Answered Essay: Why are the Chinese merchandise exports so competitive in the world?

Why are the Chinese merchandise exports so competitive in the world?

Expert Answer

Answer

China’s export competitiveness hinges on the coincidence of several factors:

1..The favorable exchange rate

2.Low wages and available supplies of unskilled labor

3. The reduced cost of communication and transportation,

4.The flow of foreign direct investment and foreign management and its implications for China’s productive abilities,

5. The large scale of the potential Chinese domestic market, the opening of world markets, and the encouragement of Chinese foreign trade policy.

On the other hand, certain considerations have special importance. For example, Chinese export growth is more than a matter of low wages and an undervalued exchange rate. Appreciating the exchange rate, even by substantial amounts, is not likely to greatly diminish Chinese competitiveness. China’s huge pool of cheap and increasingly mobile labor means that even with exchange rate readjustment, competitiveness based on low labor costs will be maintained for quite some time. Chinese competition may also further displace some low-cost export production in other parts of the world, East Asia or Mexico, for example, although in East Asia most regional exchange rates have adjusted back in line with that of China prevailing in the early 1990s. Secondly, Chinese producers have become greatly more proficient at meeting world requirements for quality and product design. The large inflow of foreign direct investment and entrepreneurship, which is responsible for much of the export flow, has facilitated this process, and , in turn, reflects the favorable economics of export production in China. The shift of Chinese production toward more advanced products with technological content is also notable. On one hand, this represents competition with other East Asian countries. On the other, it reflects a collaborative symbiotic relationship with South Korea, Singapore, and Taiwan whose cost structure has outgrown the simpler high technology goods that supported earlier phases of their industrialization. China’s competitive ace in the hole continues to be its large and potentially mammoth domestic market. Foreign firms seek entry to China not only to take advantage of low cost export platforms, but also as a way to position themselves for future local sales. Aside perhaps for India, there is simply no other developing economy with such promise as a market.

Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.