...International Trade ECO201 Macroeconomics Instructor: George Williams Completed by: Carleen Wardlow student at Argosy University July 20, 2013 The table below represent U.S. trade balance with China over years (2007-2011): Years: 2007 2008 2009 2010 2011 Export: 62,936,891,576 69,732,837,543 69,496,678,611 91,880,613,079 103,939,433,941 Years: 2007 2008 2009 2010 2011 Import: 321,442,866,934 337,772,627,823 296,373,883,488 364,943,854,151 399,361,922,088 Trade balance with China Years: 2007 2008 2009 2010 2011 (millions of dollars) -258,505,975,358 -268,039,790,280 -226,877,204,877 -273,063,241,072 -295,422,488,147 China (in the...
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...Soybean Exports to China Purpose Trading has largely improved over the existence of China as restrictions and wars have been very prominent in China’s history. This paper looks at soybeans and how they have been a part of China’s importing history. China has become a vital export market for United States soybeans and without those customers, prices would be much lower than those seen in today’s market. Table of Contents Abstract……………………………………………………………………………………4 Situational Analysis……………………………………………………………………….5 Country History……………………………………………………………………………6 Cultural Overview…………………………….……………………………………………7 Political Environment………………………………………………………………………8 Export Marketing Plan……………………….……………………………………………..9 Economic Development…………………………………………………………………….10 Purchasing Power…………………..……………………………………………….10 Wages………………………………….……………………………………………11 Infrastructure………………………………………………………………………..11 Summary……………………………………………………………………………………11 References………………………………….……………………………………………….13 Appendix A………………………………………………………………………………….15 Appendix B………………………………………………………………………………….16 Abstract The soybean has been traced to the eastern half of North China in the eleventh century B.C. Soybean production was localized in China until after the Chinese-Japanese war of 1894-95, when the Japanese began to import soybean oil cake for use as fertilizer. A worldwide shortage of feed protein in the early 1970's led to the initiation of large-scale soybean production in several South American...
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...PESTEL analysis for China1) Political Factorsi.Constitutional SystemChina or People¶s Republic of China adopts socialist system or communism in their political system in their decision-making processes in governing the country.The country¶s sole political party in power is known as the Communist Party of China.The government have the sole power to control all activities done by their citizen as whathave been describe in how communism system worked in governing a country. Inother words, the purposes of working in China are to contribute to the nation and alsoto the government as the government control on all activities in the country.ii.Stability of Government. The stability of the China government is quite moderate and stable because theadministration of the government are not publicize to the public either through thepress or on the internet. So, the degree of the citizen involvement in the politics is lowbecause of the heavy restrictions impose by the government. However, the policiesimpose and the law regulations are quite effective in terms of economy where China isone of the leading countries in the world. In the recent years (2001), China has joinedthe World Trade Organization and results rapid growth in industrial and manufacturingsectors because of the cheap labor in China. But still problems such as managingenvironmental degradation, demographic pressure and the extreme immigration fromrural to urban area must be faced by the government.iii.Business FreedomThe...
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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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...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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...Event Analysis 1 Event Analysis: World War II LaKisha J. Williams PAD540 International Public Administration Dr. Angela Parham Strayer University February 7, 2013 Event Analysis 2 Event Analysis: World War II World War II The United States stood in shock and fear as Japan initiated their attack on the naval base at Pearl Harbor with absolutely no warning. After the Great Depression of the 1920s, Japan was left without the resources they largely depended on the United States to provide. As Japan’s population became more overcrowded and their resources became scarce, the Japanese military decided to try and take over lands in China; mainly Manchuria. The Empire of Japan was aimed at taking over East Asia. As tensions arose between Japan and China the United States under the leadership of Herbert Hoover and Franklin D. Roosevelt (in the beginning) decided that they did not have any stake siding with either country. Up to this point the United States policy in China was based on the principle known as the Open Door Policy in which any and all countries were free to trade and make investments with and within China. The United States felt that if they sanctioned Japan and China, both economically and with military assistance, it would be enough for Japan and China to stop the fighting, but it didn’t. At that point Japan decided to accept Germany as an ally and...
