...around the world. Global trade involves the export and import of goods and services between countries. Goods and services that enter into a country for sale are called imports and goods and services that goes out of a country is call export. Some countries have an advantage and disadvantage on their goods and services. The exchange rates can effects the value of imports and exports. Comparing China and Russia, China has lower labor cost and they have more people in their country. But 58% of Russia exports is oil and oil based products. If the global trade did not exist, it would do a lot of damage to the today’s economy. The Importance of Global Trade Global trade is very important in the economy because it benefits to all the countries and it also create peace between nations. Global trade is simply the exchange of goods and services between countries around the world. No one knows when did global trade started but many countries have been exchanging goods for hundreds of years. Global trade involves the export and import of goods and services across the international boundaries. Goods and services that enter into a country from another country for sale are called imports and goods and services that goes out of a country to another country are called exports. Dating back to about three thousand years ago, Silk Road and Niles River played a big role in trading goods and services because people used these routes to import and export goods to other countries and make treaties...
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...territories. It involves the activities of the government and individuals and is usually formed by exports and imports. For many countries, global trade is a significant share of the gross domestic product (GDP). The importance in economic social and political life has been increasing rapidly in recent years. This increase can be mainly attributed to globalization and multinational corporations. It also follows the trend of development of the global economy. By looking at data provided by the World Trade Organization, it is possible to calculate the percentage of total merchandise increase in world export and import. Table 4.1 shows the results...
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...sovereign credit rating in Chinese export Abstract In August 7th of 2011, the Standard & Poor’s, the rating agency, cut its sovereign credit rating for America by one notch, downgrade AAA to AA+. If China does not want to loss more money and decrease the risk, they have to decrease the foreign exchange reserve, so that some Chinese experts suggested decreasing the export. Because they believe that export will bring more and more foreign exchange reserve and export exists a number of problems. So this news event is a challenge of Chinese encouragement of export policy. But the other Chinese experts argue that we can not decrease the export, because China is a developing country which is mainly rely on export and we can not ignore that the export brings China a lot of opportunities. Though export is still exist a lot of problems, but we can use some theory to find the solution. The government can use the methods of increasing the domestic consumption spending to keep the growth of GDP and keep the employment rate. The government should encourage the residents to increase the consumption and enlarge the domestic demand. And government should encourage the export the advance proprietary technology products and restrict the export of low level technology products to eliminate the barriers of trade Introduction Nowadays, export plays an import role in the development of economic. General Administration of customs of the People’s Republic of China announced that Chinese trade surplus...
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...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, the export volumes of forest products increased at a compound annual rate of 4.4%, more than doubling the growth in forest products exports. The forest product export prices also rose at a compound annual rate of 3.2% per year, which outpaced the 2.3% compound annual growth in export goods prices (Statistics...
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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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...From 1617 to 1793 tobacco was the most valuable staple export from the English American mainland colonies and the United States. Until the 1960s, the United States not only grew but also manufactured and exported more tobacco than any other country. The largest tobacco company in the world by volume is China National Tobacco Co... World tobacco leaf exports from 2010-2011 averaged 1.98 million tonnes per year which the FAO expects to grow by 1% to 2.2 million by 2012. Today developing nations are responsible for almost 65% of global tobacco exports, while developed countries account for the remainder. Of the countries below, the domestic economies of Zimbabwe and Malawi depend most heavily on tobacco exports to the rest of the world. Production by country: Country or region Production in thousands of tons China 2,298.8 India 595.4 Brazil 520.7 United States 408.2 European Union 314.5 Zimbabwe 204.9 Turkey 193.9 Indonesia 166.6 Russia 116.8 Malawi 108.0 | Top Tobacco Leaf Exporting Nations: United states... 18.1% of world total Brazil ... 16.6% European union ... 9.9% Zimbabwe ... 9.1% Turkey ... 6.5% China ... 5.6% India ......
