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Trade Relationship between Hong Kong and United States - Essay Example
a) The United States and Vietnam signed a Bilateral Trade Agreement which allowed the two countries in the year 2001 which allowed the overall relations between the two countries to improve and was considered a milestone by many. The trade level after this agreement resulted in a huge expansion in the trade levels as by the year 2007, the amount that was being traded accumulated to 12.5 billion dollars in the year 2007, a he rise from the 2.91 billion dollars trade amount in the year 2002.
The US removed the quotas on the on textile and apparel imports and besides that an agreement was signed in the year 2007 with the US, which were the Trade and Investment Agreement. The above agreements resulted in the United States becoming one of the major exporting countries for Vietnam and hence, any recessionary activity experienced in the US would have a great affect on Vietnam.
The present recession has had a huge impact on Vietnam not only in terms of the fall in FDI levels but also due to the fall in exports and increased competition from the domestic producers of the United States.
The trade relationship between Hong Kong and United States has been quite strong as the US has strong economic ties with this country. It has a number of bilateral trade agreements and the US exports to Hong Kong totaled 20. 7 billion while it is also one of the largest investors. Therefore, any recessionary activity would have a great impact on the Hong Kong trade activity and its exports particularly.
b) The Hong Kong currency has been pegged to the United States dollar in the year 1939 and si ...