Abstract This paper will demonstrate the how beneficial China will be for a long term foreign investment. Even though China changed their import and export policy to abide by the WTO for U.S to have a smooth transition, temporary adjusted their currency to appear affordable in trade, and is known for their below minimum wage workers; their current labor relation policies have many foreign investors concerned. According to research, China has shown stability in growth for MNE to establish long
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deficits. When surplus of imports are brought into the United States a deficit is created due the balancing of the trade. According to "United States International Trade Commission" (n.d.), there are three foreign imports that entered into the United States over the years and they are electronic products, transportation equipment and energy-related products. From 2011 to 2013 these three imports from foreign countries have steadily increased. Out of the three imports two of them have been beneficial
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outcomes if imports’ surplus is brought into the United States. This paper will discuss the impacts of global trade to university students, domestic markets and Gross Domestic Product. Furthermore, the paper will discuss the way the decisions of government impact international trade and relations associated with quotas and tariffs. The paper will also define the foreign exchange rate and the way they area determined. The reason that U.S. simply does not restrict all imports from China will also be
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PESTEL analysis for China Political Factors i.Constitutional System China 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 what have been describe in how communism system worked in governing a country. In other words
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United States economy. Surplus of Imports When the issue of having a surplus of imports brought into the United States, it causes the price of that product to drop. This is due to having too much inventory to go around causing the price to drop. When this happens and to much inventory is imported, the sellers will have to sell the import then less of the cost to make. This is where the lost in profit comes from. Now when a country exports more then imports, this creates a balance of trade or
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nations as well. Trade barriers such as restrictions, tariffs, and quotas can greatly affect the trade between two nations and should be carefully considered. The Unites States has had a tumultuous trade relationship with China and various barriers have been considered and put in place from both countries.Foreign exchange rates also affect countries based upon the value of currency exchange and how much money purchases how much of a good or service. Import Surplus Impact One of the biggest competitors
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SUMMARY OF U.S.-CHINA BILATERAL WTO AGREEMENT AGRICULTURE The Agreement would eliminate barriers and increase access for U.S. exports across a broad range of commodities. Commitments include: Significant cuts in tariffs that will be completed by January 2004. Overall average for agricultural products will be 17.5 percent and for U.S. priority products 14 percent (down from 31 percent). Establishment of a tariff-rate quota system for imports of bulk commodities, e.g., wheat, corn, cotton, barley
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are another choice that the government can enforce that affects international relations and trade. Quotas are a limit placed on the quantity of imports coming into the country (Colander, 2013). Both quotas and tariffs are used to control imports and pricing while protecting domestic employment (Colander, 2013). The question remains, how do these restrictions affect international relations and trade? As with any other relationship, there is give and take. Every relationship has to have a balance. Imposing
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putting restrictions on cheaper goods imported into the U.S. in order to save jobs? Or should they encourage importation so that people can continue to afford products? The answer might be surprising to some. Limiting importation would hurt the United States economy more than it would help. In 2012 the United States imported $2.334 trillion worth of imported products. This number was up 7.8 percent from 2008. Oil and machinery topped the list, clocking in at over 33 percent of total imports. China
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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
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