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The Determinants of the Economic Growth of a Country - Term Paper Example

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This paper "The Determinants of the Economic Growth of a Country" evaluates the importance of the export of manufactured goods in sustaining the economic growth of a country. In other words, the currency value and the export growths are the major determinants of the economic growth of a country…
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The Determinants of the Economic Growth of a Country
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Download file to see previous pages China’s policies helped them to grow at the rate of 7%–8% per year which is sufficient enough to produce 15 million new jobs a year (THE “CHINA PRICE” AND WEAPONS OF MASS PRODUCTION, n. d, p.1). China is one of the prominent exporting countries in the world which exploited the possibilities of export of manufactured goods judiciously for their economic growth. In fact, they taught the external world new export-oriented economic lessons. While most of the countries tried to sell their products for maximum possible prices in the global market, China adopted a different strategy of selling its products for maximum cheaper prices. Cheaper prices made Chinese products favorite in global market and they were able to generate big volumes of business in the global market. Bulk production helped China to sell their products for cheaper prices in the global market. Mass production also helped China to reduce its unemployment problems up to a certain extent. While most of the other countries struggled to boost its economy through export of manufactured goods, China not only maintained steady economic growth through export of manufactured goods but also succeeded in reducing unemployment problems.

It is not easy for other countries to follow the path of China blindly. For example, America’s manufacturing base is not much active currently because of the stiff competition from the Chinese products. Even American consumers became a fan of Chinese products because of the cheaper price and better quality compared to American products. Under . Under such circumstances, if America wants to mobilize its manufacturing sector, they should be able to provide goods with prices even cheaper than the Chinese products. But, it is not easy for America to manufacture products with cheaper price options compared to Chinese products because of the inferior manpower, infrastructure, and technology compared to China.  ...Download file to see next pages Read More
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