Exploring the dynamics of off-shoring in China

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

The rapid growth of off-shoring has become a dominant feature of the international community national economy. To better understand the relocation, there are many interesting issues to be addressed. For example, how the relocation and what is are the effects of off-shoring on the labor market. Moreover, financial frictions may arise from the company's access to external finance. How financial frictions affect the behavior of exporting firms is not well understood yet. Using China highly disaggregated data. I address these questions in chapter three of this thesis. Chapter 1 examines the organizational form of outsourcing and Chapter 2 assesses the impact of credit constraints in the export performance of firms. Chapter 3 examines how trade and off-shoring affect ordinary employment and wages in the labor market. Chapter 1 examines the organizational form of outsourcing. Between 1997 and 2008 relocation of multinationals in China (intra-firm off-shoring) increased significantly faster than off-shoring through outsourcing (outsourcing of full competition).

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background1

Rationale1

Theoretical framework2

Aims and Objectives2

Research questions3

CHAPTER 2: LITERATURE REVIEW4

Promotion of export industries6

Trade policy6

The lure of China for foreign investor7

Decomposing effects8

Off-shoring is a special form of trade9

Between protection and openness10

A segmented foreign trade according to the customs procedures11

The relocation of the engine Foreign Trade12

External trade12

The increase in trade due companies with foreign capital18

The Evolution of China's Fiscal System20

CHAPTER 3: METHDOLOGY22

Research Design22

Literature Search23

Reliability/Dependability23

Validity25

Rationale for a Qualitative Study27

CHAPTER 4: DISCUSSION28

Export diversification29

A new division of markets between China and NPI30

China: production base and export market32

CHAPTER 5: CONCLUSION33

The EU exports are heavily dependent on direct investment33

Product Variety37

Entry Cost for Multinationals38

REFERENCES40

CHAPTER 1: INTRODUCTION

Background

In the 90s, the influx of foreign investment in China has created very dynamic industry that accelerated economic growth and that have insured gains market share in world trade spectacular. The increasing participation of China in international trade has been directly related to its integration into an international division processes production in Asia. The relocation strategies of foreign firms developed on the continent of exporting firms, which initially confined to the role of assembly workshop, seem gradually gain a more complete mastery of production processes and marketing. The opening of China International has its limits. It is geographically restricted to coastal regions. This geographical divide reveals a deeper.

Rationale

The expansion of China's foreign trade is first, the fact of foreign-invested enterprises operating in China, then Chinese companies that have contracts with outsourcing partners outside. Exchanges under the ordinary trade, that is to say ...