This paper focuses on the trade disputes involving China, the impact and the determinants of foreign exchange rates, the valuation of the Chinese currency before and after the reforms. This paper also discusses the options that are available to China for reform of its exchange rate system. Introduction The level of exports by China had amplified radically from $250 billion in the year 2000 to a proposed $1,500 billion in the year 2009. This massive increase of Chinese exports severely hampered rival businesses in the developed countries, predominantly the Europe and the United States. In 2001, China entered the World Trade Organization (WTO), which ascertained China the right to export to countries like US and the Europe. Nevertheless, the entry to the WTO necessitated China to stick on to certain regulations that were required to endorse fair trade and generate a level playing ground for all. Various issues such as the safeguard of intellectual property, labour and environmental benchmarks, health and safety apprehensions about Chinese products, China's management and manoeuvring of their currency, and expenses and prices established by the government instead of the free markets gave rise to a number of trade disputes. This paper investigates the different types of trade disputes and the endeavours made by China to solve them. A lot of disputes were rooted in the Chinese cultural practices as well as in ideological outlook and hence take time to resolve. Deficiencies in the legal and court arrangement in China also effected the enforcement of various rules. Additionally, many of the disputes originated due to the government's wish to guard the welfare of Chinese organizations and their workforce, and consequently China might modify its practices only if faced with convincing penalizing threats. The central government of China also encountered the "principal-agent" crisis where its decisions or requests could be overlooked by the local governments and organizations. In the meantime, modifications in business structure within the developed countries were changing the negotiation positions of the governments of those countries (Conklin & Cadieux, 2009). Analysis of the Case Issues Arguments of the different parties After the entry into the WTO, China started taking part in international trades. However, China did not impose criminal procedures and punishments on the infringement of intellectual property rights; neither did it build identical health and safety standards that were implemented in the western countries. The extensive health and safety, along with the labour and environmental regulations in the developed countries, added the expenses involved for the manufacturers located there. Since China did not enforce such strict standards, the Chinese manufacturers had unfair advantage over the western ones. Moreover, China did not honour the property ownership of western manufacturers because the Chinese manufacturers were creating employment and promoting domestic prosperity via counterfeiting. But this activity of Chinese manufacturers hurt the volumes of sales and the profit margins of the western
Perspective on International Trade and Finance Table of Contents Executive Summary 3 Introduction 4 Analysis of the Case Issues 5 Arguments of the different parties 5 Impact and determinants of the exchange rates 5 Valuation of the Renminbi 7 Impact of revaluation 8 Options available for China to reform its exchange rate regime 9 Conclusion 10 References 12 Executive Summary This paper accentuates on the trade disputes in relation to the exports made by Chinese manufacturers to foreign countries across the world, particularly the developed nations…
According to Miller (2003), the study of this particular phenomenon concerning the Anti-Sweatshop Movement of the 1990s, rendered the then economists with the opportunity to obtain an apparent understanding of the working conditions and its potential impacts on the economic development processes.
...................................................................4 4. Application of the Theory of Optimal Currency Area………………………….4 5. Evaluation of Single Currency and OCA Theory……………………………….5 6. Conclusion…………………………………………………………………….
In the early nineties, China’s telecommunication market had four segments in between the fixed lines and the wireless service providers. China joined the World Trade Organization (WTO) which provided basic policies and agreements and the acceptance of such agreements aided the individual countries to compete in the foreign market.
In this regard, a continuous growth and rapid transformation of the business strategies practiced by the modern business organisations can be observed apparently with respect to their global trade operations. Contextually, the rapid development of modern trade operations among the various global industries has also inspired the organisations to be significantly focused on acquiring a continuously increasing market share and thereby attaining greater competitive advantages (OECD, 2008).
“Nike Inc. is an international company based in the United States of America that deals with importing and exporting sportswear and equipment” (Smith, 2002). It is the chief manufacturer of sports attire and equipment in the world. Nike Inc. imports footwear from outside countries.
PPP is an important notion in international economics for 3 major reasons.
Thanks to PPP we can have a particularly simple theory of exchange rate determinations i.e. we can conclude that as long as the relative price of two currencies is flexible, it will then adjust to equal the ratio of their price level.
of this company need to consider the above question in real earnest and should not jump into any conclusions before assessing the full facts of the case. The principal criteria that this proposed investments in Gujistan need to assume is in terms of the following:
Within the country, the sea levels have risen up to 20 centimeters more than average, while the temperatures have increased by 7 degree Celsius.
Vietnam has recently taken its place in the countries suffering greatly from the adverse effects of the sea level rise
The idea of comparative advantage is based on the fact that resources are unevenly distributed in countries. For this reason, those countries with abundant resources effectively and efficiently manufacture
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