China's Export Essay

1838 Words Nov 13th, 2015 8 Pages
CHINA’S EXPORTS: AN UNSTOPPABLE COMPETITOR

Pavel Aleksandrov
Student Number: 000873249
Course name: MSc Engineering Management

Questions:
1. In what types of good is China a world leader?
2. What are the characteristics of the types of goods in which China succeeds?
3. What explains China’s pattern of exports
4. What role does foreign investment and foreign purchasing play?
5. So who makes the money on China’s export?
6. Identify the goods in which China is uncompetitive in world markets?
7. Does China succeed in all industries? Why of why not?
8. Are Chinese provinces involved in trade the same extent?
9. Can China succeed in all industries?

Q1
Nowadays China is one of the world's top exporting counties and is
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Enterprises, owned by local authorities in urban areas, townships or villages, experience certain freedom in their operations. Consequently, they have been most successful in taking advantage of the outward-oriented strategy.
However China’s wage rates are low in international terms. In some fields like manufacturing in 2004, the wage rates were around 100 dollars per month. In labour depending occupations, the payment was approximately 2 percent of the average in USA. This circumstances gives the export serious advantages in competing with the trade prices.
The annual growth in exports and imports during the years between 2003 and 2004 has been so high, that EU and China made agreement to limit the growth to 8 percent 2008th.
Q4
China’s integration in world markets has been predominantly based on exports of labour-intensive products is also reflected in the importance of processing trade which has shaped China’s trade performance. Such trade allows companies to import intermediate inputs without paying custom duties, provided that these inputs are solely used for the production of goods aimed for third markets. This trade regime prompted multinationals to move some of their manufacturing to China’s SEZs and elsewhere after WTO accession, enabling them to benefit from China’s comparative advantage in labour intensive assembly processes. The success of this approach and the export processing zones is reflected…

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