In trade, Egypt is heavily import-dependent. Exports include oil, cotton and textiles. Service industries, specifically tourism, canal revenues and emigrant workers' remittances, provide a significant proportion of foreign currency earnings.

Bilateral Trade (2006):

Export: $ 850,000,000 (Automobile, Electronics) Import: $ 450,000,000 (Crude Oil, Cotton) The ROK's Investment in Egypt (2006 December):

$ 191,000,000 Number of Koreans living in Egypt (2007 May):

About 932

International Trade and Globalization    Uploaded by hyperblue on May 18, 2005

International Trade and Globalization 

In today's world there are many issues in need of reformation, one of which is international trade, otherwise known as globalization. Although there are a great deal of rules, regulations, and policies imposed on international trade, the manner in which those rules have been enforced is a major controversy that seems to be escalating day by day. 

At the center of the controversy is the World Trade Organization (WTO). The WTO was established in 1995 in order to transform the General Agreement on Tariffs and Trade (GATT) into an enforceable global commercial code. Critics of the WTO say that instead of being run democratically and in the interest of member

countries, it has become the enforcer of corporate managed trade. A system whose ethics are not in favor of the public interest, instead the focus has shifted to large corporations and making money. Profit is the motivating factor behind decisions made by the WTO. By looking at international trade from the rational perspective, the WTO has not only failed to protect consumers, workers, and the environment, it has also acquired a number of opponents and protestors. 

Recent issues concerning the WTO include President Clinton's signing of a bill, which grants permanent normal trade relations to China and virtually guarantees them membership into the WTO. Not concerned with China's communist regime that abuses its workers, supporters of the bill call it a "major victory for U.S. companies like Microsoft Corp. and Boeing Co., which hoped the deal would result in billions of dollars in new sales in the Chinese marketplace" (abcnews.go.com/wire/world/reuters). Once again they are demonstrating that the pursuit of wealth is it's number one goal and ignoring massive protests launched by American labor unions who argue that the pact could cost hundreds of thousands of American jobs due to an increase in Chinese imports and companies who may decide to relocate factories to China, where cheap labor can be utilized. 

Another prominent issue concerning the WTO is organically produced foods, which have become a highly demanded product in the last few years. Countries take part in distributing and manufacturing foods because it has led to an increased amount of trade (increasing exports and minimizing imports). The parties that have benefited most from organically produced foods are farmers and agricultural businesses in other countries. But a negative impact would be increased competition among businesses. This represents a rational point of view. Competitors are only concerned with their own wealth and distinction. The company and its well-being is their self interest. Their primary goal is success. Businesses expect other

businesses, along with the customers, to show obedience. 

Companies, individuals and countries alike all view the perspective of the rational dimension. The economy as a whole is rational. Groups such as the World Trade Organization (WTO) are using their hierarchy of power to benefit themselves. The WTO has enforced it's own laws on the opening of trade barriers. They made the decision that it's legal to import bovine somatotropin meat (organically produced meat) from the USA. As stated by Tom Wheeler in "The World is Not for Sale", a Panel of the WTO ultimately decides what's good for both the countries and the consumers of these produced foods. This provides no opportunity to consult or anyone's right to appeal. (www.altpr.org) 

There is one farmer who disagreed with these actions. His name is Jose Bove. He is a farmer in France who led the revolt against McDonald's because they were serving organically produced meat. Bove represents the emotional dimension. He is concerned about the well-being of the consumers of their products, as well as the animals being injected. He also shows compassion towards nature. Bove states that the danger of these genetically altered materials will have long-term lasting effects on the environment. 

As managers, we should distinguish the rational perspective from the emotional perspective and incorporate them both into a positive solution to the conflict. It is important for us to achieve a balance between the monetary and humanitarian interests in this issue. Because rational views heavily outweigh emotional views wherever the WTO is involved, incorporating some compassion and surrender is the only way we can correct this unbalanced system. In order to minimize our opportunity costs, we must shift a bit away from wealth and distinction and towards cooperation and happiness. 

As managers we need to change the way the World Trade Organization deals with the many issues concerning trade such as the problems for the farmers, like Jose Bove and the foreign trade impact on the American workforce. We can do so by establishing, joining, and supporting groups such as the Global Trade Watch, which is working hard to correct the errors being made by the WTO and by the international trade industry in general. We must try to enforce different laws for importing bovine somatotropin meat and reexamine international trade policies as a whole.

International Business

The American College

Chapter 5

Question No 1:Describe the four basic levels of international business activity. Do you think any organization will achieve the fourth level? Why or why not.

Question No 2:For each of the four globalization strategies, describe the risks associated with that strategy and the potential returns from that strategy. __________________________________

Answer for question No 1:

The four general levels of international businessactivity are:1. Domestic business2. International business3. Multinational business4. Global business.

Domestic Business: Is the one that acquires all of its resources and sells all of 

its products ot services within a single country.(8/143)

Interational business: Is the one that is based primarily in a single country 

but acquires   some meaningful share of its resources   or revenues (ot both)

from othe countries. (8/143)

Multinational business: The one that has a worldwide marketplace from 

which it buys raw mateials, borrows money, and manufactures its products 

and to which it subsequently sells its prducts.(8/143)

Global business: Is the business that transcends national boundaries and is not 

committed to a single home country.(8/143)

In my opinion there is no opportunity for a business to achieve this 

level of Iinternationalization.The reason is that all   business in all over the world are 

controled by the government   which are committed.There is no way for   a business 

which is   spread-out in all over the world with   high revenues and big profits   not to 

be controlled by noone.

Answer for question No 2:

The four globalization strategies are the followng:

1. Importing and exporting2. Licensing3. Strategic alliances4. Direct investments

In all of those strategies there are many risks and of course many efforts.In

Importing/exporting,the main risk is that, the products are not adapted to 

local conditions,   and...

Globalization And Its Impact On International Business

Table of the content

Introduction....................................................................3

What is Globalization....................................................4

The engines for Globalizations…………………..……5

Globalization’s impacts on international business…..7

The road ahead for international business……..……9

Summary…………………………………….………..11

Reference………………………………..……………12

Introduction

Every day we hear it on the news, read it in the papers,

overhear people talking about it… and in every single instance the word globalization seems to have a different meaning. So, what is globalization? What are its main drivers? Why and how does globalization impact international business? What’s the future of international business? This paper, through conceptualizing the significance of globalization for international business and explore core concepts of the international business environment, will answer the above questions.

What is Globalization?

Globalization can be described as a process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, sociocultural and political forces. Globalization, as a term, is very often used to refer to economic globalization, that is integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and spread of technology. The word globalization is also used, in a doctrinal sense to describe the neoliberal form of economic globalization.Globalization is also defined as internationalism, however such usage is typically incorrect as "global" implies "one world" as a single unit, while "international" (between nations) recognizes that different peoples, cultures, languages, nations, borders, economies, and ecosystems exist(http://en.wikipedia.org/).Globalization has two components: the globalization of market and globalization of production....

International Business Prospective

1. Introduction to Global BusinessInternational business consists of business transactions between parties from more than one country.Examples include buying materials in one country and shipping them to another for processing or assembly,shipping finished products from one country to another for retail sale, building a plant in a foreign country tocapitalize on lower labor costs, or borrowing money from a bank in one country to finance operations inanother. The parties involved in such transactions may include private individuals, individual companies,groups of companies, and/or governmental agencies.How does international business differ from domestic business? Simply put, domestic business involvestransactions occurring within the boundaries of a single country, while international business transactionscross national boundaries. International business can differ from domestic business for a number of otherreasons, including the following:• The countries involved may use different currencies, forcing at least one party to convert itscurrency into another.• The legal systems of the countries may differ, forcing one or more parties to adjust theirpractices to comply with local law. Occasionally, the mandates of the legal systems may beincompatible, creating major headaches for international managers.• The cultures of the countries may differ, forcing each party to adjust its behavior to meet theexpectations of the other.• The availability of resources differs by country. One country may be rich in natural resourcesbut poor in skilled labor, while another may enjoy a

productive, well-trained workforce but lacknatural resources. Thus, the way products are produced and the types of products that areproduced vary among countries.In most cases the basic skills and knowledge needed to be successful are conceptually similar whetherone is conducting business domestically or internationally. For example, the need for marketing...

An International Business Issue Discussed

OverviewDoing business over borders and through time zones has become commonplace in the twenty-first century. International firms are consistently examined by the cultural differences between countries when they expand their products or services into foreign markets, and seek the most productive and talented employees of the world out. Culture, being intangible in shape, builds up of a particular society's behaviors, from religion beliefs to dressing style to art to methods of farming. Trompenaars and Hampden-Turner consider that culture is a shared belief of a group of people. Also, according to Mahoney, Trigg, Griffin and Pustay, culture is the set of values, attitudes, beliefs, behaviors and customs that distinguish a society. Besides, in the context of international management, culture is defined as "everything that people have, think, and do as members of their society Culture reflects social rules however it might be defined, while business must be conducted within the context of the society, a society culture thereafter guides the firms how to run in such society. Understanding culture constituents might help companies visualize the effects on conducting business. The reasons why understanding culture is

important in doing international business will be discussed associated with examples. In further response to this question I will subdivide benefits from appreciation of culture as marketing products, managing workforces, and dealing with host country governments. Finally, the paper will conclude that doing business with multiple cultures can be a challenging venture; only those being well prepared for importance of understanding culture might eventually success. (Day 63-79)Culture Issue In International BusinessTechnological advancements in communication and reductions in transport costs make it necessary to do business in a cross-cultural environment. Doing business with multiple cultures can be a challenging venture for companies who try to market...

International Business & Corruption

MGT 540 International BusinessInternational Business and CorruptionAssignment 4Dr. Patricia HumphreyNovember 28, 2005 International Business and CorruptionGlobalization of markets and the falling trade barriers have opened the floodgates for foreign direct investment and multinational investments. But just as the number of multinational corporations soared in the midst of this socio-economical development and entrepreneurial growth, so has corruption. In today’s developing nations, corruption has become an overwhelming predicament. There is no country that has not been hit in some form or fashion, in spite of its political system, development, or its social and economic culture. Enron is proof of this. Lately, more

attention has been focused on world-wide corruption due to the immense increase in scandals.   The United States and Europe share the spotlight as well as Africa, South America and China.But what really defines corruption? It has been defined in Webster’s

New World, 2003 as “those actions for which there is social consensus that they are a bad thing”, “impairment of integrity, virtue or moral principle” (Merriam-Webster Online   Dictionary, 2005) and “dishonestly using your position or power to your own advantage, especially for money” (Cambridge Dictionary Online, 2005).   Corruption comes in various forms and reaches as high as it does low. Minor types of corruption encompass trivial incidences which entail public service personnel who use their jobs to cut through some of the red tape it takes to issue licenses and forms among other minor duties. Even though this is considered an “impairment of integrity” these minor acts of corruption hardly cause any grave economical injuries. But corruption and bribery go hand in hand. What is bribery? Bribery is defined as the “offering of money or other incentives to persuade somebody to do something, especially something dishonest or illegal (Encarta Dictionary Online, 2005).” Bribery and...

Related Analysis On Some Phenomenon Of International Business

1. Executive SummaryInternational business has grown so rapidly in the past decades because of strategic imperatives and environmental changes. Along with the growth of international business, some more issues have been becoming very phenomenal in

relation to ways of doing international business as well as aspects of redefining global competition. In this essay, will cite some articles to interpret the phenomenon related to international business, such as Foreign Direct Investment (FDI) and Anti-dumping issue which are mostly associated with events of international business in China.       

