Phenomenal Popularity of IKEA in China - Dissertation Example

The impact of globalization is not limited only to the economic relationship of countries. Its influence and impact permeate all the structures of society (Watson 2004). China’s experience of monumental economic growth is directly attributed to the country’s transformation of its international trade policy (Yao 2006). From a closed-door to an open-door international trade policy, China abandoned its isolationist policy and embraced the mercantilist economic system. It paved for China’s integration in the world economy, a heavy influx of foreign direct investments, and an increased completion in the domestic market (Lemoine 2000).

However, globalization in China is not only about economic changes. Together with the changes in the foreign economic trade policies of China, changes in the political, social, economic, and demographics of China are also happening, highlighting the fact that the impact of globalization is not solely manifested in the international trading relations of China, but it is also perceptible in other facets of her society.1.1.1. Political EnvironmentIn 1949, China came under the rule of China’s Communist Party.

During this period, the entire country was bombarded with the Maoists ’ rhetoric of self-reliance and self-sufficiency (Fan 1995). At that time, self-reliance and self-sufficiency were enough to cover the basic material needs of the people. However, by the 1970s, a high rate of poverty and starvation engulfed the country, pushing the reality that self-reliance and self-sufficiency were no longer adequate in meeting the material needs of the majority of the people (Fan 1995). From the late 1970s until 1997, Deng Xiaoping started to encourage a more foreign-friendly international trade policy.

China’s opening of her doors to international trade was undertaken gradually. It was a process propelled not by the demands from external factors, but from the internal reasons stemming from the people’s poverty and hunger (Fan 1995). In November 1999, China officially became a member of the World Trade Organisation (WTO). China’s membership came with tumultuous stories of violence and tyranny as evinced by the Tiananmen Square incident in 1989. Nonetheless, despite the issues surrounding China’s accession to WTO, China was able to pull through and alleviate the poverty and hunger of millions of Chinese.

China’s membership in WTO increased the hope of many experts that the democratization of China would commence. This was based on the premise that economic globalization China accepted as she became a member in WTO entailed the acceptance of liberalism which supports the notion of open market policy and less governmental intervention in market dynamics (Killion 2003). However, more than 20 years have passed and the democratization of China is still at its nascent stage.