Edexcel A level Business International Business essay answer

‭ iscuss‬‭the‬‭advantages‬‭and‬‭disadvantages‬‭of‬‭high‬‭growth‬‭rates‬‭for‬
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‭China‬‭8‬‭marks‬


‭ igh‬‭growth‬‭rates‬‭are‬‭a‬‭stark‬‭increase‬‭in‬‭economic‬‭growth‬‭of‬‭a‬‭country,‬‭which‬
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‭brings‬‭many‬‭benefits‬‭to‬‭the‬‭people,‬‭but‬‭risks‬‭for‬‭both‬‭national‬‭and‬‭international‬
‭businesses.‬
‭An‬‭advantage‬‭of‬‭high‬‭growth‬‭rates‬‭in‬‭China‬‭is‬‭the‬‭improved‬‭quality‬‭of‬‭life.‬‭Due‬
‭to‬‭heavy‬‭economic‬‭growth,‬‭governments‬‭are‬‭able‬‭to‬‭engage‬‭in‬‭top-down‬
‭development‬‭projects‬‭to‬‭help‬‭poor‬‭localities.‬‭However,‬‭government‬‭corruption‬
‭such‬‭as‬‭that‬‭seen‬‭in‬‭China‬‭and‬‭Sierra‬‭Leone‬‭may‬‭prevent‬‭beneficial‬‭use‬‭of‬‭the‬
‭economy.‬
‭High‬‭growth‬‭rates‬‭however,‬‭may‬‭result‬‭in‬‭businesses‬‭having‬‭to‬‭constantly‬
‭re-evaluate‬‭the‬‭economic‬‭situation‬‭and‬‭remain‬‭vigilant‬‭as‬‭this‬‭growth‬‭may‬‭be‬
‭short-lived.‬‭However,‬‭if‬‭a‬‭country‬‭is‬‭deemed‬‭to‬‭have‬‭high‬‭potential‬‭for‬‭rapid‬
‭growth,‬‭there‬‭will‬‭be‬‭huge‬‭foreign‬‭direct‬‭investment‬‭from‬‭MNCs.‬‭MNCs‬‭will‬
‭compete‬‭to‬‭gain‬‭first-mover‬‭advantage‬‭and‬‭gain‬‭high‬‭market‬‭share.‬‭Still,‬‭this‬
‭may‬‭pose‬‭a‬‭risk‬‭as‬‭other‬‭factors‬‭including‬‭Chinese‬‭culture,‬‭location‬‭and‬
‭population‬‭may‬‭affect‬‭a‬‭businesses‬‭decision‬‭to‬‭enter‬‭the‬‭market,‬‭and‬‭may‬
‭cause‬‭inflation‬‭in‬‭China.‬
‭Furthermore,‬‭China‬‭must‬‭also‬‭weigh‬‭the‬‭environmental‬‭impacts‬‭of‬‭high‬
‭economic‬‭growth.‬‭Although‬‭FDI‬‭is‬‭valuable,‬‭the‬‭increase‬‭in‬‭demand‬‭and‬
‭therefore‬‭factories‬‭will‬‭cause‬‭mass‬‭pollution‬‭and‬‭environmental‬‭degradation.‬
‭This‬‭has‬‭already‬‭been‬‭seen‬‭in‬‭China,‬‭and‬‭aggravation‬‭may‬‭cause‬‭China‬‭to‬‭fall‬
‭behind‬‭on‬‭global‬‭climate‬‭change‬‭targets.‬ ‭But,‬‭given‬‭businesses’‬‭green‬
‭policies‬‭and‬‭operations,‬‭this‬‭may‬‭be‬‭kept‬‭under‬‭control.‬

I‭n‬‭conclusion,‬‭it‬‭can‬‭be‬‭seen‬‭that‬‭there‬‭will‬‭be‬‭a‬‭stark‬‭increase‬‭in‬‭inequality‬
‭and‬‭inflation‬‭for‬‭China‬‭due‬‭to‬‭a‬‭quickly‬‭developing‬‭economy,‬‭however‬‭there‬
‭will‬‭also‬‭be‬‭an‬‭increase‬‭in‬‭disposable‬‭income,‬‭leading‬‭to‬‭better‬‭quality‬‭of‬‭life,‬
‭MNC‬‭investment‬‭and‬‭in‬‭turn‬‭China’s‬‭GDP.‬