ppts economics

8/2/2019 Ppts Economics

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PRESENTED BYISHANI SETHI

HARLIN KAUR

AJAY BANSAL

SEHAJPREET


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Mixed economy - in which both the stateand private sector direct the economy,reflecting characteristics of both marketeconomies and planned economies.


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China have communist economy.


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Fastest growing economy in world.

Supply cheap labor, Opening up sectors of itseconomy to foreign investment.

Massive trade surplus and huge forex reservesserve as cushion against external shocks.

Economic policymakers committed to gradualreform of the economy.


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Foreign companies complain about poor

protection of intellectual property in China.Chinese corporate governance is weak and

non-transparent .

Economic growth led to environmental

degradation.Dependency on exports made it vulnerable to

the global recession.


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Largest and the most important market inthe world.

High value investment on R&D andEducation.

Worlds largest economy, having GDP

approximately $14.26 trillion.

Strong decision-making Govt. pertaining toinitiatives for growth and stability of thecountry


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Low household saving rate.

large fiscal deficit .

Failure of credit market and housing sectorslowed down US economy.


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Living standard.

Cost of production low.

Difference in demand & supply.Contracts in all sectors.

Production in bulk.

Chinese culture of savings.China keeping its currency low.


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Officially out of recession, but still reelingunder after effects of global economicmeltdown 2007.

Rate of jobless people not decreasing.

keeping the businesses running in order to

save jobs.


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CHINA USA

GDP(PPP) $10.09 trillion $14.6 Trillion

Unemployment Rate 4.30% 9.6%

GDP Per Capita 7,600 USD 47,200 USD

Per Capita HealthExpenditure

216 USD 6,719 USD

Life Expectancy 74.680 years 78.370 years

Human DevelopmentIndex 0.762 0.95

Literacy Rate 90.9% 99%


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China USA

Labor Force 815.3 million 153.9 million

Population BelowPoverty

15.1% 2.8%

Inflation Rate 1.6% 3.2%

Forex Reserve $2.876 trillion $132.4 billion

External Debt $529.2 billion $14.71 trillion

FDI (Home) $578.8 billion $2.674 trillion

FDI (Abroad) $297.6 billion $3.817 trillion


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Budget deficit- difference between government

revenue and expenditure.

Political climate -The disagreement between theRepublicans and the Democrats.

Standard and Poor's downgraded the USAsovereign credit rating by one notch from AAAto AA+ i.e a negative


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The U.S. trade deficit with China is $252billion.

U.S. exported $82 billion(goods and services)to China while imported over $334 billion.


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China produce low-cost goods that Americanswant

China's competitive pricing due to:

lower standard of living, pay lower wages toworkers.

exchange rate always priced lower than thedollar.


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China sets value of its currency equal to a setamount of a basket of currencies which

includes dollar.

When dollar loses value, China buys dollarsthrough U.S. Treasuries to support it.

Yuan's value is lower than the dollar, China'sgoods are cheaper in comparison.


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China bought U.S. Treasuries and keep itsexports cheap & helped keep U.S. interestrates low.

This gives China political leverage over U.S.fiscal policy.

U.S. companies that can't compete withcheap Chinese goods may go out of business.

Leads to unemployment.


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Cutting down expenses.

No tax increase.

Decrease in military expenses.

Reconstructing the economy.

Increase in employment

Limit federal control of lands todefence needs and preservationof natural and culturalphenomena.


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China may surpass U.S (in PPP) before 2025.

At time of GDP convergence, average

Americans income will be more than fourtimes than that of average Chinese.

The China will be bigger than the U.S. in less

than a generation, but America will remainmuch richer.


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