Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Briefly comment and point out something interesting from the following post: China economy has been one of the biggest transformations in the past years. China

Briefly comment and point out something interesting from the following post: China economy has been one of the biggest transformations in the past years. China went from a GDP of $484.4 billion in 1982 to $14.62 trillion in 2020. China growth was primarily driven by investment and exports as we all know. During the period between 1982 and 1987 China started developing foreign trade and foreign capital, during this period China maintained a low surplus on current account and small deficit in the financial accounts. By 2020 the balance on current account is way higher compared to 1982 and the export amount has increased drastically compared to 1982. During 1990 and 1993 the foreign trade activity became more active, and the exports kept increasing year after year. During the same this time the capital and financial account kept increasing as well, with the direct investment balance increase year after year. China opens its capital markets to foreigner investors causing an increase in portfolio investment inflows. According to the article "Chinese Balance of Payment: Disequilibrium and the Influences" by Xuezhen Kang, Chengwen Kang, "In 1994, Chinese government carried out the foreign exchange administration system reform that achieved the unification of official

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Paul Krugman, Robin Wells

4th Edition

1464143870, 9781464143878

More Books

Students also viewed these Economics questions

Question

8. How can an interpreter influence the message?

Answered: 1 week ago