GLOBALIZATION REPRODUCTS IN THE CURRENT PRODUCTIOIN CHINA GDP

Abstract

The globalization of production has influenced the factors of production, their cost, and especially from all factors, to work. The positive side of globalization is that it has brought new opportunities for employment in developing countries, as well as new opportunities in developed countries for workers from less developed countries. The negative side can be noticed in the worse position of the workers manifested through the stagnation of real wages and poor working conditions. Capital flows have accelerated and this factor of production has become more accessible to businesses and entrepreneurs. The country as a factor of production has become more accessible to firms and entrepreneurs due to the strengthening of the country’s supply, which was created by raising boundaries.

The empirical research was done to explore the existence of the relationship between independent and dependent variables is examined, and among other things we observe the movement of the index of globalization of KOF, GDP in China and the cost of factors of production, capital and labor. We presented the price of work through the average wage in production and the price of capital through the interest rate on borrowing capital.