Mercantilist: International Trade and Basic Free Trade

Under President Xi Jinping’s regime, foreign policy is both continuity and changes. The continuity is that China has still concerned on peaceful development by increasing connection with neighbors . But China’s foreign policy has some changes to be more proactive approach, strengthen relationship with ASEAN, achieve common development and build community of common destiny which China aims to achieve as a leadership role through Chinese initiatives such as AIIB and RCEP. Beyond investment, China want to be at least regional leadership. China encourage Chinese firms to go out and invite oversea Chinese in through its foreign policy. The policy toward ASEAN has become more aggressive and assertiveness which has China’s core national

9. In what ways did China participate in the world of Eurasian commerce and exchange, and with that outcomes?

Are the following likely to create first mover advantages? Why or why not? (2 points: 1 point each)

Odd Arne Westad’s Restless Empire traces China’s participation with other countries over the past 250 years. Westad disputes that China has an ongoing association with the rest of the world through trading of silks and porcelains, allowing China to dominate the international trade market during the Ming and Qing empires. This significant piece of evidence reflects China’s connection with the outside world contrary to the thought that China has been an isolated society detached from most of the world as evidenced by China’s involuntary participation with the foreign countries which stems from colonialism. The author examines China’s foreign affairs over the past three centuries to provide chronological events that underline the advancement in economic growth of China, leading to the establishment of modern China.

•Profitable: one of the key criterions for selecting the above competitive advantages is that the company can introduce them profitably.

Since the fall of communism in Russia and the end of the Cold War, China started to rise as a significant power and to this day holds the title as the world’s fastest growing economy. With that advancement, China has become an influential global player in international politics and the economy; moreover, causing many countries, developed and developing, to raise a serious level of concern and interest to the rapid development of China. In particular, Canada is now back to establishing to be on better terms with China, after Harper’s playing hard to get approach, we must work even harder in becoming a part of China’s inner circle of trade partners. Moreover, Mr. Harper at first tried an activist approach, criticizing and accusing China of poor

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

1. What are the implications of China’s exchange rate policy on doing business with and “against” China?

Obtain first mover advantage and establish a reputation in the market prior to entry of competitors

China’s rise has been discussed as a remarkable affair for years, and now China is ready to become another superpower. In a book, “What Does China Think?” by Mark Leonard, the battle of ideas in China is being introduced and shown to the readers; many opinions and assertions on Chinese reforms within economic and political perspectives are being discussed to find ways that China should pursue. The author conjures up that China has grown into a huge economic power, exemplifying the numerous amount of Chinese products which are labeled with ‘Made in China’. However, the author also deals with problems that China is confronting; the author includes ‘Yuanmingyan’, a symbolic embodiment of China’s historical

There is an engaging style and superb analysis on how China benefits from a more flexible currency regime resulting in the trade surplus to the US. The reforms in strengthening market and financial institutions in a prospering ‘socialist market economy’ exerts the beneficial impact.

The country can maximize their wealth by putting the resources in the most competitive industries. Government created comparative advantage rather than free trade because now easier moves the production processes and the machines into countries that can produce more goods (Yeager & Tuereck, 1984). However, many countries now move to new trade theory suggests the ability firms to limit the number of competitors associated with economic scale (reduction of costs with a large scale of output) (Krugman, 1992). The comparative advantage occurs when two-way trade in identical products, it will useful where economic scale is important, but it will create problem with this model. As a result, government must intervene in international trade for protection to domestic firms (Krugman, 1990)

We will begin our analysis of these questions by examining China’s economy at the time of Deng Xiaoping’s accession to power in 1978 and the economic growth strategy he and his successor implemented which ultimately led China to ascension into the WTO. We will then review various conditions imposed upon China by the WTO and how China reacted to those changes and to what extent these lead to China’s current status and interaction

The purpose of this essay is to show how the economy of China has, and is changing, becoming the second largest economy in the world today. Although China is currently under the leadership of Xi Jinping, this essay will concentrate primarily on the actions undertaken by then President Mao Zedong, followed by then President Deng Xiaoping, (sans mention of Hua Guofeng). Given the relative infancy of Xi’s assumption of power, economic policies still remain largely rhetorical in form. Likewise, the majority of literature concerning economic policies under Xi are largely speculative, often citing strategies and ambitions as opposed to thereby, lacking a solid basis for rational induction In addition to China’s lack of transparency, In addition, it will be shown that the methodology behind the Chinese economy demonstrates the implementation of varying levels of the characteristics associated with the schools of Realism, Marxism and Liberalism. Thus, China’s approach to global trade in the 21st Century is pluralistic, testamentary to the failed economic

• The uncertainty of market establishing customer needs which was very difficult on early innovation cycle. Accordingly, some business models misjudged customer needs. For example, banking who provide online financial institution become successful in establishing their branch network rather than face-to-face interaction with the high level of security. Moreover, customer needs to be familiar with new product or service before it becomes valuable in the market. Thereby, market uncertainty considered being aggravated to future development.