Explain why China and India are considered disruptive to the world's status quo
What will be an ideal response?
History tells us that when world powers emerge, it usually creates economic, political, and military challenges for other nations and leads to a period filled with transitions and tensions. This is particularly true in the case of China. China's enormous size, as the second largest economy in the world, together with its aggressive foreign investment and trade policies, and its historically unprecedented rate of growth, have caused it to be more disruptive of the status quo as it has become integrated with world markets.
You might also like to view...
According to classical macroeconomic theory, the price level, but not real GDP, are affected by changes in the
a) money supply. b) labor supply. c) supply schedule. d) aggregate supply.
What are the tools available to governments to mitigate cycles of boom and bust? Why do these tools fail?