• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss and present the ways in which the Chinese business environment will change now that they have entered the World Trade Organisation (WTO).

Extracts from this document...


Discuss and present the ways in which the Chinese business environment will change now that they have entered the World Trade Organisation (WTO). Introduction; This essay will look at China before entering the World Trade Organisation, and after. Due to the times China has entered the WTO and how the business situation has already changed. This essay will show the business environment and its changes. China's entered into the World Trade Organization (WTO) in December 2001, and ever since has brought great opportunities and challenges for the country. First to explain what the WTO is: The WTO was formerly the General Agreement on Tariffs and Trade (GATT). The WTO was formed in 1995, and aims were to promote free trade and to prevent any protectionist measure by member countries. It also has a number of roles, like policing the world trade. According to Hall, Dave. Et al. (2000) book the WTO accounts for 90% of the world trade. Main Findings; The Chinese economy is one that has gone through several years of transformation. The government stays as a one-party communist state. The government does allow a free market to flourish. China is a rich country in natural resources and has a huge population. China was not to bad in the economic growth sector as a graph in the Hall, Dave. Et al. (2000) ...read more.


This could be measured by the Gross National Product. " Economic growth - an indication of the change in the output or income of an economy. It is usually measured by the change in national income figures (GDP or GNP)" (Hall, Jones, and Raffo 2000: p. 206) Some of the possible negative and positive aspects of China's economic growth after entering the WTO could be more staff (Growth of labour force) needed allowing more jobs available in China. We see in the Workers Power Global article China's Education rate is low so not all the jobs would go to the Chinese people. More investments into the country capital goods and into technology. This is defiantly positive, as it will help the country evolve. Allowing an increase in the income of the economy that is positive for China. Also an increase in competition would be a negative aspect, as many small companies within China would have to deal with big multi-nationals. Increased level of consumption providing a higher real income. So if human welfare is somewhat related to the level of consumption, then that would lead to a gain in society. Another thing regarding China as it entered its gross domestic product (GDP) grew by 7.9 per cent year on year in the first three quarters of this year. ...read more.


The banks in China have been mostly taken over. China may be drained from its profits. It could also be a wrought start for China. Conclusion; I feel that now that China has entered the World Trade Organization (WTO) it has boosted up many economical and governmental aspects of its nation. Its GDP has gone up to 7% helping its economic growth rise. Also I feel that foreign confidence improved towards China. Thus making more deals possible between China and other nations. As we could see the exports have reached +19% since they have joined the WTO. These facts I feel show that entering the WTO was a good choice for China. As I said in the report China is now rich, has low-cost labour resource and has a vast market. It holds a lot of land where it can retain various sources and has an enormous population. I feel that I had to change the main question from "Discuss and present the ways in which the Chinese business environment will change now that they have entered the World Trade Organisation. (WTO)" to an "have changed". This was done since China has been through the changes it would have, and is facing the pros and cons of its entering. To end I feel that China will be able to become a major global economic player, if it takes right advantage of the situation. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    There is also a distinctly corporatist flavour to this scheme for global governance, which finds concrete expression in the UN Secretary General's Global Compact. The latter seeks co-operation among governments, IGOs, NGOs, Big Business and organised labour to promote and enforce higher labour and environmental standards in the developing world.

  2. Why has GDP growth been so slow in Somalia?

    Finally, corruption can be obstreperous towards foreign investment. They are more likely to shun a country if they feel they will be at a disadvantage compared to businesses from within, or feel the costs become too high or unpredictable, thus corruption risks the country being marginalized in the international economy.

  1. 'Critically assess the role of the World Trade Organisation (WTO) as a means of ...

    In order to achieve this Neoliberalists champion the causes of privatisation, deregulation and a general reduction in tariffs and quotas. This she says provides more accessible markets for trade between different states.4 A statement from the WTO says that 'the World Trade Organization (WTO)

  2. Comprehensive Anatomy of China

    Northwest China includes, administratively, a significant portion of the Xinjiang Uygur Autonomous Region, small sections of the Gansu Province and Inner Mongolia Autonomous Region. Xinjiang is quickly becoming China's main source of cotton and hops, of which 33 percent and 80 percent of the country's supply was respectively reported for in 2001.

  1. International Trade - I have been asked to investigate the possibility of a company ...

    Perhaps common sense tells us that Country A should produce both goods and export surpluses and Country B neither. However, when comparative advantage is considered a different picture emerges. Consider the opportunity cost of Country A producing one more unit of maize. Half a unit of wheat has been expected.

  2. International trade - In this case I choose the country Canada. When doing a ...

    He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.

  1. This report will consider the opportunities and restrictions involved in exporting a single premium ...

    The latest report from by the "Korean Institutes for Heath and Social Affairs" shows that the average adult male in Korea drinks about 11 days out of the month and women four.14 This suggests that there is a strong drinking culture in Korea and that it is integrated into every aspect of their lives some way or another.

  2. Peoples' republic of China

    China's joint venture law became effective in July 1979. In the first month of the law's existence, 100 joint venture agreements with foreign business entities were signed. A Chinese must be chairman of the board of all joint ventures, and a majority of the board members must be citizens of the PRC.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work