RUNNING HEAD: International trade 1
8
RUNNING HEAD: International trade
INTERNATIONAL TRADE
Marc McCoy
ECO201
04/26/2015
Though there has been the existence of the trade restrictions, over the past the United State economy has significantly made headway to penetrate the mass Chinese market. As opposed to the two decades ago back in 1990, when the china economy was growing at 10% per year while the US was glowing at an average rate of 4% per annum. This has greatly improved by 2010 with a remarkable growth rate of 16% in china and 11% in United State. Capital goods export to china in recent years has significantly increased nearly to the half of the US export to China, including telecommunication equipments and aircraft and industrial machinery. Keller, W., & Shiue, C. (2008).
This remarkable improvement in trade pattern may be attributed from the favorable market situations, from year 2000 when china pledged a reduction of the tariff at a rate of 15%. Perhaps China has vowed to issue all enterprises in china, the right to directly trade with the foreign companies; while on other hand, United States enterprises would be free to market goods directly to the Chinese market. In this lieu, china has endeared in adoption of the trade standards so as to protect the intellectual properties rights.The trade statistics for the last five years of the two economies, (China and US) shows negative rate of growth which has been decreasing at an increasing rate from 2010. The data reveals that, lopsided characteristic of the trade and the financial flow between China and United states complicates the relationships of trade between the two economies. This has tightened the entanglements of the economic between two economies making them strictly contentious. United State acquires mass volume of imports with low cost from the China economy, and to steer this up U.S has got significant aid to finance part of her budget and deficit in its current account. China has remained dependent on the United State export market and it has continued look unto the United State treasury bonds in endeavor to park significant portion of the rapid increasing foreign exchange reserve in the economy. Keller, W., & Shiue, C. (2008).The major observation for the past years trade statistic the United State is becoming autonomous on deficit financing, therefore depending less on deficit finance from China. Specifically, the research shows that, there has been increase in the US economy saving rate among the households and which has seen the United State current account deficit to fall. Perhaps, there has been sheer scale of deficit financing requirement of the United State, where a deficit finance budget in 2010 was $1.6 trillion and a prospected budget of $9 trillion was budgeted for next ...
1. RUNNING HEAD: International trade
1
8
RUNNING HEAD: International trade
INTERNATIONAL TRADE
Marc McCoy
ECO201
04/26/2015
Though there has been the existence of the trade restrictions,
over the past the United State economy has significantly made
headway to penetrate the mass Chinese market. As opposed to
the two decades ago back in 1990, when the china economy was
growing at 10% per year while the US was glowing at an
average rate of 4% per annum. This has greatly improved by
2010 with a remarkable growth rate of 16% in china and 11% in
United State. Capital goods export to china in recent years has
significantly increased nearly to the half of the US export to
China, including telecommunication equipments and aircraft
and industrial machinery. Keller, W., & Shiue, C. (2008).
This remarkable improvement in trade pattern may be attributed
from the favorable market situations, from year 2000 when
china pledged a reduction of the tariff at a rate of 15%. Perhaps
China has vowed to issue all enterprises in china, the right to
directly trade with the foreign companies; while on other hand,
2. United States enterprises would be free to market goods directly
to the Chinese market. In this lieu, china has endeared in
adoption of the trade standards so as to protect the intellectual
properties rights.The trade statistics for the last five years of
the two economies, (China and US) shows negative rate of
growth which has been decreasing at an increasing rate from
2010. The data reveals that, lopsided characteristic of the trade
and the financial flow between China and United states
complicates the relationships of trade between the two
economies. This has tightened the entanglements of the
economic between two economies making them strictly
contentious. United State acquires mass volume of imports with
low cost from the China economy, and to steer this up U.S has
got significant aid to finance part of her budget and deficit in its
current account. China has remained dependent on the United
State export market and it has continued look unto the United
State treasury bonds in endeavor to park significant portion of
the rapid increasing foreign exchange reserve in the economy.
Keller, W., & Shiue, C. (2008).The major observation for the
past years trade statistic the United State is becoming
autonomous on deficit financing, therefore depending less on
deficit finance from China. Specifically, the research shows
that, there has been increase in the US economy saving rate
among the households and which has seen the United State
current account deficit to fall. Perhaps, there has been sheer
scale of deficit financing requirement of the United State, where
a deficit finance budget in 2010 was $1.6 trillion and a
prospected budget of $9 trillion was budgeted for next decade.
Perhaps, the currency and the bond market in U.S has become
fragile due to the likely action by the China economy to shift
from using United States dollar causing that nervous market
sentiment to coalesce causing to a fall of the United State
dollar.However, though such action would also impacts heavily
on the China economy. Should China tear itself from the united
state treasury market would face a perpetual loss in its mass
accumulated holdings stock should United State Treasury bond
3. falls in price ; while at the same time the U.S would be
vulnerable should China perceives these costs worth so as to
protect its national sovereignty. Grimwade, N. (2000).Prospect
in political and economic dispute experienced has been fueled
by the increasing imbalance relationships. For example,
presently, China has pursued to shift narrative about financial
crises through arguing that, the global imbalances in the
currents accounts has nothing to do with crises. Further, though
most world economies are recovering, China asserts that it is
under recession since the United States monetary policies has
fuelled price bubbles through out the world. This implies that
the bilateral relationship balance has decisively favored China
economy. This might continue as the China economy’s growth
and influence becomes more pervasive both in the region and
abroad. Keller, W., & Shiue, C. (2008).References1. Grimwade,
N. (2000). International trade new patterns of trade, production
& investment (2nd ed.). London: Routledge.2. Keller, W., &
Shiue, C. (2008). Tariffs, trains, and trade: The role of
institutions versus technology in the expansion of markets.
