China And China Trade Agreement

1668 WordsDec 4, 20157 Pages
Abstract Nowadays, China plays a more and more important role in world economy due to its large population and rapid economy growth. Canada and China are both APEC member, Canada is one of the most developed countries, and China is a developing country that is essential to the world economy. Therefore, by investigating the impact of trade agreement on relationship between the two countries could provide some insights of whether countries should join free trade agreement when they have opportunity. At the same time, by reviewing the rate of GDP growth for Canada and China could give us some information about how much each country gains from trade and who can benefit more from free trade. Under the globalization, it is very rare and costly for a country to produce everything she needs; the variations of productive factors allow countries to produce in their comparative advantages and trade with each other. In this way, countries should know how to allocate their resources efficiently to achieve optimal result during time in trade. Introduction Given the rapid economic growth of China and its large population, along with globalization, China became the second largest economy in the world and the second largest trading partner of Canada. With its increasing importance and essential role in global economy, it is critical to understand that the trade relationship between Canada and China and the factors that affect the trade volume. With this basic

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