Essay on Chinas Economy

675 WordsOct 31, 20123 Pages
Chapter 1 question 6 If current trends continue, China may be the world’s largest economy by 2020. Discuss the possible implications of such a development for (a) the world trading system, (b) the world monetary system (c) the business strategy of today’s European and U.S. global corporations, and (d) global commodity prices. A) The implications of such a development for the world trading system is that China will basically will be the root of trading. From my perspective, China’s growth of economic will benefit overall economy of world. In the trading system, China will play a major role on deciding the policy and implications how the trading should be done. With its sophisticated export increase do to the rapid increase in…show more content…
D) I think this is going to be the most impact throughout the whole world with economic growth of China. Global commodity price changes can affect inflation and the terms of trade at the global level, with possibly large effects on other emerging and developing economies. In upcoming growth, China will set benchmarks in commodity pricing along with U.S. at side. Chapter 2 question 4 What are the risks facing foreign firms that do business in Indonesia? What is required to reduce these risks? The risks that I personally believe firms that do business in Indonesia would be loss of income to bribes. Moreover, jail time for foreign enterprises on flimsiest of pretext as well and long waits to establish a business are the risks that foreign firms are facing. In order to reduce or say minimize these risks, a radical change is required. Indonesia has an anticorruption drive, which may or may not work. As stated in the case, Indonesia has launched an anticorruption drive; it just needs to implement better ways of putting that law into affect. A more assertive policy needs to take affect on people in order to make the country better and bring out the resources that it has to offer like Oil production. Moreover, political elites need to get involvement with each other and foreign countries in shaping and assisting to rebuild a better Indonesia. As for business firm, businesses must take a pro-active approach to security and risk management. Doing so reduces

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