Economic Relationship Between The U.S. And China

904 words - 4 pages

In 1972, under the leadership of President Richard Nixon, the United States resumed its economic relationship with the nation of China; in 1979, a bilateral trade agreement was signed by the two countries. Today, China has become one of the largest trading partners with the United States, trailing only behind Canada and Mexico. The United States benefits with this trade agreement due to the large and growing consumer market for U.S. firms and the Chinese imports cost less due to the low labor cost in China. The nation of China benefits due to the increased integration with world economy through overseas education and trade, creating awareness on issues such as environment and human rights. ...view middle of the document...

There is a need for China to have a flexible exchange rate but with their low labor cost this would only remove a small portion of the deficit. A more effective solution would be for the United States to increase exports to China in hopes of the price level of China’s currency to increase.
One big problem that the United States has with China is the nontariff and tariff barriers that China has imposed on the U.S. An example of these nontariff barriers is China’s protectionist policy to promote domestic industry resulting in the reduction of their dependence on U.S. technology. This approach is the opposite of a good practice, creating conflict with the U.S. market and its companies and discouraging technological innovation. Another problem with the protectionist policies is that it reduces opportunities of profitability for U.S. firms. These protectionist policies do not allow the firms into the Chinese market and decrease the profitability in the international market against the cheaper products being exported out of China. An example of the tariff problem the U.S. has with China occurred in 2010 when the Chinese government raised its tariffs of nylon from 36.2 percent to an astounding 96.5 percent. In some opinions, the best thing for the U.S. administration to do would be to impose an across-the-board tariff on all Chinese goods, thus encouraging the Chinese to take down the barriers they have placed on U.S. merchandise.
China also has had some internal problems that cause distrust with the United States. The biggest problem deals with the piracy of intellectual...

Other Papers Like Economic Relationship Between the U.S. and China

Discuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Roles If Any Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples...

916 words - 4 pages In this essay, it would be found out that the relationship between entrepreneurship, innovation and economic development is a multidirectional cycle, which means that they affect each other in two directions. From one direction, when there is a problem entrepreneurs would use innovation which comes from creativity to solve it by entrepreneurship. Innovation deliveries new industries or get exist industries developed and both of those actions

The Differences in Economic Opportunity Distribution Between Women and Men Withinoccupations Have Never Been a Model of Equality in the U.S or Many Parts of the Europeancountries. This Job Disparity...

1278 words - 6 pages * Ways To Overcome The High House-Loans Rejection Rate We all know it's tougher to get a home loan these days compared with just a few years ago. Banks tightened their credit standards dramatically during the credit crunch, and lenders now accept only 55% of all mortgage applications. according to the latest annual statistics from the Mortgage Bankers Association: Overall lending by U.S. banks plunged by 7.4% in 2009, the sharpest decline since

The Relationship Between Supply and Demand Carve

1235 words - 5 pages . Chapter two Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand

The Relationship Between Public and Private Schools

4090 words - 17 pages Chapter The review of the literature chapter will give a complete review of the most current research related to the relationship between public and private school student achievement. This chapter will provide a historical perspective on the relationship. It will also present this information in major themes. The chapter will conclude with a summary. Historical Perspective Before the mid 1970’s, the issue of the better type of school had not been

The Relationship Between God and Human

1252 words - 6 pages The relationship between God and Human In many myths, God create the world and human beings. In Bible, God is described as the creator of the universe, rulers of the world, judge of evil and saver of human. In Genesis Chapter 1, God created the heavens and the earth. God created water, light, plants, different species and human beings in six days. God created human. People shall fear God, worship the power of God. In the relationship

The Relationship Between Emotions And Change

423 words - 2 pages What is the relationship between emotions and change in society and organizations? The movie “How to Change the World” presents us with two overarching themes that are displayed as being in a constant state of war with each other: structure and emotion. Greenpeace is at its very beginning and mostly just a group of people that are connected by their emotionally-driven intent to change the environment for the better. They’re not organized

