Topics: Economics, Monetary policy, Inflation Pages: 8 (3501 words) Published: February 13, 2015
I would like to make the example as China economy in order to analyze how the structure of an economy has changed in the 21st century. To a variety of industries around the world is divided into three categories: primary industry, secondary industry and tertiary industry. Primary industry refers to the provision of production industries, including forestry, farming, aquaculture, animal husbandry and other natural objects as objects directly in the production sector. The second refers to industrial processing industries, the use of the basic means of production for processing to sale. Tertiary industry refers to all industries to provide services, such as the legal profession, the medical profession, wholesale trade, retail trade education. According to China's geographical advantage, China has the absolute advantage to develop the primary industry. The early period of the china mainly develop 'the primary industry’. Western of the china has a dry climate and sparsely populated. Therefore early residents mainly nomadic, Inner Mongolia is China's largest grassland pastures and the Xinjiang after the second. And China's low-lying eastern and rainfall, which is the reason why agriculture is mainly eastern half of the land. Due to the humid climate so living in the plains and hilly areas of most residents farming mainly, the development of forestry in the mountains, the rivers, lakes and coastal areas along the fisheries. However, for the sake of development of economic the china must make a choice to change their original industry to the secondary industry and tertiary industry. According the opportunity cost china need to make a choice between several mutually exclusive alternatives given limited resources. Faced with the growth of global agricultural science and technology, China has been as good as in the past, Agricultural selling more expensive than other European countries with poor quality, China has no absolute advantage already, so the development of Chinese industrial and retail markets in transition, but also according to the theory of comparative advantage, while China can make the product at a lower price in the industry Therefore, the country attracted a lot of trade, on both sides of great help, Nowadays China's economic development is also growing rapidly. In the 21st century, the china GDP already exceeds Italy and French and close with England.

Macroeconomic policy refers to the state or government consciously planned use of certain policy tools of macroeconomic regulation and control of the operation, in order to achieve certain policy objectives. The main objective of macroeconomic policy has four: sustainable and balanced economic growth, full employment, stable price level, the international balance of payments. The government will prepare some measure to improve or pretend the economic change in order to meet macroeconomic policy challenges. Tax cuts

Recently, State Council executive meeting decided to raise the upper limit of the taxable income of small and micro enterprises in the corporate income tax from the current year taxable income of 60,000 yuan to further "a substantial improvement", and the tax cuts deadlines extended to 2016 end. ‘Small and micro enterprises ’ which in addition to various types of small and medium-sized enterprises, micro-enterprises collectively. In China, small and micro enterprises accounted for 76% of the total Chinese market players, contributing 50% of total annual revenue, the value of final goods and services for SMEs to create equal to 60% of gross domestic product (GDP) of the total The tax cuts seem to make China less taxes, but the one hand, the unemployment rate has forced greatly reduced,. Business owners tens of millions of people In the country's small and micro enterprises, plus companies to hire employees, 150 million Chinese have to solve the employment of the population. Meanwhile, the new employment and re-employment of more than 70% of...
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