country creates totally $13.8 trillion with per capita GDP of $44,000 in 2007, including 79 percent of GDP increases from service industries, 19.8 percent from industry and 1.2 percent from forestry, agriculture and fishing (Mauk and Oakland, 2009). On the other hand, the Chinese economy has grown at an unprecedented speed since reforming and opening in the late 1970s; direct foreign investment is not only permitted but supported (Wu and Kirk, 2011). However, China is still a less developing country with a large population which is more than four times of the U.S.A, despite all the success that has been achieved; what’s more, the economic system of China still reveals plenty of contradictions and shortcomings; the most significant distinction between China’s brand of free-market capitalism and capitalism in the west is many businesses are controlled and managed by the government, and the government also commands crucial ownership stakes in a large amount of other private businesses (Zhao, 2007). In recent decades, unemployment rate in both China and US has been shown evidence of increasing; the global financial crisis contributes to the enormous increasing of unemployment rate in US, while in China, the growth of unemployment rate is mainly caused by higher growth of labor productivity and labor force; however, unemployment rate will be reduced in US, whereas it will increase slightly in China on the basis of 2015 estimates; Inflation had kept in minimum level of 1.5% in US in 2010 as a result of recession and unemployment, whereas it was maintained at a medium level of 5% in China in 2010 (Qureshi, Fahad and Zhang, 2011). The US has better transport systems and less restrictive broadcast. Firstly, transport plays a basal role in doing business, because it influences all sides of the economy, particularly the environment and labor mobility; in recent years, congestion has posed a serious economy burden; businesses and commuters are sustaining the uncertainty of travel time and the time waste cost in traffic (Kozluk, 2010). For example, China’s natural