Chapter Three The World Marketplace: Business without Borders Case Connection China in Africa: A Big Step Forward, or a Bigger Step Backward? Entering an untapped international market can strengthen a business tremendously—but what if the costs outweigh the benefits for the market itself? China has long been an important player on the global stage, but recent advances in manufacturing, natural resources, and energy production have catapulted the expansive country to the forefront of international trade. Currently the world’s fastest growing major economy, China is set to eclipse the United States as the world’s largest economy by 2016. Among various domestic and international plays, one of China’s most fascinating uses of its …show more content…
China does not hesitate to work with corrupt or authoritarian governments if it’s in the country’s economic interest. Thus, China’s investment is bad for the world’s long-term political climate. • China’s inroads into Africa come at the expense of Africa’s citizens. Says Bremmer, “The Chinese quid pro quo typically involves lots of Chinese content, lots of Chinese labor that they’re sending over to these countries to work, which hurts local unemployment issues. And of course, the availability of commodities, including food, to be exported to China. There’s sometimes a Faustian bargain in these countries.” You Decide: • Should Africa be wary of China’s continued investment across the continent? Who stands to benefit from this arrangement, and who stands to suffer? • When engaging in international trade, China focuses on the business arrangement, not its political implications. Do you think the United States should act more like China, strengthening its economy by fostering mutually beneficial partnerships with foreign countries that do not promote democracy or fair labor practices? • China is set to overtake the United States as the world’s largest economy by 2016—a date that is fast approaching. How do you think this monumental economic shift will affect your life in the short term? How will it affect
The recent interactions of emerging and established states suggest that the existing standards of the current global economy are shifting. According to Stewart Patrick in his article “Irresponsible Stakeholders? The Difficulty of Integrating Rising Powers,” the United States must accommodate for emerging states within the global economy and refrain from enforcing their values of an open and liberal international economy in order to achieve effective cooperation. Similarly, Andrew Nathan and Andrew Scobell argue in their article “How China Sees America: The Sum of Beijingʻs Fears” that as China gains more influence within the global economy, the United States will have to respond appropriately to maintain its economic values. Both articles ultimately assert that
The United States and China have had a well-documented rocky relationship. It has become common knowledge that America is in debt to China for around a trillion dollars. With countries like the United States indebted to them, there seems to little doubt that China is well on it's way to becoming a super power. Author John Tkacik agrees with this notion, and suggests that all evidence points to China becoming a military superpower. He goes on to state that in less than a decade, China will become America's only competition for both military or strategic influences. On the other hand, however, author Samuel Bleicher disagrees due to the disadvantages of having a Communist government, as well as, weak economic, social, and legal structure. He
The United States held 24.6% of world income in 1980 and 19.1% in 2011. (Sachs 2012) Many also believe that China is set to become the world’s largest economy in the near future. However, the ‘danger’ for US power is not that China will become the strongest economy on the global scale. As Drenzer argues, China ‘won’t prosper economically, as it won’t embrace capitalism’. In the long run, the danger to the US is that US power will decline ‘on all fronts’, not just economically. (Drenzer, Rachman & Kangan)
Africa is an extremely vast land comprised of unimaginable wealth in natural resources, and an even richer history. Sadly its exiguous population, whom many believe to be the oldest in the world, is completely impoverished, underdeveloped and marred with limited and corrupt governance. The people of Africa have been the victims of cultural rape time and time again-by Arab slave traders, adventurous European explores who found that the African people are worth more than gold and forced them to pay with their soul, exploited by colonial “do-gooders”and ravaged by self-serving neighbors, just to name a few. Strategies of Western nations to help bring salvation to the African people from earth’s torture and misery, always seemed to fail. Therefore it’s hard to believe anyone in Africa had any hope left in them at all. For a good majority of African people China’s entry and immersion into their land couldn’t have come fast enough, yet there were many others, foreign and domestic whom only harbored suspicion, and doubt regarding their new colonizers and for good reason, history has not been kind. This essay will first explore the driving forces behind China’s immersion into Africa, next I will delve into explaining the differences in how Western nations and China are handling African problems. Next I will discuss the pros and cons of Chinas neo-colonization and conclude the essay with why I believe China is just a wolf in sheep’s clothing denying imperialistic objectives.
The major actors involved in the Chinese challenge include the US government, the Chinese Government, US and Chinese businesses, and the American Citizens. When analyzing the hierarchy of goals for the Chinese government, it is important to note that the Chinese Communist Party is not democratically elected. Their mandate to govern has been based on China’s strong economic performance. Above all else, it is crucial for the Chinese government to maintain its economic success. 29% of China’s GDP is composed of exports of goods and services.
For a country that is so forgotten by on the international scene, from past to present nearly every global superpower has attempted to carve out a piece of the continent for themselves. For much of the 19th century Africa stripped apart from the major European powers of Britain, France, Germany, and Portugal. While much of the influences of these countries have dwindled since Africa’s independence in 1960, Africa is now faced with an onslaught of big business in the form of Chinese workers determined to tap into the numerous abundance that the country holds. In China’s Second Continent, author Howard French dives into the lives and accounts of some of those determined to forge a new empire out of the continent.
