I.

Executive Summary
This case study talks about the possible outcomes of rapid economic growth in terms of
labour supply, environment, outflow and inflow of their economic status

China was so known at their high production rate. They did it for a reason they want higher
their Gross Domestic Product rate by producing many products and services. They
produce higher than the demand needed because they believe their economic status can
grow rapidly. The focused on quantity over quality they invest more on short term
investments because they want to see the result as soon as possible. As a result, some
of their products sells at its lowest price and some goes to waste.

In this case it may lead in lacking of resources since they didn’t use it wisely so that they
prioritized quantity over quality. At first, they might see it as positive for economy since
they invest in short-term but afterwards it can cause to rapidly low of economy because
they didn’t think of future growth unlike America and Europe that slowly but surely, China
just want an easy and fast way of growth. When it comes to labour supply, their hardworks
can turn to nothing since not all of them cannot be produced was being use. They may
have a high GDP and can grow economic rapidly but isn’t good for their resources and
might effect to pollution. They can enjoy convenient life now but they don’t have
assurance in the future status of their country.

II. Statement of Facts

 Short-term investments in breakeven allocation of revenues

 The quantity over quality mindset that leads to surpluses
 Strong leadership
 Urban Sector focus on infrastructure even without economic growth
 Export led growth
 Pollution costs
 Plentiful of production rate
III. Statement of the Problem

China only focuses on the growth of their GDP although its status are unforeseeable in
the future

IV. Solution(s)

 Minimize the use of their resources

 Give attention to their country’s problems and challenges

V. Answer three questions in the case study

1.) Summarize the arguments for slowing down the rapid growth of GDP

At the present time China's economy faces a lot of challenges, a lot of labor progression,
and a lot of environmental destruction. It is well documented that in the past few years,
China interfaced a rapid growth in their economic status by tracing down its GDP rates in
terms of its inflow and outflow. The said rapid growth of their GDP causes a lot of changes
in their state of living, in terms of their economic status, the production time frame of their
factories in reproducing prouducts in a large number of quantity over its quality, the way
their government manage their scarce resources to sufficiently supply their basic needs
as well as the proper allocation of their resources to have a sustainable economy. To
degrade the rapid growth of China's GDP, their government must implement and maintain
a principle of quality over quantity on their works so that having a surplus of a product
might be avoided at the same time having a shortage on raw materials will not occur.
Their government may also considered having long term investments, a long term project
for the country's funds so that it may boost their economic growth and to anticipate that
cause and effects of having short term investments. Also, they must be assertive in
fulfilling the needs and wants of their people without sacrificing the life of their environment
or causing pollution.
2.) To what extent do you agree with these arguments?

China's government should publicize the following arguments by stating their sides about
these issues, they should bestowed facts and real life solutions so that these critical
problems might be solve. Also,they must be able to justify their stand in promoting a
competitive economy without causing any harm or signs of extinction upon their
resources.

3.) Explain the counter arguments in favour of increasing the level of a country’s GDP?

The counter arguments that are in favour in increasing the level of China's GDP are about
having short term investments, even though it doesn't result into advancements of their
economic growth. Another counter argument is about the production rate of their goods.
Oftentimes they do not look or relay for the qualities of their products instead they're
looking for more number of its production. China used these techniques to increase the
growth of their GDP but at the same time they are not aware that this rapid growth can
cause internal destruction in their economy especially on the status of their natural
resources.

VI. Recommendations

Improve the current way of production, quality over quantity, this will then lead to better
uses of scarce resources, increase the potential output level and the long term trend rate
of growth.
Proper use of scarce resources. In an economic growth country, large amount of waste
will be generated because of the high consumption and many forests will be destroyed to
build factories in order to increase output.
Minimize the time of factories production. When the factories operate for a longer time it
increases the production output so this will lead to the increase in the emission of carbon
which then causes the air pollution.
Proper Use of Resources to Remain Sustainable. China has a great wealth of natural
resources, having vast reserves of coal, oil and natural gas. These are being used to fuel
the industrial development of the country.