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...TRAINING MAGAZINE ON BANKING SCIENCE AND TRAINING INTERNATIONAL EXPERIENCE AND PRACTICE | REASON AND IMPACT OF INCREASE IN CHINESE YUAN VALUE OF CHINA NGUYEN XUAN HONGBanking Academy | | After much pressure on Chinese Yuan (CNY), China made decision on increase in their currency in 6/2010. How will this increase impact on relevant objects? This article aims to find reason and impacte of increase CNY value of Chine on Chinese economy and other countries, including Vietnam | be carefull on exchange rate policy to avoid impact on export. According to economic researcher , adjustment on CNY value may cause instability in Chinese economy due to encouraging investment, increasing independence of economy on external factor, especially when 50% of export comes from foreign-invested enterprises in current. This is contradiction that shall be considered when selecting exchange rate. | 1. CNY exchage rate development before and after increaseValue from 2005 to the date before 21/06/2010: CNY value increased due to application of margin transaction measure, holding CNY to USD rate at CNY=6.83 from 8/2007 | Besides achievement of economic growth, which partly thanks to current exchange rate policy, China also has to deal with many challenges. Since 1998, China has spent 200 billion USD to refinance and buy doubtful debts of banks. China is dealing with instable finance but Chinese Government still | | Source: Reuters Source: Reuters Source: Reuters Source: Reuters Figure...
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...financial crisis, China has managed to reach the position of the world’s number one exporter. While much of the world is still struggling to come out of the crisis, their economy continues to grow. As a result, China is receiving disapproval from both the West and other developing countries in regards to how they have been able to achieve their top ranking. In addition to discontenting many of its trade allies, China’s aggressive efforts to further their exporting power are causing economic troubles within its own borders. It is crucial for the American economy that U.S. officials continue to pressure China to revalue its currency. China was in an advantageous position to deal with the global recession thanks to its lower-price products. As the world was hit by the recession, many consumers looked to those cheaper goods. Even as countries are recovering, consumers across the globe have altered their tendencies. Many people lost much of their wealth and have a changed perspective on their consumption. Consequently, China’s exporters have been given a prime opportunity to benefit. Goods that may have seemed essential in the past no longer have the same allure and cheaper products available from Chinese manufacturers have become increasingly more attractive. Already possessing the power of cheaper goods, which have proven to be appealing during the recession, the Chinese government has made concerted efforts to maintain a cheap currency. To achieve this, China made the decision...
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... While it is easy to see why China is becoming more and more powerful in terms of global trading, it is somewhat unfair to mark this country as the reason for the United States economical situation. Some authors, like Robert Scott, claim that the entrance of China into the World Trade Organization (WTO) has negatively affected the United States’ unemployment rate, the jobs production and its income per capita reduction. In the next pages, the report written by Roger E. Scott entitled: ‘Costly Trade with China. Millions of U.S. jobs with net job loss in every state’ will be analyzed to determine what China has been doing to become the number one exporter in the world, as well as the impact that China’s exporting has had in the United States. It also will be determined how costly it has been to the United States to trade with them; what other factors may have affected the United States and its trading capacity; and what the future implies for the commercial relationship between these two countries. Finally, it will be discussed whether or not the United States should seize other opportunities by creating new free trade blocks with another countries in the world, such as the North America Free Trade Agreement (NAFTA) with Mexico and Canada. Review In 2010, China became the number 1 exporter in the world. However, its inclusion in the international trade world was not easy. Its self-imposed isolation made of China a very unique country in terms of commercialization...
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...or other emerging markets. c) Consistent decline in competitiveness as the country is vastly dependent on importing goods rather than developing providing a boom to economies like India and China. * Ever since early 90s, the US has always imported more than they export. Thus which on the other hand has led to a need for cheaper imports from other countries to sustain an average American household. Since cheap labor is available in foreign countries most of the work is outsourced and hence their production is not up to their full potential. * The government on the other hand focuses on imports rather than improve the supply leading to a poor manufacturing sector.This is an advantage to countries like China which have cheap labor and is a major exporter to the U.S. Also as the government focuses on imports rather than supply to meet the demand major exporters like China get benefited. * The major advantage is that all the transactions take place in terms of dollars. Thus foreigners will be willing to buy dollar at a lower premium thus attracting more capital. * Current account deficits which is currently pretty high can be reduced by increasing exports by encouraging industries by subsidies, custom duty exemptions or by decreasing imports by placing some import restrictions,...