2. Topic 1: Foreign Direct Investment (FDI)Trade is the most of obvious form of international business but not the only form. Another major form is international investment, whereby residents of one country supply capital to a second country. 1 Regarding international investment, on of form is defined as Foreign Direct Investment, on which it could be firstly cited two articles then make in-depth analysis associated with academic referencing for that. 2.1 Relevant Articles Summary: 2.1.1 Article one: ‘Bank praises nation for FDI success’A World Bank report on China’s foreign direct investment (FDI) policy praised the country for its success in attracting foreign capital and suggests it further encourage FDI inflows. China has attracted about one-quarter of FDI flowing into developing countries in the past decade. The World Bank attributed China’s success in attracting FDI to its improved investment climate and competitive employment costs, as well as its rapidly expanding domestic market in recent years. From 2006 to 2010, China is expected to receive 30 percent of the projected $250 billion FDI inflow to developing countries, the World Bank estimated. The report suggested that China simplify investment approval procedures, which it said are complicated, and help foreign companies raise funds within China. (for full article, see appendix 1)2.1.2 Article two:...

Different Approach Of International Business

Different approach of International Business

In truth, we have become part of a global village and have a global economy where no organization is insulted from the effects foreign markets and competition. Indeed, more and more firm are reshaping themselves for international competition and discovering new ways to exploit markets in every corner of the world. Failure to take a global perspective in one of the biggest mistakes managers can make. Thus we start laying the foundation for our discussion by introducing and describing the basic of international business.

International Business:An international business is one that is based primarily in a single country but acquires some meaningful share of its resources or revenues (or both) from other countries. Sears fits this description. Most of its stores are in the United States. For example, and the retailer earns around 90 percent of its revenues from its U. S. operation with the remaining 10 percent coming sears stores in Canada. At the same time however, many of the products it sells, such as tools and clothing are made abroad from any perspective. Then it is clear that we live in a truly global economy. Virtually all business today must be concerned with the competitive situations they face in lands for from home and with how companies from distant lands are competing in their homelands.

Difference approaches of international business are given below:

    • Importing and Exporting    • Franchising    • Licensing    • Joint Venture    • Foreign Direct Investment    • Management contact

Importing and Exporting:

Imports:

Imports" consist of transactions in goods and services (sales, barter, gifts or grants) from non-residents residents to residents. The exact definition of imports in national accounts includes and excludes specific "borderline" cases. A general delimitation of imports in national accounts is given below:

    • An import of a good occurs when there is a change of...

International Business & E-Commerce

CONFERENCE OF “INTERNATIONALISATION AND e-COMMERCE”Organised byChamber of Commerce

Very good morning to Mr Chairman, special guest, speaker, businessman or businesswoman and to all lucky person who site here today. First at all, I would like to thanks to our organiser, Chamber of Commerce that invite me to give a talk in this main session. In my remarks today, I will briefly review on the “Internationalisation and e-Commerce”. Before that, for your information, I’m Information System Manager of SecretNetwork, pleased to be here to represent

the SecretNetwork that trans-national computer suppliers company that supplies products to an international market.

Today, I will focus on the issues of international business environment and the implication of e-commerce for international business. In this issue, I will share with you about globalization, trans-national Corporation and the national economic environment. Then, I will discuss about how e-commerce has affected trade in the trading nation and developing nation. I also will touch about how e-commerce can influence local, national and global economies.

Before I go through, let me asked you; ladies and gentlemen, one simple question; what is a business for you? Alright, I know, all of you have own definition of business because you’re businessman or businesswoman but for me, honestly, I describe business into two simple word that is customer and profit. Why I believed like that? Because I seeking a business is an activity of providing goods or services to fulfil customer need and want to generate profit and sustainable revenue. This can refer to SecretNetwork; because we fulfil customer need and want in IT or ICT by provide a variety of computer supplies such as hardware and software program to gain more profitability.

Ladies and Gentlemen,The history of my company; SecretNetwork is one of dramatic invention, adaptation and expansion. But this is not sadness story, so you can throw away your tissue...

International Trade

International Trade

What is International Trade?International trade is defined as trade between two or more partners from different countries in the exchange of goods and services.   In order to understand International trade, we need to first know and understand what trade is, which is the buying and selling of products between different countries. International Trade simply globalization the world and enable countries to obtain products and services from other countries effortlessly and expediently.   International trade has been in existence throughout history and has an economic impact on the participating countries. Trade in most countries has a share of the Gross Domestic Product (GDP) and helps to boost the countries overall economy on a yearly basis.   International Trade for the United States is available to all business and companies and is flourishing, even though as a country we import more goods than we export, which affects our country's economy. The World Trade Organization (WTO) is the central body of the multilateral trading system-based in Geneva.   The WTO primary job is to oversee the functioning and administration of trade agreements, including dispute settlements and serves as a forum for future trade negations and law makings.   The WTO review legal matters and disputes and is the reviewing body or "watchdog" over international trade.   The WTO agreements cover goods, services, intellectual property and set procedures and the governing body for international trade, and other trade agreements, such as the free trade agreements the United States have with other countries.Free Trade is the concept we use when referring to selling of products between countries without tariffs, fees, or trade barriers.   Free Trade simply is the absence of government

interference or numerous restrictions, which has been labeled as laissez fair economics.   Free Trade grants easier access to goods and services, promote faster growth for the economy, and...

nternational Trade

To export these goods you have to have an organization which deals with the rules of trade between nations. Such an international organization is the World Trade Organization (WTO). The goal is to help producers of goods and services, exporters, and importers conduct their business.

Result: -   is assurance- Consumers and producers know they can enjoy secure supplies and greater choice of the finished products.

- Producers and exporters know that foreign markets will remain open to them.

Heart of the system are the:

- WTO's agreements

- The agreements are negotiated and signed by governments. They have to be ratified in their parliaments.

World Trade Organization (WTO)

- came into being in 1995

- deals with rules of trade between nations

- the agreements are signed by the governments

- It is the successor to the General Agreement on Tariffs and Trade (GATT) established in   the wake of the Second World War

- It has more than 140 members and the top decision making body meets at least once every two years

The 3 main purposes of WTO:

  - trade flow as freely as possible

- means removing obstacles. - also means ensuring that individuals, companies and governments know what the trade rules are around the world, and giving them the confidence that there will be no sudden changes of policy. In other words, the rules have to be "transparent" and predictable. 

- to serve as a forum for Trade       negotiations

- dispute settlement

Trade relations often involve conflicting interests. Contracts and agreements often need interpreting. The best way to solve these differences is based on an agreed legal foundation.

Principles of the trading system

The WTO agreements are lengthy and complex because

they are legal texts covering a wide range of activities. 

They deal with: agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards, food sanitation regulations,...

International Trade

In today's world there are many issues in need of reformation, one of which is international trade, otherwise known as globalization.   Although there are a great deal of rules, regulations, and policies imposed on international trade, the manner in which those rules have been enforced is a major controversy that seems to be escalating day by day.

At the center of the controversy is the World Trade Organization (WTO).   The WTO was established in 1995 in order to transform the General Agreement on Tariffs and Trade (GATT) into an enforceable global commercial code.   Critics of the WTO say that instead of being run democratically and in the interest of member countries, it has become the enforcer of corporate managed trade.   A system whose ethics are not in favor of the public interest, instead the focus has shifted to large corporations and making money.   Profit is the motivating factor behind decisions made by the WTO.   By looking at international trade from the rational perspective, the WTO has not only failed to protect consumers, workers, and the environment,

it has also acquired a number of opponents and protestors.

Recent issues concerning the WTO include President Clinton's signing of a bill, which grants permanent normal trade relations to China and virtually guarantees them membership into the WTO.   Not concerned with China's communist regime that abuses its workers, supporters of the bill call it a "major victory for U.S. companies like Microsoft Corp. and Boeing Co., which hoped the deal would result in billions of dollars in new sales in the Chinese marketplace"   (abcnews.go.com/wire/world/reuters).   Once again they are demonstrating that the pursuit of wealth is it's number one goal and ignoring massive protests launched by American labor unions who argue that the pact could cost hundreds of thousands of American jobs due to an increase in Chinese imports and companies who may decide to relocate factories to China, where cheap...

Advantages Of Technology In International Trade

Advantages of Technology in International Trade

Technology plays a major role in international trade.   Databases,overnight delivery and faxes have opened the world market to not only largercompanies but small ones too.   To add to this globalization, companies and evencompetitors are combining and forming alliances to cut cost and increase theprofit margin.   Chrysler, General Motors and Ford have formed an alliance inresearch and development to avoid duplication.   These alliances are not only

with domestic companies but they also go over national lines.   Companies arepushing for integration of the world economy in hope for increased profits andgovernments are beginning to listen.Since 1986 (GATT) General Agreement on Tariffs and Trade have taken theincitive to move towards the liberalization of international trade.   GATTmembers agreed to reduce tariff and non-tariff trade barriers.   From 1986 to thepresent due to GATT's lead many markets have been open to the United States increasing exports and increasing efficiency through competition.One of the most aggressive liberalization groups to follow GATT's leadis APEC (Asian Pacific Economic Community).   APEC consist of 18 countries thataccount for 1/2 of the worlds output.   The three largest economies Japan, Chinaand the United States are members.   APEC leaders are committed to achieving freeand open trade for the region by 2010.   APEC is moving towards this goal throughmany means including accelerating initial Japanese tariff cuts by 50%.   Chinawill also cut a number of tariffs by 30%.   Indonesia and other APEC members arealso reducing tariffs sharply.   What sets APEX at the head of the pack leadingliberalization is it wiliness to extend benefits of membership to everyone.APEX is willing to extend the benefits of cuts in tariff and non-tariff barriers

to all countries willing to make comparable cuts.   This is a major incentive forall countries because the Pacific Rim is the fastest growing...

Transportation Costs And International Trade Over Time

Transportation Costs and International Trade Over TimeDavid Hummels

David Hummels is Associate Professor of Economics, Purdue University, West Lafayette,Indiana. His e-mail address is .

Abstract:While the precise causes of post-war trade growth are not well understood, declines intransport costs top the lists of usual suspects. However, there is remarkably little systematicevidence documenting the decline. This paper brings to bear an eclectic mix of data in order toprovide a detailed accounting of the time-series pattern of shipping costs. The ad-valoremimpact of ocean shipping costs is not much lower today than in the 1950s, with technologicaladvances largely trumped by adverse cost shocks. In contrast, air shipping costs have droppedan order of magnitude, and airborne trade has grown rapidly as a result. As a result, internationaltrade has also experienced a significant rise in speed.2Over the past five decades, world trade grew very rapidly.

From 1950-2004, world tradegrew at an average rate of 5.9 percent per annum (7.2 percent for manufactures) and traderelative to output more than tripled. (World Trade Organization, International Trade Statistics,2005). Similarly, the sum of U.S. imports and exports rose from 6.5 percent in 1960 to about 20percent of GDP in the early 2000s (based on data at ).One prominent possible explanation for the rise in international trade is the decline ininternational transportation costs. Economic historians have documented how technologicalchange led to substantial reductions in shipping costs from 1850-1913 (Harley, 1980, 1988,1989; North, 1958, 1968; Mohammed and Williamson, 2004). Econometric evidence hassubsequently linked shipping cost declines to rapid growth in trade during that first era ofglobalization (Estevadeordal et al., 2003). The decades since World War II have also witnessedsignificant technological change in shipping, including the development of jet aircraft...

International Trade And Economic Development

INDIAN INSTITUTE OF TECHNOLOGY, KHARAGPUR

International Trade and   Economic Development

Swapnil S. Bagmar06HS2004

                                                    

                      Development Economics term paper (Spring 2007-08)

International trade

International trade is the exchange of goods and services across international boundaries or territories. In most countries, it represents a significant share of GDP. While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries. In this paper we will not go into the theories governing international trade but the focus will be more on its implications on economic development.