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...U.S. Trade Analysis with other Countries Abstract Purpose- This paper presents the analysis of U.S. imports and exports by managing the trade balance. It also presents the leading U.S. imports and exports in terms of value along with the important partners. Design/methodology/approach- The author explains the balance of trade including the rise and fall of U.S. trade deficit using the analysis between different countries imports and exports. Research limitations/implications- The study is limited to analysis of imports, exports, trade surplus and deficit of U.S. trading. Originality/value- This paper will help to build up the understanding about the basic imports, exports and importance of balancing the trade cycle for a country. Keywords- Deficit, Import, Export, Surplus, Economy Introduction Every country has to follow a set of policies, methods and processes in order to perform imports and exports. A number of conflicts arise due to weak foreign trading policies by countries. It requires professional expertise to manage the trade of a country. There are also a number of conflicts generated between the different countries related to financial decisions of countries. To eliminate the risk involved in financial issues a system of principles, procedures, policies, responsibilities, accountabilities are used by stakeholders. Many of the famous financial scandals are noted in the history occurring at Parmalat, Nortel, and Enron. It has cost a lot of drop in the market...
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...and the U.S. economy Executive Summary -The Trans-Pacific Partnership Agreement is a free trade agreement initiated in 2005 and was joined by the U.S. in 2008 which proposes to liberalize trade in the Asia-Pacific region. -Negotiations are ongoing and held in secret. While the FTA’s existence and meetings are public knowledge, most of the information is classified and kept from U.S. government officials. However, several documents have been leaked to the public through various sources. -There is much clamor and concern over the Intellectual Property proposals put forth by the U.S. These proposals threaten to dial back public health safeguards set forth in the 2007 New Trade Deal of the Bush administration, increase prices of consumer goods, and restrict access to information on the internet. -There are 12 countries involved in negotiations, with China as an observer and considering entry. Overall, these countries make up about 40% of the world GDP and offer access to huge markets for the U.S. Nonetheless, the threat of losing jobs overseas, as with most FTAs, is cause for concern. -Past FTAs have resulted in an increase in U.S. trade deficit and a loss of jobs. However, analysis shows that American firms can benefit from these agreements as well with increased exports to new markets. Brief History The Trans-Pacific Strategic Economic Partnership Agreement is a free trade agreement with the goal of liberalizing the borders and economies of the Asia-Pacific Region...
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...1. Why are theories of international relations important? First of all, international relation is the study of relationship between countries, including the roles of states, inter-governmental organization, international nongovernmental organizations, non-governmental organizations, and multinational corporations. In our modern society, globalization has made countries dependent with each other due to the rapid flow of goods, services, people, information and ideas that is driven by economic factor, which includes increasing productive potential and creating new opportunities for international trade and investment, technological factor, which involves faster information access and easier international activities, and demographical factor, which involves different characteristics and resources in different areas. According to the Essentials of International Relations by Karen A Mingst, theory is a set of propositions and concepts that seek to explain phenomena by specifying the relationships among the concepts. So theory of international relation is a set of propositions and concepts that seek to explain international relation phenomena by specifying the relationships among the concepts. Therefore the theory of international relationship is important to analyze political events and their background. For example, behind US attack to Iraq, there were issues of terrorism, Saddam Hussein as an individual, democracy, and weapon. Moreover using the theories of international relationship...
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...Problem?” Problem Statement In 2006, China has undergone pressure by many countries including the United States. The U.S. believed that the renminbi (RMB), failed to appreciate eliminating job opportunities for other countries. However, China’s officials reacted by implying that China was a sovereign country with the right to choose its exchange rate policy. Pertinent Facts The exchange rate is one of the key factors that could possibly affect foreign profitability. In the case, Fung and Wong indicated in 2006, that China had become the world’s third-largest exporter with an estimated $970 billion and earning $1.2 trillion in foreign currency reserves (Fung). The U.S. and other countries are concerned that the Yuan was undervalued which will ultimately raise the demand for Chinese exports and decrease China's demand for imports from other countries. Becker states that if China keeps the dollar and the currencies of other countries artificially expensive compared to its currency it will create a problem towards other economies (Becker). The U.S. believes that China is manipulating the exchange rate to increase trade and dollar assets. The United States have also expressed extreme concern with China’s way of trade. For example, the U.S. questioned the fact that the renminbi is being a peg against the dollar. This case analysis will subsequently identify the following answers to the questions: * Should China allow the Yuan to appreciate? * Will...
