Question

9. Explain why it is difficult for other countries to replicate China’s development miracle ( read China Case study p.200-209) Economic Development 12 Edition

Answer 1

9.

It is difficult due to the following reasons:

A. China has the largest population and workforce that is ready to work at the lower wages. It makes China to be attractive destinations. Other countries don't have the similar advantage and it is not even with India having second largest population.

B. China being a communist and people's republic, though made the policies that favors MNC enterprises and globalization. In other nations, government make policies, but these policies are more of people oriented and MNCs find it difficult to expand and grow.

C. China has vast resources and developed specialized infrastructure that caters the manufacturing set ups of different business domain. Such type of development is not possible in other nations as they can have only few specialized resources and can not scale it for export purposes.

D. China itself produces a largest domestic market that makes it an attractive destination. But, other nations are smaller in size, cannot provide cushion of robust domestic market when global market shows high volatility.

E. Finally, it is the economic policy to grow and expand inside the Chinese territory and outside in the world and strong will power of the government to implement it, has paid the results that are being considered as miracle.