Consider the following data:

Sources: World Development Report

Economies Trade per capita (US$,

2004-2006) Trade to GDPratio (2004-2006) Share inworld total exports Share inworld total importsHigh income economy: United States 10864 25.9 8.59 15.46Upper-middle-income economies: Mexico 4643 62.7 2.07 2.16Lower-middle-income economies: China 1207 69 8.02 6.38Low-income economies:   India 307 41.8 1 1.41As evident from the above data, the volume of trade directly reflects a country’s per capita income. Likewise the share of

the developed economies in world exports and imports is high. The imports consist mainly of raw materials which are the exports of the developing countries. The reason China is still a lower middle-income economy is due to its large population.

During the 1950s and 1960s, most developing nations, particularly the larger ones, strongly opted for a policy of import substitution industrialization (ISI). This was based on heavy protection and generally led to very inefficient industries. Since the early 1970s, an increasing number of developing countries deregulated their economies and liberalized trade, and this stimulated efficiency and growth. Some developing...

Economy

Economy in the worldTradeWith the increasing development of the society, the relationship between the countries becomes closer and closer. Some institutions can be established to help them enhance their communication and interaction, especially in the development of international economy. Free trade is one country does not carry out interfere and restrict to the export and import trade, and also allow the good and services exchanged freely.[1]And the selling price in free trade is called economists price which include cost of product, expenditure of transportation and the normal profit which means the remuneration of the entrepreneur’s skill and talent. This policy is definitely opposite to the protective

trade. There are some institutions and organizations completing the free trade, for example, EU.

The free trade can bring some benefits for the countries. Such as, firstly, it can bring more goods and service for the countries. Due to the reduction and elimination of the tariff between them, resulting in the decrease of the cost, so it will increase the export of some cheap goods and service which has absolute advantage to enter into another country.

Secondly, it can create more employment opportunities. The countries in a free trade area include developed country and developing country. In developing country, it has cheaper labor, better policy, and cheaper land cost and so on, which is beneficial for the company’s development, therefore, the company in developed country will move their factory into the developing country, requiring more labor to operate their business.

Thirdly, the consumer had greater choice of the products. The free trade can bring more and more goods and service into the country, therefore, it forms a competition between the same goods and service from different countries, therefore, the consumer can carry out the comparison of the products to choose a better and cheaper products.[2]

There are two theories increase the...

Economies Of Scale And Economies Of Scope

ECONOMIES OF SCALE AND ECONOMIES OF SCOPE Economies of scale are reductions in average costs attributable to production volume increases. They typically are defined in relation to firms, which may seek to achieve

economies of scale by becoming large or even dominant producers of a particular type of product or service. A distinction can be made between internal and external economies of scales. Internal economies of scale occur when a firm reduces costs by increasing production. External economies of scale occur when an entire industry benefits from expansion; for example, through the creation of an improved transportation system, a skilled labor force, or by sharing technology. Economies of scope are reductions in average costs attributable to an increase in the number of goods produced. For example, fast food outlets have a lowe+r average cost producing a multitude of goods than would separate firms producing the same goods. This occurs because the preparation of the multiple products can share storage, preparation, and customer service facilities (joint production). ECONOMIES OF SCALE The basic notion behind economies of scale is well known: As a plant gets larger and volume increases, the average cost per unit of output is expected to drop. This is partially because relative operating and capital costs decline, since a piece of equipment with twice the capacity of another piece does not cost twice as much to purchase or operate. If average unit production cost = variable costs + fixed costs/output, one can see that as output increases the fixed costs/output figure decreases, resulting in decreased overall costs. Plants also gain efficiencies when they become large enough to fully utilize dedicated resources for tasks such as materials handling. The remaining cost reductions come from the ability to distribute non-manufacturing costs, such as marketing and research and development, over a greater number of products. This reduction in average unit...

International Economy

Effects of Globalization

Effects of International EconomyWe as human beings like to think the world is bigger than it really is.   Recently, there have been events that have literally affected the entire world. The American government is the largest economy in the world with China being the second largest now. The effects from the world’s largest economy can be felt around the world. When the economy in the United States, or the largest economies around the world go through a lull, depression, or recession much of the products that are exported and imported are affected as well. The dubbed “economic recession” in the United States has proven the globalization of economy. Globalization cannot be attributed to America alone the research shows that globalization is interconnected to more than one nation.According to Thomas of Managerial Economics the term globalization of markets is “a phrase that generally refers to increasing economic integration of markets located in nations throughout the world. Market integration takes place when goods, services, and resources (particularly people and money) flow freely across national borders (Thomas, 28).” Moving freely among international borders is common among American businesses. Although, outsourcing has become a very popular term that, in my opinion, is harming the American economy. Manufacturers of different major corporations are creating jobs in other nations to save money, which is part of globalization but can actually cause more problems than any good since good paying jobs are hard to come by in America (Thomas, 28). It is a vicious cycle American manufacturers are sending jobs to other countries to sell the products that are produced there in America, which is cutting out our working class. Globalization

has its benefits and has significant drawbacks, especially in the United States. An item that needs to be addressed is what the cause of the recession was and why it was actually a globalized recession....International Communications

The economic forces have shaped the structure of the global internet into an information society.   Free flow of communication has increased and countries like United States infused themselves in the ?development theory? in today times.   This type of theory is used to spread message of contemporary living and to shift economic and political models of the West to new independent countries.   This is a form of globalization and the internet is key component of this use.Countries can influence other nations by using the internet. There is a huge convergence of telecommunication and technologies dealing with computers in the world today.   Many international companies and media based their transference of information through the internet.   This will encourage other countries to get ?hi tech? and demand more technological knowledge.   This will be a great profit for companies because they will have opportunity to present and promote new information and increase their profit.   This is also excellent for media because it will force people to use the internet more for information.New communication technologies will affect the configuration of the world communication system greatly.   This new wave of communication technologies will influence and support international organizations.   An information grid will be made to wire every home or business to a networked society.   There is a great importance in technology which will increase a role in international economy.   Internationally there will be a need for

distribution, regulation, marketing, and management of the world communication system.   Not everything in one country will be acceptable or legal in another country; for example there is a need for some type of rules for the internet.   Communication technologies will also affect the way people work.   With digital networking, transmit of information on stock markets, patent listings, currency fluctuations, portfolios and many other things can be provided around the...

World Economy

International Trade 

International trade is concerened with the buying and selling of goods & services across international boundries. 

There are many gains from trading internationally and many countries rely on it, for example, many countries rely on imports from other countries such as raw materials and foodstuffs that they cannot produce themselves, they also rely on exporting their products. International trade allows this to happen by giving different nations access to the goods & services they cannot provide/produce themselves.

International trade also encourages specialization to take place in the market, this is where one country can produce one commodity better than another’s and therefore specializes in producing that commodity. This allows the product to be produced to a higher standard at a lower cost per unit thus allowing everyone to benefit from economies of scale.

International trade also allows consumers access to a

greater variety and number of products at lower prices.

Free Trade

Free trade is a 17th century idea that all nations should be able to trade with one another without having any barriers to the market.

Although free trade has developed since the 17th century and to date has been achieved, it is only achievable inside trading blocs between certain countries, such as, the European Union. Despite all of the arguments for the advantages of free trade, governments often restrict it by imposing protective measures such as tariffs and import quotas. These barriers stop the free movement of goods & services between different countries, raise the price of imports and raise revenue for the government. However many people disagree with these barriers and trading blocs can be agreed upon to help combat import controls and develop free trade between members. For example:-

America & Republic of Korea

On the 2nd of February 2006 the U.S Trade Representative announced its intent to negotiate a Free Trade Agreement (FTA) with...

The Chinese Economy And Hte Effects It Will Have On The Canadian Economy

The Expansion of the Chinese Economy And the Effects it has on the Canadian Economy

What was once considered a third world country, in a state of economic despair; China has grown to become a strong

economic power and continues to expand. For the past 25 years, China has grown economically at the average rate of 9.0% per year (People's Republic of China). Unexpected at first, China has entered international markets at full steam, taking the world by surprise.   Their rate of expansion alone has set records in all areas of economy.   The purpose of this essay is to expose the economic growth of China and the factors that contributed to this.   I will also examine the effects China has on the main economic sectors of Canada.   A brief look at China's economic history will show the path of China's development and how China will continue to grow and become an even stronger nation within the international trade market. 

China's economic history is a perfect example of a confused government trying to find the right direction. From the 1950's, with the introduction of a centrally planned economy, to the 5 year plans introduced in 1953 to model after Stalin and the Soviet Union, China seemed eager to take economic direction from any source(China).   When plans like the Great Leap Forward failed, the government decided to take the initiative to control the economic situation (China). With the Socialist Market Reform, the Chinese government tried to lessen the control of the government, as to allow a market economy to generate, while still having the state owned sectors as the backbones (China).   They hoped this would encourage foreign investment and internal growth. These decisions were beneficial to the Chinese economy and China saw an average 10.2% economic growth per year during the 1980's (China). This is recorded as the highest economic growth rate in the world (China). Between 1990 and 2003, China's economy grew at the average rate of 9.6% per year and continues to...

International Finance

CPA REVIEWS NOTES- INTERNATIONAL FINANCE

TOPIC 1: INTRODUCTION TO INTERNATIONAL FINANCELearning objectives After reading this topic you should be able to: • • • • • • Understand the background of international finance Define international finance Explain the reason for studying international finance Explain the roles of international financial manager Understand the background of multinational corporations Distinguish between international finance and domestic finance

1.1 BACKGROUND TO INTERNATIONAL FINANCE International finance as a subject is not new in the area of financial management, it has been widely covered earlier in international economics and it is only the fast growth of international business in the post-world war II and the associated complexities in the international transactions that made the subject as an independent area of study. For several centuries, international economists have used the classical economic theory of comparative advantage to explain the trade movements between nations. Looking at the writings of Adam Smith and David Ricardo in the eighteenth and nineteenth century, the theory in simple terms, states that everyone gains if each nation specializes in the production of those goods that it produces relatively most efficiently and imports those goods that other countries produces most relatively efficiently. The theory supported free trade arguments, such as the North American Free Trade Agreement (NAFTA) The doctrine of comparative advantage made an initial assumption that although the products of economic activities could move

internationally; the factors of production were relatively fixed in a geographical sense. Land, labor and capital were assumed internationally immobile. The fast growing of the cross-border business transactions in the second half of the last twentieth century triggered the birth of multinational corporations, which is considered the most important phenomena in the economic development in that...

Challenges In International Benefits And Compensation Systems Of Multinational Corporation

The African Economic and Business Review, Vol. 3, No. 1, Spring 20021Challenges in International Benefitsand Compensation Systemsof Multinational CorporationSemere HaileGrambling State UniversityAbstractThe aim of this paper is to examine developments on the type andamount of compensation necessary to attract technically and culturallyqualified international managers and technical professionals to the threenationals or country categories involved international human resourcemanagement activities from which employees are selected whether thepeople are PNCs, TCNs or HCNs. This paper will draw on research,which has been completed over the last ten years with the growth of

international business and workforce. Since the principal problem ofsalary levels for the same jobs differ among the three primary labor poolsnationals, this papers also examines and sees if any progress has beenmade toward restructuring compensation and reward systems among thethree types of employees of an MNC who perform the same job in thesame subsidiary. MNCs’ HR managers have a special role in ensuringthat international compensation policies deal fairly among the three typesof employee’s managers who perform the same job. Such fairness maymaximize international employees’ performance. In particular, we areinterested in how international compensation is practiced among thethree types of labor pools of all managers regardless of nationality in anMNC.The African Economic and Business Review, Vol. 3, No. 1, Spring 20022IntroductionA multinational corporation (MNC) is usually defined as a company withoperations in more than one country (Porter, 1990). This means that an MNC hassignificant assets in terms of plants and/or offices in one or more foreign nationsand derives some of its profits from these operations

(French, 1998). The growthof the global economy has increasingly pushed MNCs into all corners of theworld.The impact of...