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...last few years, the economy of China has grown at a considerably high rate averaged at nearly 10% annually. Due to this enormous growth, China now influences the economy of virtually every country all over the world. This is more apparent and frightening, considering the United States’ economic relationship with China. Until 2005, China pegged its currency to the U.S. dollar, but as from July 2005, it linked its currency to other currencies rather than dollars and let its currency appreciate by 2.1%. The central bank of China did this by buying and selling the dollar dominated assets in exchange of printed Yuan in order to eliminate excess supply or demand for the Yuan. Due to this, the exchange rate between the dollar and the Yuan, basically, remained constant irrespective of changes in economic factors which could have otherwise destabilized the Yuan relative to the dollar. Since these reforms, China has continued manipulating its currency to its advantages, such as giving exporters an unfair trade advantage. This paper will provide an analysis of China’s Yuan against the U.S. dollar for the past 5 years ending in 2010. Also, the exchange-traded fund (ETF) of Yuan is discussed in depth. Recently, the U.S. policymakers had been having debates over China’s currency policy. The policy adopted by China has been linked to the rapidly growing United States’ trade deficit with China and the decline of employment in the U.S. and the emergence of China as a major economic power. The...
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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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...country. I will compare and contrast the United Kingdom and Hong Kong. I will also explain which country would be best to begin a business in. International Financial Markets Introduction Acme is planning on having a greenfield production facility overseas. The two foreign countries that I have decided to compare for starting business in is the United Kingdom, which is part of the European Union and Hong Kong. Hong Kong is not part of the European Union. I will first analyze the UK and then Hong Kong. Analysis of the United Kingdom (UK): The United Kingdom of Great Britain and Northern Irelane is a state that consists of the nations of England, Scotland, Wales, and Northern Ireland. This is also under the UK sovereignty and is not apart of the UK itself, however are the “Crown dependencies of the Channel Island and the Isle of Man.” The said dependencies seek their own policies over taxes, employment, education, and health. They are subjected to UK control on matters such as defense (Doing Business in the UK, 2005). The UK has an island of 242,500km2. The UK’s population in 2002 was 59.2 million and in 2006 the population was 60.6 million. The languages spoken in the UK is English, Welsh, Scots, and Gaelic. English takes up 83.6% of the ethnicity in the UK and the highest religious studied is Christian, which takes up 71.6% of the UK religious. The UK is one of the four largest economies in Europe (United Kingdom, 2007). The UK joined the...
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...CHINA’S EXPORTS: AN UNSTOPPABLE COMPETITOR Pavel Aleksandrov Student Number: 000873249 Course name: MSc Engineering Management Questions: 1. In what types of good is China a world leader? 2. What are the characteristics of the types of goods in which China succeeds? 3. What explains China’s pattern of exports 4. What role does foreign investment and foreign purchasing play? 5. So who makes the money on China’s export? 6. Identify the goods in which China is uncompetitive in world markets? 7. Does China succeed in all industries? Why of why not? 8. Are Chinese provinces involved in trade the same extent? 9. Can China succeed in all industries? Q1 Nowadays China is one of the world's top exporting counties and is attracting record amounts of investment from overseas. In fact, it is investing billions of dollars abroad. The collapse in international export markets that accompanied the global financial crisis of 2009 initially hit China hard, but its economy was among the first in the world to rebound, quickly returning to growth. The following export product groups represent the highest dollar value in Chinese global shipments during 2012. Also shown is the percentage share each export category represents in terms of China’s overall exports. 1. Electronic equipment: (25.4% of total exports) 2. Machinery: (17.3%) 3. Knit or crochet clothing and accessories: (4.4%) 4. Furniture, lighting, signs and prefabricated buildings: (3.9%) 5. Optical...
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...demand. Petroliam Nasional Berhad(PETRONAS) has decided to analyse its business venture in three different countries all over the world. The countries are United States, China and Russia. Investing in international country may give out some financial risk. This paper is discussing the method Petronas can use to overcome all the financial risk in United States, China and Russia. A study on the derivative market of all the three countries is done to measure the risks and to know the ways to overcome the risks. Besides, this paper also discusses the taxation of every each country and how Petronas can minimize the tax burden. At the end of this paper, a conclusion is made (based on the criteria mention above) to which country to invest with different proportion. 1.0 Company Background and Risk Profile 1.1 Introduction to Oil and Gas industry in Malaysia Malaysia is one of the largest net exporters of oil and gases its region and the world. They have many gas and oil deposits on land and in the oceans surrounding the country. The country produces almost 2% of the world’s natural gas and nearly 13% of the world’s liquefied natural gas (LNG) and is ranked 25th in oil production in the world producing more than 750,000 barrels per day (bpd.) The country's state owned Petronas operates and owns three oil refineries in Malaysia and one in Durban, South Africa and when speaking of Malaysia's oil resources you cannot...
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