Document 4’s POV is of a British merchant accounting his travels to the East Indies. This document is informative because they list the way that silver was traded by the Portuguese their silver. They know this because they were most likely trading in similar and/or the same areas as the Portuguese merchants. This document relates to the question in that it explains how the silver trade between China, Portugal, and Japan brings in mostly luxury goods back to Portugal which affects Portugal economically and socially. Document 6’s POV is of a Spanish priest.
Hofstede’s Five Dimension comparison of Germany and China Hofstede’s Five Dimensions Hofstede’s five dimensions are a useful tool to give someone an insight of different cultures. These elements give a country’s behaviour tendencies rather than an exact prescription. There are weaknesses to Hofstede’s Five Dimension theory as it may too easily encourage stereotyping. Even in countries as small as the UK, not all citizens are alike – e.g. it is argued that the culture in the North of England is quite different to the South.
Contrary to the finding that “income inequality increases socio-political instability” (Alesina and Perotti, 1993, p. 18) current levels of inequality in China seems to have little impact on the societal status quo. Although China has experienced massive number of social protests, about 180,000 to 230,000 in 2010 alone (Gӧbel and Ong, 2012, p. 8), these protests are motivated by “abuses of power and other procedural justice issues, rather than being fueled by feelings of distributive injustice and anger at the rich” (Whyte, 2012, p. 6). According to a research paper funded by the European Union (Gӧbel and Ong, 2012, p. 36), income inequality is not among the top five motivations for social protests which include land disputes and environmental degradation. This data is evidently incompatible with a survey finding that income inequality is too great for 95% of Chinese as opposed to only 65% of Americans. Barring survey inaccuracy, high levels of inequality in China so far does not translate to dissatisfaction that leads to outright mass protests and instability.
It appeared that Chiu Wai’s foremost concern was that his country of China was not exploited and that the joint business venture between the United States and China was beneficial to both Rocky River Industries and Shanghai Fabrics. In terms of collectivism, Wai focused on making a contribution to the local economy by providing close to 3000 jobs to native people. Chiu Wai’s was content with a 5 percent ROI (Return on Investment) rather than the 20 percent ROI anticipated by Ray Betzell. Chiu Wai’s social and cultural values were extremely different than that of Ray Betzell which influenced his patterns of leadership, decision making, motivation and managerial control. Culturally, the United States places a high value on assertiveness and encourages toughness while enforcing
Religious and other sentimental excuses for unity are second to economic relations. Feudal society ranked people on their possessions, those at the bottom have no possessions. People soon realized that trade creates wealth and even enemy countries begin trading with each other because the creation of wealth is more important than religious or political differences. When production method changes, it also changes the people’s
Although creating this dichotomy seems a gross generalization and oversimplification of the colonial African experience, it more importantly allows for a different perspective- one that exposes the overwhelming success of the typically peaceful or pacifist reaction in contrast to the little gain and large losses of the violent response. Throughout history, European powers have tried and succeeded in imperializing lesser developed countries, countries that did not fall under or follow the European standards. This was the case with China and Japan. Both China and Japan were self-sufficient countries that only trade with neighboring countries. They had the necessities they needed to live and did not want trifle gadgets.
A banking crisis in Cyprus sends shares on the world’s stock exchanges lower. Curbs on the importation of gold in India impact on the earnings of Ghanaian and South African gold miners. “- Gill Marcus. Therefor while globalization has developed our world massively in terms of supply chains, technology and finance, these factors have also made the world we live in more complicated and dangerous, specifically for people who have a low income. Globalization is also the cause of inequality in the worlds economy, considering the fact that globalization has benefited the rich much more than the poor.
PPP indicates that the same product should have the same price (law of one price). Therefore, Chinese yuan is undervalued (respect to the dollar). The exchange rate should be higher @ $0.256 per yuan ($3.71/14.5Yuan = $0.256) The yuan was undervalued with respect to the dollar by 41.37%: ($0.15/$0.256)-1 =41.37%. Q6) Answer:4 Q7) Answer:4 Q8) Answer:2 Q9) Answer:1 Q10) Discuss why it is often asserted that exporters suffer when their home currencies appreciate in real term against foreign currencies and prosper when their home currencies depreciate in real terms. Appreciation in domestic currency for exporters implies that their currency is too strong relative to a foreign currency; hence this will make their exports too expensive.
A country can be a capital (or labor)-abundant nations and labor (or capital)-scarce nations which consider their comparative advantage in technologies, input productivity, and wages of labor. Free trade can bring a lot of advantage to us; however, it does not apply in real world. Tariff and non-tariff are the tools that use to trade protection or prevent the economy from undergoing adjustment during economic stagnation. Although tariff and other restriction can concede the economic losses and using resource with less efficiency, but protectionism argue that non-economic benefit such as a national security can more than offset those economic losses. Normally trade protection is use to secure domestic industry and labor union’s economy welfare.
The study also found a negative association between the cultural distance and bilateral trade. The empirical result shows that if GDP and geodesic distance are be controlled, the marginal effects of cultural distance on bilateral trade are not significant, except the linguistic commonality. The article explains its result by pointing that countries with dissimilar cultures probably have different capitals and resources, which might contribute to complementary and mutual trade benefits. At the end, the article concludes that if the economic benefits of trade are considerable, the differences in religion and culture are not likely to obstruct the bilateral trade. Cultural familiarity seems more important than cultural similarity in international trade.