China Globalization Analysis

Over the years, globalisation has started to have a massive impact on countries, industries and business that trade globally. The sudden change that Globalisation has affected the world and it is changing how countries do business, how technology is seen and different social lifestyles. Globalisation was first employed in the Oxford dictionary in the 1930s, at the time the world was commonly used by Economists and social scientists. The word is now used more commonly and now we have people who even disagree or agree with globalisation and how it affects the world. In this essay, I will be aiming to discuss the impact of globalisation, by illustrating examples how this concept has an effect on china. In addition, I will start by explaining the meaning of globalisation by critically disusing the impacts that globalisation has on China.

In the past 20 years, Chinas international trade has expanded by 16 times. In 2010, the Chinese economy grew by 10.3% according to BBC news. This had led to China becoming the second largest world economy. The total value of Chinas export and important rate was ranked at $4.16tns, this was an 7.6% increase from the years before. International trade has been shaping the world into one massive businesses. International trade allows a country to expand its market for goods and services to provide to the world. ‘International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events’ (Reem Heakal, No date) International trade would allow country’s to trade with each other exchanging goods or service which may not be available in that country. This would allow china to use their resources produce products or service. Comparative advantage means a country should produce of manufacture what it can do most efficient. Comparative advantage that has helped China to become the world’s largest trader. China are able to produce goods for less than 50% to 70% cheaper than other countries. According to the International business times in 2011, China had produced 90.6% of all computers in 2011 and 70.6% of all cell phones. This show the dominance that China had on the international trade. Competition had started to rise for China from other countries such as the USA, Japan and India. With many advantage with International trade there would be disadvantages. One key element is monopoly power; this is when a country would own all or nearly all of a given market this can be a product or a service. They would be able to put a fixed price of the product or service. Monopolies are becoming harder to maintain under the circumstances that the global economy has. China dominates the textiles