This means that the cargo must be transported to other regions, further increasing operational costs and reducing the efficiency of American organizations exporting to China.
Another characteristic of the international trade policies implemented by the Chinese government refers to the means in which the decisions are made. The western investors point out to a highly centralized system, but argue that the openness to liberalized trade is only possible through the process of decentralization. Otherwise put, they desire that the government allows its regional office to make the decisions that directly affect their region (Goodman and Segal, 1994). The measure is yet to be implemented as the process of development and implementation of international trade policies is highly complex, ensures governmental power and must be completed with focus on the country's overall interests, as well as the stipulations in the WTO agreements.
4. Conclusions
Despite the fact that some issues remain to be addressed and resolved, China has suffered drastic modifications in its approach to international trade. The country evolved from an enclosed economy, to one in which increased focus is being placed on the creation of a market-oriented economy. The effects of their efforts have materialized in positive impacts upon both national population, as well as foreign players. In terms of the foreign players, these were better able to penetrate the Chinese market as their products became more competitive. Also, they gained several advantages relative to their countries and this even encouraged them to develop business operations within the eastern Asian country. These actions materialized in positive effects upon the national population, such as the creation of more jobs through a highly privatized economy or the wider access to a greater palette of product and service offering.
Yet, as the policies...
International Economics Economics, in general, relates to the inter-actions between economic clients that occur within the process of exchange. However, international economics brings in an extra element, that of internationality, and differs from simple microeconomics for the fact that it explains the occurring relations between participants at an international level. In this sense, international economics is important because it provides rules, theories and a specified framework in which international economical relations
International Economics How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns? In the Ricardian model only one factor of production, labor, is needed to produce goods and services (Suranovic). The productivity of labor is assumed to vary across countries, implying a difference in technology between nations. The difference in technology results in advantageous international trade. On the other hand, the Hecksher-Ohlin model uses two factors of production
International Economics (a) What are the alleged advantages of a fixed over a flexible exchange rate system? How do advocates of flexible exchange rates respond? Fixed exchange rate system guards against wild day-to-day fluctuations which discourage specialization in production and flow of international trade and investment a position that advocates of flexible exchange rate detest. They aver that destabilizing speculation is less likely to occur when exchange rates adjust continuously. In the wake of
International Economics Law International Trade Law WTO Introduction The World Trade Organization, or WTO, is an international body that is located in Geneva, Switzerland and was officially founded in 1995 (The World Trade Organanization, 2012). There stated purpose is to help trade flow as freely as possible under a number of given restrictions. For example, the WTO does not try to get countries to openly trade items that are safety concerns or can
International economic theories and policies have a double role: to explain and to regulate. On one side, the international economic theories explain the international economical environment where exchanges are produced, as well as general laws that govern this environment. The international economic policies create a regulatory environment, with rules under which these exchanges are produced. The mercantilist view on trade evoked two main characteristics. One of them referred to the fact
Interest rates usually increase to curb inflation as to encourage investment to remove currency from the consumer economy. Exchange rates; primarily floating rates and managed floats Exchange rates refer to the difference between currency rates when exchanging the base currency (the currency in possession) for the exchanged currency. For example 1 USD:: 1.60 GBP is an exchange rate denoting 1 USD can be readily exchanged for 1.60 GBP. Floating rates are
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now