What effect has globalization had on russia and china?
Answers
Answer:
China
China and globalisation are no strangers. The process has been happening for a long time, and it is essential that any business looking to break into China combines a global strategy combined with a market specific approach.
As the global economy shifts its focus towards China, new opportunities for businesses to enter the Chinese market are emerging. In other words, the impact of globalisation on China’s economic growth is already being felt. China is rapidly becoming the new champion of economic cooperation, trade and globalisation. As others retreat from the forefront, Chinese businesses are looking to expand and grow into all corners of the world.
A Chinese globalisation case study worth following is the Belt and Road Initiative (BRI), devised by China’s premier Xi Jinping, which focuses on connecting the vast array of countries that sit within the region. It’s one of the reasons for the growth of globalisation in China, and this Chinese led trade network enables large, medium and small enterprises to realise their potential and trade more simply and expansively around Asia.
While businesses are eager to take to the world stage and reap the benefits of globalisation in China, they remain cautious of outsiders. Ensuring you are culturally sensitive will offset some of this reticence and businesses of any size must appreciate that Chinese business culture does not follow western norms.
Russia
Insufficient attention has been paid to the fact that Russia has been going through a process of economic transformation in a time characterized by increasing globalization both of economic and political processes, remarked Michael Bradshaw , Professor of Human Geography, University of Leicester at a Kennan Institute lecture on 6 November 2000. In order to understand why Russia's transformation has been so troubled, Bradshaw continued, it is necessary to look at questions of globalization which have great implications for the creation of a functioning state, a coherent federal system, and a market economy.
The process of globalization impacts the processes of change on the local and regional scale. According to Bradshaw, globalization implies a stretching of social, political, and economic activities across frontiers such that events, decisions, and activities in one region of the world can impact individuals and societies elsewhere, as well as an increased interconnectedness which transcends individual states. In many ways, the state is no longer the key scale of action as the boundaries between domestic matters and global affairs are blurred. In the case of the Russian Federation and other post-Soviet states, Bradshaw remarked, we see societies that were previously closed off from global influence are now open to all these forces.
Globalization processes have a great impact on the progress of economic transformation in the post-Socialist world. The "transition economies" have been encouraged to open their crisis-ridden economies to international trade and attract foreign investment. The governments of these states have been powerless to combat the changing fortunes of the global economy. According to Bradshaw, Russia's 1998 financial crisis was in large part caused by the changing sentiments of international financial markets. Equally, Russia's current economic recovery is partly driven by high world oil prices. In addition, the devaluation of the ruble has actually been beneficial for Russia as import substitution revived domestic producers and encouraged foreign investors to produce locally.