A nation’s ability to trade is determined by the “factors of product: land, labor, capital, and entrepreneurship” (cite) and can drive capitalism while influencing the domestic economy. In most cases, it is nearly impossible for an established nation to remain economically independent from trade and foreign made objects. Many materials found in the average American’s life can be traced to the trade relationship between the United States and many foreign countries, especially China. This tactic of foreign made objects is overwhelmingly lucrative from a business perspective due to the abundance of inexpensive labor available for grabs. They key for any proper business is to maximize profits by any means necessary and to provide for the demand
China will likely prove to be a significant market for the U.S. in the future. China is one of the world's fastest growing economies, and with its efforts to reform,
China’s ‘peaceful rise’ policy defined China’s foreign relations strategy since Deng Xiaoping promote the ‘opening up’ philosophy since 1979. China acknowledges the significance of international cooperation and global governance to its economic development, as Barry Buzan observed, ‘China put its own economic development as top priority, and deduced from that the need for stability in its international relations both regionally and globally’. What is more, in 2005, Zheng Bijian wrote that ‘China’s peaceful rise will further open its economy so that its population can serve as a growing market for the rest of the world, thus providing increased opportunities for – rather than posing a threat to – the international
Chain also exploit Africa's raw materials today, causing the value and money from the natural resources to go back to East Asia rather than say in Africa, further increasing the poverty. In an article in the Journal of Contemporary China by Joshua Eisenman titled “China –Africa Trade Patterns: causes and consequences.” Eisenman targets China’s economic growth and development that has been gained by the Chinese just from simply tapping into Africa’s market of resources. Due to the Chinese population, there is a high demand for natural resources in China. However, China’s fascination in poor African countries has resulted into anti-Chinese sentiment from African communities. For example, at a soccer game “fans chanting ‘Chinese go home’ rioted and attacked Chinese
In the article “More than minerals”, - The Economist discusses that China love some Africa in the increase visiting Africa for work and trade. The interest that China has with Africa is very noticeable to the
The relations between China and the United States have considerably evolved since the end of the two Wars, and especially since 1978, when Deng Xiaoping gained a de facto leading position in China, taking the country out of isolation and introducing it to modernity and globalization. Since then, China and the United States have undergone through periods of antagonism and collaboration. After a long era in which the US dominated the international system as a hegemonic power, China started to rise and to gain more and more importance and influence, especially in the global economy. According to the International Monetary Fund, the US is still the country with the highest level of GDP, followed by the European Union and China. However, the facts that China is as the second largest economy in the world, as the World Bank’s estimation demonstrates, and that it is the main actor in East Asia, are all sources of alarm for the US, which assists to its hegemony being compromised by China’s rise. In particular, the US is very much engaged in trying to prevent and delay the ascendance of the Chinese power in the international system, which has seen China getting involved in new global challenges – climate change, international security, protection of human rights, etc. – and has caused the emergence of new issues such as the South China Sea dispute or the contrast between the TPP and OBOR initiative, as well as cooperative agreements between the two super powers, such as the expansion
China incurs a bilateral trade surplus with the world’s three main trade centers — the United States, the European Union, and Japan whereas the U.S. beholds its most hefty trade deficit with China. To come into trade agreement with China is considered to be part of USA’s overall strategy of benefiting from China’s economic interchanges that would help the U.S. economy to achieve national security (China’s Trade with the United States and the World, updated January 4, 2007).
In the 21st century, U.S.-China relations have been shaped by the perception and acknowledgment that “China is a player at the table”. As a result, many have turned to international relation theories to predict whether China’s rise will peaceful or conflicted. Most understand that international relations are a “combination of forces and factors that are regarded as being diametrically opposed to one another”(Friedberg 2005 p11). However, in the unique case of U.S.-China relations, there is not only disagreement between theories, but also disagreement within theories. In examining the future of U.S.-China relations through the lens of realism, liberalism and constructivism there is optimism and pessimism within each theory. While IR predictions about China and U.S. range from “clash of civilizations” to “peaceful co-existence”, the one shared agreement that is that America cannot prevent China’s rise. Given this reality, there is evidence supporting each prediction. However, the optimistic realism perspective is essential because it helps to balance America’s understanding to treat China as it is, and offers the foresight to recognize China for what it may become.
Today globalization has an impact on all nations. China is a nation that many rely heavily on. This shows an importance with the economical welfare of China. If China has a downturn in its economy other nations are impacted as well. China contributed “19% of the world's economic growth in 2010, and that's expected to increase to 24% this year” (Miller, What If the China Bubble Bursts?). This depicts the impact that china could have on the economical growth of the world. Due to the economical situations within the United States and Europe, China's growing strength is essential for the recovery of U.S. and Europe. A major issue is "if Chinese land prices plummet, there will be less demand for raw materials and a steep decline in world commodity markets and