Question

GEPPS Research Project: Each individual student will prepare an individual research paper that compares and contrasts the local and Chinese economies in terms of using global, ethical, political, physical, and societal indicators. Does the size and growth of the economies of the two nations have any relationship to capitalism and democracy? What is the impact of the Internet on the two national economies? How do these nations define capitalism in relation to national political policies? Is there a relationship between economic growth and personal freedom with the two nations?

Answer 1

Comparison indicators of economy :-

1) Global indicator :-

The two major global indicators for comparison of US and Chinese economies are Gross Domestic Product and Consumer Price Index . The united states has world's largest economy with a share of 22% of the global GDP . However China has overtaken US by atleast one measure that is GDP based on purchasing power parity

2) Ethical indicator :-

The Human Development Index is the major indicator of Human development . While China ranks at 86th position in HDI index , the United States surpasses the development criteria with 13th rank on the index .

3) Political indicator :-

Individual freedom and human rights are the political indicators of economic growth. China has a long history of supressing human rights including the one child policy . On the other hand United States have a well defined stature to protect human rights.

4) Physical indicator :-

As per suggested reports from May 2019 data the positive physical indicators like growth in energy consumption , freight traffic and producer prices is pointing towards solidification of the economic process in Comparison to United States .

5) Societal indicator :-

Health and education is the social indicator of the development economies . While China has a life expectancy of 76.4 years and 7.8 years of mean schooling. US has 79.5 years of life expectancy and 13.4 years of mean schooling rate .

Size and growth of both economies in terms of capitalist and democratic government:-

China follows state capitalism with a framework for communist party rule .Since 1949 the People's Republic of China has steadily embraced capitalism .

On the contrary , United States is an democratic economy.

Impact of internet on economies :-

The internet across the economies have contributed to GDP growth. In China the internet services have generated 4.2% of Global GDP and provided 32 million opportunities.

While the consumer surplus in US has generated 64 billions in 2009.

The relationship between economic growth of both countries:-

On one hand the United States economy is sophisticated and highly diversified based on services , finances and consumption from the middle class .

While on the other hand China aspires to take a similar approach in future , but as per current status it is a resource intensive growth economy making a transition from manufacturing hub to a consumer driven economy.

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