Paper 1 International Business

Paper 1 International Business - How are Recession Global...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
How are Recession, Global Trade, and the Economy linked? By Julie Kluck November 28, 2011 Intertwined Global Trading Three powerhouse economies are intricately entwined in global trading. These three countries are: the United States of America, China, and the European Union (Euro-Zone). The United States is China’s largest importer of goods; where $450 billion worth of goods are moved between the two countries, and China is the United States’ largest buyer ( http://bottomline.msnbc.msn.com/_news/2011/11/14 ). The United States’ exports to China rose thirty-two percent in 2010 ( http://bottomline.msnbc.msn.com/_news/2011/11/14 ) . While the European Union is China’s second largest consumer market, the United States’ is the Euro-Zone’s largest exporter for goods ( http://bottomline.msnbc.msn.com/_news/2011/11/03 ) . The Euro-Zone and the United States economies are also linked through multiple ties. If one powerhouse fails, then all powerhouses will eventually fall; therefore, creating a ripple effect to all succeeding countries. It’s like that saying of, “You’re only as strong as your weakest link!” Reasons Affecting the Break Down of Economies There are three main reasons affecting the break down of the three superpowers’ economies. One, is that China is not “playing by the rules” of their free-trade pledges when they earned their 2001 membership into the World Trade Organization (WTO). Two, China does not protect foreign companies’ intellectual property and three, which is probably the most notable reason in the threat of a global recession, is that the European Union is falling deeper and deeper into the financial debt abyss.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Not Playing By the Rules The Chinese empire has constantly wrangled itself out of several policies and regulations that they are required to abide by if they’re a member of the World Trade Organization. However, China feels that they are not inclined to play by the rules of the game of global trade because they did not play an active role in the writing of the rules. As quoted by Pan Sen, a deputy director-general at China’s Foreign Ministry ( http://bottomline.msnbc.msn.com/_news/2011/11/14 ) : “First we have to know whose rules we are talking about. If the rules are made collectively through agreement and China is a part of it, then China will abide by them. If the rules are decided by one or even several countries, China does not have the obligation to abide by that.” What China is forgetting, is that the rest of the globe has the same interests in mind. Each empire wants to profit for themselves and to play by their own rules, but what if all the different global rules do not coincide with each other. Where would that leave global trading? Each of the three powerhouse empires have to give a little in order to gain a little.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern