...Terms: Define the following terms and concepts by typing them on your chapter three word document. Comparative v/s Absolute Advantage-comparative advantage is defined as the theory that states that a country should see to other countries those products that it produces most efficiently, and buy from other countries those products that it cannot produce as effectively as compare to absolute advantage which states the advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. Trade Deficit states that an unfavorable balance of trade; occurs when the value of a country’s imports exceeds that of its exports Trade Surplus is defined as a favorable balance of trade; occurs when the value of a country’s exports exceeds that of its imports. Tariff is described as a tax imposed on imports Balance of Trade is the total value of a nation’s exports compared to its imports over a particular time period Balance of Payments is the difference between money coming into a country from exports and money leaving the country from imports plus money flows from factors such as tourism, foreign aid, military expenditures, and foreign investment Dumping is selling products in a foreign country at lower prices than those charged in the producing country Licensing is a global strategy in which a firm allows a foreign company to produce its products in exchange for a fee ...
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...entRECHACHE Khaled Oualid EBS Paris Student Shanghai University Marketing Report Example of Wal-Mart Summary I.The Chinese Retail Market A. Analysis of the Chinese Retail Market B. A picture of China’s Retail Market : facts & figures II. Wal-Mart in China III. Wal-Mart suggested business model in China A. General Analysis B. Suggestions I. The Chinese Retail Market China is first of all a demographic power: 1 human being out of 5 is living there. It is a permanent member of the United Nations Security Council is in possession of the nuclear weapon and recently shoots down its own space satellites: this makes from it also a military power. As a matter of fact, China is replacing Japan as the diplomatic focus in Asia, and above all as the economic focus. Indeed, industrialized countries must take into account anew economic power and inevitable partner, all the more as it is a member of the World Trade Organization (WTO) since 2001. As a consequence, a good many foreign groups have decided to gain a foothold in the Chinese market, which is not an easy thing. We will firstly mention the opportunities and the obstacles which feature the Chinese retailing market. Secondly, we will try to establish a picture of this market, with its main current facts and figures. A. Analysis of the Chinese retail market China is today part of the WTO, entailing progressive liberalization of the market. Nevertheless, this does not mean that it has become easy to set...
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...RESEARCH PAPER 06/36 19 JUNE 2006 A Political and Economic Introduction to China “If the 20th century ended in 1989, the 21st began in 1978” Martin Jacques, The Guardian, 25 May 2006 China’s political and economic rise and what it means for the world is now a central preoccupation of analysts and policy-makers. Public awareness of China is likely to increase as the 2008 Olympics in Beijing draw near. This Research Paper is intended to act as a resource that Members of Parliament and their staff can draw upon when engaging with China’s remarkable transformation. Part I provides key facts and figures about China. Parts II and III review recent developments and future prospects by addressing four key questions. Is political authoritarianism sustainable? Can China’s development be peaceful? What are the main domestic economic challenges facing China? What is China’s impact on the world economy? Part IV summarises key aspects of UK and EU relations with China. The Paper ends with a select bibliography of key sources. The Research Paper is intended to act as a platform for a series of Library Standard Notes that will address in more depth specific issues about China that there is space here only to discuss briefly. Jon Lunn, Maria Lalic, Ben Smith and Claire Taylor INTERNATIONAL AFFAIRS AND DEFENCE SECTION Ed Beale, Ed Potton, Ian Townsend and Dominic Webb ECONOMIC POLICY AND STATISTICS SECTION HOUSE OF COMMONS LIBRARY Recent Library Research Papers include: List of 15...
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...FT SPECIAL REPORT New Trade Routes Brazil Wednesday December 3 2014 www.ft.com/reports | @ftreports Struggling with the transition The end of the commodity supercycle is bringing challenges, reports Joe Leahy Inside Mercosur fails to open doors The country’s approach to trade policy could see it left behind Page 2 E arly in October, an event took place that showed that foreign investor interest in Brazil remains resilient, even as the economy has slowed in recent years. BMW, the German carmaker, opened its factory in the southern state of Santa Catarina to begin producing its Series 3 sedan in an investment that is projected to cost R$600m ($240m) and generate 1,300 jobs. “Whether or not to export will depend on the economy and the speed with which we manage to nationalise production of our cars,” Arturo Piñeiro, president of the carmaker in Brazil, said at the opening ceremony. BMW is not the only company investing in an economy that is undergoing a deep shift in trade flows with the end of the commodity supercycle and the slowdown in China. In the 10 months to the end of October, Brazil attracted $52bn of foreign direct investment inflows, putting it on track to reach about $60bn by the end of 2014, roughly in line with previous years. “This will be another positive year,” says Alexandre Petry, executive manager of investments at Apex-Brasil, the export promotion agency of Brazil. “The principal driver for investors is our market: 200m people with a lower...
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...OECD INSIGHTS International Trade Free, Fair and Open? Patrick Love and Ralph Lattimore ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed...
