Despite the fact China has been losing its business strength over the previous years, its bilateral agreement with South Korea has brought a shift in China and business is getting better and the future is even more promising. These two countries have tapped into each other’s markets and business between them is getting stronger and this has been to the benefit of the two. China’s economy had gone down simply because, its industrial sector faced a hard hit in terms development. However, with the new bilateral trade with South Korea as well as the recovery of its developed markets, the economy is bound to take an upward curve. Basically, the bilateral trade agreement has opened up trade between the two countries especially the exports whereby,
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The deficit has escalated from $10billion (1990) to $342 billion (2014) and this has raised concern among the America’s policy makers since it significantly affects America’s economy. Unfortunately, the US trade deficit with china has been the largest among America’s trading partners despite China and the US having the best economies in the world. This is an indicator of unbalanced trade between the two countries. The major disadvantage of China’s relationship with South Korea to the US, is that China is diverting most of its exports to South Korea and this reduces business between China and the US which to a larger extend is primarily based on exports and imports. China is also importing products from South Korea and therefore reducing imports from the US. This is one major reason behind the US trade deficit with China (Sandra, 2014). The advantage of maintaining trade partnership with China is simply to strengthen their diplomatic relationship. Apart from that China’s economy is growing and might surpass the US economy. Theirs is need for America therefore to keep trade ties with China in a bid to have a parallel consistent growth. Nevertheless, maintaining their bilateral agreement is bound to sabotage America’s economy and this is the major disadvantage since China has opted to enter into bilateral agreements with the Asian …show more content…
It is a multilateral forum that allows for countries within the globe to come into a trade agreement with other nations. It is an open organization that allows governments to settle trade disputes amongst themselves. Currently, it has 153 countries affiliated to it. European Union (EU) is a regional economic group that involves European nations who engage in trade amongst member countries. The Euro is one of the binding factors apart from being the reason behind the ambitious nature of these nations in terms of trade. It has 27 member countries. North American Free Trade Agreement (NAFTA) is an organization Canada, Mexico and the United States. The main point behind the formation of this group is to eliminate tariff barriers as well as liberalize investment opportunities and trade in services among the three countries. Asia Pacific Economic Cooperation (APEC) and Association of South East Asian Nations (ASEAN) are regional economic groups in Asia that are driven by an economic agenda based on trade
The deficit has escalated from $10billion (1990) to $342 billion (2014) and this has raised concern among the America’s policy makers since it significantly affects America’s economy. Unfortunately, the US trade deficit with china has been the largest among America’s trading partners despite China and the US having the best economies in the world. This is an indicator of unbalanced trade between the two countries. The major disadvantage of China’s relationship with South Korea to the US, is that China is diverting most of its exports to South Korea and this reduces business between China and the US which to a larger extend is primarily based on exports and imports. China is also importing products from South Korea and therefore reducing imports from the US. This is one major reason behind the US trade deficit with China (Sandra, 2014). The advantage of maintaining trade partnership with China is simply to strengthen their diplomatic relationship. Apart from that China’s economy is growing and might surpass the US economy. Theirs is need for America therefore to keep trade ties with China in a bid to have a parallel consistent growth. Nevertheless, maintaining their bilateral agreement is bound to sabotage America’s economy and this is the major disadvantage since China has opted to enter into bilateral agreements with the Asian …show more content…
It is a multilateral forum that allows for countries within the globe to come into a trade agreement with other nations. It is an open organization that allows governments to settle trade disputes amongst themselves. Currently, it has 153 countries affiliated to it. European Union (EU) is a regional economic group that involves European nations who engage in trade amongst member countries. The Euro is one of the binding factors apart from being the reason behind the ambitious nature of these nations in terms of trade. It has 27 member countries. North American Free Trade Agreement (NAFTA) is an organization Canada, Mexico and the United States. The main point behind the formation of this group is to eliminate tariff barriers as well as liberalize investment opportunities and trade in services among the three countries. Asia Pacific Economic Cooperation (APEC) and Association of South East Asian Nations (ASEAN) are regional economic groups in Asia that are driven by an economic agenda based on trade