Financial Management

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// The Sub Prime Crisis which started in the United States has literally shaken the very foundation of the global economy. Many countries have been worst hit buy this financial crisis. The research is on the role of China in global economy before and after the Financial Tsunami. Before beginning any research paper it is very important to give a brief introduction which introduces the topic, like this://

Introduction

In recent years, China with its spurring growth and growing financial wealth has been occupied center stage in the global economy. The country has grown rapidly in the last 30 years. Earlier, the country's role in the global economy was still a very less degree. But after the country introduced economic reform the growth of the country has been sporadic. It noted great changes in the investment, standards of living ads well consumption (Austin, 2009). Now the country has become an active participant in the global market with the private countries of the country helping boosting the economic growth.

// After the giving a brief introduction t the topic we would now give a brief review about the role of china which is very central to our research. Here we would be talking about its various characteristics and development that has ushered it into a role. //

Role of China

The subprime crisis jolted the world economy in a way that it was termed as Financial Tsunami. The financial crisis which started in the United States of America sent most of the economies of the world in great depression (Er & Wei, 2009). In such situation the role of the China became important in the global economy. China had been buying the treasury and government securities of the USA long before the financial crisis had hit the country. Through this it had been buying the US debt. The financial crisis did not have much impact on the economy of China. Before the crisis the government had developed a number of rules and regulations on the foreign investment entering the country.

The country had been playing an important role in the global economy much before the financial crisis came into the scene. The country had been expanding well in global trade and business with its high productivity and exports. There has been high foreign currency flow between the China and other countries. China has been exporting its product to a number of countries thereby strengthening its role in the global platform (Blankert, 2009). Even though the financial tsunami had most disastrous impact on other nations, but China has been able to tackle with a number of innovative decisions and government support. The role of China after the global crisis has acquired greater significance as the country has focus all its efforts in strengthening its economy which can help the Chinese as well as play greater role in the global market.

// Above we discussed the role of China in the world economy. Moving on now we would define the research. Here we would be looking at the research topic and the method selected for the research.//

Research

The research focuses on the role of China in the global economy before and after the Financial Tsunami. It particularly focuses on the period from mid 2007 to Dec 2009. The research looks at the role of Chinese economy in the global scenario. It looks at the various aspects of the financial crisis as it affected the global economy (Funabashi, 2009). The role played by China during the crisis would also be scrutinized in the research. The Chinese government in the wake of these events has taken a number of efforts to strengthening its economy. The research looks at those efforts of the Chinese government and its impact on the global scenario. It has been forecasted that China due to its strong economy would play a major role in the world economy in the coming years. The participation of China in the global trade would also been looked upon. China has taken some liberalization efforts to boost the economy. The liberalization policy of the government holds a lot of implications for the foreign investments. It means opening a door to ...