China is playing a growing role in the world economy, Assignments of Business Strategy

Download China is playing a growing role in the world economy and more Assignments Business Strategy in PDF only on Docsity! International Business & Trade (INTBUS-18) Assignment #1 China is playing a growing role in the world economy.  It is one of the world's fastest growing countries and is the tenth largest exporter.  Today, it is the world's second-largest economy and produces 9.3 percent of global GDP.  If current trends continue, discuss the possible implications of such a development for: 1. The World Trading System; China is the top exporter of manufactured goods in 2020 it is estimated and accounted for 13% of the world’s total; which it increases 1% compare to 2019, totaling US$ 2,323 billion. If this growth of the economy of China will continue to grow, every country will rely to the said country to the point if they stopped trading the United State may have lost $1 Trillion short of its potential growth; and compare to other country they may maybe cost them a lot more compare to United State. China may also have power of manipulating the industrial market; industrial superpower status, that can be a negative not only to United States but for everyone because of the power of manipulation they have they can also have the power to change a possible way to make them more powerful and create more favorable move for them. 2. The World Monetary System; If China continue to be the top exporter of manufactured goods and continue its economic growth this may change the foreign exchange, the monetary system in general. If they produce and export more goods; their GDP and EXP, the world can lend them more and the monetary ranking and exchange of every country may change upon this growth of China, that can be complimentary to their country but not in the other country. 3. The Business Strategy of Today’s European and United States Global Corporations; and The European and United State Global Corporation has the countries that is included in the category of first world country, which consider as wealthiest country to compare to other groups yet even though they were one of wealthiest country they can still relying to China, knowing that these countries were China’s largest partners in trading. They are possibilities to China to become part of first world country because of this and the power of manipulation can be also inserted here because the fact that a first world countries were depending to a second world country. 4. Global Commodity Prices China’s top traded commodities were soybeans, corn, gold, copper, and silver, if China continue growing when it comes to exporting, there are possibilities their top commodities exports may increase its demand, and when demands increases the prices may vary into higher costs. When this happen it can be changed together with the first three development; world trading system, world monetary system, and Business Strategy of Today’s European and United States Global Corporations. International Business & Trade (INTBUS-18) References: Works Cited Andrews, Evan. “Why Are Countries Classified as First, Second or Third World?” HISTORY, HISTORY, 23 Sept. 2016, www.history.com/news/why-are-countries-classified-as-first- second-or-third-world. Accessed 27 Feb. 2022. “Basic Commodity Distribution in the People’s Republic of China on JSTOR.” Jstor.org, 2022, www.jstor.org/stable/653179. Accessed 27 Feb. 2022. Cheng, Evelyn. “Cutting China off from the U.S. Would Cost America Hundreds of Billions of Dollars, Report Says.” CNBC, CNBC, 18 Feb. 2021, www.cnbc.com/2021/02/18/us- china-decoupling-would-cost-america-hundreds-of-billions-of-dollars.html. Accessed 27 Feb. 2022. “China Trade Balance, Exports, Imports by Country 2019 | WITS Data.” Worldbank.org, 2019, wits.worldbank.org/CountryProfile/en/Country/CHN/Year/2019/TradeFlow/EXPIMP/ Partner/by-country#:~:text=In%202019%2C%20China%20major%20trading,Japan%2C %20Unspecified%20and%20United%20States.. Accessed 27 Feb. 2022. Corporate Finance Institute. “Commodities.” Corporate Finance Institute, Corporate Finance Institute, 26 Mar. 2019, corporatefinanceinstitute.com/resources/knowledge/trading- investing/commodities/. Accessed 27 Feb. 2022. Friedman, Irving S. “The International Monetary System Part I: Mechanism and Operation.” IMF Staff Papers, vol. 1963, no. 002, 1963, www.elibrary.imf.org/view/journals/024/1963/002/article-A001-en.xml, 10.5089/9781451947151.024.A001. Accessed 27 Feb. 2022.