economic structure, their political characteristics and conflict with other nations like Taiwan, we thought there are still barriers to further economic growth of China. Todays, China has been suffering from ‘Twin Imbalance’ that means imbalance in regional development disparity and economic structure. In addition, with increasing demand for democracy and Taiwan’s declaration of independenc
economically, it has enjoyed independent economic system from China with the system of market-based capitalist economy. That’s why business men in Hong Kong are playing the role as network chains of Chinese economic regions without any economic restriction from the government. In addition, considering the fact the Foreign Direct Investments (FDIs) are the essential pillar that sustaining econom
economy!”
They argue that the scope of government activity
should be reduced through privatization and liberalization.
Such restraints can be provided
by rigid rules that constrain government choices or
by the establishment of politically independent agencies.
"Depoliticize the economy!”
Problem 1. We don’t clearly know the border between
economics
1. Policies and reforms -Special Economic Zones (SEZs)
- Economic development-focused policies
- Putting old politics behind
Special tax incentives for foreign investments in the SEZs
Greater independence on international trade activities
Products are primarily export-oriented
Attracting and utilizing foreign capital
Independently floating
The best elastic exchange rate system in which exchange rate is decided freely depending on the principle of supply and demand in foreign exchange market.
To ease a sudden change of exchange rate, government intervenes in market restrictively and irregularly.
4. The Changes of Exchange rate regime in Korea
Exchange rate means the purchasing power of currency a day a