International Trade
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BUSN310 Unit 5 DB
International trade has become an intricate part of society and is necessary for the future growth of global economies (Boudreaux, 2008). Countries such as China are determined to reach a negotiation on globalization and highly advanced economic development (BUSN310 Unit 5 DB & IP Course Materials, 2012). A large hindrance in global commerce currently is unwarranted trade barriers and autonomy; which tend to create permissible impediments in terms of, free commerce and continual globalization (Mukherjee, 2008).
To many, it is controversial, whether companies should comply with Chinas terms (Boudreaux, 2008). In my opinion, if companies desire to continue their sales, they should comply with Chinas terms. Conversely, this methodology doesnt always deliver a prompt sale (BUSN310 Unit 5 DB & IP Course Materials, 2012). Companies must take into consideration the pros and cons of the entire deal. For instance, previous companies have discovered; to be cost-effective, a company must build their foundation from the ground up (Mukherjee, 2008). Keeping in mind, that Job training can be greatly impeded by barriers such as, cultural diversity and language (Boudreaux, 2008).
Many companies in our existing economy, trying to recover from the recession, are helplessly looking for innovative ways to increase sales opportunities (Mukherjee, 2008). At the moment, China has an exceedingly pleasant expansion ratio, as far as growth and potential buyers are concerned (Boudreaux, 2008). Although, China is controlled by a communist government, many companies have acquiesced to the terms within the sales agreements; in attempt to manufacture goods in China (Mukherjee, 2008).
Currently, the Chinese government has the largest labor force in the world (Mukherjee, 2008). The only problem is the fact that they lack the necessary skills in production and technology; which hinder them from reaching sustainable levels of the competitive market (Boudreaux, 2008). Thus, leading them to think outside of the box and enter into agreement with international companies on sales; with the stipulation that they relocate productions to China (Mukherjee, 2008). In all actuality, using this “bargaining chip” can be very beneficial to China, if they wish to mechanize their country.
Globalization occurs when native concepts and actions are transformed into global ones (Boudreaux, 2008). Such as, the phrase “Think Global, Act Local,” insinuates that society should conserve energy, in efforts to supply other countries with sustainable amounts of energy (Mukherjee, 2008). In relation to commerce, globalization refers to the notion of merging the world and cultural diversity by ways of trade and industry, technological advancements, political, societal, and ideological methods (Boudreaux, 2008). The ideal concept of merging all the aspects of a countries