International Business 1. Chinese Currency Many experts have wondered and spent much time thinking on how the Chinese might dump their dollar currency peg, yet almost nothing is known about official Chinese thinking on these issues. There are plenty of people who pretend they know, but most of them have already been challenged too often already to have any faith in their believed knowledge of the plotting of Chinese economic policy. The Chinese seem determined to stick to the national characteristic of mystery. Whatever the Chinese do, don’t expect fireworks. China is adopting the traditional route to development which will rely on thriving export performance. Domestic demand can come later.
China won’t risk damaging these exports by allowing its currency to float freely, for the following appreciation would be large. If the Chinese currency was floated it will rise strongly against the dollar until the trade imbalance is corrected. With America’s trade deficit swelling, the renminbi peg is a growing source of complaint among US policymakers. China’s reserves of foreign currency – $346.5bn of them at the last count – are in any case large enough to guarantee a long period of deficits, and its success in marketing the country as “factory to the world” will make sure a continued strong inflow of foreign investment into the indefinite future. Critics blame China’s currency system for contributing to the loss of 3 million U.S. manufacturing jobs over the past five years. They also blame China’s system for a soaring trade deficit that hit a record $617 billion (euro491.59 billion) last year, including a $162 billion (euro129 billion) imbalance just with China, the largest ever with a single country.
The Essay on Trade Deficit
Since this move of depreciation would inherently curb the exaggerated import costs that the US so loves to incur. Furthermore, these three critical factors essentially would help limit the import prices incurred by US due to the trend of rising demands that has permeated in the societal culture: * The practice of using USD for US trade invoicing; * Exporters concerns on market share dynamics, and; ...
The administration, which at the start argued that China should allow its currency to float freely with its value set by global currency markets, now challenges that such a move would be too troublesome in the near term. It argues that a temporary step should be taken. While the administration has not specified what that step would be currency experts say China could link the yuan’s value to a group of currencies from other countries, not just the dollar, or it could create a band within which the currency could trade. 2. Global Products and Companies In recent years China has replaced Japan as the country with which the US has its biggest trade imbalance. The shortfall is already massive and it seems to grow bigger by the day. While Chinese imports have been largely tracking the growth in exports, most of the imports come from Japan and the Far East, whereas most of the exports go to America.
At this dawn of the new millennium, we are at the doorstep of a new age of progress, an information age that is transforming the nature of business and society. Technology and globalization have become mutually reinforcing. Technology enables business globalization while globalization makes technology more profitable. In addition to higher global economic growth, this coming together of technology and globalization also means major changes in social and business environments as old power structures break up and new ones arise. Yet, most business writing has focused on either technology or globalization or another narrow feature of these changes with little attention paid to their gestalt. There are many reasons why business is becoming global and why technological changes are reinforcing these trends towards globalization: From 1950 to 1994, while world output grew about five-fold, world trade grew thirteen-fold.
The Business plan on Global Virtual Business Expatriate Assignment
Table of Contents INTRODUCTION 2 RECRUITMENT AND HIRING 5 EMPLOYEE RELATIONS 10 BENEFITS 20 VIRTUAL BUSINESS 23 LOGISTICS 27 CONCLUSION 32 BIBLIOGRAPHY 35 Introduction Germany, France, Norway, Asia, Africa, what do all these places have in common? They are all places where companies are doing business today. Technological innovations have created a new global marketplace at our fingertips. Even ...
In the same period, while global manufacturing output expanded roughly eight times from 1950 to 1994, exports of such products grew by about twenty seven times. These trends towards the globalization of business seem unlikely to reverse as they are based on the unrelenting forward march of technology and other fundamental forces that create and increase economic wealth. Increasingly larger numbers of firms from South Korea, Taiwan, Israel, Brazil, India, and other developing countries, are now becoming global competitors in many industries, and competing successfully with firms from the developed countries. For example, one of the most globally advanced companies for cement cement trucks is Mexico-based Cemex, a multinational producer and supplier of cement. Increased international communication in the form of cross-border flows of movies, news and other television shows, music, and inexpensive telephone calls is leading to the increasing globalization of the demand for many products. The same music, television, motion pictures, and sports icons seem to be popular among young people everywhere. Demand for high quality branded products seems to transcend cultures and borders.
While many products have to be modified for local tastes, an ever larger number of products are being developed and sold for global consumption. Many brands such as Nike, Disney, CNN, McDonalds, Coke and Pepsi, Panasonic, Sony, Samsung, and others are already globally ever-present, and are being managed for global effectiveness. Marshall McLuhan’s much discussed global village finally seems to be here..