London: Centre for Economic Policy Research.3. Linking trade,
climate change and energy. (2006). Geneva, Switzerland:
International Centre for Trade and Sustainable
Development.Need hanging indents and do not number. You
should show your Internet links.
Visit the U.S. Government Web site:
http://www.export.gov/tradedata/index.asp
1. Go to the Import/Export Data link.
2. Find TradeStats Express.
3. Find National Trade Data.
4. Determine the trade balance between the U.S. and China for
the most recent five year period.
5. Illustrate the trend over this period with a graph of the data. I
am so surprised you did not do this. This is what most of the
assignment is. Without this data, it is difficult to justify the
things you did write. Ie. Support and evidence.
4. Based on the data provided, create a report in Microsoft Word
discussing the trade balance between China and the U.S. for the
most recent five year period. In your discussion, include an
analysis of the effect of such trade balance on the economies of
China and the U.S., both individually and comparatively. Justify
your discussion and analysis by using appropriate examples and
references. Include in your report an analysis of the impact on
the U.S. economy of the situation where China holds such a
large amount of the U.S. debt.
By Saturday submit your responses to the M5: Assignment 1
Dropbox.
M5-Assignment 1 Grading Criteria
Maximum
Points
Points Earned
Accurately determined the trade balance between China and the
U.S. for the most recent five year period. (40 points)
Illustrated the trend over this period with a graph of the data.
Cited the source. (8 points)
48
48-47
Researched and analyzed the impact of foreign trade between
the two countries and their economic growth during this period.
(8 points) **Could use more content and indepth analysis in the
main body of your paper to meet the objectives of the
assignment. Could use some more explanation on these complex
subjects. -3
Discussed the issues, concerns, and ramifications of the trade
balance on China’s economy.(20 points) **Could use more
content and indepth analysis in the main body of your paper to
meet the objectives of the assignment. Could use some more
explanation on these complex subjects. -5
5. Discussed the issues, concerns, and ramifications of the trade
balance on the U.S. economy. (20 Points) **Could use more
content and indepth analysis in the main body of your paper to
meet the objectives of the assignment. Could use some more
explanation on these complex subjects. -5
Compared the impact of trade balance between China and the
U.S. for this period. (20 Points) **Could use more content and
indepth analysis in the main body of your paper to meet the
objectives of the assignment. Could use some more explanation
on these complex subjects. -10
Used appropriate terminology (4 Points)
72
72-23
Provided adequate and appropriate examples and references to
justify conclusions. Used a variety of credible texts, Web sites
and other references.
48
48-24
Discussed the nature and possible future effects upon the U.S.
economy. (30 Points) **Could use more content and indepth
analysis in the main body of your paper to meet the objectives
of the assignment. Could use some more explanation on these
complex subjects. -8
Discussed the ability of the U.S. to sustain growth and
development. (20 Points)
**Could use more content and indepth analysis in the main body
of your paper to meet the objectives of the assignment. Could
use some more explanation on these complex subjects. -5
6. Justified these conclusions with appropriate data and other
resources.(20 Points) **Could use more content and indepth
analysis in the main body of your paper to meet the objectives
of the assignment. Could use some more explanation on these
complex subjects. -8
Used appropriate terminology. (2 Points)
72
72-21
Organization (16 points): Introduction, Transitions, and
Conclusion
Usage and Mechanics (16 points): Grammar, Spelling, and
Sentence structure
APA Elements (20 points): Attribution, Paraphrasing, and
Quotations
Style (8 points): Audience and Word Choice
60 -5
60-5
Total:
300
300-120=180
I am honesty surprised that your paper is missing the required
data for this keystone college level paper, 3 course letter grade
paper.
Look at the points in the rubric that you were to cover.
Some good points but not much data that is the foundation of
this assignment. It is a good point that they did try to provide
support to the credit market which helped the economy. They
8. 5. Arriving at a conclusion
6. Providing a minimum of three references besides your
classroom text
Please remember to refer to your grading rubric with any
questions you may have about the expectation level for the
assignment. Check your Assignment Guide for further details.
Do not hesitate to contact your instructor with any specific
questions you may have.
Title
Your name
Kaplan University
10. Full Title
I. Present-day American Society and Domestic Violence
A. Identify the state of the domestic violence problem in
American society
Major Domestic Violence Problem #1
Major Domestic Violence Problem #2
Major Domestic Violence Problem #3
Major Domestic Violence Problem #4
B. Summary
II. Comparative Culture #1
A. Identify the state of the domestic violence problem in
comparative society #1
1. Major Comparative Domestic Violence Problem #1
2. Major Comparative Domestic Violence Problem #2
11. 3. Major Comparative Domestic Violence Problem #3
4. Major Comparative Domestic Violence Problem #4
B. Summary
III. Comparative Culture #2
A. Identify the state of the domestic violence problem in
comparative society #2
1. Major Comparative Domestic Violence Problem #1
2. Major Comparative Domestic Violence Problem #2
3. Major Comparative Domestic Violence Problem #3
4. Major Comparative Domestic Violence Problem #4
B. Summary
IV. Comparative Culture #3
A. Identify the state of the domestic violence problem in
comparative society #3
1. Major Comparative Domestic Violence Problem #1
2. Major Comparative Domestic Violence Problem #2
3. Major Comparative Domestic Violence Problem #3
4. Major Comparative Domestic Violence Problem #4
B. Summary
V. Comparative Culture #4
A. Identify the state of the domestic violence problem in
comparative society #4
1. Major Comparative Domestic Violence Problem #1
2. Major Comparative Domestic Violence Problem #2
3. Major Comparative Domestic Violence Problem #3
4. Major Comparative Domestic Violence Problem #4
B. Summary
VI. Conclusion
VII. References