Globalization: International Trade and China Essay

Submitted By michaelbalogun
Words: 1754
Pages: 8
Open Document
Explain what you understand by the economic notion of ‘globalization’. Using empirical evidence, describe how such globalization has affected the development of a country of your choice in the past decades.
Globalization refers to a multidimensional process whereby markets, firms, productions, and financial systems are integrated on a global scale. These processes can range across a wide variety of affairs, but all point to the internationalization of everyday life (Brawley, 2009). There are four main areas in which economic integration can be broken into: free trade across national boundaries of goods and services; free movement of labour between countries; free movement of capital between countries and free interchange of technology and intellectual capital across national boundaries. The term globalization is a relatively new term that became widespread amongst economists in the 1980s. These four main areas of economic integration-mentioned above- would work well in a system where the boundaries to trade in goods and services are non-existent as well as if there was perfect free movement of labour, capital and technology, however, this is far from the case today as the world is nowhere near this position (Anderton, 2008). Although globalization is not a new phenomenon it is important to recognise that events such as the fall of the berlin wall and the liberalisation of China have pushed globalization into overdrive (Wood, 2008).
China is a great example of a nation in which globalization has had a huge impact. Kim (2009) argues that China, with its rapid economic rise, holds one of the master keys to the future of globalization in the post-cold war world. Since 1978 the Chinese government has worked towards encouraging free trade, and in recent years the Chinese government has altered its policy from the administration of foreign trade by the Central Government, to giving much greater autonomy in foreign trade to provincial governments and allowing private businesses to engage in foreign trade. This has amounted to China’s total volume of trade increasing from $20.64 Billion in 1978 to $1.155 trillion in 2004, when it increased at a rate of 36%. This has led to China becoming the third largest trading company in the world behind only the USA and Germany. Presently exports from China can be found all over the world and as an importer china does provide a large market for foreign manufacturers which have led to China gaining increased economic power as a result. Furthermore China has become so economically powerful that demands for imports to China can propel the economic growth of other countries in the world (Chow, 2006).
China’s process of opening its economy to the prospect of world trade began by establishing 4 coastal special enterprise zones (SEZs) or free trade areas in 1980. In these SEZs all imports and exports were duty free; the employees working in these zones were paid relatively low wages compared to international standards however new enterprises enjoyed substantial tax holidays. International trade blossomed as the annual growth of exports rose from 6.4% in 1978 to 13.5% in 1995. Consequently the SEZs increased economic activity and the population grew to embrace 14 coastal cities by 1984 and in 1988 a 5th SEZ was established (Cleaver, 2007). The years following 1992 saw China’s development in foreign trade increase exponentially. From 1992-1997 China’s volume of foreign trade totalled US$1493.8 billion, exceeding the accumulated total from 1949-1991 (www.chinaconsulatechicago.org, 2003). In 2001 China joined the World Trade Organization (WTO) which required China to lower manufacturing tariffs as well as agricultural products. The lowering of tariffs helped increase competition for Chinese manufacturers and provide cheaper products for Chinese consumers. Chinas membership in the WTO boosted foreign trade which in turn aided China in achieving economic growth in 3 areas: International Specialisation;
Show More

Related Documents: Globalization: International Trade and China Essay

International Trade and China Essay

into the age of globalization, which was defined as ‘the shift toward a more integrated and interdependent world economy (Hill, Cronk,﹠Wickramasekera, 2011, p.9). Yet, not only economy, but it also affects governments, business and society. In addition, globalization can influence transactional relationships (Paliwoda,﹠Slater, 2009, p.374) and bring more tight connection between countries (Zhou, 2010, p.1619). Therefore, international business, which as a consequence of globalization, has also grown…

Words 4260 - Pages 18

International Economics and United States Essay

What Is the Role of Globalization in Creating Global Economic Imbalances and are They Sustainable? Nowadays the term globalization is not unfamiliar to everyone though you may not know how to define it. With the development of economy and technology, globalization has becoming an increasingly popular and evitable trend in every aspect of our life and bring us a lot of benefits and convenience. However, globalization is a "double-edged sword; it promotes the rapid development of global productivity…

Words 2418 - Pages 10

Lululemon Athletica

and opportunities for Canadian businesses. It is important for companies that are trying to expand internationally to understand these dynamics. Challenges Culture Barriers: One of the biggest challenges Canadian businesses face when entering international markets is culture differences, such as language differences, consumer behavior differences and business environment differences. For example, if a Canadian firm enters the Chinese market, it needs to do well in building relationships with government…

Words 2243 - Pages 9

The Great Big World and China Essay

The Great Big World and China Since its inception, the Chinese people and leaders have referred to their homelands as the ‘Middle Kingdom.’ This name reflects the long-held belief that China is the center of the world. For thousands of years, Chinese foreign relations consisted of subjugating countries that were unable to stand up to the powerful Chinese military and walling themselves off from empires which threatened the control the various regimes had over the economic and cultural lives of…

Words 4455 - Pages 18

Essay on International Trade and Trade Agreements

Chinese make big push into animation August 17, 2011 | By Benjamin Haas Entering the campus of the largest animation production facility in China, visitors are greeted by life-size statues of Disney and Pixar characters: Belle dancing with the Beast, Mowgli and Baloo sitting on a tree trunk and Buzz and Woody in a classic buddy pose. But this isn't an overseas outpost of the American studios. Instead, these knockoff statues are meant to inspire a new generation of Chinese animators to make films…

Words 1524 - Pages 7

Essay on International Trade and Countries

Chapter 1: Globalization and International Linkages Learning Objectives and Chapter Summary 1. ASSESS the implications of globalization for countries, industries, firms, and communities. Globalization—the process of increased integration among countries—continues at an accelerated pace. More and more companies—including those from developing countries—are going global, creating opportunities and challenges for the global economy and international management. Globalization has become controversial…

Words 6577 - Pages 27

A Short Note On Globalization

Globalization Globalization has positive and negative effects on social, political and economies on the countries it touches. There are mixed feelings on whether or not globalization is a positive or a negative thing. Globalization is even harder to define, but it is basically the integration of different countries economies around the world. The basis is to minimize inequalities and to increase business opportunities. Globalization in Asia has opened up…

Words 1025 - Pages 5

Global: Globalization and China Essay

------------------------------------------------- Top of Form Browse Essays | | | Bottom of Form Read full version essay Globalization And China------------------------------------------------- Globalization And ChinaPrint version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!. Join Essays24.com and get instant access to Globalization And China and over 30,000 other Papers and EssaysCategory: BusinessAutor: anton 02 March 2011Words: 1664 | Pages: 7Chantal…

Words 1738 - Pages 7

Marketing: Investment and Asian Emerging Countries Essay

Writing Essay Since globalization commenced in developing countries in the 1980s, these countries have been reformed by governments about trade, education and foreign investment. Some opponents argue that globalization is the main reason of wider income gaps that result in an increasing number of poor people in developing countries. However, some proponents argue that an increasing level of gross domestic products (GDP) and trade results from economic globalization because of an increase in volume…

Words 1238 - Pages 5

Impact Of Globalisation

of barriers to movement of goods, services, capital, technology, and people. (Daniels, J. D. et al. 2013) As a result, the world is now becoming more interconnected due to the huge increased in trade and cultural exchange around the world. There are some reasons that cause the increasing pace of globalization and those reasons have brought beneficial influences on global business and human. The first reason is the rapid development and application of technology which include the development of ICT…

Words 1451 - Pages 6