In 1970, China evolved from a closed, centrally planned system to a more market-based which allows them to play a huge role in the world. World fact in 2010 China became the leader of goods export. By phasing out of agriculture, prices, yearly decentralization, booming in county enterprises, private sector expansions, implementation of the stock markets, up to date banking, and starting investments and trades (CIA.gov).
In previous years, China helped in counrty businesses which was considered valuable to to land and people. While keeping its money close in value to the American dollar, in July 2005 China began and exchange rate system that references a basket of currencies. From late 2008 China’s currency value against the the american dollar increased to 20%, but the rate of exchange remained extremly close. to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation.
China began to restructure their economy which resulted in and resulting efficient progress having a more than tenfold increase in GDP since 1978.
In 2014 China merged as on of the largest economies in the world, which surpassed the United States. Some of the challenges that they faced were trying to reduce their donmuestic rate of savings, higher middle class wages, reducing crime, repair, environmental damages for the fast growing economy. Due to China strict control policy of population its one with the highest aging rates in the world. Due to many factors their environment is suffering a big hit fo instances with raging air pollution, erosion of the soil, and declining water stability it continues to make it a problem for the economy as a whole. Even with problems in their economy China’s GDP boast a staggering 9.67 trillion dollar capacity with a 2% inflation in 2014 I can see that they not doing to bad, but once they start to integrate new faucets of income using the countries resources.
Analyze the risks and benefits on investing in that foreign market
What are the benfits of investing in china one may ask well there are may we will…