CHINA TRADE

China International Trade

China International Trade

Introduction

International trade is referred to the exchange of goods, services and capital across international border. International trade is of great importance to most of the countries in the world. The importance of international trade is felt by most of the countries in the world. International trade is important because it benefits the social, economic and political aspects of a country (Song et al, 2008). The importance of international trade is also felt by China and China has also introduced itself internationally for conducting various business activities. The international trade activities of China include import and export of goods and services with other countries. It has been observed that China has progressed rapidly in its international trade activities. An over view of the international trade of China provides us with the information that China became the fourth economic power in 2006 and is now responsible for five percent of the overall trade of the world. China is recently involved in trade activities with various countries all over the world (Shan, 2008).

The Import Trade

Import trade basically refers to bringing in goods and services from other countries to the port of a certain country. China imports various products from other countries in order to maintain balance of trade.

Import Products of China

The most prominent things that China imports from other countries include soybeans, plastics, semi conductors, computer accessories, steel making material, copper, raw cotton, computer accessories, raw cotton and industrial machines (Feenstra & Wei, 2010). These are the most prominent products that China imports from other countries because they get these specific products of better quality form other countries.

Benefits of the Import Trade

The country that is involved in importing activities experience various benefits and some of the most significant benefits are mentioned as follows. The first advantage of import trade is reduced cost of purchasing resources as compared to the purchasing form local area. It is noticed that even after including the expenses of shipping and import duties, the overall cost remain limited (Celone, 2008). Another significant advantage of import trade is that it becomes very easy to manage the entire process of importing. The most important benefit of import trade is that a country receives good quality products and goods that could not be efficiently produced within the country.

Disadvantages of Import Trade

Import trade also includes some disadvantages and some of the most prominent disadvantages are mentioned as follows. It is obvious that imports compete directly with the local industry of a country, so imports do result in a decline in profits for the local industries. This could further cause closure of companies and job losses for individuals as a result of non profitability of the industry (Tran, 2000).

Benefits of Import Trade to Economics of China

The import trade of china will definitely benefit the country in various ways. One of the way in which the economy of China is improved by its import trade is that it reduces the cost of purchasing products from other countries (Rotberg, ...