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The property rights of China and America economics - Research Paper Example

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The activities of a single country greatly impact on the performance and general wellbeing of another country. It is against this background that this paper provides an in depth review of the property rights of China and America economics…
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The property rights of China and America economics

Download file to see previous pages... In the current highly competitive business environment, business entities are going to great lengths to establish and protect particular niches in the market. The main aim for this is to enhance optimal performance and maintain a desirable and economically rewarding competitive edge. On a larger scale, countries are taking initiatives to ensure that their economic development and growth maintains an upward growth. Relative measures towards the attainment of this goal are all encompassing and reflective of the social and economic trends across the globe. They range from formulation of policies and regulations that enhance economic growth to establishment of trade relations with countries whose economic performance is stable. Besides optimizing profits, the main aim of such relations includes safeguarding the overall wellbeing of the populations.
From an ethical view point, the efforts of such countries are morally acceptable. This is especially because of their need to enhance the standards of living of the majority of their populations. Nonetheless, it is worth appreciating that certain initiatives have adverse impacts on the wellbeing of the global economy. This is because the negative implications undermine the economic performance of other countries. In this regard, it is worth appreciating that countries do not exist in a vacuum. Globalization trends have triggered the establishment and maintenance of relations between countries. All these are geared towards enhancing the flow of goods, people, products and information.
The fact that the USA and China have had close economic ties over time cannot be overstated. The two nations have varying potentials with respect to economic production. They venture in different fields and aim at producing ideal products that would enable them to perform competitively in the global market. For this reason, America and China established viable trade as well as diplomatic relations (The United States International Trade Commission, 32). Examples of these include total US-China Trade that was signed in 1979 and Mutual-most-favored-nation treatment of 1980. Undoubtedly, these institutions enhanced economic and specifically trade operations between the two countries. With the relative viable environment, they were able to import and export products with ease. Historical evidence indicates that China has always focused on reducing the production costs and thus enhancing the purchasing power of its citizens. The US importers benefited significantly from this because they were able to get Chinese products at a lower price. Likewise, this enabled America to improve the living standards of its population as well as general wellbeing. This is because it was able to cut the costs that were associated with production. As a result, it provided its population with consumer products at cheaper prices. However, this had adverse impacts on the performance of local industries. In essence, it compromised local production and instead boosted the economic performance of Chinese industries form which the relative products were sourced. In addition, this practice greatly undermined the quality of products offered in the market for American consumption. This is because the raw materials employed in their production were relatively low. China has also invested significantly in the US economy. In particular, it has explored foreign direct investment and a host of other non bond investments. Thus the economic relationship between the two countries is considered to be mutually benefiting. An evaluation of the economic wellbeing of China however indicates that it has benefited the most from the relations that it has ...Download file to see next pagesRead More
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