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Global Business Environment for 2008 Tsunami

After the Financial Tsunami in 2008, the global economy has changed a lot. Please conduct a proper Literature Review to analyze and compare the role of China in the global economy before and after the Financial Tsunami; that is, the period from around mid 2007 to Dec 2009.

At least 15 ACADEMIC references (from journal, research or textbooks, not from the internet) should be provided.

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The response addresses the queries posted in 2588 words with references.

//Financial Tsunami that have started in the year 2008 due to large subprime crisis that blasted in the USA economy has taken all the major and different economies of the world in its lap. China has also been shaken due to massive financial crisis and has emerged out as a big economy that has played its part during this period. We will analyze and compare the role of China in the global economy before and after the Financial Tsunami but start the essay with introduction like this: //


China in the recent years, has gained a powerful status in the global economy. It plays a major part in shaping and moving the global economy and the role of China has clearly become evident after the Financial Tsunami hit most of the parts of the world. The Financial Tsunami primarily, started with the sub- prime crisis that has paved its path in the USA and uninterrupted benefits provided by the China through buying treasury and government securities of the USA. China has been serving the debt needs of the USA before the recession took place in the USA market. China is a large country with vast population and thus, it has been highly regarded as an excellent economy to work in and with it. Before the Financial Tsunami hit the large corners of the world, the government of China had formulated strict rules and regulations that hindered the foreign direct investment in the country. Even though, such restrictions and constraints have been applied, the economy possesses so much vast opportunities that the foreign business entered the China market with the help of joint ventures. Financial Tsunami created economic crisis on the biggest economics of the world as it trapped the USA and European economy the most, the countries of G-20 (Fuller, 2009).

China even before the Financial Tsunami played a bigger role through its vast productivity and imports to cater to the needs of its vast population. The trade and business were enlarging and the flow of foreign currency was there between the China and the exporting countries. Even the country exported products to different countries especially in the Asian market, thus playing a major role in the global economy. Financial Tsunami has shaken the most economies of the World but China has been able to cope up with such crisis due to its business innovations and effective governmental efforts. The role of China thus, becomes crucial after the Financial Tsunami as it focused its attention towards creating a market economy that can benefit the overall Chinese market and in turn, generated greater role in global economy through enhanced liberalization (Blankert, 2009).

//As we have understood some of the major roles that have been played by China in the global economy in the recent years. We will conduct a literature review so as to analyze the role played by China after the Financial Tsunami and compare it with the period before it. //

Literature Review

The article written by Funabashi (2009) has stated the big impetus that has rolled towards China to grow and assist the global economy. China has been playing a major role in the G-20 after the Financial Tsunami to provide and introduce ways to reduce this crisis. China's status after this financial crisis is very strong as compared to others due to high foreign currency as its disposable especially, the amount of US dollars. Thus, China's role is evident from the fact that it can heavily serve the deficits of the American government. China has been addressing the financial concerns of the USA and assisting different economies of the world through extended support either directly or by contributing to the International bodies like IMF, world bank etc. China has liberalized more to bring in large foreign investment in the country. China is taking not only taking itself out from the distress of financial crisis; but also, is playing a crucial part in the lifting the world economy. China has been becoming a focal point in the world economy due to the business and economic role played by it. China as a country also wants to make Shanghai as the world's financial capital (Funabashi, 2009).

//The reviews has been done to find out the correct status of the China in making the global economy came out of such ...

Solution Summary

The response addresses the queries posted in 2588 words with references.