AP Comp Poli paper

AP Comp Poli paper - Foreign Investment & Economy As...

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As one country succeeded greatly at converting their communist economy to that of an economy filled with democratic ideals, the second succumbed to high debt through economic aid as well as the world market. China slowly integrated capitalistic ideals into their system while Russia employed immediate and concentrated shock therapy. Both countries began with the same style government and economy but both emerged with different economies. In order for each country’s economy to flourish in today’s society and world market, it must contain certain elements of democracy as well as establish diplomatic relations with democratic nations. Drawing from its long history as a powerful nation, China responded well to the new form of economy. The Cold War made it difficult to maintain diplomatic relations between Russia and other countries; although these foreign relations have been improved, it did prove to be a set back for the Russian economy. Using a unique combination of socialism and capitalism, China’s hybrid system has proved successful. China has established itself as the second largest economy in the world – second only to that of the United States. China’s success is due, much in part, to foreign investment, the stock market, and China’s ability to mass-produce product. Foreign investment now comprises 3.7 percent of China’s gross domestic product of ten trillion dollars. Being the proud owner of 765 billions dollars in the stock market – foreign and domestic. China has voting power in several major companies, being a stockholder. Not only does China vote in company decisions but also China receives dividends paid on each share, increasing the country’s revenue. With such a large
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population, China’s factories are filled with young and vigilant workers who are capable of producing dozens of units per day. Regardless of growing unemployment between four
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AP Comp Poli paper - Foreign Investment & Economy As...

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