...| IMPACT CHINA ASEAN FREE TRADE AGREEMENT (CAFTA) ON INDONESIA ECONOMYWritten by Yuliana (15 Jan 2015)Overview of ASEAN – CHINA Free Trade Agreements In November 2001, ASEAN and China agreed to launch negotiations for an ASEAN-China Free Trade Area (ACFTA). In the following year, ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China.The objectives of this Agreement are to: (a) | strengthen and enhance economic, trade and investment co-operation between the Parties; | (b) | progressively liberalise and promote trade in goods and services as well as create a transparent, liberal and facilitative investment regime; | (c) | explore new areas and develop appropriate measures for closer economic co-operation between the Parties; and | (d) | facilitate the more effective economic integration of the newer ASEAN Member States and bridge the development gap among the Parties. | | | | The Agreement on Trade in Goods was signed in 2004 and implemented in 1 July 2005 by the ASEAN countries and 20 July 2005 by China. Under this Agreement, the 6 original ASEAN members and China have to eliminate tariffs on 90% of their products by 2010, while Cambodia, Lao PDR, Myanmar and Vietnam, have until 2015 to do so. | | | | | | The Trade In Services Agreement entered into force in July 2007. Under this agreement, services and services suppliers/providers in the region will enjoy improved market access and national treatment...
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...China TRADE Marketing Ricardo Fu MGMT 3105V GBC – Global Business in the 21st Century Walden University Instructor Juan Ortiz October 21th 2012 TABLE OF CONTENTS china TRADE marketing 4 Introduction 4 Business Concept 4 Vision 4 Mission Statement 4 Goals and Objectives 4 Market Analysis…………………………………………………………...…5 Domestic Market Opportunities 5 Foreign/Global Market Opportunities 5 china marketing Introduction China Trade Marketing will be a marketing research company focus on the guidance to trade in China to those companies that are interested to make business in this oriental country. It main purpose of this paper is to show the reader how this company will be structure in terms of vision, mission, goals and objectives. Also we will see the target market or the niche that China Trade Marketing focuses and considering the different opportunities and cultural aspects. Business Concept The name China Trade Marketing emerged from the specialization of the company that is consulting, marketing and research. Nowadays China has become a potential country in which different manufactures moved there due to a low cost labor. Foreign companies saw the opportunities to reach that market but they don’t have the right tools such as language and broad geographic knowledge to start make business in China, that’s why China Trade Marketing, Ltd born. Vision Being one of the first companies to effective support for successful internationalization of...
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...International trade as results of globalization and trade liberalization had made a significant contribution to economic growth. The introduction of economy reforms and an open door policy by Deng Xiaoping in 1978 had resulted in a rapid expansion in China’s international trade together with dramatic economy growth which has made China emerged as a key player in global economy. China is the fastest growing economy in the world with its Gross Domestic Production (GDP) growing at nearly 10 per cent a year and turned it into the second largest economy after United State. (Agarwal & Wu, 2004) China’s stable political system, vast natural resources and abundant skilled and unskilled worker has made it into a path to become “The World’s Factory”. (Sun & Heshmati, 2012) High productivity level of China has made it became the world’s largest exporting country which accounted for 10.9% of world’s export as in 2012. (Nation Master, 2013) In addition to stated-owned enterprises, foreign-invested enterprises also engage in foreign trade. Thus, China has formed an all-round and diversified import and export market. This study investigates the changes of China’s trade pattern from 1980 to 2012. Next, we will discuss the majors impacts on China’s international trade associated with the domestic and international events and policies took place during these year. Lastly, we will study the top 5 export and import trading partners of China in 2012. (212) Discussion China’s Trade Pattern ...