Technological Development And The Third World

Technological Development and the Third World

TECHNOLOGICAL DEVELOPMENT AND THE THIRD WORLD

    I wonder if people in Third World countries know that they are consideredthe "Third World?" Do they use that term in reference to themselves? Do theyhave any perception of the comparison, judgment and bias that goes into thatstatement? I'd like to think that they don't. In the film about the Ladackpeople that we watched in class, it was mentioned that they didn't have a wordfor poverty. No such word even existed in their language. But that was before.It was before the invasion of other cultures, and it was before they hadanything to compare themselves to. And in comparison, they saw that, materially,they had less. And in that knowledge, they believed that they, as a people, wereless.In this essay, I will examine third world communities and

therelationship between technological development and environmental degradation. Iwill look first at the way in which development occurred in the South, and thereason it happened the way that it did. From there, I will show how thesemethods of development proceeded to eventually cause widespread environmentaldamage and it's effect on the local people. .

DEVELOPMENT: "WESTERN" STYLE

When I refer to "the environment", I mean not only the habitat thathumans, plants and animals inhabit, but also the physical, emotional andpsychological attitudes that are encompassed by these in their daily existence.Development, by my definition, will consequently refer to the technologicaladvancement of a community as well as the improved status of humans and otherspecies. This is my definition, and one that others employ frequently now.However, the model   I will be examining first is the development theory based onthe economic - political system. "A typical western (read: economic) definitionof development would be ' an ambiguous term for a multidimensional processinvolving material, social and organizational change,...

African Colonialism

World Influence on the Modernization of Africa

Developing Political SystemsThe way countries, nations or states act and base their policies on many times reflect what their past was like. This is very true in the case of Africa.   The only problem is that Africa is said to have no history. This just means that Africa’s many cultures did not affect the way imperialists and other influences acted towards the huge continent. Everything was based on their interests and consequently this meant that the way of dealing with Africa in every way was based on Western traditionalists. To this we must answer the question how has the Western World affected Africa’s present stage and what must be done to undo what is wrong and hopefully correct this situation. 

Africa first played a role in Europe’s and the America’s history when the U.S. and Great Britain needed labor. They needed a lot of it and they needed it cheap. There was nothing cheaper than free labor. It would require an initial investment to African “leaders” but it paid off almost instantaneously. This is what we used to call slave trading. In around the 1860’s this became an illegal act. However, like any other crime, this trading could not be stopped entirely. British Naval ships were set up as blockades but sometimes Slaves were stored in spaces that were no higher than 12 inches so not all slave carrying boats could be stopped. In fact while the Navy stopped approximately 103,000 slaves from entering the slave force about 1.7 million entered it. Since this trade was illegal it was even more profitable than before. The slaves that were stopped from being shipped all the way west were being sent to Freetown, Sierra Leone and Monrovia, Liberia and they were called recaptives. These were towns set up by the

British and some liberal Americans to send former slaves and recaptives back to their home continent. It wasn’t their home but it certainly was a lot...

Globilization

Dr. Mills

Paper #3

5/10/00

Globalization and Ideal Landscapes       

Globalization is a broad term that has several meanings to different factions, cultural

Groups and nations.   For our purposes globalization refers to the loss of time and space through the rapid development of technologies.   It also refers to a world in which all nations and peoples are directly or indirectly connected through the international economy and world politics.   This rapid trend toward a globalized world has seen supporters from both the first world financial sectors and the mass producing agricultural sector.   Its main detractors have been environmentalists and the indigenous peoples who are adversely affected by the encroaching nature of globalism.   Environmentalists have pointed to environmental degradation and the loss of valuable and naturally sustainable landscapes as the main argument against globalization.   However, champions for continued globalization insist that growing populations and the desire to live the comfortable first world lifestyle force economies and people to expand into landscapes that have historically

remained diverse, safe, and sustainable.   The difficult task facing the human race in the next century will be finding the delicate balance that must exist between continued population and economic growth and the protection and preservation of natural and ideal landscapes.

The global era involves the mass production and consumption of consumer goods and commercial services.   This New World also has to have elaborate and extensive means of distribution to support the flow of goods and services across great distances.   Modern advancements in telecommunications, aerospace, satellite, and computer technologies have all greatly facilitated the movement of goods, services, information and ideas in minute amount of time.   The disappearance of time and spatial limitations is the nature of the globalized world we live in today.   

World economies...

Globalization" is a term that came into popular usage in the 1980's to describe the increased movement of people, knowledge and ideas, and goods and money across national borders that has led to increased interconnectedness among the world's populations, economically, politically, socially and culturally. Although globalization is often considered as economic term (i.e., "the global marketplace"), this process has many social and political implications as well. Many in local communities associate globalization with modernization (i.e., the transformation of "traditional" societies into "Western" industrialized ones). At the global level, globalization is thought of in terms of the challenges it poses to the role of governments in international affairs and the global economy. 

There are heated debates about globalization and its

positive and negative effects. While globalization is thought of by many as having the potential to make societies richer through trade and to bring knowledge and information to people around the world, there are many others who perceive globalization as contributing to the exploitation of the poor by the rich, and as a threat to traditional cultures as the process of modernization changes societies. There are some who link the negative aspects of globalization to terrorism. To put a complicated discussion in simple terms, they argue that exploitative or declining conditions contribute to the lure of informal "extremist" networks that commit criminal or terrorist acts internationally. And thanks to today's technology and integrated societies, these networks span throughout the world. It is in this sense that terrorism, too, is "globalized." In the following topic we will discuss about globalization, its impact on economic, political, social, natural, technological and other fields, its positive and negative aspects.

Globalization

Globalization, alliances and networking: A strategy for competitiveness and productivityJoseph Prokopenko

1. Productivity, competitiveness and development For many years productivity has been a key issue for national development strategies because of its impact on economic and social development. It is important as a source of income and as an integrative objective encompassing improved labour/management cooperation and worker participation, it is the criteria for enterprise competitiveness and a long-term strategy for governments, employers and employees to alleviating poverty and promoting human rights and economic democracy. It is a well-known fact that the most productive companies and

government productivity-oriented policies are closely linked to the promotion of a better quality of working life, participation, market economic principles, individual initiative and creativity, and human-oriented management styles and practices. Productivity objectives, accepted by all parties concerned, become the important instrument of just distribution of wealth, sound industrial relations and democratic workers' participation. Thus, productivity is a good tool to balance economic, social, technical and environmental objectives. Productivity and poverty alleviation. There is strong macro-economic and statistical evidence that the more effective (productive and competitive) the national economy, the higher the personal income of workers and the lower the rate of inflation in the long-term. It also means more national income for social distribution for those who are young, old, handicapped or unemployed. Better productivity also provides more profit to invest in promoting economic growth in underdeveloped regions. Therefore high productivity, packaged with effective distributional social policy, is the best available means to alleviate poverty. Productivity and promotion of employment. Long-term international statistical trends show that there is a strong...Great Depression

The Great Depression was the worst economic slump ever in U.S. history, and one which spread to virtually all of the industrialized world. The depression began in late 1929 and lasted for about a decade. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stockmarket speculation that took place during the latter part that same decade. The lack of distribution of wealth in the 1920's existed on many levels. Money was distributed in equally between the rich and the middle-class, between industry and agriculture within the

United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The stock market was kept artificially high, but eventually lead to large market crashes. These market crashes, combined with the lack of distribution of wealth, caused the American economy to capsize. The "roaring twenties" was an era when our country prospered tremendously. The nation's total realized income rose from $74.3 billion in 1923 to $89 billion in 1929. However, the rewards of the "Coolidge Prosperity" of the 1920's were not shared evenly among all Americans. In 1929 the top 0.1% of Americans controlled 34% of all savings, while 80% of Americans had no savings at all. Automotive industry mogul Henry Ford is one example of the unequal distribution of wealth between the rich and the middle-class. Henry Ford reported a personal income of $14 million in the same year that the average persons income was $750. By present day standards Mr. Ford would be earning over $345 million a year! This lack of distribution of income between the rich and the middle class grew throughout the 1920's. A major reason for this large and growing gap between the rich and the working-class people was the increased manufacturing output throughout the 1920's. From 1923-1929 the average output per worker...

Great Depression

Greg Squires The Great Depression was the worst economic slump ever in U.S. history, and one which touched virtually all of the industrialized world. The Depression began in late 1929 and lasted for nearly a decade. Many factors played a role in bringing about the Depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that

took place during the latter part that same decade. The mal-distribution of wealth in the 1920's existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the maldistribution of wealth, caused the American economy to capsize. The "roaring twenties" was an era when our country prospered tremendously. However, the rewards of the "Coolidge Prosperity" of the 1920's were not shared evenly among all Americans. According to a study done by the Brookings Institute, the top 0.1% of Americans had a combined income equal to the bottom 42% in 1929. That same top 0.1% of Americans in 1929 controlled 34% of all savings, while 80% of Americans had no savings at all. Automotive industry mogul Henry Ford provides a striking example of the unequal distribution of wealth between the rich and the middle-class. Henry Ford reported a personal income of $14 million in the same year that the average personal income was $750. By present day standards, where the average yearly income in the U.S. is around $18,500, Mr. Ford would be earning over $345 million a year! This maldistribution of income between the rich and the middle class grew throughout the 1920's. While the disposable income...

Causes Of The Great Depression

Causes of the Great Depression

In 1929 the stock market crashed, triggering the worst

depression ever in U.S. history, which lasted for about a decade.   During the 1920s, the unequal distribution of wealth and the stock market speculation combined to create an unstable economy by the end of the decade. The unequal distribution of the wealth had several outlets.   Money was distributed between industry and agriculture within the U.S.; in social classes, between the rich and middle class; and lastly in world markets, between America and Europe.   Due to the imbalance of the wealth, the economy became very unstable.   The stock market crashed because of the excessive speculation in the 1920's, which made the stock market artificially high (Galbraith 175).   The poor distribution of the wealth, excessive speculation, and the stock market crashes caused the U.S. economy to fail, signaling the start of the Great Depression.The 1920's were a time when the American people and the economy were thriving.   This period of time was called the "Roaring Twenties".   Unemployment dropped as low as 3 percent, prices held steady, and the gross national product climbed from $70 billion in 1922 to nearly $100 billion in1929 (EV 525).   However, the prosperity of the 1920's was not shared evenly among the social classes in America. A study conducted by the Brookings Institution stated, "78 percent of all American families had incomes of less than $3,000.   Forty percent had family incomes of less than $1,500. Only 2.3 percent of the population enjoyed incomes of over $10,000.   Sixty thousand American families held savings which amounted to the total held by the bottom 25 million families." (Goldston 26).   The 40 percent of Americans at the lowest end of the economic scale received only 12 percent of the national income by 1929 (EV 549).   This maldistribution of income between the rich and the middle class increased throughout the 1920's.   A major reason for this large and growing...

What Is Marketing

1. Introduction

1.1 PurposeThe purpose of this report is to get all of the management employees of Proton in all of the departments outside marketing to familiarize with what marketing is and also to show its importance in the company.

1.2 BackgroundProton is the biggest Malaysian automobile manufacturer. Proton automobiles are available in many countries such as China, Singapore, Australia, Algeria and United Kingdom. Proton has commanded the local automotive market, and will continuously dominate in the pursuit of being ‘Customers' Number One Choice for Automotive Products and Services' (http://www.proton-edar.com.my/company_info/overview/company_info.php?currentSceneSec=0101¤tScene=0100¤tButton=1). 

1.3 ScopeGetting to know the definitions of marketing and also the importance of marketing and how does it contributes to the profitability of the company.

1.4 MethodInformation has been gathered through research of websites, journals and books as well as own interpretation and ideas on how marketing is seen important in contributing to the profitability of the company.

1.5 AssumptionsIt is assumed that other management employees in other departments of Proton, who have no or little idea about marketing, would be able to understand the importance of marketing after the report is read. It is also assumed that the profitability of the company will increase after reading the report.

