Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Topics:
China's overheated economy; Inflation and deflation; Global prices of commodities; Demand for oil, steel and cement; Consumer expenditure and consumption; China's GDP (gross domestic product); China's oil production; Daqing oil field; The great leap forward; The policy of self-reliance; Zhou Enlai and the four modernisations; Flawed banking system
Share a link:
https://casecent.re/p/19584
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Even after 25 years of economic reform, China presents an enigmatic picture of political and business environment. Unlike the developed economies, China''s economic engine heavily depends on manufacturing and its inexpensive labour resources. Over the years, this reliance led to over-investment and over-capacity in certain sectors such as oil, steel and cement. While this is just one side of the coin, China''s socialist banking approach has added more to the already heated economy. As a result, the country''s scorching economic growth sent inflationary and deflationary reverberations across the world by rising prices of the globally traded commodities like oil, cement, steel and other metals. This case study encapsulates the years of economic reform that eventually led to the overheating and abnormal growth of the economy. Against this backdrop, a discussion on the overheated sectors would have a profound educational value. The scope of the case can be extended to a discussion on the proactive steps that China needs to take to cool its economy.
Location:
Other setting(s):
1949-2004
About
Abstract
Even after 25 years of economic reform, China presents an enigmatic picture of political and business environment. Unlike the developed economies, China''s economic engine heavily depends on manufacturing and its inexpensive labour resources. Over the years, this reliance led to over-investment and over-capacity in certain sectors such as oil, steel and cement. While this is just one side of the coin, China''s socialist banking approach has added more to the already heated economy. As a result, the country''s scorching economic growth sent inflationary and deflationary reverberations across the world by rising prices of the globally traded commodities like oil, cement, steel and other metals. This case study encapsulates the years of economic reform that eventually led to the overheating and abnormal growth of the economy. Against this backdrop, a discussion on the overheated sectors would have a profound educational value. The scope of the case can be extended to a discussion on the proactive steps that China needs to take to cool its economy.
Settings
Location:
Other setting(s):
1949-2004