David Reisberg

David Reisberg

Friday, February 4, 2011

What country will soon have the world's largest economy? Why?



     In my own point of view, I think that China will soon be the world's next largest economic provider.  The reasons I think that China will soon have the largest economy is because China is currently the highest provider in exports world wide, China has a very large population which can handle a higher percentage in volume of production for the world's supply and demand of items, and currently China is the world's second largest producer to the world's economy.  It is possible that China may or may not become the next largest economy provider, but I do think that no matter which country will be at the top of the world's economy; people around the world can work together with trading, supply and demand, exporting and importing of items and yet still reach toward the future success of the common good.  Although the U.S. will strive to stay at the top of the economic ladder, the only direction to climb once one has reached the top of the ladder, is down.
     According to the CIA World Factbook on China's economy, "China's economy since the late 1970's has changed from a closed, centrally planned system to a more market-oriented one that plays a major role in the global economy - in 2010 China became the world's largest exporter. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceeded those of the US, although China was second to the US in the value of services it produced. Still, per capita income is below the world average.  Economic development has progressed further in coastal provinces than in the interior, and approximately 200 million rural laborers and their dependents have relocated to urban areas to find work. "

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