Lectures 1-3 Flashcards Preview

ECON2500 > Lectures 1-3 > Flashcards

Flashcards in Lectures 1-3 Deck (23):


1.415 billion


Geographical size

4th largest in the world, 9.59 square kilometres


People in EU and US believe that ...... is world's biggest economy. People in China believe that ..... is world's biggest economy.

China; the US


People in the US believe wrongly that China is a major destination for US investment, but how much percentage of US investment is really made into China?

1.5% in the last 10 years. Growing negative opinion.


GDP per capita (PPP)

$16,624 per person as of 2017 (IMF)


GDP per capita ranking

79th. Middle income country.


Export import rankings

Largest exporter, 2nd largest importer


Major exports

Electrical machinery, industrial machinery, apparel, furniture


Savings and investment percentage? And what is the savings and investment used for?

50% of GDP.
Used to buy large amounts of foreign exchange, which puts downward pressure on the exchange rate and helps boost Chinese exports.


Australia China trade major exports from Australia? Major imports into Australia?

Major exports from Australia: iron, coal, education, travel, wool
Major imports into Australia: telecom parts, computers, furniture


Australian investment in China
Chinese investment in Australia

Aus in China: 87.9 billion
Chinese in Aus: 87.2 billion


In 1820 how much of world GDP was Chinese?
How much in 20th century?

33% in 1820.
5% in 20th century


Foreign Policy Under Xi Jinping

More assertive and proactive, will no longer remain neutral; perceived need to defend their interests and neighbours against America


List some Chinese global initiatives

Asia infrastructure investment bank as an alternative to the US dominated Asia development bank and world bank
Belt and road initiative
Aid and development in Africa and the pacific
China-led trade deals


What are the two current major competing trade deals

TPP without China
Regional Comprehensive Economic Partnership - but India is making a fuss


China is the only country that will get .... before it gets....

Old before it gets rich
Powerful before developed/advanced
Shrinking workforce, growing number of sick and retired people.


List some China regional conflicts

South China Sea arguing with Philippines, Malaysia, Brunei and Vietnam
US VS CHINA existing vs rising superpower
India and Japan squabbles


Percentage of global CO2 emissions



Who argued that the "political development of countries evolves towards liberal democracy"?

Francis Fukuyama in his 1989 article and 1992 book called "the end of history". The 20th century saw a large increase in the number of democracies.


The Chinese alternative to western democracy

No signs China will evolve towards western democracy.
Political power concentrated within CCP, several layers of representative and consultative bodies


When was the century of humiliation and what was it?

Unprecedented global economic development starting in Britain and expanding to the rest of the world. But China rejected change and stagnated and was left behind. Western and Japanese powers one several wars and imposed a series of unequal treaties on China.


China poverty rate from 1981 to 2012?

88% down to 6.5%


Reasons to study China and the Chinese economy

1. It's big
2. Leader in global trade/finance, so important for other countries
3. Rising/returning superpower, with large ambitions
4. Potential for conflict
5. Impact on global issues
6. Alternative to western democracy
7. Lessons from history, both good and bad