Discuss the possible explanations about China’s high trade ratio. Explain the major changes of China’s export...

Discuss the possible explanations about China’s high trade ratio.
Explain the major changes of China’s export commodity composition since 1979, and the implication of these changes on China and the world.
Explain China’s trade imbalance with its trading partners.
Discuss the positive and negative effects of trade on a nation’s economic development.
Discuss the positive and negative effects of FDI on host countries..
Discuss about reasons of applying export restriction methods and the impacts on international trade.
Discuss the contribution of processing trade to Chinese economy.
Discuss the effects of RMB appreciation on China and the rest of the world.
How do you understand the relations between trade and FDI? Explain the logic and give an relevant example.

Plz answer those questions in details. Do not just write the simple answer

Solutions

Expert Solution

Q- discuss the positive and negative effects of FDI on host countries

Ans- Negative effects of FDI are :

shedding of labor
transfer of research and development abroad
disinvestment of production
downsizing of investment
dependency on foreign capital
attracting workers from local companies
external control
development of new enterprises suppressed
deskilling

Positive effects of FDI are:

increased labor productivity
improved competitiveness
access to worldwide sale
creation of new jobs
increased wages
growth of real income
increased exports
investment capital
increase tax base

Q- Discuss the positive and negative effects of a trade on nation's economic development

Ans- Positive effects of trade are:

trade helps country to enjoy the benefit of international specialisation
trade helps in widening the market and rasing productivity
trade is helpful in high growth potential
helps in formation of capital
import of foreign capital
healthy competition
efficient use of means of production
import of capital goods
export of primary goods

Negative effects of trade are:

higher foreign debt
rising global poverty
lost jobs
reduced wages
external control

Rahul Sunny answered 1 year ago

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