Monday, 16 February 2015

Reflection of China's economic growth

China gains its economic growth from its mass of unemployed workers and natural resources. This allows China to produce masses of goods for export. They also make it easier to set up factories by undervaluing the currency and charging low taxes. Coupled with the mass of unemployed workers, resulting in low salaries, China is a very attractive place to start a business. 
The implication on singapore is that many people will want to start a business in China and not singapore, resulting in a lower number of businesses in Singapore. As more and more business man goes to China to start a business, there will be less business man in Singapore. On the other hand, the cheap goods increases living standards of Singaporeans.

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