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... The East Asia’ Regional Economic Integration In the past twenty years, the East Asian economies realized the freedom of foreign trade and direct investment (FDI) because of the influence of GATT/WTO and APEC and as a result, it further promotes the economic growth of East Asia. The mutual economic dependence of each countries has increased a lot and therefore, close economic cooperation among Asian countries is necessary for healthy economic development. Many countries try to deepen their cooperation by establishing agreement and carrying out negotiation or discussion (Kawai 2004). Besides, the East Asian countries want to have their own institutions where they have vital voice in decision making after the financial crisis. As a consequence, the regional economic integration become an inevitable trend. The structure of this essay is organized as follows. The first part of this essay will discuss the driving forces of East Asia’s regional economic integration, including the failure of the WTO and APEC, and the financial crisis. The second part will illustrate how regional organizations of East Asia are developed in aspect of trade cooperation and financial cooperation and then followed by the difficulties in creating a regional economic union, such as the resistance from the United States and the great...
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...Trade Organization? Born in 1995, but not so Young Simply put: the World Trade Organization (WTO) deals with the rules of trade between nations at a global or near-global level. But there is more to it than that. 1.The WTO began life on 1 January 1995, but its trading system is half a century older. Since 1948, the General Agreement on Tariffs and Trade (GATT) had provided the rules for the system. (The second WTO ministerial meeting, held in Geneva in May 1998, included a celebration of the 50th anniversary of the system. Is it a bird, is it a plane? There are a number of ways of Looking at the WTO. It’s an organization for liberalizing trade. It’s a forum for governments to negotiate trade agreements. It’s a place for them to settle trade disputes. It operates a system of trade rules. (But it’s not Superman, just in case anyone thought it could solve- or causeall the world’s problems!) Above all, it’s a negotiating forum … Essentially, the WTO is a place where member governments go, to try to sort out the trade problems they face with each other. The first step is to talk. The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. The bulk of the WTO’s current work comes from the 1986–94 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT). The WTO is currently the host to new negotiations, under the “Doha Development Agenda” launched in 2001...
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...MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Di Wu, 2006 (Approval/ Signature page) ii Abstract This paper incorporates Porter’s diamond model to analyze China’s automobile industry. Besides looking at the four determinants of competitiveness in the original model, this study specifically examines the impact of government on industry competitiveness. This study retrieves archival data on multi-measurements used in prior studies. The author incorporates one case study of a Chinese auto firm to illustrate the specific impact of government policy and the responses of auto assemblers and component suppliers. Interviews with experts in auto-related industries are conducted to triangulate the findings. Results show that the Chinese auto industry is still in its early stages of development, whereas product quality and economies of scale of domestic automakers are approaching global standards; thus Chinese auto firms aim at becoming major players in the international market. The government plays an active role in assisting the industry development as the nation transitions from a planned economy to a free market. iii Acknowledgements There are many people that have offered me extraordinary support. I would like to thank the members of my supervision committee for the support, enthusiasm, and freedom to pursue an avenue close to my heart. I would like to thank my supervisor Dr. Bradley Olson for his wisdom and guidance in this...
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...TABLE OF CONTENTS CONTENTS | 1 | INTRODUCTION | 2 | PROBLEM STATEMENT | 16 | SOLUTION | 18 | RECOMMENDATION | 42 | CONCLUSION | 52 | REFERENCES | 55 | COURSEWORK | 56 | INTRODUCTION What Is International Trade? International trade theories are simply different theories to explain international trade. Trade is the concept of exchanging goods and services between two people or entities. International trade is then the concept of this exchange between people or entities in two different countries. People or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. Below are the different trade theories that have evolved over the past century and which are most relevant today. Plus the factors that impact international trade and how businesses and governments use these factors to their respective benefits to promote their interests. What Are the Different International Trade Theories? In more recent centuries, economists have focused on trying to understand and explain these trade patterns. To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade. The main historical theories are...
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...another, economists, union officials, and small manufacturers took the microphone to describe the devastation Chinese competitors are inflicting on U.S. industries, from kitchenware and car tires to electronic circuit boards. These aren't stories of mundane sunset industries equipped with antiquated technology. David W. Johnson, CEO of 92-year-old Summitville Tiles Inc. in Summitville, Ohio, described how imports forced him to shut a state-of-the-art, $120 million tilemaking plant four football fields long, sending Summitville into Chapter 11 bankruptcy protection. Now, a tenfold surge in high-quality Chinese imports at "below our manufacturing costs" threatens to polish Summitville off. Makers of precision machine tools and plastic molds -- essential supports of America's industrial architecture -- told how their business has shrunk as home-appliance makers have shifted manufacturing from Ohio to China. Despite buying the best computer-controlled gear, Douglas S. Bartlett reported that at his Cary (Ill.)-based Bartlett Manufacturing Co., a maker of high-end circuit boards for aerospace and automotive customers, sales are half the late-1990s level and the workforce is one-third smaller. He waved a board Bartlett makes for a U.S. Navy submarine-detection device. His buyer says he can get the same board overseas for 40% less. "From experience I can only assume this is the Chinese price," Bartlett said. "We have faced competition in the past....
