One impact that the growth on the Chinese market has had on the population is that it has caused a quickly expanding wealth gap. In China there are entrepreneurs who are millionaires, but not very far away there are also people who are living in absolute poverty . The industrialisation and rapid growth of China has allowed some people to jump on the 'band wagon' this has caused them to be prosperous and others who didn't are as poor as they were previous to this. Data has shown that although the average wage rate per capita in China is $17,126, the median wage rate is only $6,327.
But some of the population has gained also due to the creation of higher paid jobs in some factories, for example some of Nike's factories provide safe working conditions for higher pay than they were previously used to.
However the rapid inflation that China has been experiencing has caused a large increase in the prices of products and this could ultimately lead to poorer consumers being unable to purchase the goods that they need to survive as they no longer earn enough from jobs such as farming.
Stakeholders that have been impacted by the rapid growth of the Chinese market are the companies that choose to outsource their work to China. Due to the growth that China has experienced in the recent years, roughly 10% over the last 20 years, many companies now choose to outsource some of their labour-intensive work to China as wage rates, although they are increasing, are still much lower than developed countries like the UK or the USA. This has allowed companies to move to China and lower their costs substantially.
However as a result of companies doing this they have decreased the number of jobs available in developed countries, therefore they have put many people out of work in doing so.
Another positive for large companies moving into China is that as the economy has developed, the population has more disposable income and have increased their demand for luxury goods,...