Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Essay:
Aside these impacts however, more salient effects are observable, such as a necessity to change internal practices of business. A relevant example in this sense is given by Wal-Mart, in its quality of America's largest retailer, which decided, unlike within the U.S., to allow Chinese employees to unionize (Dessler, 2006). The official approach of the Chinese leaders was that of implementing reforms which further capitalize on the low cost labor force advantage in order to continually attract investors.
5. The Market of Exchange Rates
The final step of this analysis is constituted by the look at China's currency policies, in an attempt to reveal if the policies implemented have played any part in the country's competitiveness within the global market. China's currency, the yuan, was pegged to the United States Dollar in 1997, but the link only lasted until 2005. Since then, the mechanism of resetting the value of the national currency each night is a secret one. The central bank officials argued that the value of the yuan would not always be expressed in dollars, but in other currencies as well, without however naming these currencies. Additionally, they stated that the value of the yuan would be established based on the movement of other international currencies, but they once again did not offer a complete information as to which would these currencies be (Bradsher, 2005). In other words, the Chinese authorities have implemented a tactic of national currency manipulation to suit their own needs.
It is highly probable that the gesture was done in an attempt to better control the country's international affairs and attract investors. Nevertheless, investors are now put off by the lack of stability. Another impact is observable in terms of imports and exports, in the meaning that a lower value of the yuan makes exports more attractive and imports less so. For exemplification, take the case of the United States as one of China's trade partners. A reduction in the yuan means that the American consumers pay fewer dollars for the products imported from China, which translates into an increased purchasing power. The overvaluation of the yuan has the opposite effect. Trade partners can also gain or lose money due to the fluctuations, meaning that they must use tools that cover currency exchange risks. These impacts are however generally observable in the short run, with the effects on the long run being fairly reduced (Morrison and Labonte, 2006).
Before the emergence of the notorious economic crisis, hereby referred as the financial tsunami, China was following a gradual reform program on most of its sectors; it was generally registering success, but some problems had yet to be addressed. Today, China is expected to not suffer major changes as a result of the crisis, but could impact the global economy through the absorption of labor force and a reallocation of resources.
Relative to the structure and behavior of the market, it can easily be observed that the largest global impact is raised by the manufacturing industry. Aided by low cost labor force, the Eastern Asian country has managed to attract numerous foreign investors, to consequently generate effects pegged to outsourcing, but also more salient impacts, such as changes in the approach to the human resource strategies. The national currency policy is also used as a tool to control and attract foreign investors.
Brasher, K., 2005, China's Opaque Currency Policy, the New York Times, http://www.nytimes.com/2005/07/22/business/worldbusiness/22assess.html last accessed on October 21, 2009
Bruton, G.D., Ahlstrom, D., Chan, E.S., 2000, Foreign Firms in China: Facing Human Resources Challenges in a Transnational Economy, SAM Advanced Management Journal, Vol. 65
Buckley, P.J., Clegg, J., Wang, C., 2002, the Impact of Inward FDI on the Performance of Chinese Manufacturing Firms, Journal of International Business Studies, Vol. 33
Cavanaugh, J., Mander, J., 2004, Alternatives to Economic Globalization: A Better World Is Possible, 2nd Edition, Berrett-Koehler Publishers, ISBN 1576753034
Chen, a., 2002, the Structure of Chinese Industry and the Impact from China's WTO Entry, Comparative Economic Studies, Vol. 44
Chow, D.C.K., 1997, an Analysis of the Political Economy of China's Enterprise Conglomerate: A Study of the Reform of the Electric Power Industry in China, Law and Policy in International Business, Vol. 28
Dessler, G., 2006, Expanding into China? What Foreign Employers Should Know about Human Resource management in China Today, SAM Advanced Management Journal, Vol. 71
Doods, Jr., R.F., 1996, State Enterprise Reform in China: Managing the Transition to a Market Economy, Law and Policy in International Business, Vol 27
Kennedy, J.F., Holt, D.T., Ward, M.A., Rehg, M.T., 2002, the Influence of Outsourcing on Job Satisfaction and Turnover Intentions of Technical Managers, Human Resource Planning, Vol. 25
Law, K.S., Tse, D.K., Zhou, N., 2003, Does Human Resource Management Matter in a Transitional Economy? China as an Example, Journal of International Business Studies, Vol. 34
Morrison, W.M., Labonte, M., 2006, China's Currency: A Summary of the Economic Issues, Policy Archive, https://www.policyarchive.org/bitstream/handle/10207/3795/RS21625_20060317.pdf?sequence=2 last accessed on October 21, 2009
Nee, V., 1992, Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights and Mixed Economy in China, Administrative Science Quarterly, Vol. 37
Punia, C., 2009, After the Financial Tsunami, Asia Society, http://www.asiasociety.org/business-economics/economic-trends/after-financial-tsunami last accessed on October 21, 2009
Reardon, J., 2004, the Perilous Road to the Market -- the…[continue]
"Economics - How China's Economy" (2009, October 21) Retrieved December 8, 2016, from http://www.paperdue.com/essay/economics-how-china-economy-18419
"Economics - How China's Economy" 21 October 2009. Web.8 December. 2016. <http://www.paperdue.com/essay/economics-how-china-economy-18419>
"Economics - How China's Economy", 21 October 2009, Accessed.8 December. 2016, http://www.paperdue.com/essay/economics-how-china-economy-18419
China's Economy And Foreign Policy There have been radical changes in the internal political and economic scenario of China during the last two decades. (Lampton, 2001) The growing economic stability and control has increased the status of china to a great extent among its trading counterparts. Further, it has become obligatory on the part of the Chinese Government to make it certain that the economic development to restructure the political discipline
However, after years of distrust and internal conflict, China broke with the Soviets and established relations with the free world. While there were many results from this visit, the most important was the effects on China's economy and society. China's opening up with the West would lead to major economic and political changes, when after the death of Mao, another leader assumed control and began a series of reforms.
The country retained control over the banking system in particular, and has exerted strong control over key elements of the macroeconomic environment. Financial reform in the 1990s restructured the banking industry. These reforms increased the role of the central bank, and divided banks into commercial banks, policy banks and cooperative banks, each with its own function in the economy. There are four major commercial banks in the Chinese system. Later
China Trade Policy China's agricultural trade policies are driven by its need to feed its massive population. The country has quotas that average 15.8%, with 5.8% of products being duty free and 1087 total tariff lines. These duties sit in line with EU levels, above U.S. levels and below developing world levels. China aims to reduce its agricultural tariff below 15% in the coming years. China supported India's stance on special
China is still regarded as a developing country, its rapid growth has put it in a position to compete with the top players in the world economy. With the advancement of technology and globalization, for example, China has been able to communicate and do business around the globe. This has enabled the country and its people to benefit from prosperous partnerships. Although China has advanced to a top position in
Economics in China (Manufacture) There is a time and stage for all types of manufacturing and what may be seen to succeed in China is not likely to succeed in many other countries like the United States. Chinese economy has developed very fast and that has attracted attention from all over the world in the business community. This has led to a rapid increase in their foreign direct investment and share
Week 6. China's Democratisation: Implications for International Relations Is it a fantasy to expect China's democratization through trade and engagement with the West? It is rather difficult to consider trade as being a democratization tool. Indeed at the moment, political affairs and economic affairs are connected and interdependent. However, China represents a totally different political system and is one of the most important actors on the global economic scene. The East -- West