1.6 LimitationsThe limitations are mainly the inflexibility of time and also the amount of research that needs to be done to write a good report.

2. What is marketing?

Marketing is a very general term that has no specific definition to it. However, it is best described as "A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others" (Kotler, Brown, Adam and Armstrong, 2004, p919).

It is an understanding of how the company works with its...

Global Versus Localized Marketing Strategies

Introduction

In recent years, considerable attention has been focused on the debate over global versus localized marketing strategies for firms competing in international markets. In this assignment, we are going to analyze the debate over global versus localized marketing from a cross-cultural consumer behavior perspective. We also discuss the type of products or services for which a global marketing and advertising

strategy whether is it appropriate or not. We will analyze the logic of the global marketing strategies from a consumer behavior perspective of two companies, Samsung and Coca-cola, which using global marketing strategies for one or more of their products or services. We will also discuss the consumer behavior factors that necessitate the use of a localized strategy by McDonald.   

Global Versus Localized Marketing Strategies

A truly global marketing strategy would aim to standardize some elements of the marketing mix across the world, while customizing others. The correct approach would be to identify the various value chain activities within the marketing function and decide which of these can be performed on a global basis and which can be localized. Typically, marketing includes the following activities:-   Some of these activities are amenable to a uniform global approach. Others involve a great degree of customization. Within a given activity, parts can be globalized and others performed locally.             Product design & development is an activity where the potential to globalize needs to be examined carefully. A globally standardized product can be made efficiently at a low cost but may end up pleasing few customers. On the other hand, customized products targeted at different markets across the world may be too expensive. The trick, as in the case of other value chain activities is to identify those elements of the product which can be standardized across markets and those which need to be customized. 

Types of...

Market Research

1. IntroductionAn increasing amount of attention is being paid in the literature to business Guanxi or relationship in Asia particularly in the business dominated economies of the Hong Kong, Singapore, Taiwan and the People's Republic of China. Chinese business relationships and contracts that needs to be understood and worked within to successfully conduct business and management in most countries in the region. However, the attention is directed to the different perspective on the importance of guanxi to business practices and possible impacts of the guanxi on western firms' success in China. In order for western firms to enter China market, they have to confront with complex and constantly changing ethical percepts in China (Wu, 1999) and different types of guanxi not only exist but also can be harnessed in an ethical fashion to create wealth (Leung et al., 1999). Dates back to the mid 1980s, Motorola's presence operates the largest owned subsidiary in China and had moved their country from a centrally planned economy to a market economy. The Motorola has invested in China for a decade and is so far the largest foreign investor in China. Therefore, guanxi has an impact on Motorola to be an established company in China compared to their competitors, Siemens and Nokia. The limitation on this research is addressed. The continuous development and changes in market condition in China is of a certain period of time. This is because it needs to be adapted to fit the prevailing situation at that time. Moreover, interview session is difficult to conduct as the research is on Motorola-China and therefore it is heavily rely on secondary sources. 

2. Guanxi's implications to practices   In recent decades, there have been several fundamental

concerns for western companies in China. For the Motorola, they learn how to manage a socialist workplace culture in which employees depend on their state-run employers for housing, food transportation and other necessities....

To What Extent Is Globalisation A Relatively New Process In World Politics?

To what extent is globalisation a relatively new process in world politics?

In this essay, I will be attempting to explain to what extent is globalisation a relatively new process in world politics. The definitions of globalisation and it's history; from which can debated if there is an actual history to globalisation or is it just a recent process in world politics. This essay will making the argument that it is not a new process but just recognised recently as such.

Globalisation is an intensely contested and often misunderstood concept.To state that globalization is a new concept is to state that international trade is a new phenomenon. It has been a concept, and a major precept of Classical economists, ranging from the physiocrats to David Ricardo. He talked a lot on Mercantilism. Mercantilism was a prevalent economic strategy during the sixteenth century and up till the seventeenth century, because it supported the political structure and the economic circumstances of that time. Mercantilism is an economic strategy that makes the assumption that wealth is finite. To become wealthy, a country must colonize to search for new sources of species (precious metals), take other countries' wealth, and maintain a favourable balance of trade. This meant the government must dictate economic activities, internally and

externally, making the country into a closed economic system. However, the physiocrats believed that government intervention not only artificially inflates prices; government intervention is also a detriment to the development of higher quality products. Reforming economic choices towards free market was the first step to globalization. Ricardo also wrote about a world where countries should specialize in a particular industry and trade with each other for the greater good. The shift from mercantilism to classical economic ideas caused the British, French, and Germans to trade openly with each other, which is a perfect model of globalization....

Chinese economy  International Business on China and Chinese economy 

The rapid increase from Chinese companies is in line with the fast growing economy of China , especially , after its entry into World Trade Organization (WTO ) in 2001 . Along with the national development ,similarly also had some enterprises to enter the international market ,mainly through to a successful enterprise 's analysis (England Finance Times .China don 't have that planned economy of countries like United States ,UK , Japan and Soviet Union but it has tried to copy them the one which is directly geared towards the market . Enterprises in china 's economy are experiencing tremendous successive influence of reforms due to their recent internationalization which in turn has made its management panel 

to change and become accustomed to the latest challenges . China as a country has went through so many changes since that time of Deng Xiaoping , when he introduced the ` 'Four Modernizations ' that is Industry , Agriculture , Defense and Science and , the China 's open door policies in early 1970s . It was this Deng who came up with the idea of socialist market economy (Naughton 1996 : 2 .How Chinese Enterprises have come into International Market The state owned enterprises (SOEs ) have been dominant in industrial production in China 's economy for a long period of time because they have always safeguarded the welfare of most urban dwellers and state owned enterprises ' employees (Lu and Perry 1997 . Nowadays , a broad collection of enterprise ownership has been introduced on the market as Joint venture firms (JVFs ) whereby state owned enterprises has connected up with foreign investors . The joint venture association came into existence in 1980s so that China could be in position to exchange technical and managerial skills . Deng had believed that firms with foreign linkage could be in position of producing goods and services on a significant scale for export (Naughton 1996 .Foreign business has changed the image of Chinese business and managing .The Republic of China has received an enormous overflow of private investment since 1980 . In early 1991s China had accepted

over 316 , 000 foreign investments of which in relation to a half of these businesses had been undertaken . Currently state firms which had always contributed to three-quarters of China 's economy and Industrial production now account for less than a quarter (Lardy 1999 . The key feature of the internationalization of China 's enterprises reforms has been the improvement of equity joint ventures , even though majority of the foreign funded business enterprises have been established . Some of the joint ventures have involved taking over the already existing state owned enterprises ' plants , whereas others have been established from the scratch . China has progressively developed its doors to overseas funds and continues to do so in the current , though this was basically in manufacturing sector . It 's at recent that the service industries opened up its doors to the foreign investor to come and venture in their businesses . However an unequal sum of investment has been concentrated at the coastal region and less in...

International trade of china

Abstract In this research proposal a proper definition of globalisation has been given and immediately after the various effects of economic globalisation to the China 's international trade will has

been discussed . As it will be seen from the proposal , economic globalisation has had many effects both the good and the bad effects on the international trade of China . One of the bad effects of economic globalisation was that on the China 's inflation . Some of the good effects includes the opening up of the China 's global market and many more which have been discussed in detail .Introduction Globalisation can be defined as that transformation of regional phenomenon into global ones . This in other words can be described as that particular process of unifying people from different regions of the world into a single society that functions as one . The process of globalisation has various forces combined together , these forces include the economic , sociocultural , technological and political forces . In most cases globalisation is used with reference to economic globalisation ,that is to mean the process of integrating the economies of different nationals into international economy via foreign direct investment ,trade , migration , capital flows and also the spread of technology .Effects of globalisation to the international trade of China 

The trend towards globalisation of products and also the financial markets has always been made and the share of the China 's economic activity that is involved in the international trade has always been growing since 1970s . This has been determined through the nominal imports and exports as a normal share of the gross domestic product . In the past fifteen years this particular trend has been accelerating and more particularly that of China has really emerged and is playing a vital role in global trading system . Although inflation is considered has a monetary phenomenon , it is very natural to expect , as per other 's argument , that this kind of development would have exerted some kind of downward pressure particularly on the inflation in China . Though there has been some opening up in China , it is the main source of the supply of workers who are of low skills . It is now clear that low production costs in China and other economies that are emerging has completely led to the geographic shift in terms of production towards them . This shift is not only realized from the United States but also from other countries like Mexico , Singapore , Korea and even Taiwan . The trade 

surpluses in China has increased notably over the past fifteen years .Many goods and services are domestically produced in China with very minimal competition from other countries . And in addition , this significant increase in the production in China has been putting an upward pressure on the prices of different commodities and oil inclusive . Many of these products are usually imported to be used as inputs to production in China . Indeed , globalisation effects on the domestic inflation in China need to be positive , especially in the...

global warming effect

First, the global climate change has brought great impact on agriculture industry. Due to the global warming effect, the earth’s climate system has been disturbed. The weather has become unpredictable. This phenomena causes crops such as corn, tomato and malt to produce low yields. The increase of carbon dioxide in the atmosphere will help some plants to grow faster and more yield to be produced. (Wilson, 2001). Global warming with high temperature causes drought. Drought decreases the rainfall which can cause lands to be unsuitable for agriculture. Furthermore, global warming also affects aquatic system, which indirectly affects fishery industry. The warming of water causes fish extinct. It affected yield of fishery industry.

Second, insurance industry is another industry which is affected by global warming. Global warming causes natural disasters to occur. It threatens insurance industry and the people it protects. Natural disaster such as hurricanes and earthquakes affect the industry by increasing risks to health, life and property. It costs insurance industry great loss. (Mike et al. 2007). Insurance industry might face financial risks when they are asked to underwrite new technologies, such as, carbon trading and hydrogen vehicles. The financial risks are said to be unpredictable. (Mike et al., 2007) The cases of diseases such as epidemics or pandemics, respiratory and asthmatic problems, and heat-related illness might increases. Therefore, it will increase indirectly cost of personal medical care. (Mike, 2007) 

How equilibrium income is established in an open economy with a governmentWhat this model is showing is that National Output, National Income and National Expenditure all equal the same. So for example if £100b of output occurs, this total goes to reward the factors of production all of which have been used to produce the goods and services. Then, the income gained by the public is used to purchase the goods and services that were produced. It is this spending that completes the circular flow. It is this revenue from this spending that enables firms to produce the goods and services for the following years and so the whole process starts again, hence the circular flow of income. When this happens national income is said to be in equilibrium, by this I mean aggregate demand and aggregate supply are equal. Therefore the same amount of goods will be produced each year because the demand for

the goods and services is equal to the total amount being supplied. However this doesn’t happen in an open economy.

In reality a circular flow of income in an open economy with a government is subject to many leakages and injections. The model above is a very simple economy that doesn’t take part in international trade (close economy) and there is no government spending and taxation. Also the model above assumes that people spend all their income. This isn’t really very realistic. People are likely to save part of their of their income for retirement and old age. So this is a leakage from the circular flow of income as it means that some of the income gained from firms is not passed back to them, which would result in a build up of stock. If £10b of saving takes place there will be £10b of unsold goods which would lead to firms cutting back production in the future. However this build up of stock may be purchase by firms who decide to buy the stock to build up their capital and use it as an investment. This is an injection into the circular flow of income. So if there were savings of £10b taking place but also £10b of investment in unsold goods taking place the leakages and injection would balance each other out and the economy would still be at equilibrium. 

Equilibrium will exists when S = I and when Y = C + I

Taking this into consideration the circular flow income model would now tend to look more like the one below. Although a model like this would still only be seen in an economy that had no government to tax or spend and no international trade.

