Question

Research and identify at least 8 different reasons/arguments to support conducting trade with China. Include any statistical information and/or other evidence to support your arguments.

Answer 1

Reasons to continue trade with China :

• China exports their goods in world market almost in every country. If we lesser our trade or stop out trade with China, Chinese currency Yuan will get a decline. If Yuan depreciates, their goods will become more cheaper respective to other countries. If they become cheaper, people will demand more of them. Reducing their trade will eventually increase trade.
• China have huge production of Copper, Cement. They export it to many countries across the world. If we do not trade with China in these products, a huge level of production leads to goods in extra amounts which will lead to decreasing the prices of their products. Once again reducing trade with them will increase the trade.
• Since China has very no/bad labor laws, trading with China is what keeps lots of electronics so low in price. However, this is why these gadgets are so inexpensive.
• China export goods to many countries and thus holds potential to manage the prices. Once the economy become stagnant, China have the capability of lowering the prices because they have huge amount of cheap labour available there.
• Many of the world's largest manufacturer assemble their product in China as they get cheaper resources there. China is often the last stop in the assembly process.
• Increased international trade has raised real incomes, restrained prices, introduced greater product variety, spurred technological advances and innovation, and raised real living standards across the world.
• China is in the phase right now where we can say that it has almost completed the developing phase and ready to become developed economy. In developing phase, every country try to impress others so that they can have a global footprint. This is the time where you can extract Chinese goods in the cheaper prices. Once the economy become developed they can raise the prices to gain more profit.
• Continuing trade with China could lower the trade barrier among countries. Reducing trade barrier will increase the income level of all individuals across the countries.