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...Dear ….. With this letter, I would like to express my interest in studying at the FH Aachen University of Applied Sciences as an Erasmus student. I am currently studying a Bachelor’s Degree program in Economics at the Dokuz Eylul University in Izmir. Having looked through the materials of the Foreign Department of my university, I was very delighted to find the opportunity to spend one semester learning Business Studies at the FH Aachen University of Applied Sciences. I have decided to apply for this program because I am sure it would strongly enrich my future studies and help me in my prospective career. Moreover, I consider this program as a great opportunity to get in touch with German culture and educational system. Last but not least, I am very curious about different approaches to the business studies at the foreign university. I would like to emphasize that I am eager to benefit from this program, as I will get to know better Erasmus students from the whole Europe, exchanging experiences and practices. I advocate the opinion that Erasmus program is an excellent opportunity to meet various groups of young people, spend quality time with them and get to know their habits, attitudes, lifestyle, etc. Also, living, studying and having fun within international scholars would broaden my horizons and enable me to build a strong social network with people through our continent. Very important for me is also an “Excellent” rating for teaching of the business studies department...
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...In recent years, discussions between the governments of China and the United States have centered on each country’s external imbalances, large trade surpluses for China and deficits for the United States, and the need for structural reforms to achieve more sustainable patterns of growth in future years. This paper argues that reductions in external imbalances suggest that some restructuring has occurred. However, a more detailed examination of economic developments within each country offers less basis for optimism. China has experienced a large appreciation of its real exchange rate and an external surplus less than half that of the years preceding the global recession. However, the domestic counterpart has been even-higher rates of investment as opposed to lower rates of saving and a more sustainable growth of public and private consumption. For the United States, a reduction in the external deficit has been associated with an extreme contraction of domestic investment rather than increased saving. It is noteworthy that the economic trade between the two countries has become even more unbalanced than in the years before the recession, and the bilateral deficit now accounts for two-thirds of the U.S. global current account deficit. The concluding section argues that further reduction in the trade deficit through the expansion of U.S. exporting capabilities is critical to its future performance. The section discusses policy changes that would slow the process of shifting production...
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...U.S.A.-China Trade Relations Carol Buchanan Naga S. Grandhi Leigh Goulet Bellevue University Abstract The United States of America (also referred to as U.S.A.) and China are the top two biggest economies with $16.2 trillion and $9 trillion dollars respectively. Both of these countries have very strong trade relationships. In the year 2013, U.S.A. exported $122,016.3 million worth of goods to China and imported $440,433.5 worth of goods from China. These figures clearly indicate that there was a huge difference between import and export values in 2013 and also appear to disproportionately favor China. This paper addresses the trade relation between these countries and explains its current situation. This paper also explains the concept of “opportunity cost” as it relates to trade between these countries. Keywords: U.S.A.-China trade relations, imports, exports, opportunity cost. U.S.A.-China Trade Relations Problem Statement Both the U.S.A. and China have strong economic backgrounds. Globalization welcomed trade between these nations. Overall, the balance of trade in goods and services between U.S.A. and China appears to be in favor of China. This creates several problems and dependencies between these two countries. Introduction/Background U.S.A.-China trade rose rapidly after the two nations reestablished diplomatic relations (in January 1979), signed a bilateral trade agreement (July 1979), and provided mutual most-favored-nation (MFN) treatment beginning...
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...Trade-related Challenge: Facebook in China Loretta F. Clark University of Maryland University College Executive Summary As the world is evolving and is also becoming flat, we see how national companies are looking to expand to different regions of the world. Global expansion has a number of complexities and processes. With this expansion there are times when companies hit roadblocks. To overcome the roadblocks, companies should develop entrant strategies including acquiring assistance from their government to negotiate with foreign nations. Facebook is currently witnessing a roadblock in China. China will not allow the Internet social networking site to enter the Chinese market. This trade barrier presents Facebook with challenges; however, the company has options it may pursue to overcome the obstacles. Options include: * Pursuing a partnership with an established Chinese company * Customizing Facebook to isolate the Chinese market * Entering neighboring countries outside of China * Enlisting the assistance of government agencies * Enlisting the help of Non-Government Organizations (NGO’s) Implementing these options gives Facebook differing entrant strategies into the Chinese market. The company may reluctantly have to make some compromises and may have to weigh the cost versus the benefit for entering China. Even though cost is typically financial, Facebook will have to consider what other concessions it will have to make such as filtering content...
