Increasing the Threat of China's Wealth Gap
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Refer to case study 10.2 when framing your response which I will attach. Also, refer to the questions at the end of the case study in order to help you think about your response, please just don't answer the questions, provide a list of sources used. Please use APA.
1. What are major pressures and conflicts faced by the government in this particular case involving rapid industrialization and foreign company involvement through foreign direct investment?
2. What are the potential negative outcomes of possible future salary restrictions being placed by China on non-Chinese executives working in China for non-Chinese operations?
3. What are some possible policies and practices that Western firms might consider for addressing rising concerns presented by the growing pay gap described in this case?
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The solution discusses increasing the threat of China's wealth gap.
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Major conflicts and Pressure faced by Chinese Government:
Globalization, trade liberalizations, increased cross border trade and FDI's have opened the doors of numerous opportunities for the countries across the world. However, it has brought few challenges too along with the economic benefits. China is the largest economy in Asia and the second largest economy in the world. The country is seeing rapid growths in every industry and that has started creating a gap in the country by unequal division of wealth. This unequal distribution of wealth is dividing the country into two groups; poor and rich. Poor is becoming poorer and rich is becoming richer. Due to rapid industrialization and increased FDI in the country, Chinese government is facing tremendous pressure from the lower and middle income groups of the population. There is increase in mass riots, oppositions, thousands of protests over land seizure, corruption, and unpaid wages etc. that has drawn attention of the Chinese government towards these issues. These issues are compelling Chinese government for revising their policies in order to maintain harmony and peace in the country. The major pressure that Chinese government is facing is the increased society gap and unequal distribution of wealth within the country. Government is now taking ...
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