Question

Good explanation

1 Introduction about USA and China in International Business

2 Summarize how USA and China work together in trade.

3. Explain: The Benefits and Disadvantage how USA and China do business.

4. What would you do to make it better for USA and China to work together to have a better outcome in business?

Answer 1

1. USA and China share a very good and cordial business relations. China is known for its low cost manufacturing and US is known for hi-tech and advanced machinery and manufacturing equipments.It is bit complex in terms of trade relations between US and China.

2. US and China share a strong but complex trade relations. The complexity is due to economic cooperation, rivalry in the Pacific and mutual suspicion over the other's intentions. Inspite of this, due to strong dependence of both the countries on each other due to trade relations, necessitated economic partnership and positive political relations.

3. China receives a major portion of US exports. Major exporting goods from US to China are heavy machinery, manufacturing equipments,trucks and tools used for manufacturing operations.China makes use these tools and equipments and manufactures low cost items utilizing its cheap labor force and thus finished goods of reasonable price are exported to US. 35% of US employment is contributed by China as they import goods from US.

4. In order to have a better outcome in US - China business,they should develop a common currency used for trading purpose.There should be relaxation of tariff barriers between US and China to promote trade relations.US should set up manufacturing unit in China and untilize low cost labour available and thus bring down the cost of production of various items.