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...International trade issues in China Intellectual Property Rights (IPR) issues United States business and government representatives have voiced out on growing concern of the economic losses suffered by U.S. firms which are the impact from the invasion of intellectual property rights (IPR) in China for example cyber attacks. U.S. innovation and the intellectual property that is generated by such activities have been cited by various economists as a critical source of U.S. economic growth and global competitiveness. For example, according to the Department of Commerce, in 2010, U.S. Intellectual Property intensive industries supported at least 40 million jobs and contributed $5.1 trillion to U.S. gross domestic product (GDP). A study by NDP Consulting estimated that in 2008, workers in IP-intensive production earned 60% more than workers at similar levels in non-IP industries. A study on the Apple iPod concluded that Apple's innovation in developing and engineering the iPod and its ability to source most of its production to low-cost countries, such as China, have helped enable it to become a highly competitive and profitable firm as well as a creator of high-paying jobs such as engineers engaged in the design of Apple products in the United States. Lack of effective and consistent protection of Intellectual Property Right (IPR) has been cited by U.S. firms as one of the most significant problems they face in doing business in China. Besides that, U.S. firms have expressed concern...
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...The trade between the United States of America and China have become essential aspects of this trade alliance, and these strategic trading partners have shed light to the world’s current economic trends, considering that the United States carries the largest economy while China has the second largest. When analyzing this trade and China and the United States relationship, there are important factors that need to be considered, such as the United States Trade Deficit, its consequences, relevant history of trade and diplomacy, and its imports-exports. United States Trade Deficit Trade deficit occurs when there is a negative balance of trade. This has occurred in the United States recently, with a deficit 28 times larger than in the Reagan administration. Consequently, the United States imports exceed its imports, where there is a depletion of the United States currency to foreign market, without having a balanced input and output. According to the United States Census Bureau, in March of 2012, the United State’s exports totaled $9.8 billion while its exports totaled $31.5 billion. In 2011, the total amount of exports was $103.9 billion while its imports were $399.3 billion, resulting in a negative balance of $295.5 billion (“United States Census”, 2012). Even though the United States had a surplus in the area of services in 2011, the United States trade deficit pertaining to the trade of goods has been continuously increasing, creating an exacerbated program in the United States...
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...Change in China trade policy before and after WTO 1. Different aspects of china WTO accessions 1.1.Trade in goods One of the major parts of WTO accessions the changes in the trade of good policy which is mainly divided into two major components which are the reduction of tariffs and the elimination of the quotas. Due to WTO accessions china is obliged to reduce or eliminate all tariffs on imported goods mostly by 2004 with special condition in industrial material which tariffs reduced to an average of 9 percent and tariffs on agricultural goods will be lowered to an average of 15 percent. 1.2.Policy on trade of services The other major component of the change in trade policy is the changes in the service sector which aim is to ensure foreign firm to have an transparent and simple process for acquiring license in various sector such as banking and insurance, legal and other professional services, Telecommunications and tourism. 1.2.1. Right to trade and distribution Right to trade is one of the most regulated change due to WTO accession as it controls the right for foreign firm to import, export or retail goods in china. In the WTO accessions it is stated that within two years (by end-2003) foreign service suppliers will be permitted to engage in the retailing of all products, within three years (by end-2004)all firms will have the right to import and export all goods except those subject to state trading monopolies (e.g., oil or fertilizers);...
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...Economic and Trade Relations of China and Japan China contains more than 5,000 years of history. This remarkably long past earns china the title of the oldest civilization in the world. The country possesses the largest population of 1.344 billion and a Gross Domestic Product (GDP) of $7.318 trillion in U.S. dollars ("World bank, china," 2011). Although China has an extremely high GDP, the extremely large population is a problem since they cannot provide enough resources for the entire population. This makes it imperative for China to trade and have relations with the world around them and participate in the global economy. That being said, with there incredibly dense population, they have a labor force of 795.5 million which allow them to be very large competition for the rest of the world. Since the 1970s, China has evolved from a closed, central system to a market-orientated system that makes China the world's largest exporter. This was accomplished by the gradual liberalization of prices, fiscal decentralization, creation of a diversified banking system, the growth of stock markets, the opening to foreign trade and investment, rapid growth of private sectors, and the decrease in collective agriculture ("Index mundi: China," 2012). In the more recent years, China has once again brought back their support for state-owned enterprises (SOE) for the purposes of economic security. The restructuring of the economy and resulting in efficiency gains have brought China to be the...
