If Current Trends Continue, China May Emerge as the World's Largest Economy by 2020.
Discuss the possible implications of such a development for
(1) The world trading system.
(2) The world monetary system.
(3)The business strategy of today's European and U.S. based global corporations.
(4)Global commodity prices
The world trading system would clearly be affected by such a development. Currently China enjoys a somewhat privileged status within the World Trade Organization as a ―developing country. Such a rise to eminence, however, would clearly force it to become a full and equal member, with all the rights and responsibilities. China would also be in a position to actively affect the terms of trade between many countries. On the monetary front, one would expect that China would have to have …show more content…
Because they have not good rescue system and disaster control systems available. Industries are also feeling insecure due to heavy losses. Poor Health sector: well in case of infection or viral desease they have no good health services available so the infection of deseases are become high. Death rates increase. E.g. African countries are badly affected with such cases. Most of the time they depend upon UNO, WHO or other countries for help. Dirty Political structure & corruption rate is high: Mostly in these countries, Rich persons dominate the politics. They exploit poor for their own interests. For every work bribes are required Cross cultural Barriers: Due to different language and culture, Business adaptability in these countries are tuff. Less persons know international languages. Economic development is low: It leads nation growth is low. GDP and per capita income are also low. Also the value of currency in these countries is low. Judiciary or Legal procedures are so complex: Industries feel so uncomfortable due to lengthy legal procedures and sanctions. Export are less : Due to low production exports are less found but in other hand imports are more because they are more depend upon neighbor countries for their needs.
Free trade is not possible: Custom duties, taxes and other charges are main source of income for country. They import products from different countries and impose heavy duties upon them. That’s why free trade is not