Why would China joining the WTO have such a profound impact on U.S. firms competing in...

Why would China joining the WTO have such a profound impact on U.S. firms competing in a Global Economy?

Solutions

Expert Solution

On December 11, 2001 China became a member of World Trade Organization (WTO). A milestone for the Chinese economy, admission of China to WTO was in itself was a long process of negotiations and it required significant changes to Chinese economy.

WTO in itself is the global organization which deals with the rules and regulations between nations of the world. The objective is to help the economies in export and import of their business. It also ensures that economies should comply with agreed directives.

Many producers and business houses producing textile material, and other goods believe that China’s entry into WTO would negatively influence their business. The impact with China joining WTO is minimal, as USA is a member of WTO and it does not have to lower any trade barrier as a result of China’s entry. Trade deficit between USA and China would be reduced. In the quest for WTO membership for China, the USA has refused the argument by many human rights and environmental groups that they should be attached to obligations by China to improve human rights and standards.

Financial and farming would get a boom. US banks and insurance companies will also benefit as now they will assist Chinese customers too. US firms can also make automobile loans to their Chinese customers therefore promoting sales US firms to be free to distribute their country made products throughout China without any Chinese middlemen or agent.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Has the U.S. ceded too much of its national sovereignty by joining the WTO?

) In your opinion, should the U.S. have approved NAFTA, PNTR for China, and WTO membership...

) In your opinion, should the U.S. have approved NAFTA, PNTR for China, and WTO membership for China? Have these trade and investment agreements been beneficial for the United States, and why? At a minimum, evaluate the effects of these agreements on outgoing U.S. foreign direct investment, trade deficits, jobs, and wages when developing your answer.

Compilers can have a profound impact on the performance of an application. Assume that for a...

Compilers can have a profound impact on the performance of an application. Assume that for a program, compiler A results in a dynamic instruction count of 1.0E9 and has an execution time of 1.1 s, while compiler B results in a dynamic instruction count of 1.2E9 and an execution time of 1.5 s. Find the average CPI for each program given that the processor has a clock cycle time of 1 ns. Program A: ___________ Program B: ___________ Assume the...

Compilers can have a profound impact on the performance of an application. Assume that for a...

Compilers can have a profound impact on the performance of an application. Assume that for a program, compiler A results in a dynamic instruction count of 1.0E9 and has an execution time of 1.1 s, while compiler B results in a dynamic instruction count of 1.2E9 and an execution time of 1.5 s. a. Find the average CPI for each program given that the processor has a clock cycle time of 1 ns. b. Assume the compiled programs run on...

Since joining the World Trade Organization (WTO) in 2001 China’s trade ties with Latin America have...

Since joining the World Trade Organization (WTO) in 2001 China’s trade ties with Latin America have expanded rapidly. However, China’s relationship with specific Latin American sub-regions varies greatly. Describe the nature of China’s ties with Latin America and analyze the differences, for example, between comparative advantage in China-South American ties and competitive disadvantage in China-North and Central American ties.

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as...

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as follows: i) Briefly elaborate the trade practices and their effects which the current U.S. President, Donald J. Trump claims are unfair such as the growing trade deficit, the theft of intellectual property, and the forced transfer of American technology to China from 2010 to present. ii) Analyze the outcomes of the China-U.S. Trade War and U.S.’s subsequent policies impacts to current China Business Environment...

Why has the US-China trade tensions escalated despite the WTO agreements?

Question 3. Impact on China (a) Why is China under pressure to make a trade...

Question 3. Impact on China (a) Why is China under pressure to make a trade deal with the US? In your answer Identify and explain two negative impacts the US tariffs have had on the Chinese economy. (b) Do you believe China will make a trade deal or fight back / retaliate against the US, or is the US under pressure to make a deal? Briefly explain 2 reasons for your answer.

Explain how shrimp "dumping" by Vietnam and China affect the U.S. seafood market. Why would consumers...

Explain how shrimp "dumping" by Vietnam and China affect the U.S. seafood market. Why would consumers argue that consumers will lose if the U.S. imposes a tariff on shrimp from Vietnam and China? Why would labor unions and politicians argue that tariffs should be imposed on shrimp imports What is your position and how would you defend your position?

Analyze and evaluate the potential impact a change from U.S. GAAP to IFRS would have on...

Analyze and evaluate the potential impact a change from U.S. GAAP to IFRS would have on U.S. companies for revenue recognition of goods and services. This includes both the impact on specific amounts in the financial statements, in addition to the impact on various stakeholders associated with a company (e.g., creditors, investors, suppliers, management, employees, etc.).

Subjects