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...UNIT 40 INVESTIGATING INTERNATIONAL BUSINESS BTEC NATIONAL INTRODUCTION. The international nature of business is evident to anyone who, for example, buys an iPod from Apple or insurance from Aviva. Many brand names are recognised throughout the world as organisations increase demand for their products by expanding from a national to an international market. Initially, the nature of the international business environment will be considered by looking at the size and importance of international markets. Governments encourage businesses to trade internationally but protectionism is also common. International business is regulated not just by national governments but also by transnational trading arrangements promoted by trading blocs such as the European Union and global agencies such as the World Trade Organization (WTO). Both large and small businesses trade internationally but doing business internationally is often more complex than doing business in the home market. Consideration will be given to the issues facing a domestic (UK) business when it expands its operations into the international sphere. However, some insights can be made by considering issues faced by overseas businesses as they have expanded their operations by moving into the UK market. Tesco has had very limited success in extending operations into France and Carrefour has had similar problems in establishing operations in the UK. However, they both have had more success in Malaysia and...
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... Summer 2008 Term Paper – World Trade Organization (WTO) TABLE OF CONTENTS 1.0 INTRODUCTION 4 1.1 What is WTO? 1.2 History of WTO 1.3 Mission 1.4 The Structure of WTO 2.0 WTO SYSTEMS 11 3.0 CONITIONS FOR MEMBERSHIP 17 4.0 OBJECTIVES OF WTO 24 5.0 WTO DISPUTE RESOLUTION SYSTEM 27 5.1 Governing Principles 5.2 Stages Of Dispute Resolution 6.0 SUCCESS AND FAILURES OF WTO 29 7.0 WTO AND 3RD WORLD RELATED ISSUES 35 7.1 Who are the Least Developed Countries? 7.2 Who Are the Developing Countries? 7.3 Issues Relating to 3rd World Countries 7.4 Action Plan for the Least Developed Countries 8.0 CHALLENGES FACED BY WTO 42 8.1 Overloading the WTO 8.2 Decision Making 8.3 The role of overlapping unimplemented commitments from the Uruguay Round with new issues from the Doha Round 8.4 Regionalism 8.5 Eroding national sovereignty 8.6 Asymmetry between goods and service liberalization 8.7 Protecting intellectual property 8.8 Asymmetry between public and private trade restrictive Measures 8.9 Shooting at a moving target: Protectionism in disguise 8.10 Doha Development Agenda 8.11 A Healthy WTO 8.12 Timeliness and Politics 8.13 The Alternative to the Doha Round 8. 14 Next Steps for the WTO 9.0 OVERCOMING THE CHALLENGES 58 10.0 CONCLUSION 59 11.0 REFERENCES...
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...to produce increasingly complex goods that could be sold anywhere. Today, a major cultural product, such as a Hollywood movie or a jazz band’s latest compact disk, is likely to employ creative personnel from around the world, with various components of the product recorded, mixed or edited in different locations. The importance of international connections in trade, investment, and skilled services can be illustrated by considering the apparently simple act of making and bringing to market an item of apparel, say a fashionable woolen men’s suit. The initial task is to design the suit, a highly creative activity that generally takes place in the headquarters of a major fashion label, such as Armani or Hugo Boss. Beyond that, the firm must locate reliable suppliers of raw wool, which could be farmers in New Zealand, Argentina, Scotland, or elsewhere. The wool needs to be spun into yarn and then woven into finished fabrics, tasks that are likely to be...
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...Europe 10. Economic Integration of Africa 11. Modes of Economic Integration 12. Problems of Economic Integration 13 Danger of Economic Integration 1. Meaning and Level of Economic Integration: Meaning of Economic Integration: Economic Integration means agreements between groups of countries in a geographic region to reduce and ultimately remove tariff and non-tariff barriers to ensure free flow of goods, services and factors of production between each other. Example: GATT and WTO are the biggest association of more than 140 member countries, which strive to reduce the barriers. However, more than regional, WTO has a global perspective. By entering into regional agreements, groups of countries aim to reduce trade barriers more rapidly than can be achieved under WTO....
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...world’ (Chang 2006). China’s WTO accession accelerates the trend giving hope for a greater market access and a more predictable commercial environment. In 1984, 3M established its China branch and was the first foreign-invested enterprise established outside the Shenzhen special economic zone. Then, the US multinational 3M Company developed its business and worked on developing a research and development (R&D) center in Shanghai like many other MNCS (158th set up in Shanghai by multinationals). Recently, 3M even doubled its China's R&D center size and staffing, giving birth to an important R&D hub for 3M's global business enabling the company to better supply products needed in the industries of electronics, telecommunications, automobiles, shipping, aviation, medical care, housing and leisure," company officials said. Today, 3M has 11 companies and 19 offices across the country, employing more than 5,000, showing a long-term commitment for the Chinese market. Through those trends, we can notice how R&D is now important in the globalization process. Li-Hua and Khalil (2006) argue that the international business environment is affected by globalization and this emphasizes the importance of studying synergies and differences between Western and Eastern management concepts. The present essay will analyze the reasons, benefits and drawbacks of this significant increasing level of foreign invested R&D conducted in the Chinese environment. It could then contribute...
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