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Global Business Today 7th Edition by Charles Hill
Edition 7ISBN: 9780078137211Global Business Today 7th Edition by Charles Hill
Edition 7ISBN: 9780078137211 Exercise 1
If current trends continue, China may emerge as the world's largest economy by 2020. Discuss the possible implications of such a development for:
• (a) The world trading system.
• (b) The world monetary system.
• (c) The business strategy of today's European and U.S. based global corporations.
• (d) Global commodity prices.
• (a) The world trading system.
• (b) The world monetary system.
• (c) The business strategy of today's European and U.S. based global corporations.
• (d) Global commodity prices.
Explanation
Verified
Verified
If current trends continue, country C may emerge as the world's largest economy by 2020. The possible implication of such development for:
a)The world trading system
With the rigorous trading activities being witnessed in country C in the form of heavy exports of textiles, the country would most likely to become a full equal member of WTO, World Trade organization with all the member rights and responsibilities. Besides that, the country would be in a position to actively influence the terms of trade between many countries.
b)The world monetary system
On the monetary front, country C would attempt to have fully convertible and trading currency. It is only then the country would become one of the benchmark currencies of the world.Besides that, country C's currency yuan would strengthen in comparison to US dollars and there would be considerable surge in Chinese stock markets.
c)The business strategies of country E and country U's global based corporation would be altered and new competitive strategies would be discussed in an attempt to outdo country C's economy in terms of infrastructure, balance of payments, GDP and national income.d)Country C's growing pace would affect the global commodity prices drastically. The demand for country C products and services would enhance and share of exports would see a significant growth, giving a tough competition to its close Asian countries.
a)The world trading system
With the rigorous trading activities being witnessed in country C in the form of heavy exports of textiles, the country would most likely to become a full equal member of WTO, World Trade organization with all the member rights and responsibilities. Besides that, the country would be in a position to actively influence the terms of trade between many countries.
b)The world monetary system
On the monetary front, country C would attempt to have fully convertible and trading currency. It is only then the country would become one of the benchmark currencies of the world.Besides that, country C's currency yuan would strengthen in comparison to US dollars and there would be considerable surge in Chinese stock markets.
c)The business strategies of country E and country U's global based corporation would be altered and new competitive strategies would be discussed in an attempt to outdo country C's economy in terms of infrastructure, balance of payments, GDP and national income.d)Country C's growing pace would affect the global commodity prices drastically. The demand for country C products and services would enhance and share of exports would see a significant growth, giving a tough competition to its close Asian countries.
Global Business Today 7th Edition by Charles Hill
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