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

    This venture funds assistance in a number of key areas such as investment and export promotion, and industry financial and private sector development. This is a joint initiative with the International Trade Centre (UNCTAD) and the WTO. The Commonwealth Secretariats programme also plays an integral position in improving member states

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

    and a lack of cooperation within communities. A poor distribution of income can also lead to a country failing to maximise the utility of society. Someone on a high income may not gain as much utility from an additional $200 as someone on a low income would - high incomes can demonstrate diminishing marginal returns - and

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

    Central to the latter was a profound distrust of the market economy and a faith in government command-and-control mechanisms, operating intra and internationally.2 The NIEO fizzled out in the 1980s, and was well and truly buried by the collapse of the command economies and the end of the Cold War.

  2. Comprehensive Anatomy of China

    sections of Sichuan Province, Yunnan Province, Gansu Province, and Xinjiang Uygur Autonomous Region. The Tibetan Plateau is commonly referred to as the "Roof of the World" because it's the world's highest plateau region. Although the landscape is mostly bleak, infertile and rock covered, the environmental value is priceless because many of the country's main rivers originate in this region.

  1. A view from the bridge - Examine the manliness hostility and aggression and the ...

    fella, hard workin', he's a good lookin' fella", Eddie, however, believes the complete opposite. Eddie saw the girl's reaction to Rodolpho, and as such begins to become jealous of Rodolpho. One of the main reasons Eddie becomes jealous is due to the relationship between himself and his wife, Beatrice.

  2. In what ways is the government attempting to increase the willingness to wor

    Government spending on education and training has improved workers human capital. Employees become better quality workers and therefore their productivity improves and so the LRAS curve shifts to the right. In 2007 Gordon Brown promised to increase spending on education by 5% each year for the next three years in

  1. international trade

    Europe raised with 6,7% on the sales in comparing with the year 2003. North and South America increased with 4,7%. Asia and Australia are increased with 1,8 % and Africa with 5,7%. So it was a good year for B Braun also in the foreign countries. They are still growing.

  2. Notes on the economic transformation of China.

    significant I from HK 3. made use of tech + knowledge transfers Assisted by SEZ, foreign I : near 0 levels 1978 ï $3.5 billion 1990 ï > $60 billion today = transfer of substantial western tech + creating employment Trade in X & M grew from 10% China GNP 1978 ï 36% of GNP 1996 1.

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