On the issue of international trade friction

Abstract: Chinese enterprises to deal with international Trade friction is growing. Vicissitudes in the international market among the growing process of Chinese enterprises has not been easy. Respond to trade friction is always a journey deep kick, light kick, and finally to stable. No living, how can see the rainbow. Based on the increasing number of our international trade friction analysis of the causes of a number of measures to respond to trade friction. Keywords: international trade disputes 

Refers to the so-called international trade friction in international trade, trade between countries during the process, generated on the trade balance, the general is the continuation of the surplus, the deficit of another State, or a country's trade activities touch or harm another State of the industry. As China's Economic strength, the international environment changes and the increasing number of developing countries into the economic globalization and international division of labor, international trade, increased competition, of course, will generate friction. Therefore, the increase in the number of trade frictions and Not surprisingly, this is the inevitable response to the growth of trade. But we have to deal with trade friction is serious study. we have to calmly, to see the essence; on the other hand have a positive response. 

One should strive to change the export growth, as much as possible to enhance the technological content of export products in China, opening up a wider range of international markets 

Almost all exports of China have encountered technical barriers to trade. "Technical barriers to trade" (Technical Barriers to Trade, TBT), is a modern international trade, commodity trade in importing countries in the implementation of import control, through the enactment of laws and regulations, establishment of technical standards, certification system, inspection system, etc., the Development of foreign imports too strict technical standards, Health standards, packaging and labeling standards, technical requirements to improve the product, the difficulty of

increasing imports, and ultimately achieving the purpose of import restrictions. As such barriers to Technology emerged in large numbers, so often put on legitimate coat has become the most subtle of international trade, the most formidable non-tariff barriers. as in 2009, can be said to raise barriers to the most frequent toys for one year. including the U.S. and Europe The main exporting countries, including toys have modified or new toy testing regulations instructions, so toy manufacturers continue to increase export risks. Canada used to be China's fifth-largest toy exporter, but with the increasing trade barriers, China on the the number of exported toys with rapid decline. Since August 2009, the Canadian has dropped to our sixth major toy exporter. Technical barriers to trade, in essence, reflects the technological gap between countries in the developed countries by virtue of its absolute advantage in technology and continuously develop and revise standards, to achieve the purpose of import restrictions. How to narrow and developed countries in technological gap, we address the key technical barriers to trade. First, the enterprises should be timely understanding of national technical standards of products, from the original amount of the export growth is to rely on the situation of expansion and price competition, changes in order to enhance the technological content of export products and enhance independent Innovation capability. Second, companies open up the wider international market, should be actively "go out", and transfer to avoid conflict. From the post-war history of international development of Japanese Industry point of view, of the 20th century, 70 years, Japan began a large-scale foreign investment; from the mid-80s, Japanese outward Investment focus to the United States. Of the face of increasingly complex international market also began to increase the "going out" efforts: in 1999, Haier decided to build factories in the United States, for Haier to become China's first manufacturing plant in the U.S. enterprise; Zhejiang Wanxiang Group has acquired the U.S. company and the UAI company Scheler , the use of local brands and channels to successfully obtain U.S. market; Shanghai SVA Group and Japan's Mitsui & Co. form a joint Venture sales company in the world to promote their own within the SVA brand and achieved good results. These success stories make us more determined the "go" determination. "going out" to bypass trade barriers and reduce trade friction, to consolidate and improve our products in international

market share. road is bumpy, but the future is bright. Americans have a saying: "the people pushed to the water, can quickly learn to swim." transnational journey is always one foot deep, shallow foot, the last to hold. If we in the competitive international market gradually adapt to the continuous development, seek a total of win, believe the final after all can achieve good results. 

Second, to establish a perfect government, business and industry associations, trade friction division of labor between the three coping mechanisms 

February 23, 2007, the U.S. International Trade Commission (ITC) for mercury-free alkaline manganese batteries on the patent infringement investigation (337 battery investigation case) to make a proclamation declaring the Chinese enterprises do not constitute an infringement case over 337 four-year battery investigation retrial. The case of 337 cells responding to surveys in China Battery Industry Association, under the coordination of the unified organization, supported by the relevant departments, has been the active support of the national battery industry, protect the legitimate rights and interests of Chinese enterprises, Chinese enterprises to obtain the respondent work stage victory. we deal with the Experience of trade friction that the government should increase the representation, consultation and legal defense efforts. through intergovernmental bilateral dialogue mechanism to enhance communication, requiring the states to abolish unfair and unreasonable measures of protection. As coordination with counterparts, to avoid excessive competition and external communication functions independent trade association, access to information, provide advice and assist the Government and the foreign trade enterprises to develop and adjust its foreign trade relations, easing of foreign trade friction, etc., should give full play to management and service, supervision and coordination role. enterprises should actively take the initiative to get in touch with industry associations, industry associations met to reflect the situation, industry associations obligation to help companies adapt to the new barriers.

Links to free paper download Third, to further improve the trade frictions and trade early warning mechanism 

Some enterprises in China's self-awareness of prevention is poor, the lack of export business acumen, smooth Information capture, analysis and delivery system, can not do according to the characteristics of different markets to foreign competition means and practical Marketing strategies. Therefore, the advanced management methods, information broad channels, the rapid transmission of information, Research fully, and timely filing an early warning system response is critical. It not only can the focus of the work shift in advance by the prevention of post-processing is also able to solve the problem that may arise in the bud. 

Fourth, in the long run, to train a large number of professionals dealing with trade frictions 

Personnel in the value of an information society, far more than in the value of an industrial society. In Foreign Anti-dumping, countervailing and other cases the respondent, the respondent did not understand the importance of enterprises involved, do not know how the respondent The situation is very common; imports on the domestic industry, similar products do not know when the damage caused by the WTO rules and reasonable protection, WTO rules do not know how a large number of specialized personnel to participate in international economic and trade activities, China's foreign trade to enhance the competitiveness and the formation of competitive advantage is more difficult. Therefore, it is necessary personnel as soon as possible in favor of a mechanism for rapid growth, with various forms of training and bring WTO issues at all levels of expertise, so that good people can be poured out into groups and foreign trade to play its unique role. We are guided by the normal state of mind, to win-win principle, positive action, certainly its capability to deal with various issues in international trade. 

Economic Globalization and Trade Protection

Summary of Economic globalization and Trade protection magnification is a contradiction. Globalization of the economy to promote the economic Development of developing countries, trade protectionism, developing countries paid a heavy price. To explore the benefits of economic globalization, but also pointed out that in the context of globalization, new characteristics and causes of trade protection      Keywords: economic globalization and trade protection, freedom of trade      CLC F741.2 Document A 

A background of economic globalization According to the IMF definition of globalization, globalization refers to goods and Services cross-border transactions and international capital flows, the increase in the size and form, as well as wide range of technologies to enable the rapid spread of the interdependence of the world economy to strengthen. However, economic globalization refers to the goods and production factors beyond the national borders, international trade, cross-border Investment and international finance and the rapid development of high-tech widely disseminated, the role of prominent multinational corporations, leading to a high degree of national economic activity related to the world economy as a whole of and integration, highlighting the unprecedented economic phenomena and processes. Economic globalization is a historical process: the one hand, the countries in the world, the region's economy are intertwined and influenced each other, fused into a unified whole, namely, the formation of "global unified market"; the other hand, establishing a standard in the world the global rules of economic behavior, and as a basis for the establishment of the economic operation of the Global Mechanism. In this process, the market economy-dominated world, factors of production within the framework of the global free flow and optimized allocation. Thus, economic globalization refers to factors of production across national boundaries, within the framework of the global free movement of all countries and regions are blended into the whole historical process. Two effects of economic globalization Economic globalization is the world's economy develops to a

certain stage of the inevitable result. From an economic point of view, globalization was seen as economic activity in the world of interdependence, in particular the formation of a worldwide market, capital beyond national boundaries in the global free flow of resources in the global configuration. At the same time, we examine the effects generated by economic globalization, it should be noted that its two sides. On the one hand, factors of production on a global scale flow, you can make it more effective allocation and utilization, thereby increasing the total output and consumer welfare. For individual countries, can be more beneficial use of its elements have a comparative advantage, access to the benefits of economic globalization. In addition, the economic benefits of globalization, the economic driving force generated has led to worldwide industrial restructuring. This adjustment will surely lead to different industries in different countries and regions transfer form "You have me, I have you," the economic situation, the strengthening of national economic interdependence and coordination. On the other hand, the trend of economic globalization also have some negative effects, it could lead to the country's economic and sovereignty are threatened, increasing the distribution of wealth inequality, increasing the gap between rich and poor countries in the world to form a new monopoly, and to deepen the economic impact of the passive. In fact, we have seen since the 20th century, 90 years, developing countries in the process of economic competition, its national industries to survive the crisis faced by the industrialized countries and the least developed countries in per capita income gap is widening, the 1997 Asian financial the crisis has affected the entire world economic growth. (1) The internal Structure of the world economy development level of a matter of fact there was an imbalance. National economic structural imbalances manifested in the existence of differential structure. Judging from the current situation in perspective, the developed industrial countries, newly industrialized and developing countries the Technology inherent differential structure. Differential due to the existence of this technology, developed countries in the transfer of technology, generally only in this technology to maturity began to shift. This

differential result of technology transfer between developed and developing countries, the level of economic development, further widened the gap. The trend of economic globalization, driven by the world's market-led international industrial transfer, due to the fact that there are existing Industry differential is bound to further promote the unbalanced economic development around the world. (2) market interests to guide the transfer of hazardous industries, a threat to the level of integrated Social development of developing countries. In the process of economic globalization, the economic entities are still concerned with the maximization of self-interest, which makes some developed countries for economic profits, the pollution detrimental to the interests of society industry, pornography and gambling industries to developing countries. However, in order to pursue growth in the number of forced or unconsciously accept such a transfer, resulting in its reduction in the level of integrated social development. 3 Under the economic globalization, trade protection Trade protection originated as mercantilism, the goal of maximizing national interests in order to enable States to compete to adopt trade protectionist measures. Later Keynes's theory of trade protection, Liszt's theory of infant industry protection, all have provided a theoretical basis for trade protection. Today in the economic globalization, free trade become increasingly important and increasingly show a certain extent, for a country's national economic development benefits, but the trade that brought the double-edged sword in the interests of both is also an impact on the domestic industry, this point for the world's developing countries are particularly important. Thus, while the mainstream of the world today is the advocacy of free trade, but countries are to some extent the implementation of trade protection policies, which also in many developed countries including the United States. 3.1 Under the economic globalization, trade protection, the new features In the free trade philosophy, the popularity of globalization have been strengthened today, the United States and other developed countries to implement the new trade protectionism than the old

trade protectionism has grown considerably. (1) does not eliminate the tendency of trade protection, trade protection measures for all countries there is a new change, that is hidden from the public shift from a fixed shift flexible, self-protection by individual countries turned to the regional groups for collective protection, from protection through trade policy shift for policies to protect domestic industries and so on. "Uruguay Round, the final document," the entry into force, making such as tariffs, quotas, import licenses and other traditional means of trade protection increasingly difficult to play a role in national implementation of non-tariff barriers started to become the main instrument of trade protection. Such as the use of anti-dumping provisions, orderly Marketing arrangements, safety, hygiene and disease control, technical standards and other means of protection than the traditional trade more volatile and concealed, thus better serve the role of import restrictions. It is noteworthy that the developed countries but also to labor standards, Environmentalstandards into the WTO negotiating issues, which aims to cover the name of human rights and the environment, opportunity to deprive developing countries of comparative advantage, to protect their traditional industries. Emergence of regional trading blocs, trade protection measures were added to the group's color, the Group's internal implementation of free trade and free movement of factors of production and, externally, the external formation of a unified market-based mechanisms for non-members of the Group to implement trade discrimination. Means of protection of their trade is not primarily tariffs, but such as technical standards, Health standards, intellectual property rights and other kinds of non-tariff barriers, which gives the Group the members of the group outside the country to set up barriers to exports. (2) through industrial policies implemented on a country's trade, under the indirect protection of economic globalization, another characteristic of trade protection. This is due to the formulation of trade policy, members must be shared in varying degrees by the constraints of international norms. International norms by international trade rules and regional economic performance rules of composition, which is made in order to promote trade

