The paper "The Economics and Business of the Asia-Pacific Region" is a perfect example of a macro & microeconomics case study. With the industrial and business growth rates being experienced by the Chinese nation, it is very likely that they shall become the world’ s largest economy within our lifetimes. Companies around the world have already taken steps to ensure that they can find opportunities for investment in China. Some have set up production houses for goods that are to be exported to the world while others have created manufacturing units that are supplied by parts coming in from around the world.
However, such entries have not always met with success for various reasons. China is significant mainly due to the educated, mature, diverse and immense population which the country has to offer as a market for products. Not only is this market a significant motivator for companies to do business in China, but the output which can be gathered from cost-efficient labour in China is also important. In the last few decades, China has gone from a closed socialist economic system to a more capitalistic and liberalised economic structure.
As the economy grows, it creates its own opportunities and internal markets. For example, China is expected to become the largest consumer of automobiles in the world if the present rate of growth is sustained. The opportunities also come from governmental support and encouragement towards foreign businesses investing in China. However, the lower cost of labour is a prime advantage for most companies. The majority of Chinese workers have lived in comparative poverty even when they provided their employers with efficient and productive output. At the same time, it must be noted that such situations may not remain true. In China, the trends of living with less could be on a downward slope as the population gets used to having more than their predecessors.
Competition from other western companies in terms of recruiting the best labour may also cause the costs of hiring individuals to rise with time. A twenty-year differential study for the economy of china shows that between 1981 and 2001 the percentage of working-class individuals living on less than one US dollar per day decreased from almost eighty percent to less than thirty percent.