Discuss the challenges China faces as it continues its experiment ...

[michelleunicorn]

Discuss the challenges China faces as it continues its experiment on socialism with Chinese characteristics.
 
  What will be an ideal response?

Question 2

The root cause of gray market activity is a large enough difference in price of the same product between two countries.
 
  Indicate whether the statement is true or false

[jojobee318]

Answer to Question 1

Three factors have posed challenges for China in its transition to a market economy. First, political and social problems pose threats to China's future economic performance. For the most part, political leaders restrict advanced democratic reforms. Protests sporadically arise from time to time whenever ordinary Chinese citizens grow impatient with political progress.
Another potential problem is unemployment. Intensified competition and the entry of international companies into China are placing greater emphasis on efficiency and the cutting of payrolls in some industries. But the biggest contributor to the unemployed sector seems to be migrant workers. Hundreds of thousands of workers have left their farms and now go from city to city searching for better-paying factory work or construction jobs.
Another key issue is reunification of greater China. China regained control of Hong Kong in 1997 after 99 years under British rule. For the most part, China has kept its promise of one country, two systems. Although the economic freedoms of people in Hong Kong have remained largely intact, the rest of China has continued along lines drawn by the communist leadershi

Answer to Question 2

TRUE