How Do Railroads Affect South America
Furthermore, the Chinese government’s proposal on railroads extends to the idea what Storper and Walker calls dynamic location theory. Storper and Walker argue, “Technological change is only partly about the perfection of production processes in existing sectors, and for defined products.” Dynamic location theory allows industrial expansion by gaining more space, inputs, and new markets, and industry creates places for capital investment and suppliers.
Moreover, as Schumpeter was well aware, technological change also means the episodic rise of whole new types of product output, new sectors, and new labor processes. Many of these innovations effectively reduce the aggregate value composition of capital in the economy by introducing new, relatively labor-‐‐intensive activities for social labor” (p67). Similarly, Chinese investment on infrastructure in South America creates the technological change, and it causes new types of product output and new labor processes.
However, there are problems and challenges that might go thorough. Constructing railroads affects negatively on the environment, and labor problems by law in South America. Because foreigners are banned to work in …show more content…
economy and creates both advantages and disadvantages in the U.S. In “Chinese money flows into US housing” Diana Olick, the author of CNBC, writes about Chinese buyers in the U.S. Devaluation of Chinese currency caused instability of Chinese economy and led to Chinese buyers to be attracted to spend their money on U.S. markets. Due to money flows into U.S. housing, it caused to accelerate U.S. home price appreciation in the past few years. Chinese buyers who have children rely on real estate agency because they concern a district of houses for their children to get higher education. Most popular places are New York and California, and homebuilders even design for those Chinese buyers in Irvine
Moreover, as Schumpeter was well aware, technological change also means the episodic rise of whole new types of product output, new sectors, and new labor processes. Many of these innovations effectively reduce the aggregate value composition of capital in the economy by introducing new, relatively labor-‐‐intensive activities for social labor” (p67). Similarly, Chinese investment on infrastructure in South America creates the technological change, and it causes new types of product output and new labor processes.
However, there are problems and challenges that might go thorough. Constructing railroads affects negatively on the environment, and labor problems by law in South America. Because foreigners are banned to work in …show more content…
economy and creates both advantages and disadvantages in the U.S. In “Chinese money flows into US housing” Diana Olick, the author of CNBC, writes about Chinese buyers in the U.S. Devaluation of Chinese currency caused instability of Chinese economy and led to Chinese buyers to be attracted to spend their money on U.S. markets. Due to money flows into U.S. housing, it caused to accelerate U.S. home price appreciation in the past few years. Chinese buyers who have children rely on real estate agency because they concern a district of houses for their children to get higher education. Most popular places are New York and California, and homebuilders even design for those Chinese buyers in Irvine