The Relationship Between Humans and Animals

1328 words - 6 pages Imagine there is a locked room where a person, a tiger and a rabbit are. What will happen? Without doubt, the tiger is forced to eat the rabbit to live; the person is forced to fight with the tiger for survival. This is the most basic relationship between animal and animal and between human and animal, based on the rule of the jungle. As we all know, even with much stronger ability of thinking, with high IQ, people are still almost the same with

Economic Growth- The Way U.S. Economy Works And Grows

1591 words - 7 pages stress. However these are risks outweighed by the benefits of maintaining a prosperous and growing economy, and creating a wealthier, healthier population. (Brown, 72)BibliographyBooks:·Ellison, Robin. American Economy. Illinois: Longman Group, 1985.·Maizels, Alfred. Exports and Economic Growth of Developing Countries. London: Cambridge University Press, 1991.Journals:·Brown, John S. (2001)."U.S. Economy: Its Ups and Downs ". Volume 5, Number 4: 68-73.·Rusnak, Martin (2000). "Economic Growth resources". 15-22.·Singer, Hans W. and Patricia Gray (1988). "Trade Policy and Economic Growth": New Data. World Development 16.

The Difference Between China and France

1158 words - 5 pages Cultural Comparison Between China and France Introduction From my first step in france 3 months ago, the first thing I could say is that France is facinating and fancy me. I also wonder that france and china are really different countries. In fact, France and China have a different economy, and don’t have the same culture. The purpose of this report is to compared with the diference between France and China ,since the difference exists in

The Differences Between Australia And China Families

743 words - 3 pages When we talk about family, there should be a house where parents and children can live together, with extended family link with grandparents, uncles, aunts and so on. Although the notions of family may be the same, there still are a lot of diversities between different countries' family life. A comparison of family life in Australia and China from governmental, cultural and social aspects will be given in the following essay.First of all, the

This Is A Case Study Of Economic About The Relationship Of The Economic And Software

1137 words - 5 pages Question 1AExpected relationship between the demand of software and the own price of software:This is an indirect relationship between the price of software and the quantity demand. A fall in price will cause the demand for software to expand while a rise in price will cause the demand for it to contract. The own price of the software has the affection to the demand of software. Customer usually would look at the price of the product before they

Related Essays

The Relationship Between Business And The Economic Environment

1320 words - 6 pages Economic Growth- GDP Economic Growth… …An increase in an economy’s ability to produce goods and services Gross Domestic Product- represents the value of a country’s national income in one year. An increase in real GDP means that the standard of living within a country is increasing. It is therefore used as a way of measuring a country’s economic growth. The Business Cycle- there are discernable patterns in these levels over time, there

Discuss The Economic Relationship Between Consumption, National Income And Investment

707 words - 3 pages place. The government can also cut corporation tax to leave firms with a fraction more that is likely to go on investment. National income is increased by firms continuing to invest to keep up and compete with leading country’s in growth such as China and Germany; moreover technology is a large part of this as it is encouraging firms to invest more into innovation and research. Clearly the issue of the relationship between income, consumption

Trade Relationship Between China And Australia

658 words - 3 pages The Commonwealth of Australia is a country in the southern hemisphere comprising the mainland of the world's smallest continent, the major island of Tasmania and a number of other islands in the Southern, Indian and Pacific Oceans. The economy of Australia has always been prosperous, and Australia has been ranked as one of the leading economic countries for a long time.Originally, Australia's trade has been focused on the European and North

Difference Between China And Sub Saharan In Economic Growth And Development

1609 words - 7 pages Difference between China and Sub-Saharan in economic growth and development This essay will try to analyse the difference between China and Sub- Saharan region countries on the economic growth and development issue from an overall view. In order to contrast the different development and growth methods between china and a whole Sub-Saharan region of countries, the essay will introduce the solow model in order to simplify the analysis