Firstly the development of TNC’s in countries. Tesco is a major TNC and in 2004, its first stores opened in China. This would bring lots of investment into China which would create many jobs, and access to new technology. Overall TNC’s would increase countries GDP. Also China is a NIC (newly industrialised country).
The banks are under-capitalized in their inadequate financial system and this increases China’s banking sector risk (IHS, 2014). Opportunities include the growth of cities within the country. Approximately “100 million [individuals are] expected to move into cities by 2020” (National Post, 2014). China’s continuous growth in the private sector and increase liberalization will result in further innovation and local brand name companies. (China Business Forecast, 2014).
Money is what makes the world turn and it’s exactly what china has. China primarily gets its money from its huge exporting business all over the world. Everywhere you see it says made in china it was made and bought from china giving them more money. Not only has this but America owes china a lot of money from are “issues” that we had and they could pull this card anytime they want and ask for their money. This money could be used to fund next generation equipment for their military technology and even for society.
For Canadian businesses, China still represents a vast untapped market for Canadian goods and services. For trade-dependent Canada, it is important to navigate this shift in global economic current by modifying its trade policies to ensure its continuous economic growth. Although trade with United States still continues to dominate its international trade and investment policy, Canada’s economic stability will depend upon its economic ties with China representing the second pillar of global economic growth. As China is slated to become the world’s largest economy in the near future, it is imperative that Canada focuses on strengthening its economic and political ties with China. As of today,
The U.S. exports jobs to poor countries where products are then manufactured and imported right back. This puts us on the path to becoming a third world country ourselves. Unrestricted outsourcing is pushing China and India up the economic ladder and toward future first world economies. Eventually one of these countries which are reaping the benefits of outsourcing could topple the U.S. from its position as the number one economy and world superpower. Where does the U.S. stand to benefit from making everyone else
With current successful operations in Hangzhou, China, Riordan now has plans on continually expand its manufacturing operations in China. Although it may sound and potentially be a swell idea, there are many political risks that Riordan Manufacturing will have to overcome. The number one political risk Riordan will be faced with will be government interference due to being a foreign company. The major interferences can be from nationalization of industries through asset confiscation, currency inconvertibility, to contract repudiation with respect to government owned firms. Just these three political interferences could eventually seal the fate of Riordan Manufacturing operating abroad.
In an efficient market how are we to interpret FedEx’s 14% increase in market value? a. In 2004 the stock price of both companies rose. FedEx’s stock price rose 13.9% during this this time, whereas UPS only saw a 3.1% increase. The stock prices rose because the air transportation agreement between United States and China and the market opportunities of this deal in China for FedEx and UPS.
Lastly, how to reduce the economic gap between coastal regions and inner periphery? In other words, we can learn that this kind of economic of development is not good for China from the texts. In order to know how China’s coastal cities are developing better than inner periphery region, we have to study the open-door policy under Deng’s leadership. “By opening its Pacific Rim to market forces, by exploiting its huge working class, and by encouraging millions of Overseas Chinese…to invest money in their homeland” (Blij 374). This quote is the best interpretation of the Special Economic Zone’s features.
In President Obama’s case he just makes money, re-opens failing businesses and spends more than we create or can pay back to china. I think a Economist should be our president and only economist, The presidents use facts from them and depend on them to make sure things are right. I don’t believe I can recall how many times both presidents said they got “analysis economists looked at”. I really don’t understand why they can’t go from deficit to surplus without causing chaos and make this economy a better place for
A “switched on” country is widely connected economically, socially, physically and politically. Factors that affect this are natural resources, trading, culture, skilled labour force, languages spoken education and healthcare and its economy. China used to be a communist country, so there was a lot of State interference when involving what products to be bought and sold, in the 1990s, China’s economy became more Capitalist so products that are now bought and sold are based on what the population demand rather than what the government choose. The effect of this is that China’s links to other countries increase and global brand names become more well-known in China. Trans national companies start to set up there due to the massive population and amount of natural resources which provide potential employee’s and raw materials for industrialisation and new buildings are built for offices, factories and homes and it provides many more jobs for Chinese people.