Hofestead China Essay

533 words - 3 pages

As for the political state of China, the country is run by the communist party in which the people really have no say in who gets elected, other than the fact they can pick a candidate amongst other communists. China has a tight stranglehold on the foreign direct investment that is conducted within its borders to the extent that the government first approves of any outside source doing business in the country, then takes majority ownership of said company. The public has no form of say on the positive or negatives of its political leaders because of the threats of the communist party. Along with that, the people of China do not have freedom of the internet so they cannot post their thoughts, nor read any outside ...view middle of the document...

This also coincides with the FDI I talked about in the previous section. Companies have had a hard time investing in China in the past because of the strictness of the government, but that seems to be changing as the economy is rapidly growing. Investment opportunities will rapidly grow in the foreseeable future. China has an inflation rate of 3.1, which has slightly been growing over the past few months and is higher than the optimal inflation rate, but not by much. The unemployment rate is currently at 4% which is very good and much lower than that of the United States. The per capita income is just over $6,000US which is much lower than the previously studied Russia and USA. As for the economy as a whole; it is heading in the right direction with little to no foreign debt as the country is running on mostly exports. I have given China an economic score of 3 with optimism for the future.
Finally, the social and cultural indicators for China. The quality of life in China is not terrible, as the majority of the country is not starving. The labor force on the other hand is very questionable as there are plenty of children working at very young ages and in very unsafe conditions. China has a very high volume of crime, whether it is illegal drugs, guns, or human trafficking, it is very prevalent throughout the country. There aren’t too many positives to be said for the social aspect of China. The people are living poorly, although not starving; crime is very wide spread, but not an imminent danger to the general public; the most relevant problem is the working conditions for the people. All of these combined, I rate the social indicators with a 5 and not necessarily improving in the short term.

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