...With the recent subprime financial crisis in the U.S. it is evident that the U.S., China and India are dependant on each other. Although the subprime crisis was related to factors regarding monetary policy in the U.S., China and India have been negatively affected. China and India assumed that they would be immune to the after affects of the subprime financial crisis which took place in the U.S. housing sector. Unfortunately China and India have been greatly impacted by experiencing financial instability and experiencing a deep recession. China’s banks not being overly exposed to these toxic assets were supposed to be able to weather the storm and be a source for global liquidity. When U.S. imports of automobiles, electronics and machinery from China slowed down, their economy was disrupted. Similarly to the liquidity crisis taking place in the U.S., India is experiencing their own liquidity squeeze. The BSE was forced down when foreign portfolio investors withdrew over $11 billion dollars. India, China and America are commonly described as emerging powers. Over the years China and India have become economic, political and military powers in the 21st century. The United States, China and India have a common interest in peace and prosperity. This relationship provides the U.S. with low cost consumer goods and advanced manufactured products to the India and China. Recently, more people have been viewing these relationships as a threat. However, the international division...
Words: 1321 - Pages: 6
...4, 2011 Abstract This essay contains the international trade between Canada to U.S. and Canada to China including the foreign exchange policy in each country and comparative advantages. It mostly focused on U.S and China between Canada’s relationships. The United States and China are the largest economic market in the world. Also these countries are Canada’s most favor relationship in the international market. In 2009, the international financial crisis became a huge issue of the world. Due to this financial crisis U.S got a lot of damage. It made also Canada’s economic downturn, because of strong reliant on U.S. Over view, Canada has to be a stronger country with more powers, in order to maintain a good relationship with many other countries to help each other and have more successful economic growth. GLOBAL ECONOMIV DOWNTURN FROM THE FINANCIAL CRISIS In 2009, there was a global economic downturn from the financial crisis. Because of this, many countries got a lot of money damages. This put the world economic in most hard situation. Most of the people in the world spent such a hard time in this area. The main sources of this happened from some countries which were largest markets in the world such as the United State and other developed countries. From this economic downturn many developed countries reduced imports from other countries. Therefore a lot of export countries got more economic downturn. The one of main reason of the financial crisis was that...
Words: 2585 - Pages: 11
...military and political tension between Western countries, especially the United States, its NATO allies, and the communist nations, particularly the Soviet Union and other satellite states. The war began after World War II had got to an end. The Cold War was named so since it did not feature any form of military action. The countries in this war possessed nuclear weapons and any form of war would have led to serious destructions on both divides. The relative calm between these countries was sometimes followed by high tensions, which would have emanated into a war but did not (Gottfried & Reim, 2003). The following essay will look at what the U.S. did during that time, as well as summarize the situation that required U.S. diplomatic efforts during the president’s time in office. In addition, the essay will describe the effect of these diplomatic efforts for the U.S. and other countries as well as assess, in conclusion, the advantages and disadvantages of the particular doctrine that was followed. What the President Did During That Time During the cold war, the president was Ronald Reagan. He, together with members of his administration, came up with a strategy designed to oppose the influence that the Soviet Union had in the world. It came to be referred to as the Reagan Doctrine. This also came to be the showpiece of the United States foreign policy in the early 80s until the Cold war ended in 1991 (Gaddis, 2011). Under this Doctrine, the U.S. government provided what is...
Words: 2401 - Pages: 10
...for Canada’s economic development. Canada began its trade with the US in 1920s when rapid urbanization in the US led to huge demand in wood and other forestry products. In the 1920s and 1930s, pulp production increased steadily with over 90% of the produce being exported to the US. In 1925, the opening of the Panama Canal increased the exports of lumber from British Columbia to eastern U.S. markets, which dramatically increased the netbacks received for lumber produced in British Columbia (Statistics, Canada, 2012). Post world war, rapid expansion in the US industrial capacity was accompanied with rapid growth in the Canadian economy as well. Growth in the demand for newspapers led to the growth of pulp and paper industry. By1950, over half of the world’s newsprint was supplied by Canada. By 1954, pulp and paper exports accounted for 24% of Canada’s total exports, of which, 33% of those exports were to the United States (Statistics, Canada, 2012). Post 1960, the new staple in the resource landscape for Canada was Energy. Until this time, though some local sources were available on the Prairies and in Nova Scotia, Canada had relied on coal imports. In 1957, there was a major oil discovery in Alberta at Leduc, which lead to a major and dramatic expansion of crude oil and natural gas industry, the effects of which are still evident till date. The North American Free Trade Agreement (NAFTA) removed most of the trade barriers for Canadian producers in US markets. Between 1990 and 2000...