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...The End of Legal Ivory Trade in China The ancient art of ivory carving, trading, and selling is an important tradition in the Chinese culture that can date back to almost 3,000 BCE (Britannica). Around the time of the imperial era, ivory was used to carve statues of deities and medallions in garden scenes, which were envied by the court officials. Ivory carvings, chopsticks, and jewelry were also a way to show off wealth. This is what the ivory market was primarily driven by in China (Katz). The Chinese are very proud of their ivory carving history and argue that it is a long lasting tradition that should go on, even though about 30,000 elephants are killed by poachers for their ivory, every year. This means that the population of elephants...
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...Exploring the prospects for U.S-China trade With the significant development of economy, China has already exceeded Japan, becoming the second largest economic entity in the world. From 1949 to the present, China's economy grew annually from 4 to 10 percent. There is no doubt that the export contributes a lot to China’s GDP; meanwhile, United States just replaced the European Union, turning into China’s largest trade partner last year. It is obvious that China and U.S. are closely connected in the modern economy. Since U.S. and China are inextricably linked, I would like to analyze the trade between U.S. and China in this paper, and find out what are influencing the value of trade between the two countries. First of all, there are some economic concepts that need to be explained. China has a favourable balance of trade, which means nowadays China exports more than imports; however, U.S. has run a trade deficit every year for more than thirty years, which means U.S. imports more. The import and export are always connected with the exchange rate. For instance, if you are exporting and your local currency becomes strong then your products become more expensive for your buyers. If you are importing and your local currency becomes weak then the products you are importing become more expensive. As we can see, China is exporting more to the U.S., so I would assume that one of the reason why U.S. would import more from China may be the exchange rate of China’s currency Yuan is slumping;...
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...Spain Spain officially the Kingdom of Spain is a sovereign state and a member of the European Union located in southwestern Europe on the Iberian Peninsula. Its mainland is bordered to the south and east by the Mediterranean Sea except for a small land boundary with the British Overseas Territory of Gibraltar; to the north and north east by France, Andorra, and the Bay of Biscay; and to the northwest and west by the Atlantic Ocean and Portugal. Spanish territory also includes the Balearic Islands in the Mediterranean, the Canary Islands in the Atlantic Ocean off the African coast, and two autonomous cities in North Africa, Ceuta and Melilla, that border Morocco. Furthermore, the town of Llívia is a Spanish exclave situated inside French territory. With an area of 505,992 square kilometres (195,365 sq mi), it is the fourth largest country in Europe. Spain is a democracy organised in the form of a parliamentary government under a constitutional monarchy. It is a developed country with the twelfth largest economy in the world by nominal GDP, and very high living standards, including the tenth-highest quality of life index rating in the world, as of 2005. It is a member of the United Nations, NATO, OECD, and WTO. Foreign relations Main article: Foreign relations of Spain After the return of democracy following the death of Franco in 1975, Spain's foreign policy priorities were to break out of the diplomatic isolation of the Franco years and expand diplomatic relations, enter...
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...Executive Summary Traditionally, Australia-China trade & economy was simple. Australia met the demand for raw material for China’s manufacturing & China exporting back to Australia its finished manufactured goods. Thus China-Australia became each other’s largest trading partners. Now that China’s economy is affected, less spending on infrastructure the demand has shifted from raw materials & commodities to other specialized manufactured equipment, services like health, education, financial, engineering, agriculture etc. for which Australia has to change gears to gain distinctive advantage to its other competitors. However in Chinese economy there still exists substantial market for Australian commodities, such as wool, wines, wheat, minerals & iron ore, as Australia has advantage of nearness by sea for the shipping lines. The Free Trade Agreement is a win-win situation as Australia can easily meet the changed needs of Chinese for sophisticated medical goods & services in Health, Social Security, Human Resources, Banking, Education, Legal, Agriculture, Winery & Dairy. China’s economic woes & slowdown in addition to general economic slump has impacted Australia hard, specially the mining cum trading houses at present. This impact is not limited to just Australia but whole of Asia-Pacific, lain America & Canada. Thus to conclude, there are some positives about the Australian economy as GDP growth is up from the last year & China needs Australia, as it shall always need...
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