Global diversification and who can benefit from it

Abstract

Global diversification has already been a popular and common topic all over the world and with the development of the economy and technology, the relationship among different countries has been more and more closer. This paper will focus on five parts: the trend of Chinese attitudes towards global diversification, the economic advantages and disadvantages that global diversification bring to China, the influences of time differences in global diversification, the relationship between global diversification and stock market fluctuation and the global strategies of risk reduction and increasing return. In my data analysis part, I will use correlation and regression. For the second research question, I will use correlation to analyze how the total volume of China's import and export trade and the growth rate of real GDP of China moved together during the recent 30 years. For the fourth research question, I will use regression to analyze whether different countries’ stock market change will affect each other. I will use both multiple variables regression and single variable regression. After analyzing, I found the growth rate of China’s GDP will move together with the growth rate of total volume of China’s import and export trade. Another finding about the stock market is that in different countries, the stock market change will affect other but the effect is different among different countries.