Economics

INTRODUCTION

This report is based on the article “China buys the world” from the economist. The objective of the assignment is to engage in argumentative discourse on the following topics.

Option 01

Manage China’s entrance in terms of investment and knowledge sharing into a sovereign country

"There is, understandably, rising opposition to this trend. The notion that capitalists should allow communists to buy their companies is, some argue, taking economic liberalism to an absurd extreme." – 11 Nov 2010 The Economist

Option02 

Have confidence in the true nature of Capitalism and let China's money free flow across borders as it benefits the nation in terms of infrastructural development, knowledge gathering etc. 

"China’s advance may bring benefits beyond the narrowly commercial. As it invests in the global economy, so its interests will become increasingly aligned with the rest of the world’s; and as that happens its enthusiasm for international co-operation may grow. To reject China’s advances would thus be a disservice to future generations, as well as a deeply pessimistic statement about capitalism’s confidence in itself." - 11 Nov 2010 The Economist

I recommend option two which is in line with the capitalist belief of free markets, free economy and facilitates freedom of choice. Therefore China should be able to invest freely in countries.

This report describes the true nature of capitalism and its inclination to human nature and the importance of Foreign Direct Investment to developing nations. It further describes how the free flow of FDI’s could be beneficial to the home and host countries and how it will promote economic growth and will support to create a fairer society.

CAPITALISM

Capitalism is a system in which goods and services, down to the main necessities in life, are produced for profitable exchange, where even human labor power is a commodity for sale in the market, and where all economic actors are dependent on the market....