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...communication on the import and the export. Generally speaking, US dollar is the main way to trade in this environment. Therefore, to keep a relative stable exchange rate between home currency and US dollar becomes a topic for every country. Buying US treasury bonds is the main way to control the balance between home currency and US dollar. On the other hand, different countries have their own reasons to buy US treasury bonds except this main reason as well. We are going to answer this question from talking about the reasons China, Japan and EU buying US treasury, because they are the first three holders. To answer this question, we found the data from the website called “US department of the treasury”. The first data is a table showed “Foreign holdings of U.S. securities, by country and type of security, for the major investing countries into the U.S., as of June 30, 2011”. In this table, China, Japan and EU are the three main economic entities hold more U.S treasury bonds than others. In 2011, China and Japan were the first two countries held 1,727 billions of dollars and 1,585 billions of dollars respectively. European countries followed them after. While the UK held 982 billions of dollars, Luxembourg, Switzerland, Belgium and Ireland held 817,488,443, and 405 billions of dollars. The second table is called “Major foreign holders of treasury securities”. It has the data from September 2014 to September 2015, the order didn’t change much. While China, Japan and European...
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...------------------------------------------------- EXPORT PLANNING ------------------------------------------------- AMB210 ASSIGMENT( SEM1,2013) By KA SUEN CHAN (N8376875) Executive Summary The Fresh Cheese Company is predominantly a manufacturer of multi-award winning high quality Italian style cheese in Victoria. Local success and popular in some other existing foreign market show the competitive advantage of the company’s product. Company is currently seeking for more market expansion oversea. This report will focus on China as a great potential market. Traditionally, cheese was not a favourite food in China. In recent years, influenced by western culture, cheese has become increasingly popular in most developed cities, especially among new generation. With huge population and great purchasing power, China’s cheese market is still in an infancy stage but growth rapidly in recent years. The purpose of this report is to conduct a consolidated analysis to construct an export planning. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 4 2.0 Export readiness analysis 4 2.1 Competitive advantage 4 2.2 Production capacity 4 2.3 Export experience ...
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...China and the Esquel Group China and the Esquel Group In response to criticism of it pegging the Yuan to the US dollar, China recently implemented steps toward liberalizing its exchange rate policy; however, a floating Yuan has created uncertainty concerning its impact on China’s economy. While it is likely that allowing the Yuan to appreciate against the US dollar will result in undesirable impacts for China such as deflation, a reduction of foreign direct investment (FDI), and a decline in exports, we believe China will, and should, continue a tempered liberalization of its exchange rate policy. This is necessitated by the potential consequences China faces both politically and economically by not moving towards a floating rate. Politically, China will continue to absorb the majority of the blame for foreign countries’ rising trade deficits, spawning potential legislation dictating import quotas on Chinese products. Economically, a fixed exchange rate will continue to plague China by its dependence on exports and increase its risk of being able to maintain the value of its portfolio of foreign reserves, most notably the United States dollar. It is our belief that these risks outweigh the benefits of China continuing business as usual. As such, the Esquel Group should devise operational strategies that mitigate the risks of an appreciating Yuan, which include diversifying revenue streams by implementing a textile import division, pursuing growth in domestic textile...
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...more than 70 countries. Specific areas of production include countries such as China, USA, India, Pakistan, Uzbekistan, Turkey, Australia, Greece, Brazil, Egypt etc. where climatic conditions suit the natural growth requirements of cotton, which includes periods of hot and dry weather and adequate moisture obtained through irrigation. Cotton is harvested as ‘seed cotton’ which is then ‘ginned’ to separate the seed and lint. The long ‘lint’ fibres are further processed by spinning to produce yarn which is knitted or woven into fabrics. Trade theories International Trade * All economies, regardless of their size, depend to some extent on other economies and are affected by events outside their borders. * The “internationalization” or “globalization” of the U.S. economy has occurred in the private and public sectors, in input and output markets, and in business firms and households. The Economic Basis for Trade: Comparative Advantage * Corn Laws were the tariffs, subsidies, and restrictions enacted by the British Parliament in the early nineteenth century to discourage imports and encourage exports of grain. * David Ricardo’s theory of comparative advantage , which he used to argue against the corn laws, states that specialization and free trade will benefit all trading partners (real wages will rise), even those that may be absolutely less efficient producers. Mutual Absolute Advantage * Suppose that each...
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