Trade Balances : Developed And Developing Countries

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Trade Balances: Developed and Developing Countries Trading on any level can be challenging and relies on a complex framework of supply, demand, availability, and economy. As China has progressively increased overall market share over the past 15 years, trading with developed and developing countries have played a large part (Husted & Nishioka, 2013). Presented is an analysis of China’s emergence as one of the top import/export market share holders and the effect of this growth on developed and developing countries. China’s Universal Market Share Growth As countries such as United States and Japan have seen a decline in market share trading due to global economic situations, the export shares of China has grown tremendously. China’s exports increased from just over US$18 billion in 1980 to more than US$438 billion in 2003, with an average rate of growth of about 14.4% annually (Yanrui, 2007). Even more, China’s Gross Domestic Product (GDP) has risen from under 8% in the early 1980s to about 30% in recent years (2007). All of this is achieved at a time when China, like many other developed countries, was trading with nearly every country in the world (Husted & Nishioka, 2013). Additionally, China was a part of the BRIC (Brazil, Russia, India, and China) whom together made up a fairly large share of the trading market. China achieved this status by using an “export manufacturing orientation policy as a tool for growth and attracted leading international textile, garment, electric and electronics multinationals to relocate their labor-intensive stages of assembly plants” (Chan-Yuan, Gladys, Ran, and Kian-Teng 2013, p. 309). As a result, China was able to tap into countries with lower labor cost and moved their strategy from... ... middle of paper ... ...). This would support the position of Husted and Nishioka (2013) that the China market share growth has come at the expense of exporters in developed countries. Conclusion Ultimately, globalized trading is challenging and complex for all countries wishing to partake. In recent years, China has understood and arisen to this challenge and emerged the market share leader in many industries. Additionally, by partnering with China to take advantage of this opportunity, developing countries have also gained increased market share in specific industries due to low labor costs and high workforce numbers. However, developed countries such as the United States and Japan have seen a decline in market shares based upon China’s good fortune. Thus, the scales are tipped in favor of the developing countries when China is gaining market shares in the global trading arena.
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