Essay on International Business and Chinese World Trade

World trade is the international trade between one or two nations, selling goods and services to boost their growth. Global trade has groom immensely from the Second World War, as many countries have increasingly produced more goods, whole other developed countries sell services to other nations. World trade in merchandise sells relatively has grown past the overall global production. Many countries in the world have increased their international business doing in the recent past owing to the reduction of barriers to such trade. International trade boosts the state economy, and hence the general world economy at large. Even though most of the world trade occur widely in same regions, most countries have capitalized in trading to countries past their continent (Rajagopal, 2007, pg. 70). Regional trade has increasingly boosted the business nature of the world trade. This paper identifies two types of data flow underlying the world trade while focusing on Brazil international trade figures from in the last five years and similarly forecasting on the measures to boost the world trade.

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Two Types Of Trade Flow Underlying The World Trade Growth.

According to Carr and Stone (2015, pg. 78), international trade can be associated with goods or linked to services. The business merchandise has two types, the imports and the exports. These two result to the international trade flows and hence the financial flows.

Imports.

According to Batiz and Oliva (2014, pg. 23), imports are the purchases of goods and services from the foreign country by a domestic economy. Import is one type of trade flow implicated in the international trade. Imports from a significant segment of the international trade as they are another countrys export. Imports make it possible for a country to access goods and serviced from another country. Without the imports, a country would confine to only goods and services within its borders.

Brezina (2011, pg. 65) asserts that international trade is typically more expensive than domestic business. There are many barriers involved in a country importing goods and services from another country, especially when the importation is dome by the private sector. In most instances, restrictions mainly quotas are established to prevent the local economy and manufacturing sector from collapsing. Imports imply the world trade in that it makes it possible for different countries to access goods and services, which they dot produce (Brezina, 2011, pg. 65). This move similarly makes one country get rid of her surplus.

As Sutter (2013, pg. 73) chronicles, on improving the international trade, different companies, take part in most of this importation, business. This move occurs when a retailer purchases goods originally designed from an overseas manufacturer. Many countries prefer international trade because it eliminates the presence of the local suppliers, as they direct acquire foods from the manufacturer.

Exports.

According to Howard (2015, pg. 53), exports are the goods and services that a country sells to another country. Exports are a major factor in international trade. Exports make a country sell its resources and improve GDP. International trade involves a free market, the global market. An export is a good or a service sold or transported from one country to another country basically for business purposes.

Pierce (2013, pg. 46) asserts that exports have both positive and detrimental effects on the international trade, in particular by the exporting countries. A countrys producers gain ownership of the factors of production by producing low cost as well as differentiated goods. International trade in exporting business similarly makes local producers gain internalization advantages which are beneficial to the retailing trade. A company gains competence in international business while expanding its business as it ventures more on world trade while outsourcing to sell its goods and services.

As Macrory et, al. (2015, pg. 45) asserts disadvantage sets in for manufacturers who sell in the international market. In a local market, the manufacturers sell direct to wholesalers, or directly to the retailers. Differently, in international export business, the manufacturers require several chains before their products reach the final customer. The extra larger chain of distribution squeezes margins for the producers, making the producing company lower prices so as to move their products while generating business. Therefore, the exporting business is a fundamental element in international trade, as it helps the world trade grow.

Chinese Exportation Trade Flow.

According to Dupre (2016, pg. 41), China is one of the leading merchandise exporting countries in the world. The country is well known for its traditional dominance of the international market in merchandise exports. The country battles other international big weights in merchandise exports such as the United States, Japan as well as the entire European Union. China has been fostering remarkable figures in its merchandise exports in the recent years, especially in the twenty-first century (Dupre, 2016, pg. 4). The country has dominated the world trade market with its long-lasting merchandise goods.

As Dupre (2016, pg. 4) asserts, currently the value of Chinese export merchandise stands at 2,274,949 million USD. This figure is the value of goods and services classifieds as the merchandise of China exports to the rest of the world. This value is a significant improvement in the past five years as the county exports keep increasing on a yearly basis (Dupre, 2016, pg. 4). Both merchandise export and imports, as well as goods exports, dominate the Chinese international trade, as other types of trading have little effects on the county international trade figures.

Bossche and Zdouc (2013, pg. 12) chronicles that there has been a real growth in the Chinese merchandise exports, as well as coupled with the exporting partners import figures. In the last one decade, the increase is evident in the production sector, with the Chinese international market trade triumph growing stronger before the global financial crisis back in 2008. This crisis made the exports fall shortly but picked up in the following year, with the export margins expounding on the countrys merchandise on international trade.

