Chapter 7 Economic Reforms

Japan enjoys a trade surplus with China instead of a deficit. This means that Japan exports more goods and services to China than it imports from China. This could be due to various factors such as Japan's strong manufacturing sector, its competitive industries, and the demand for Japanese products in the Chinese market. Additionally, Japan may have implemented effective trade policies and strategies to maintain a trade surplus with China.

China's state-owned enterprises (SOEs) had major responsibilities in various areas. They were involved in managing schools, providing pensions and medical care, and overseeing housing. This means that SOEs played a crucial role in the education sector, ensuring the welfare of retirees and providing housing solutions. The correct answer implies that all of these responsibilities were part of the major roles of China's SOEs.

After the Communist Party took control in China in 1949, they aimed to transform the country into a socialist state. To achieve this, China looked to the former Soviet Union as a model for their economic development. China adopted similar policies such as collectivization of agriculture, state ownership of industries, and centralized planning. They also received economic and technological assistance from the Soviet Union. However, China eventually diverged from the Soviet model and implemented their own unique economic reforms under Deng Xiaoping in the late 1970s.

Before 1976, the basic unit of China's economy was the "Danwei." Danwei refers to the work unit system that was prevalent in China during that time. It was a system where individuals were assigned to specific work units, such as factories or government offices, and their employment, housing, healthcare, and other welfare needs were provided by these units. The Danwei system played a crucial role in China's planned economy, as it helped in the allocation of resources and control over the workforce.

In 1949, the primary sector of the economy provided most jobs in China. The primary sector includes activities related to natural resources, such as agriculture, fishing, mining, and forestry. Considering that China was primarily an agrarian society at that time, it is reasonable to assume that agriculture played a significant role in providing employment opportunities.

China's biggest advantage in attracting foreign investment is its cheap labor and costs. This means that companies can save on production and manufacturing expenses by utilizing the relatively low-cost labor force in China. Additionally, China's lower overall costs, such as land and energy expenses, make it an attractive destination for foreign businesses looking to maximize their profits. This advantage has led to a significant influx of foreign investment into China's manufacturing and production sectors.

The dual-track price mechanism refers to the co-existence of market and controlled prices. This means that certain goods or services are subject to market forces and their prices are determined by supply and demand, while others are controlled by the government or regulatory bodies to ensure affordability and prevent inflation. This mechanism allows for a balance between market efficiency and government intervention in the economy.

The correct answer suggests that inter-Regional inequality in China decreased before 1978, indicating a more balanced distribution of resources and development across different regions. However, after the reforms, the inequality increased, indicating a shift towards more regional disparities and uneven development. This explanation highlights the changing pattern of inter-Regional inequality in China over time.

FDI stands for Foreign Direct Investment, which refers to the investment made by a company or individual from one country into another country. This investment involves the establishment of a business operation or acquiring a significant ownership stake in a foreign company. FDI plays a crucial role in the economic growth of both the host country and the investing country, as it promotes job creation, technology transfer, and stimulates economic development. The other options mentioned, "Foreign Domain Index" and "Foreign and Domestic Investment," do not accurately represent the concept of FDI.

The Pearl River Delta Model is characterized by foreign investments. This means that the region attracts and encourages significant amounts of investment from overseas companies and individuals. These foreign investments play a crucial role in the economic development of the Pearl River Delta, driving growth, creating job opportunities, and fostering technological advancements. The presence of foreign investments also brings in new ideas, expertise, and international connections, further enhancing the competitiveness and global integration of the region.

Foreign Invested firms in China are the main contributors to the majority of imports and exports in the country. These firms, which are established by foreign investors, play a significant role in China's international trade. They bring in foreign capital, advanced technology, and managerial expertise, which helps boost China's export capabilities. Additionally, these firms often have access to global markets and networks, allowing them to facilitate trade between China and other countries. Therefore, it is reasonable to conclude that foreign invested firms are responsible for the significant share of import and export activities in China.

Autarky can be characterized by isolation and little international trade. In an autarkic economy, a country aims to be self-sufficient and relies on its own resources and production capabilities rather than engaging in extensive trade with other nations. This approach involves limited interaction with the global market and a focus on internal production and consumption. By minimizing international trade, autarky seeks to protect domestic industries and maintain economic independence.

The correct answer is the 11th Communist party Congress. This event marked the start of the Reforms in China in 1977. During this congress, Deng Xiaoping emerged as the leader and initiated a series of economic and political reforms that aimed to modernize China's economy and open up to the world. These reforms led to significant changes in China's economic system, including the introduction of market-oriented policies and foreign investment.

Shenzhen is located next to Hongkong.

During Mao's time, the Third Front in China was located in the inland provinces. Mao initiated the Third Front movement in the 1960s as a strategy to decentralize industrial development and protect it from potential attacks by foreign powers. The movement aimed to establish industrial bases in the inland provinces, away from the coastal areas and major cities like Beijing. This was done to ensure self-sufficiency and reduce vulnerability to potential invasions or blockades. The Third Front initiative led to the establishment of numerous factories and industrial complexes in the inland provinces, contributing to China's economic development during that period.

The comparative advantage of the US in the world economy lies in high-tech industries. This means that the US has a competitive edge over other countries in producing and exporting high-tech products and services. This advantage could be attributed to factors such as advanced technology, research and development capabilities, skilled workforce, and innovation. The US high-tech industries contribute significantly to the country's economic growth and global competitiveness.

The urban/rural disparity in China has undergone significant changes after 1978. Initially, it declined significantly before 1984, indicating a reduction in the gap between urban and rural areas. However, after 1984, the disparity started growing significantly, suggesting an increase in the gap between urban and rural regions.

China's reforms began in rural China. This is because during the late 1970s and early 1980s, China's leader Deng Xiaoping implemented economic reforms in the countryside as a way to revitalize the agricultural sector and increase productivity. These reforms included the introduction of the household responsibility system, which allowed farmers to have more control over their land and production. This led to increased agricultural output and paved the way for further economic reforms in other parts of China.

The correct answer is "Secondary, Tertiary, and Agriculture". This order represents the importance of the corresponding sectors in China's employment from most to least. The secondary sector refers to industries such as manufacturing and construction, which are significant contributors to employment in China. The tertiary sector includes services such as retail, finance, and tourism, which have also become increasingly important for employment in the country. Agriculture, although historically a major sector in China, has seen a decline in employment opportunities over the years.

In the early days after the founding of the PRC, the CCP emphasized the development efforts in the inland region. This means that the CCP focused on promoting economic growth, infrastructure development, and industrialization in the inland areas of China, rather than prioritizing the coastal regions, the region around Shanghai, or Northeast China. This emphasis on inland development aimed to reduce regional disparities and promote a more balanced and equitable distribution of resources and opportunities throughout the country.