Words: 7332 - Pages: 30
...Introduction The US and China have always been involved with one another; they have a very complicated history, the two function very differently in areas of politics, economics, and social issues. These disparities have hindered the way both countries conduct business with each other, particularly in the area of international trade. Like any international trading relationship government policies affect the way business is conducted. For example, piracy is very common in China; piracy is the unauthorized use or reproduction of copyrighted or patented material. In some cases a government can affect international trade flows by its lacks of restrictions on piracy. In the case with the relationship between the US and China some may argue that piracy is a major contributor to the uneven nature of financial flows and trade between the United States and China. The US has a large trade deficit with China, but there is little legislation between the US and China forcing China’s government to officially address the issue of piracy in their country. The Trade Relationship between China and the United States The trading relationship between China and the US dates as far back as 1784 when the empress of China decided to open trade between the US and China. At that time the US had very few possessions to offer; however several hundred years later after several wars, changes in leadership, economic needs, and industrial revolutions a more in-depth trading relationship evolved. While the two...
Words: 473 - Pages: 2
...In the near-term future, China will pose a minuscule hegemonic threat to the United States due to socio-economic and military inferiority. Despite unparalleled economic growth since amidst the 1980s, in 2015, the International Monetary Fund estimated America’s nominal GDP at $17 trillion, dwarfing China’s GDP of $10 trillion[1]. In addition, in 2015 the International Monetary Fund also ranked China’s GDP (PPP) per capita at $14,107 compared to $55,805 in the United States[2]. For China to rival the U.S. in terms of nominal and GDP per capita, the country would have to implement long-term economic policies to increase productivity and yield equal worker salaries. According to the Economist Intelligence Unit, China will not surpass the U.S. in terms of nominal GDP until 2026[3]. China also fails to be an innovation-driven economy. Over the last decade, the country has primarily worked as a manufacturing location for foreign companies, as 83% of all high-tech products made in China were produced for foreign companies[4]. Despite using its economic power to influence nations, China has few allies and is surrounded by potentially hostile nations. China also suffers from regional territorial disputes, notably the South China Sea and Tibet. Politically, being a socialist one-party state government combined with a lack of democratization, China has unstable foreign relations with many nations. Lastly, aside from personnel, America has a much larger military arsenal and ranks first worldwide...
Words: 993 - Pages: 4
...Taiwan in US Policy Clare Fan Taiwan Relations Act Speaking of Taiwan in U.S. policy, the most important thing will be "Taiwan Relations Act." "Taiwan Relations Act" has been in effect for 33 years. United States established formal diplomatic relations with China. 10. "Taiwan Relations Act" is to regulate the Taiwan-US bilateral "non-diplomatic relations”, and is an important legal basis for the U.S. executive and legislative departments to handle Taiwan affairs. than international treaties. As a United States domestic law, it rank higher It authorizes the U.S. government to continue the In 1979, the In order to reduce the act’s impact on Taiwan, U.S. signed "Taiwan Relations Act" in the same year on April communication on economic, social and cultural aspects among the American people and the people of Taiwan. It also affirms that it is the U.S.’ important goal to protect and promote the human rights of the people of Taiwan. In the "Taiwan Relations Act" Section II, subsection 1 states that, the main purposes of the formulation of the Act is “to help maintain peace, security, and stability in the Western Pacific; and to promote the foreign policy of the United States by authorizing the continuation of commercial, cultural, and other relations between the people of the United States and the people on Taiwan.” After more than 30 years, most of these goals have been achieved. The law has played a very important role in maintaining the security of the Western Pacific....
Words: 2233 - Pages: 9
...relations between China and countries of the West and Africa have enjoyed a long standing relationship though at different levels. Since the emergence of the People’s Republic of China, China-West and China-Africa relations have advanced continuously, as shall be demonstrated herein by the deepening relations in economic, political and cultural realms. These relations have created a new form of strategic partnerships founded on political equality, economic win-win relations, mutual trust and social-cultural exchanges. Over the last 60 years or so, China-West and China-Africa co-operations, have been based on the principles of equality, sincerity, mutual benefit and international relations development. Particularly, in Africa the co-operations have demonstrated reverence to the will of African countries, deepened relations between African and Chinese businesses and indicated a higher level of sincerity in helping African countries in their development agendas. However, this may not be the case with co-operations between China and the West due to different interest between the two entities, apparently, different from those that are experienced in Africa. Notwithstanding these different interests, a common feature on trade and economic relations have reached remarkable results and the overall effect has enabled growth in business exchanges, widened scope in the relations and essentially yielded benefits to the people of China, West and Africa. The China-West and China-Africa co-operations...
