The global economy is one that is directly impacted by Earth’s biodiversity derived from its rich and varied environments. The locations of each region correlate to the resources and products that are able to be produced, distributed, and exported. Throughout history, humans have established societies and civilizations around these resources unique to their own location and trading patterns. The nation of China has been heavily influenced by their location, regional environment, trading patterns, and sociopolitical movements. Within the past few decades, China’s economy has rapidly evolved away from its dependency on exporting agricultural products to one that provides the global economy with manufactured goods; altogether, …show more content…
The traditional, agrarian economy of traditional economy would play a key role in the culture of China. Nonetheless, the economy of China would grow to be more heavily competitive as well as go on to develop “efficient markets for land and labor” with “substantial social mobility” as there were no caste system or aristocracy in the social structure of China (Naughton, 2012, 37). Along with increased trade and economic development, urbanization will become a component of Chinese culture and geography. Alongside economic development, China experienced that with common culture, comes more economic development. While this is not limited to ease of trading under a common language, “shared cultural values help establish mutual trust, which in turn lowers transaction costs and promotes trade,” (Gao & Long, 2014). There are limitations to trading outside of a similar or same local culture, as it limits established mutual trust. It is noted that, “higher transaction costs will lead to less trade and less economic cooperation with other regions, which will in turn lead to less benefit from the division of labor and specialization,” (Gao & Long, 2014). It can be correlated that historically for many nations, geographic barriers were used as boundaries for territories. The use of geographic barriers for territories limits cultural integration as it creates geographic isolation of cultural