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    What caused the Chinese slowdown?
    If it's a 30 mark question in the exam you need at least 3 reasons.
    Apart from investment-led growth, what else?
    And regarding investment led growth, when the Chinese tried to re-balance the economy by encouraging consumption led growth, why did it fail?
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    (Original post by orla_hs)
    What caused the Chinese slowdown?
    If it's a 30 mark question in the exam you need at least 3 reasons.
    Apart from investment-led growth, what else?
    And regarding investment led growth, when the Chinese tried to re-balance the economy by encouraging consumption led growth, why did it fail?
    you need to be more specific, is this an edexcel question? The question should provide a bit more background but mainly reasons why AD is falling.
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    (Original post by keynes24)
    you need to be more specific, is this an edexcel question? The question should provide a bit more background but mainly reasons why AD is falling.
    Yup sorry. A2-Level, Edexcel question, 30 marks: What are the causes of the Chinese Slowdown?
    1. Investment led growth (evaluation?) - and why did consumption led growth fail in China?
    2. Global slowdown i.e. fall in demand globally (evaluation: US 2nd main export partner and is still undergoing econ growth)
    3. point? evaluation?
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    As an examiner for Edexcel Unit 4 I know that you need four good analysis points and three good evaluation points to reach the top level in the mark scheme for a 30 mark question.
    In this case you could focus your analysis on:
    Fall in demand for Chinese manufactured exports due to global slowdown
    Fall in house prices leading to lack of growth in consumption and negative wealth effect
    Debt - both private and public. Repayment of debts is restraining consumption.
    China's rapid growth was fueled by the transition from a rural economy to a manufacturing and services based economy. It is harder to sustain such rapid growth through growth in manufacturing and services.
    Evaluation points could include:
    China is still growing and faster than many other economies (Use data)
    This may be a short term problem and growth may pick up again as the global economy recovers
    May also be deeper structural problems that will limit growth in the long term, eg indebtedness
    Hope this helps
    Dr Mark Potts
 
 
 
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