Words: 2616 - Pages: 11
...Journal of Social Sciences_____________________________________ ISSN 2319–3565 Vol. 2(8), 48-54, August (2013) Int. Res. J. Social Sci. India and China: Prospects and Challenges Mehraj Uddin Gojree Department of Political Science, Aligarh Muslim University, U.P., INDIA Available online at: www.isca.in Received 16th July 2013, revised 27th July 2013, accepted 12th August 2013 Abstract This paper seeks to assess the future prospects and challenges of the relationship between the two rising giants of Asia namely China and India. As they both are rising as great powers, their mutual relationship will have a significant impact not only on Asia, but on the whole world. At present, the nature of their relationship is something mixed i.e., growing cooperation in the field of trade and commerce along with distrust and mutual suspicions in the strategic fields whether political or geographical. For these apparent factors, the future relationship between India and China can be characterised by the cooperation in those fields whether mutual, regional or international which may be beneficial for the peaceful rise of both these states and confrontation, competition, and even hostility in some other areas where the respective interests of both the giants clash with each other, for example, the border issue, relationship with other countries particularly US and Pakistan, their encirclement policies, competition for energy resources, nuclear arms race, etc. However, at...
Words: 5602 - Pages: 23
...On the Relationship between stock return and exchange rate: evidence on China Yaqiong Li a b , Lihong Huang b a b The Business School, Loughborough University ,UK College of Mathematics and Econometrics, Hunan University, Changsha ,Hunan ,China Abstract The purpose of this paper is to investigate the relationship between RMB exchange rate and A-share stock returns in China, in particular in Shanghai stock market. We find that both stock returns and RMB nominal exchange rate are integrated of order 1. The Engle–Granger cointegration test is then performed, suggesting that there is not a long-run equilibrium relationship between stock returns and RMB exchange rates at 5% significance level. However, there is strong evidence suggesting that there is a short-run uni-directional causality relationship from the nominal exchange rate to the stock returns. Keywords: cointegration; Granger causality; RMB exchange rate; stock return; unit root test. 1. Introduction The China’s exchange rate policy has recently emerged as one of major issues in the trade between the PR of China and the United States of America. The controversy is fuelled by China’s pegging of RMB to USD. Since a major devaluation of the RMB in 1994, the Chinese currency’s exchange rate vis-a-vis USD remained more or less unchanged until 21 July 2005, and has fluctuated from RMB 8.22 to 8.11 per dollar since then. The Chinese Authority has recently announced that “RMB will be no longer pegged to the US dollar”...
Words: 4070 - Pages: 17
...2009 U.S. Business and Global Barriers to Entry Caitlin Long Follow this and additional works at: http://commons.emich.edu/honors Recommended Citation Long, Caitlin, "U.S. Business and Global Barriers to Entry" (2009). Senior Honors Theses. Paper 167. This Open Access Senior Honors Thesis is brought to you for free and open access by the Honors College at DigitalCommons@EMU. It has been accepted for inclusion in Senior Honors Theses by an authorized administrator of DigitalCommons@EMU. For more information, please contact libir@emich.edu. U.S. Business and Global Barriers to Entry Abstract An exploratory view of barriers to entry in countries of significance to U.S. companies, this thesis provides a comprehensive overview of prevalent business strategies of U.S. trading partners as well as a forecast of their international business policies. Diverse macro-environmental variables, such as economy, culture, and regulations result in varying barriers to entry for U.S. based firms to conduct business in U.S trading partners’ countries. This thesis will determine how these macro-environmental factors foster or stunt growth and strategies governments employ to attract businesses. Degree Type Open Access Senior Honors Thesis Department Marketing First Advisor Harash Sachdev Keywords International trade, Foreign trade regulation, Investments, Foreign China, Investments, Foreign India, Investments, Foreign Hungary, United States Foreign economic relations ...