liberalization and institutional arrangements. These institutional arrangements which greatly reduced the trade policy of a country with the ability to protect themselves. Therefore, Governments or trade groups Bianba shift from trade protection measures restricting international trade standards, or less restricted group of domestic or economic policy, industrial policy, which is increasingly becoming a country or trading bloc to implement an important means of self-protection. (3) The new trade protectionism has obvious discriminatory. These non-tariff measures are aimed at specific countries. As the new trade protectionism on the one hand through a variety of discriminatory non-tariff measures to enable domestic industries to avoid the international competition, on the other hand the means through subsidies to promote their products to capture markets in other countries. 3.2 Under the economic globalization, the reasons for trade protection (1) The original purpose of establishment of the WTO is to promote the common development of the world economy, countries in the WTO is still based on national interests for the final consideration. From the properties of economic globalization, economic globalization is trade liberalization, although there side, but economic globalization is not ignoring the existence of the state, but rather respect for national sovereignty, stressed the supremacy of national interests. Of economic globalization, this intrinsic property of a country's implementation of the trade protection provides a Political and ethical basis. From one country to the path of policy choices in terms of trade protection is the preparatory phase of free trade, while free trade is a trade protection policy, the evolution of goals. Trade protection in terms of a country with a dual goal, one is to protect their domestic industries and markets and, externally, is to force other countries to stop acts of unfair competition, open markets, a powerful weapon; second is to develop and improve their own industries competitiveness. Its evolution trend towards abolition of protection, the end towards freedom of trade. A result of economic globalization itself can not eliminate the uneven economic development between the countries the role of the law of development, can not eliminate an internal imbalance between industries, so the freedom of

trade and trade protection will continue to co-exist, not mutually exclusive nature of this co-existence but is compatible. (2) The freedom of trade the relative equality of trade protection on the decision of the targeted and discriminatory. Under the economic globalization, free trade and the relative equality is reflected mainly in the relative degree of market opening equity. Is specifically expressed in the developed countries in the WTO between the degree of market opening should be higher or faster than the developed countries to developing countries, the degree of openness; regional trade among the members of the group the degree of market opening should be higher than non-members. The so-called equality is equality among the members of the group, but in terms of non-members outside the group have no right to enjoy this treatment. Can be seen in the economic globalization process, although the degree of liberalization in the world trade increased, but that free trade is only a relatively free, is by no means absolute freedom.Freedom of trade on the relative equality of the inevitable decision to trade protection with a clear aim and discriminatory. This type of targeted and discriminatory outstanding performance in two ways. First, internal trade blocs to implement free trade and fair competition policy, external practice of discriminatory trade protection policy. Second, the developed countries are actively promoting trade liberalization, continued to bulk exports to developing countries set up barriers to trade. Area of the implementation of trade liberalization in developed countries usually have the absolute advantage of its comparative advantage, at least in areas such as capital and technology-intensive industries, and intelligence-intensive industries and service industries. On the contrary, the developed countries do not have a comparative advantage for its industries, do not slow down the opening of the market by the degree of anti-dumping investigations, and even increase tariffs and other means to enhance the protection. It is noteworthy that this kind of unfair acts of trade protection is mainly targeted at developing countries taken. Developed countries to set up trade barriers against developing countries, not only weakened the industry in developing countries have a comparative advantage competitiveness, but also to the development of economic globalization have cast a shadow. 

(3) international or regional economic operating rules and supra-national economic organizations is the impact on a country's protection of freedom of trade and trade Relations between the external constraints. In the era of economic globalization, market expansion and the economic interdependence between countries enhancements have made the world competition in the market from the previous adversarial competition to cooperation competition. Antagonistic competition to competition as a showdown between the two sides in a contest to drive competitors out of their own monopoly of such competition. Therefore, in adversarial competition, the competition between the parties, whether national or enterprise in the choice of competition has a strong independence of action, very few bound. And co-operative competition is completely different from the antagonistic competition, cooperation, competition is designed to protect competition against monopoly, emphasis and attention to competition and cooperation and seek common development through cooperation to achieve win-win situation. Has entered the implementation of all countries in the era of free trade, fair trade. Impossible for any country to share his country the benefits of free trade, while in the country to implement protection of trade policy. Should be noted that developing countries dwarfs the weak economic foundation and competitiveness, making it difficult economic globalization and liberalization in the short-term benefit. Thus, developing countries should take into account their respective national conditions, economic development and sustainability, careful selection of method of participation. However, developing countries must recognize that free trade

Status and Trends of China and South Korea Economic and Trade Prospects Abstract: The emphasis on South Korea established diplomatic Relations nearly 14 years in various fields have made great progress, particularly in the China-South Korea bilateral Trade and Economic relations and cooperation have developed steadily and achieved remarkable results, the two countries are each other's important economic and trade cooperation partners increasingly strengthened. China and South Korea in the telecommunications, automotive, IT, finance, labor and other fields has made great progress in the capital, technology, environment and services, and other fields is rapidly on its way. -South Korea economic and trade cooperation between the two countries have also developed relevant policies and signed the relevant agreement. In the future economic and trade cooperation between China and South Korea will enter a new stage of comprehensive development. However, the accession to the WTO, China-South Korea economic relations from the past into the complementarity of the competition in more areas, which requires both countries to further adjust the economic Structure and policies to avoid excessive competition and unnecessary friction and seek bilateral economic relations are moving toward broader cooperation in the field direction. Keywords:: South Korea economic and trade cooperation problems with the proposed   Abstract: Heavy Han both countries establish diplomatic relations in the recent 14 years, has all made the very big progress in each domain cooperation, in particular the Chinese and South Korean both sides economics and trade relations and each cooperation developed with steady steps, obtain the amazing result, both countries day by day strengthened mutually for the important economics and trade partner relations.China and South Korea in domain and so on telecommunication, automobile, IT, finance, service cooperations have made the very big progress, in domain and so on fund, technology, environment and service cooperations also rapidly develops.The China and South Korea have also formulated the corresponding policy for both countries economics and trade cooperation, has signed the related agreement.The next Chinese and South Korean economics and

trade cooperation will certainly be able to enter a full scale Development the new stage.But, after being WTO entry, the Chinese and South Korean economy relations supplementary became by the past in the more domain competition, this needed both countries further to adjust the economic structure and the policy, avoided competing excessively and the nonessential friction, sought both countries economy relations to face the broader domain cooperation direction to develop. Keywords: Chinese and South Korean Economics and trade cooperation Existence question Suggestion          1. Trade and economic relations are characterized by          1.1 The rapid growth of bilateral trade. China and South Korea bilateral trade from the 20th century, late 80s to the two countries established diplomatic relations in 1992 after entering the fast growth stage. From 1992 to 2004, 10 years, bilateral trade by 5.03 billion U.S. dollars when diplomatic relations in 2003 increased to 62.34 billion U.S. dollars, an increase of nearly 18 times the average annual increase of nearly 30%. This growth rate is not only much higher than South Korea's foreign trade over the same period the average annual growth rate of 8%, also higher than the corresponding average annual growth of 17% of China's foreign trade level. According to the Ministry of Commerce statistics, in 2004 bilateral trade volume between China and South Korea break through 90 billion U.S. dollars, reaching 99.56 billion U.S. dollars, compared with 2003 growth of 42 �� 5%. Among them, China's exports 27.318 billion U.S. dollars and imports 62.249 billion U.S. dollars, respectively, year on year growth of 38 �� 4% and 44.3%. According to Chinese customs statistics, in 2005, China and South Korea bilateral trade amounted to 111.93 billion U.S. dollars, up 24.3%, ahead of three-year target to achieve 100 billion U.S. dollars. Among them, China's exports 35.11 billion U.S. dollars and imports 76.82 billion U.S. dollars, respectively, year on year growth of 26 �� 2% and 23.4%; 41.71 billion U.S. dollars China's trade deficit, an increase of 21.1%. If not including the European Union and ASEAN, South Korea is China's fourth largest trading partner, fourth largest export market and third largest import source; China is South Korea's largest trading partner, largest export market and largest trade surplus source. 

         The smooth bilateral trade and rapid development of the first with the two government support is not without relationship. After the establishment of diplomatic relations between the two countries have signed the "Sino-South Korea trade agreement the government", "Investment Protection Agreement", "Maritime Agreement", "Avoidance of Double Taxation and Prevention of Tax Evasion Agreement", "Sino-South Korea Fishery Agreement on Government" and a range of government agreement, and the establishment of China-South Korea Joint Committee on economic, trade and technological cooperation, China-South Korea Industrial Cooperation Committee, China-South Korea Investment Cooperation Committee, the substantive session of Sino-South Korea trade and other cooperation mechanisms, the development of bilateral economic and trade have created favorable conditions. Second, the two economies in the factors of production, industrial structure and products highly complementary areas also led to further growth in trade. In addition, China and South Korea in recent years, with a good development momentum of the economy has a lot to. China's economic growth, not only for their respective countries provides a rich supply of exports, but also for their respective imports provide a broad market.          1.2 import and export commodity structure has gradually changed to the high-class. Over the years, the majority of China's Korean exports are low value-added resource-intensive and labor-intensive products, especially raw materials and finished products mainly such as textile raw materials and products, base metals and products, minerals and farm produce. With the pace of China's utilization of foreign investment and industrial structure adjustment and the continued upgrading of the South Korean export structure is also continuously optimized. Since 2000, the Electrical and audio equipment and components in China to South Korea's largest export commodity. From 2004, China's main export to South Korea's six major product point of view, substantially more than 2003-year level. Among them, the highest growth was base metals and products, 70% annual growth over the previous year, followed by mechanical and electrical audio equipment and components, but also 50% annual growth over the previous year. 

