Dictatorship In China

When a country opens up its economy, the outside world is able to trade with the country because barriers such as tariffs (taxes on traded goods), tax laws, foreign investment rules, restrictions and regulations is relaxed for foreign countries to invest in them. The goal is to have unrestricted capital flowing in and out of the country to boost growth and efficiencies within the country.

China opened its economy in 1978. They have high productivity, low labour cost and relatively good infrastructure which makes them the global leader in manufacturing. Dictatorship means that workers in China are highly accustomed to doing whatever is said by the rulers and following orders to fulfil their duty to the country. In comparison, India opened their

However, the only way that this case will work is when particular industries in less competent countries have comparative advantage, but in reality most companies do not have comparative advantage. These weak companies are left alone to compete without help.

Competent countries have no problem providing subsidies for their production that will artificially lower the cost, in order to sell it at a lower price. This would make products of less competent countries seem less attractive if they happen to be competing against each other because less competent countries are not able to lower the prices any further without compromising their labour wage.

For example, China has undergone phenomenal changes due to economic liberalisation about 3 decades ago.

Over the next several decades of an open economy, China averaged a phenomenal real GDP growth rate of over 10%. China's average annual increase in total consumption was 7.9 percent in 1978-2011 and the increase in household consumption was 7.7 percent. China has the world’s highest rates of growth for both household and total

By the 21st century, India had progressed towards a free-market economy, with a significant reduction in state control of the economy and increased financial liberalisation. In turn there has been an increase in life expectancy, literacy rates and food security.

Instead of opening up its economy, a country may also choose to keep its economy closed. This is known as protectionism. Similar to economic liberalization, protectionism has both its upsides and downsides, and impacts various parties differently. Our antithesis statement is that it is more beneficial for a country to keep its economy closed.

Protectionism protects certain companies or industries that are important to the country. When tariffs are implemented by these countries, the overseas competitors will be discouraged to trade with the local companies. Hence, with less competition for the local companies, many would start buying products from their own country made by the local companies. This would generate more profit for these companies.

Through that, the country is able to develop new industries which will be able to add to the country's economic growth, create more jobs for the people, increase the overall wealth of the country and lead to a better balance of