Words: 8533 - Pages: 35
...International Trade Beverly Richard Argosy University International Trade The trade agreements with China offer countries preferential access to the vast Chinese market while accepting low labor and environmental standards U.S. FTAs, on the other hand, raise standards across the board and help U.S. businesses export to foreign markets while still producing goods here U.S. foreign direct investment in FTA partner countries shows little to no charge after completion of a trade agreement. However, China’s completion of trade agreement increases U.S. FDI in China’s FTA partners (The Economic Benefits of U.S. Trade, 2015). The United States economy has been threatening in growth and stability due to the China’s dollar reserves in its trade surplus. China’s policy of keeping the Yuan understated leads to a fairly large dollar and the rise of trade deficits. The trade deficits are arouse by industry leaders to elevate pressure for protectionist U.S. trade policies (The Economic Benefits of U.S. Trade, 2015). Meanwhile there has been a concern that the United States can continue to depend on China to gain debt as a U.S. deficits. The trade balance between China and the U.S. for the most recent five year period is as following: 2010 : U.S. trade in goods with China Month | Exports | Imports | Balance | January 2010 | 6,898.4 | 25,215.9 | -18,317.6 | February 2010 | 6,840.2 | 23,342.8 | -16,502.6 | March 2010 | 7,400.8 | 24,292.2 | -16,891.4 | ...
Words: 1687 - Pages: 7
...RELATIONS J. Sebastian Smith The Bahamas October 2011 Title Strategic Implications from the People’s Republic of China’s Influence in the Americas: Potential Consequences facing the United States, Brazil &Venezuela Abstract This research seeks to examine the strategic implications facing the United States of America’s due to its benign interest in the Caribbean and Latin America (Americas) given the People’s Republic of China (China) increasing economic interest in the region. It is intended to first define the current security environment of the Americas and the relations between Brazil and Venezuela with that of the United States of America (United States) and China. Thereafter, China’s economic and domestic agenda in the Americas will be examined with hypotheses of the emerging global power potential growth success, challenges or possible collapse in her foreign policy. The likely consequences facing Brazil, Venezuela and the United States will also be examined. The assessment will be done across a continuum of China’s realized economic growth, development of hostile relations due to competition for scarce energy sources or possible collapse due to the country’s internal problems. Finally, the research seeks to encourage proactive thinking by the United States on China’s increasing political and military influence in the region and its possible underlying agenda of becoming the next global super power or hegemony. Introduction A general perception persists...
Words: 9457 - Pages: 38
...Transnational Law Review Summer, 2011 Suffolk Transnational Law Review 34 Suffolk Transnat'l L. Rev. 403 LENGTH: 9744 words NOTE: UNITED STATES-CHINA TRADE WAR: SIGNS OF PROTECTIONISM IN A GLOBALIZED ECONOMY? NAME: Kara Loridas LEXISNEXIS SUMMARY: ... Among the aims of the Doha Development Round are a rejection of protectionism and an attempt to ensure fair application of trade rules to developing countries. ... China argued that the increased tariffs imposed by the United States on Chinese tires exceed the permissible maximum tariff rates that the United States may impose on Chinese imports. ... An example of effective negotiations is the settlement of the U.S. complaint alleging a Chinese violation of the national treatment concept by its preferential treatment of domestic products over "like" imported products. ... Cooperative trade relations between the United States and China are important to the global community because the economies of each country are dependent on the rest of the world and the global economy will be harmed by protectionist measures from the first and third largest trading powers. ... Moreover, multilateral negotiations, as opposed to bilateral trade negotiations, are better suited to resolve the United States-China trade disputes because the disputes affect other WTO members in ways beyond the immediate economic impact. ... The most effective way to combat the rapid escalation and retaliatory nature of the disputes is to conduct multilateral negotiations...
Words: 11849 - Pages: 48
...Working Paper Series Number 121 CHINA AND CAMBODIA: PATRON AND CLIENT? John D. Ciorciari June 14, 2013 1 CHINA AND CAMBODIA: PATRON AND CLIENT? By John D. Ciorciari * International Policy Center Working Paper No. 121 Gerald R. Ford School of Public Policy, University of Michigan June 14, 2013 Abstract In recent years, Cambodia has become one of China’s closest international partners and diplomatic allies. Cambodia’s recent support for China during multilateral talks on the South China Sea has demonstrated the strength of the partnership and led some critics to depict Cambodia as a Chinese “client state.” This paper examines the extent to which that label is valid. In its ideal form, a patron-client relationship entails an asymmetric exchange of benefits, typically including material support and protection from the stronger state and a degree of deference and political support from its weaker partner. This deference, which reduces the weaker state’s autonomy and often generates political backlash, is what makes governments reluctant to embrace client state status. This paper argues that the Sino-Cambodian relationship has strengthened largely because China has offered Cambodia’s governing elites a favorable bargain, providing extensive economic and political benefits without demanding costly forms of political fealty in return. That has begun to change, however. Cambodia’s governing elites have become more dependent on China, more beholden to Beijing’s policy...
Words: 13509 - Pages: 55