According to Bossche and Zdouc (2013, pg. 12), the value of exports in 2012 has reported in China in overall exports has been higher. The figures have been more volatile since that year and the corresponding data reported by the Chinese trading partners. A bunch of discrepancies attribute to this tremendous growth in the Chinese exporting business. Among the many exporting destinations of the Chinese merchandises of Hong Kong.

Chinese Five-Year Net Export Figures

As Bossche and Zdouc (2013, pg. 12) asserts, China boasts being the largest export economy in the entire world. The country has a positive net export, second largest in the world after the United States. China leading exports include the broadcasting equipment, computers, telephones, machinery and parts and integrated circuits. Chinese central import communities include crude oil, gold, cars and iron ore. The tip five export destinations from China are United States, Hong Kong, Germany, Japan and South Korea.

Bossche and Zdouc (2013, pg. 12) ascertains that the Chinese exports rose by 8.0 percent in the first quarter of 2017, to USD 180 billion. This figure similarly shows a sharp slow of 16.4 percentage, from March projection of 10.4 percentage gain. This figure indicates that there is an immense growth of the Chinese export industry, as percentage increase monthly changes with double digits. The following are the Chinese five-year net exports figures in trillion USD, from 2010 to 2015 and the evaluation of the surplus on whether or not it favours the trade

2010 - 0.65

2011 0.65

2012 0.70

2013 0.69

2014 0.84

2015 1.10

According to Angang et, al. (2014, pg. 59), the balance of trade is the difference between the exports and the imports. The Chinese balance of commerce has been growing for the last five years. The growth has been positive, with a recorded increase since 2010, except for 2013, where there was a reduction in the surplus compared to the previous year. The year 2010 recorded a growth of 0.65 trillion USD, a figure which stagnated to the following year which similarly recorded the same amount.

As Angang et, al. (2014, pg. 59) asserts, the year 2012 recorded an increase in net exports, the figure rose to 0.70 trillion USD. A drop in the following year 2013 saw a little reduction of 0.01 trillion USD but later improved in the following year 2014 to a record of 0.84 trillion USD. This improvement has been recorded owing to the rise in exports, as well as the fall of imports, as the country is slowly turning to a self-reliable economy (Angang et, al., 2014, pg. 59). Last year, 2015 saw a record of 1.10 trillion USD net export figure, which is among the highest around the globe.

According to Angang et, al. (2014, pg. 59), the balance of trade for China has been favourable for the last two decades. The country has always been selling to the international market more than it buys. Hence, the Chinese balance of trade is favourable, as the export exceed the imports. This appropriate balance of trade is among the best in the entire world, especially in the last two years, where the country has recorded a surplus of over one trillion USD (Angang et, al., 2014, pg. 59). The balance of trade is an indication that the economy is growing. The local producers and domestic consumers are business wise doing well.

The Effect of the Net Exports in the GDP Growth in China

According to Guo (2014, pg. 39), the Chinese net exports have been impactful on the countrys GDP growth. The trade surplus means that the country has more wealth than it had, and this effect triggers the economic growth, hence the GDP. Economic growth is triggered by many factors, many of which are associated with the production nature of the country. Chinese manufacturing sector has been improving immensely, a reason to the improved exports to the international market, with an increased production, the country exports more than it imports, triggering the growth of the GDP

As Guo (2014, pg. 39) asserts, China has in the recent two decades achieved an economic growth, which seems to last for a prolonged period. The Chinese foreign direct investment, the FDI which is classified under the exports, is improving. The country is heavily investing in overseas markets, majorly in the Europe, United States, Middle East, and Africa. These foreign direct investments boost the growth of the country GDP and hence the increase of the countrys economy.

Guo (2014, pg. 39) chronicles that industrial production is an economic indicator, which measures a number of goods produced by the countrys industries, meant for sale both domestically and internationally. The Chinese industrial production is increasing, a move which makes the exportation business improve and gain more from the surplus balance of trade. The Chinese industrial production in the last five years has been recording an average of 17.5 to 22.6 percentage increase (Guo, 2014, pg. 39). Therefore, this rise in industrial production has been of positive impact on the countrys GDP growth.

As Guo (2014, pg. 39) ascertains, China has 28 provinces, and among those, the exportation business and production are more concentration in six provinces. These main provinces and three other municipalities record over ninety percent of the countrys export business. The economic impact of these is brought and heartfelt in other provinces, who record little exports. China export business depe...