HW 5 - example of a government policy choosing a growth...

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l. Economics 1l58 Dr. Janine L.F. Wilson Homework #5 - Answer Key The Superpowers of the Developing Economies: China and India Why was China's economic reform more successful that Russia's economic reform according to Sachs? What were the most important factors to consider? a. Because the agricultural production sector in Russia was owned by the state which hired workers considered "public sector" employees when communism fell apart,the state of agriculture was in shambles. b. On the other hand, in China, communal farms were taxed by the government. Once the agricultural sector controls were un.raveled farmers used the same land and under a household responsibility system kept what was not taxed from them. The only difference was that they didn't have to share their profits they could keep them themselves. The worked their o'own" plot of land before and after reform. How did the private market choose India's growth sector? Tell the story. Give an
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Unformatted text preview: example of a government policy choosing a growth sector. Was this successful? a. The migrants from India to the U.S. used their connections back home to establish call centers. ..(service sector exports) after they had established their own U.S. firms. An example of the government choosing a growth sector is when Argentina began to produce automobiles as a result of the government's industrial policy decision. This was much less successful than the Indian example. According to Woo in his testimony before the U.S. - China Economic and Security Commission, is China to blame for the current economic crisis? Does he believe that imposing trade restrictions is advantageous? a. No, he does not believe that China is at fault. If the U.S. were to impose trade restrictions then China's growth would be threatened which would damage the U.S. economy. 2. J....
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This document was uploaded on 10/10/2011.

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