External Forces in the Market - Essay Example

As Jones & George say, consumption and investment rates are highly dependent on the economic aspects and the political scenario respectively (128). The political force, in my opinion, is the major determinant of successful business transactions. Political forces determine whether society will be peaceful and stable enough to allow for investment.

Question 2a

            As Lynch indicates, the Chinese would benefit from venturing into the U.S. markets as there are fewer trade barriers, alternative energy sources are in plenty, as well as the Chinese are better placed to learn new technologies that could benefit their home markets (1).

Question 2b

            With the Chinese shifting a lot of focus to the U.S. markets, Lynch thinks that the U.S.A. will gain from job creation by the Chinese. The Chinese companies have sustained investors with loans, which is shifted to the U.S. economy (Lynch, 1). With the IMF expecting the Chinese outward investment to augment, U.S. assets are slowly gaining prominence among Chinese buyers. The U.S. markets and economy will automatically grow, while back at home, the Chinese manpower is grabbed by the world’s superpower (Lynch, 1).