How is China aspire to be a Great Power competition to the US - Essay Example

Download file to see previous pages... The economies of China and India are believed to be most significantly emerging markets and therefore, the Multinationals have outsourced their production facilities to abovementioned economies in order to gain cost related advantages. The Chinese nation is identified as best contender for the position of global economic leader. The idea of political influence is closely related with economic power (Friedberg, 2005). The Chinese industrialists' capability to gain economies of scale and scope is currently unmatched in the global manufacturing market. Still, the notable number of economic experts are holding on to the point that US is going down that is for sure but it is not possible for any one country to assume command of the world economy and because of this reason, small islands of political and economic strength will begin to appear in several parts of the world. Based on the above argument it can be established that humanity is indeed moving in the direction of globally integrated economic system. In a new economic world order, the notion of nationalism will further degrade and nations will become heavily dependent on each other to fulfill the basic and fundamental needs and wants of their population (Byrd, 1987). The nations are forced towards developing their core competencies in the fields where they can attain significant level of economic benefits. But, countries also have to outsource practices that they cannot perform both efficiently and effectively. Thusly, the nations are using Resource Dependency Theory in order to manage their economic systems. In short, it can be argued that nations are collectively fighting the semi-permanent international recession. The changing fiscal realities of the world are causing the business environment to modify rapidly and therefore, the companies have to follow the most practical concept of economic rationality that states that the company and the nation as a whole must attempt to minimize its costs while maximizing its financial returns. In the past, economists recommended the nations to attain self-sufficiency but in current times, the notion of self sufficiency is considered equivalent to suicide and economic destruction. The emerging economies of the world are known to focus on mass production and therefore, are in early stages of industrial development. The American economy on the other hand, is working in terms of becoming knowledge-based economy. The American educational and industrial centers are presently engaged in perfecting weaponry and robotics. Additionally, the US government lately commissioned a project that will work in the direction of understanding functionality of human mind. A bunch of scientists is also trying to improve genetic engineering to enable companies to attain increasing cost benefits in the industry of food. The Chinese government is looking to produce consumer products efficiently and therefore, a symbiotic relationship has been developed between US and China as the former economy is dependent on the latter one to acquire consumable goods while, the industrialized country will need help of Americans to comprehend and apply new knowledge. The American society was famous for creating new knowledge and operationalizing it as well. Nevertheless, internet and latest communication infrastructure helped other developing nations in accessing and understanding modern and efficient methods of business management. The Chinese economy however, ...Download file to see next pagesRead More