China is a good example of a mixed market economy. Most of China is controlled by the government, however since they allow other corporations outside their country to make a move into their county, they have kind of become lenient on how strict and controlling they used to be. The number one reason for companies moving to China is simple. There is no minimum wage or no laws about benefits to the workers, as minimum wage in our county is $5.15, workers overseas could perform the same task for significantly less, say about 20 cents per day. This is obviously more productive for the companies as the outputs being the finished products and the inputs being what the employees are being paid to perform the task at hand.

Internet companies like EBay, Yahoo and Google have started their expansion into this market. Yahoos recently spent $1 Billion to purchase a stake in an existing China internet company named Alibaba.com, which has a good chunk of China’s internet share. On the other hand, a Chinese internet company named Baidu.com recently came to the United States in the form of a publicly traded company. With Google having so much cash on hand, speculation says that Baidu would be a take over target for Google. Already, any company overseas has to check with the government before making any changes to its marketing strategies or what not. With outsourcing taking place, it is lessening the jobs available in the United States. Many citizens are upset, saying that it isn’t fair to the people who work hard in this country. But the business’ say it’s saving them money due to the laws and also the changes in standard of living in other countries.

Any company that moves overseas has to comply with that specific country’s standards. For example, the government would allow and not allow certain practices within a business. This is a good way for China to expand into the world market. In my opinion by the end of the century, China will be the major world power in terms of people, revenue and GDP, such as the United States is today, it’s all a matter of economic cycles and everything changing. But like always in the end, it’s the corporations that will win in terms of expanding into new territories and announcing record revenues to its investors and its employees. Companies looking to expand its diversity and number of workers would also probably be looking into this. Like all business practices, its competition that matters, and someone’s obviously going to end up being on top in China.