National economics are often adversarial in nature, a global contest where countries seek to gain advantage over their neighbors, all in the name of wealth and gain. America is no stranger to the game; the U.S. has been the world’s economic leader for the better part of a century. China, however, is the leading contender for the economic top-spot (), and America continues playing directly into China’s hand. America’s current trading posture with China is drastically skewed in China’s favor; if America is going to preserve its position as the leading economic power, existing U.S.-Chinese trading agreements will need to be revised, and additional regulations must be introduced to promote balanced dealing.
The consequences of losing the global economic contest are very real. Both sides of the political fence would likely agree, money is of utmost importance to the continued operation of the country. To a nation, money is more than just a functioning government with all the security and support it provides, money is more than the livelihoods of citizens who seek to work and feed their families. Wealth contributes directly to a country’s global power, and affords influence as well as security. If a wealthy nation is a powerful nation, the loss of wealth can herald the loss of power.
Globalization, a fundamentally constructive revolution, is the catalyst driving the current situation. On the international level, globalization creates jobs, promotes trade, and encourages cooperation between countries. The interconnected nature of national economies creates a net that not only helps sustain troubled economies, but actually discourages international hostilities by introducing an additional layer of reciprocity. Through globalizat...
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With the development of China, the economy of China has become the World’s second largest after the US. On the other hand, the ...
The current trade imbalance is caused in large part by intrinsic features of China's labor market and consumer base. The vast majority of China's 1.3 billion people still live in rural areas. China has, by some estimates, a surplus rural labor force of 120 million people, many of whom migrate to industrial centers to look for factory work, and drive down wages. As long as wages are low, the United States will continue to gobble up products made in China, while Chinese consumers will prefer to buy cheaper, homespun alternatives to American products. The rise in trade deficit with China has come at a cost to jobs in the United States, accordin...
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China's continuing impact on the world economy lands in developed countries that include Hong Kong, Europe, Japan, and Australia have no choice but to deal with the very real potential of a decline in export activities. However, what offsets these negative are lower commodity and oil prices, along with lower interest rates, which provide hope of a boost in the global financial world.
Trade between China and the United States is a battle we all know the U.S. has been fighting for quite some time. This topic is very important in our field of Apparel and Textiles. It is an ongoing processes as the U.S. tries to figure out ways on how to blend the gap of imports and exports. The U.S. is billions of dollars in debt with China because of the trade difference. Trade with China has gotten our country in a big hole that we can 't come out over a course of a few years. This has built mistrust and slight tension between the two countries.
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Understanding China: A Guide to China's Economy, History, and Political Culture by John Bryan Starr (Aug 31, 2010)
Zeng discusses how China used the regional approach to trade liberalization by creating free trade agreements with their trading partners. This resulted in China experiencing greater influence in the Asia-pacific region. In addition, China’s choice to utilize FTAs created alternative bargaining over trade issues.
Historically, the Taiwan problem originated after the Nationalist and Communist Chinese re-ignited the Civil War. They had previously settled their disputes temporarily, to defend the invasion of the Japanese in the 1930s. The Civil War started again in 1946, only a year after fighting ceased at the end of the Second World War. The Communists were commanded by Mao Tse Tung, and the Nationalists were being lead by Chiang Kia-Shek. However, the Nationalists had the advantage of US support. The US were already concerned with the growing levels of Communism worldwide, and were determined not to let China also fall to Communism. The USA saw China as a major world superpower that had the potential to influence other, smaller countries into joining communism.
The culture in India possesses several features that influence costs of doing business, and enterprises’ potential for economic development, and business practices. With regard to starting one’s own business, such practices as nepotism and gift giving are the norms of business operation (Ardichvili et al., 2011). This deep-rooted cultural tradition of gift-giving, bribes and widespread bureaucracy and corruption account for fairly high cost of entry level into the business world and make it harder for new entrants as well, as a result making business environment highly bureaucratic and non-participatory (Lindsay, 2012). Additionally, Indian business culture places high value on nepotism, friendship, clanship, and favors (Ardichvili et al., 2011). Such practices make it hard for new entrepreneurs to enter the market and succeed. Another cultural trait that characterizes majority of India people is the inclination to avoid risk taking and the desire to stay on a safe side. Also, traditionally, the Indian government acts as a gatekeeper than a facilitator of business development (Makhlouf, 2010). Considering the impact of examined aspects of Indian culture on business, the conclusion can be made that the influence of Indian culture increases the costs of doing business, hinders economic development and entrepreneurship initiatives, and contributes to unethical business practices.
The massive increase in the Chinese trading relations was fueled by the United States in the year 1979 through the normal trade relations between the two countries. In addition, the Chinese non-concession to the World Trade Organization (WTO) in the year 2001 also facilitated its trading activities with different countries including the United States (Kaplan, 57). However, trading relations with the Chinese have been uneasy resulting from the massive trade imbalances in the recent past, which grows exponentially. The protectionist policies of the United States especially in Washington and Beijing have been putting pressure on the Chinese to revalue their currency as well as protecting it from counterfeits, which may be of adverse effects to the trading relations. This paper gives a comprehensive discussion on the foreign trade relations with china. It further gives an elaborate discussion on the impacts of foreign tr...
Morrison, Wayne M. "China and the World Trade Organization." Congressional Research Service (CRS) Reports and Issue Briefs. Congressional Research Service (CRS) Reports and Issue Briefs, 2002. Academic OneFile. Web. 3 Oct. 2011.
China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...
...l. When there is such an uneven balance of wealth amongst the world, there is sure to be winners, but sure to be many more losers.