Economics of International Trade China
Exploring the Economics of International Trade: China
"Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market," and its expansion has only continued to show powerful growth within the international economic marketplace (Sun & Heshmati, 2010, p 1). After China was reopened to trading with the West in 1978, the country has really took off in becoming one of the world's biggest producers and exporters of a plethora of different goods. China has grown tremendously as nations like the United States have become their biggest trading partners. In response, China has helped refuel this growth with the manipulation of their currency and their heavy investment in the U.S. dollar, which ensures them a more competitive position for their exports.
For generations, China had closed itself off to trading and interacting with many Western nations. Tension between the Communist nation and more democratic Western governments continued to grow, isolating China economically and diplomatically from the international community. However, China found itself in a rapidly declining economic condition using the type of Communism that had the Soviet Union in ruins. Reform began to look like a lucrative opportunity to help boost China's own economic structure, giving it a better economic health. As such, "increasing CCP support for Deng Xiaoping's reformist agenda culminated in its basic acceptance by the 11th Central Committee of the CCP" with economic reforms beginning shortly after the monumental Communist decision (Tisdell, 2009, p 274). China reopened itself to economic trade with international markets. This was one of the biggest factors in its current success, as it has found great power within the economic structure of international trade.
Since it opened itself up to international trade in the late Twentieth Century, there has been a complete dominance of Chinese exports in the international markets. According to the research, "The China export marketplace...
Its economic situation was one that was ripe to exploit for cheap manufacturing at high quantity rates. With the ability to produce more for less, China really began dominating in the export market, making cheap consumer goods to be sold across the world in international markets. Here, the research suggests that "Since 1978, when the country announced its opening up and reform policy, and began experimenting with capitalism and market forces, the country's economy has boomed" (Barboza, 2012). With so much growth, the role of international trading has become a major factor in the structure of domestic economic elements. China has seen a great deal of success because of its growing international position within various trade markets. Its exports have helped lead a positive path towards a stronger economic and greater reinvestment in its infrastructure. China has seen monumental growth that has allowed it internal economic success. Thus, "While growth has begun to slow sharply in 2008, after growing close to 12% in 2007, China is a rising global economic power" (Barboza, 2012). China has continued to remain in a top position, even as many other nations found themselves in dire trouble in the latest international financial crisis.
China has a number of tricks that has let it further the success it has experienced over the past few decades. The country is definitely not remaining entirely passive during this period, as it is actively engaged in practices that may be seen by some as currency manipulation. According to the research, "By some estimates, China's yuan is undervalued by as much as 40% compared with the U.S. dollar" (American Manufacturing, 2012). China is making sure that the value of its own currency remains relatively low, despite the fact that it has been experiencing an economic boom that would otherwise influence the yuan to increase within global financial markets. The country has been taking manipulative actions in the strict regulation…
Only a few decades ago, China was a struggling economy. It is much newer in the free market economy system as compared to the already established economical giants, given the country's communist history. China, a country with an extremely high population, put its resources to its best possible advantage and that was something which contributed towards the country's rapid growth. China has one of the cheapest labor and energy and
intra-industry international trade within the standard international trade classification SITC6, which represents manufactured foods classified chiefly by material. The scope of this paper is limited to processed foods, and includes analytical frameworks from the gravity model, and classic approaches to product differentiation, product commoditization, pricing, and market structure. References to market structures in the literature typically oversimplify the dynamics influencing the development of market types -- perfect competition, monopolistic competition,
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Significance of the Study This study is significant because it sheds light on a very important contributor to local and international trade. Trade fairs have a long history in providing a meeting place for buyers and sellers. They are an important channel of communication for B2B buyers and sellers. This is a significant area for study because there are limited channels of communication between B2B buyers and sellers. The previous sections
General Motors in China: Chinese Motor Vehicle Industry Structure: The motor vehicle industry in China had over 200 carmakers in 2004 with most of them being small Chinese firms. In addition to being small and domestic companies, the carmakers were solely owned by the Chinese government and had a market share of approximately 40%. As new joint venture firms emerged during this period, the Chinese government was reluctant to see its manufacturers
Despite the high costs the Four Modernizations implied, China succeeded to enter "into the milieu of international bank loans, joint ventures, and whole panoply of once-abhorred capitalist economic practices." As it might be inferred from above, this task was not an easy one, and China's officials had first of all to convince the rather-conservative part of the population of the necessity of these reforms and of the continuity of the