         In 2005, China's imports from South Korea has grown rapidly, which is also the largest increase in six categories of goods. At present, the import and export commodity structure between the two countries further from the type of raw materials to finished products in the transformation from low value to high value-added direction to enhance bilateral economic and trade relations have entered a new stage of the level of division of labor.          South Korean exports to China, the electronic products, iron and steel products, general machinery exports of high value-added volume of industrial products increased steadily, textile raw materials and their products from the first one in 1995, a gradual decline, by 2002 had dropped to fifth place, while machinery and electronic products since 1998 has been the first one. In 2003, China's textile raw materials and products, mechanical and electrical audio equipment and parts, base metals, mineral products, chemicals and grain products accounted for six of China's total exports to South Korea for 70% of the six categories of goods to South Korea last year compared with growth of export and average more than double-digit, of which 41% growth in mechanical and electrical audio equipment.          1.3 China and South Korea continue to expand mutual investment.          1.3.1 South Korean investment in China is accelerating. South Korean investment in China started in 1985, to 1992, the South Korean investment in China (except for 1998 and 1999, the Asian financial crisis a continuous decline in foreign) into the rapid growth stage. According to South Korea to statistics, foreign direct investment in South Korea in 2004 amounted to 12.7 billion U.S. dollars, of which investment in China surpassed the United States and Japan. China has become South Korea's largest foreign investment destination. Chinese Ministry of Commerce in 2004 the introduction of foreign investment statistics also show that China imported from the Korean companies actually used direct investment in the amount of the highest. The South Korean government decided to provide substantial financial support for the next four years, Venture capital, which will set off South Korean companies to invest. "Investment in China" has become a focal

point for Korean companies and the slogan.          1.3.2 China's investment projects in South Korea grew rapidly. Korean investment in China's smaller, is still in the initial stage. As of the end of September 2001, Chinese enterprises invest in South Korea reported a total of 2554, of which South Korea in 2000 China's direct investment in 1165, accounting for South Korean foreign-funded projects to use 27.3%, ranking first in number. The past two years, China's large enterprises have increased investment in South Korea, in October 2002, Shanghai Automotive Industry Group will contribute 9.7 million U.S. dollars acquisition of South Korea's GM Daewoo Auto Technology, Inc. 10% stake, in Shanghai the largest amount of corporate mergers and acquisitions in overseas projects . At present, many enterprises, especially private enterprises optimistic about South Korean market, through the "going out" Strategy of opening up the same time, accelerate the pace of investment in South Korea. In 1999, Chinese enterprises invest in South Korea in 1998 compared with an increase of the amount of 23.8% in 2000 year on year increase of 18.2%. With China's multi-level, comprehensive and wide-ranging opening pattern formation, to expand investment in Korea will become an inevitable choice for Chinese enterprises. In addition, China will be under the rules in the WTO, the enterprise-based, and more to strengthen the cooperation between enterprises with South Korea to open up new areas of cooperation, the development of a variety of cooperation, to promote a comprehensive cooperation and exchanges.          2. South Korea economic and trade cooperation problems          2.1 Trade and uneven development, China is a serious trade deficit. According to Chinese customs statistics, China and South Korea established diplomatic relations in 1992, since the rapid development of China-South Korea trade, Korean exports to China doubled, while China is a serious deficit year after year, and there is a rising trend. From the two countries established diplomatic relations in 1992, when the 220 million U.S. dollars all the way up, in 1997 topped 5.0 billion mark in 2000 reached a record high, after 2002 reached 13.077 billion U.S. dollars in one fell swoop in 2003, breaking 20 billion U.S. dollars in 2004 and even exceeded 30 billion U.S. dollars

reached 34.431 billion U.S. dollars, compared with 49.5% increase in 2003. Since 1998, China's trade deficits year after year over year China's total exports to South Korea since the establishment of diplomatic relations to the end of 2001, the amount of the accumulated trade deficit with South Korea has more than 600 billion U.S. dollars. In 2002, the Sino-South Korea trade deficit, China's trade deficit reached 13.017 billion U.S. dollars. 2003 is as high as 23.014 billion U.S. dollars. The substantial increase in trade deficit with South Korea the main reasons: First, as China's rapid economic growth and the South Korean companies to increase direct investment in China, China's rapid expansion of imports from South Korea; Second, bilateral trade in the vertical intra-industry trade plays a dominant the role of Chinese imports of raw materials from South Korea was partially processed into finished products sold after the buy-back South Korea or a third country. All this has seriously affected the Chinese goods from entering the Korean market, hindering the normal balanced development of bilateral trade. For the trade deficit with China and South Korea, the Chinese government has made the South Korean government on many occasions, it has not been resolved. This is mainly due to the Korean government did not take a practical policy, which led China to South Korea's trade deficit further widened.          2.2 The customs duties, non-tariff barriers serious, South Korea to implement trade protection. South Korea currently provides for 27 kinds of agricultural products and light industrial products, imposition of high tariffs on imports of adjustment, of which 17 strains of mainly or largely imported from China, such as garlic, vegetables and other agricultural products imported from China a long time, but by its high tariffs on impact (garlic tariffs 30%), China's exports of these products to South Korea has become very difficult. In addition to tariff measures taken by the South Korean government, but also frequently to enable non-tariff measures, such as anti-dumping, technical barriers to trade (TBT), inspection and quarantine measures (SPS) and some other discriminatory practices, prevent Chinese goods to enter the Korean market. Technical barriers to trade heavily on Chinese goods lose Korea poses a serious threat. Influenced by the South Korean technical

barriers to trade goods include: agricultural products, aquatic products, livestock, food and food additives, drugs (especially Chinese medicine), etc. can not be normal exports to South Korea. South Korea's import restrictions on the above products primarily to test, quarantine and safety standards as the main tools (such as South Korea's testing of pesticide residues in the target up to hundreds of items), and quarantine and inspection on the import of Chinese products adopted a discriminatory policy, such as China's agricultural products carried out according to sampling rate of 6%, while the United States and other countries from similar products sampling rate is only 3%. Such discriminatory measures also reflected in South Korea's import of Chinese product quality and specifications of the tender requirements, the conditions for payment of the bonds is also very harsh.          2.3 "market economy" and "non-market economy" controversy. China is a market economy, for three reasons: First, the allocation of resources is not a major in; second is the equal of the main market is the variety of ownership enterprises, such as the Central African GDP has reached 70% of the state-owned, state-owned enterprises now have to operate according to market rules has become the main body of the market economy; third of China's trade environment to be an overall improvement, including the legal environment, the three foreign investment law has been modified, is developing anti-monopoly law, WTO Director-General Mr. Supachai spoke highly of China's law a large-scale changes. However, at present the discretion of South Korea of dumping of Chinese goods still use "non-market economy" standard, via a third country prices as a reference. For example, Chinese exports to South Korea of dumping disposable lighters, when put in charge of Thailand as a reference, which is neither in line with the current development of China's market economy the fact that the unfair treatment of Chinese goods, but also hindered the healthy economic and trade relations between China and South KoreaDevelopment. Reposted elsewhere in the Free Papers Download Center          3. The promotion of China-South Korea economic and trade cooperation proposals          3.1 to solve the trade deficit with China and South Korea

trade. Current Sino-South Korea trade, the more prominent issue is China's huge trade deficit. Although there is a deficit in trade and economic exchanges is normal and can not blindly pursue absolute balance, but the long run, will not be conducive to sustained and stable development of border trade. At present, Korea has become the world's few foreign exchange reserves, one of the largest countries and regions, have the ability to increase imports from China so that bilateral trade in expanding access to balanced development. The increase in exports to China, but also conducive to South Korea to buy more goods, so as to enhance the enthusiasm of both sides, in order to raise bilateral trade more room for development. The Government should strengthen dialogue and consultation, focusing on long-term development, in promoting the further development of bilateral trade at the same time, changing the situation of serious imbalance of bilateral trade, so that South Korea realizes that: Welcome to Chinese goods from entering their markets, and efforts to increase imports from China, in a balanced manner will help solve the trade deficit between China and South Korea and lasting cooperation. South Korea is now the world's few foreign exchange reserves, one of the largest countries and regions, so South Korea has the ability to increase imports, in particular, to increase imports from China to resolve bilateral trade deficit with China's long-term high level issues. China's exports has increased, have the ability to buy more South Korean goods, thereby enhancing their mutual enthusiasm for bilateral trade to provide greater space for development.          3.2 to properly resolve trade disputes between China and South Korea. To strengthen bilateral consultations, and properly solve the trade disputes. Garlic from China and South Korea both cases, the birds learn the case, the strengthening of bilateral consultations, instead of legal means to enable the court, resulting in a lose-lose situation. Because the trade frictions between China and South Korea both in the WTO framework to resolve, or through bilateral consultations, the good Political relations between China and South Korea have contributed to the friction solution, a good trade prospects is irreversible. First of all, the two government agencies should make full exchanges and trade-related laws and regulations and

enforcement procedures, and the development of related electronic Information database, in order to facilitate information sharing and queries. Second, to establish and strengthen bilateral trade co-ordination mechanism to reduce the incidents of normal bilateral relations, the negative impact of as much as possible to reduce unnecessary trade friction. Meanwhile, the frictions and disputes arise, we should calmly and not to abuse anti-dumping and safeguard measures, not to the implementation of discriminatory policies. Thirdly, China should promote bilateral economic and trade relations between South Korea from the overall situation, to further reduce tariffs on items regulator to reduce technical barriers to Chinese products, we should actively take effective practical measures to increase imports of Chinese products. At present, the technical trade measures by the South Korean influential products are mainly distributed in agricultural products, aquatic products, livestock, food and food additives, pharmaceutical products and pharmaceutical raw materials.          3.3 to further adjust and optimize the export structure, vigorously develop the Technology trade. China's export to South Korea's traditional products are mostly resource-intensive and labor-intensive products. At present these products in the international market, where competition is fierce, most likely to be adversely affected. Recently the past two years, China's exports to South Korea's product mix, though improving, but low value-added, low-tech labor-intensive, resource-intensive feature is still significant. To this end, we have to have a comparative advantage in maintaining the traditional commodity exports, based on the broadening scope of trade and realize the diversification of exports, to further improve the quality and grades of export commodities, especially to raise the export share of high-tech products, such as mechanical and electrical products, new materials, bio-Engineering products.          At the same time, we should vigorously develop the technology trade between China and South Korea. At present, China in a number of basic sciences world-class technology and products, such as in aerospace, biochemistry, nanotechnology, improved varieties of agricultural products, engine parts, optical machinery, broadband IP, network video,

program-controlled switches, etc. ahead of South Korea. South Korea in the CDMA mobile phones and chips, automobile production, shipbuilding, etc. have much to learn from the Chinese place.          3.4 To strengthen the exchange of information and increase bilateral investment. First of all, to establish a China-South Korea bilateral investment information platform. Include: the investment environment, relevant laws and regulations, industrial development and technology, technical standards, market demand and intermediary institutions. Secondly, we must implement the "going out" strategy to improve China's ability to influence the Korean economy. Despite China's rapid growth in direct investment in South Korea but South Korea's investment in China compared to the number of investment irrespective of size, a far cry. According to the Ministry of Commerce statistics, in January 2004 to 11 months, China approved a total of South Korea's direct investment in 5171, the actual utilization of funds amounted to Han 63 �� 32 billion U.S. dollars, an increase of 56.4%; while over the same period of the Han in China approved a total of direct investment 90, China's investment has amounted to 900 million U.S. dollars. At present, Chinese enterprises invested in South Korea to "do a lot of small business, big business, very little." We should have a sober understanding, otherwise it will further expand the trade deficit with China so as not conducive to bilateral economic and trade relations between the long-term development. Third, the current South Korean direct investment in China in terms of project size, investment strategy or investment in the region, investment structure, etc., and investment in China compared to Europe and the United States and other developed countries, but also there is a certain gap. In particular, South Korea and China's western region little economic and trade exchanges, the two sides trade in the proportion of China-South Korea trade is very low. To this end, the government departments concerned should create a favorable investment environment, and actively guide the South Korean companies have joined the ranks of development and construction of the western region, sharing the enormous economic development benefits.          4. Conclusion          China and South Korea established diplomatic relations

nearly 14 years ago, bilateral trade and economic development speed is unprecedented in the world in trade volume in 1992 soared to 5 billion U.S. dollars in 2005, more than 1119.3 billion U.S. dollars. China and South Korea are both important Asian economies, economic and trade cooperation between the two countries complement each other significantly more than competitive, although between the two countries there still exist some problems such as the trade deficit and tariff barriers, but generally speaking, economic and trade cooperation between the two countries to both sides brought enormous economic benefits. China and South Korea to avoid weaknesses, solve problems, mutual promotion and common progress. In short, the tide of economic globalization, the economic and trade cooperation has tremendous potential for development, bilateral economic and trade relations will surely sustained, stable, healthy and rapid development. 

International RisksPolitical risks are not taken lightly in international trade. Investors carefully study potential international trade partners, and the political climate under which they do business. Political stability as found in North Americanternational trade is a risky business, specially when it involves countries outside Europe and North America. Among many of the risks involved in it, the political ones are the most difficult to measure, while having the potentialIn the era of globalization and international trade, host countries may be facing rigid legislative, judiciary and governmental institutions, unfavorable to international operations from foreign firms. Moreover, dictatorshipsPolitical risk is one of the most considerations for international trade. By understanding several risks will avoid the companies from any losses. These risks should be considered from beginning of the trade process and pointedwide business awards to exclusively recognise the success of exporters, importers and those trading overseas.