The paper "The UAE vs the Chinese Economy" is a perfect example of a macro & microeconomics case study. The UAE takes the second position in the list of the largest economies in the Arab world. Its lead attributes to the diversification of its investments in both oil and non-oil sectors. Before the attainment of independence, the individual emirates had total control over its economy but that later changed allowing the national government overall control. China’ s economy has experienced rapid growth over the past three decades due to the high rate of industrialization in the country.
Its manufacturing industry makes china the largest manufacturing economy globally. These two economies have several similarities and differences whose analysis helps in the understanding of both economies. Size of the Economy The UAE has one of the largest economies in the Arab world. Its gross domestic product ranges at $377 billion in 2012. Oil generates almost a third of the overall GDP while the non-oil resources contribute to around 70%of the GDP. Since the acquisition of independence, the economy has multiplied at 231 times and expects further growth in the future.
The major natural resources of the country consist of natural gas and petroleum resources. Over 90% of the resources emerge from the emirate of Abu Dhabi and the nation faces a major deficiency of natural freshwater due to high salinity levels. China on the other hand has the world’ s second-largest economy with a growth rate of about 10% over the past three decades. The country records the world’ s highest export quantity from its manufacturing industry and the second world importer (Naughton, 140). The country plays a major role in international trade.
It has engaged in major trading organizations and treaties with other nations. China relies on natural gas, oil, nuclear power, and energy production through the exploitation of its coal reserves. Societal Indicators The unemployment rate ranges at 4.2% in the United Arab Emirates while china registered a rate of 4.1% in 2012. The gross domestic product (GDP) per capita in 2013 registered at $3583.38 in China and $24077.73 in the United Arab Emirates.
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