Economic Competitiveness of the EU in the Light of Growing Trade Expansion from China - Essay Example

Comments (0) Cite this document
Summary
This paper talks about the challenges that further economic development of China poses to the economic competitiveness of the leading European countries. It is argued in the paper, that European Union must implement urgent measures to maintain its level of economic influence in the world…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Economic Competitiveness of the EU in the Light of Growing Trade Expansion from China
Read TextPreview

Extract of sample "Economic Competitiveness of the EU in the Light of Growing Trade Expansion from China"

Download file to see previous pages The study will try to understand the competitiveness by taking into consideration of the emergence of China. However, it is not possible to consider all the above mentioned aspects in accordance to their merit due to space restriction. This can be referred as the major limitation of this report. Trade Deficit between EU and China International trade between EU and China has been increased in last decade, for example, export of EU to China has been increased by 110 billion euro during the year 2000 to 2011 (Eurostat, 2012). However, import from China to EU has been increased by 173 billion euro in the same period of time (Eurostat, 2012). The trend is showing that balance of trade is declining for EU and dependency on Chinese export is increasing. Export and import deficit of EU in context to China can be depicted in the following manner. (Source: Eurostat, 2012) Although the trade deficit between for EU has been decreased from 75 billion euro to 67 billion euro in the first six month of 2012 but still the amount of deficit is large enough to impact the competitiveness of EU. After the economic recession, the trade deficit between EU and China has been improving but still the difference is large enough to affect the economic strength of EU nations. According to the above table only Germany and Finland have trade surplus to china while other European countries have trade deficit with China. However, Germany and Finland were unable to convert the trade deficit into trade surplus prior to recession. Careful analysis of the chart shows that growth rate of export from EU nations to China has been outpaced the growth rate of import from China. For example, export volume of Greece to Chine has been doubled...
This essay presents a modern comprehensive analysis of the changing nature of economic relationships between China and European Union. It is shown in the essay, that China gradually improve its level of competitiveness in these relationships, by increasing its exports to the EU, to an extent with the help of such practices as protectionism, intellectual property rights violation and dumping.
International trade between EU and China has been increased in last decade, for example, export of EU to China has been increased by 110 billion euro during the year 2000 to 2011. However, import from China to EU has been increased by 173 billion euro. The trend is showing that balance of trade is declining for EU and dependency on Chinese export is increasing.
Although the trade deficit between for EU has been decreased from 75 billion euro to 67 billion euro in the first six month of 2012 but the amount of deficit is large enough to impact the competitiveness of EU. After the economic recession, the trade deficit between EU and China has been improving
Harsh fact is that there cannot be a single recommendation which can help EU nations to improve its competitiveness in overnight manner. It is shown through that low cost advantage of China cannot be depleted easily by EU manufacturers. EU can use the concept of vertical specialisation to decrease its dependency on Chinese imports and give the domestic players some breathing space. In vertical specialisation model, EU needs to identify sectors which need immediate attention.
...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic Competitiveness of the EU in the Light of Growing Trade Essay”, n.d.)
Economic Competitiveness of the EU in the Light of Growing Trade Essay. Retrieved from https://studentshare.org/macro-microeconomics/1478220-economic-competitiveness-of-the-eu-in-the-light-of-growing-trade-expansion-from-china
(Economic Competitiveness of the EU in the Light of Growing Trade Essay)
Economic Competitiveness of the EU in the Light of Growing Trade Essay. https://studentshare.org/macro-microeconomics/1478220-economic-competitiveness-of-the-eu-in-the-light-of-growing-trade-expansion-from-china.
“Economic Competitiveness of the EU in the Light of Growing Trade Essay”, n.d. https://studentshare.org/macro-microeconomics/1478220-economic-competitiveness-of-the-eu-in-the-light-of-growing-trade-expansion-from-china.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic Competitiveness of the EU in the Light of Growing Trade Expansion from China

BMW expansion in China

.... They realized that countries like China and India are developing much faster than other countries in the world. Moreover, these countries are the most heavily populated countries in the world and therefore demand for BMW products will never be exhausted if this region continues its growth phase. It is believed that China may replace America from the spot of number one economic power in the world, in near future itself. Moreover, BMW suffered some setbacks in American and European market recently which made the expansion to China inevitable. Globalization brought tremendous business opportunities to BMW and they exploited it very well. The formation of...
15 Pages(3750 words)Research Paper

Global Market Expansion To China

... of the very low labor, manufacturing, and operational expenses in China, it has attracted many other companies to make it the gateway of their expansion into the global trade. Also, China is the fastest growing and largest consumer market in the world, yet it is interesting to note that many overseas retailers have struggled and failed in that market (Rein, 2011). There is a Chinese proverb which says, “don’t test the depth of a river with both feet.” This paper will seek to guide our company through the steps and strategies that we have to undertake in order to understand and succeed in the global marketing expansion of the company. Introduction With the premise that our company has maximized our marketing capabilities within... the...
10 Pages(2500 words)Essay

International trade and economic growth of China

...? International trade and economic growth of China: How the Dragon has transformed itself into an efficient growth machine through international trade October 29, 2012 Table of Contents International trade and economic growth of China: How the Dragon has transformed itself into an efficient growth machine through international trade 1 October 29, 2012 1 1. Introduction 3 2. Chinese Economic and Trade Growth 4 3. Discussions 13 4. Conclusion 15 References 15 Appendix 16 1. Introduction The Peoples Republic of China is the world’s second largest economy...
11 Pages(2750 words)Essay

China Global Trade Report

...placed at 58.9%; this number jumps to 77.7% when only individuals over age 15 are considered. With the expansive size of Chinese society virtually all forms of services and goods are produced within this country (Yifu). Chinese pillar industries continue to remain energy and heavy industries; these elements are aided by China’s relatively lax environmental regulations relative to Western industrialized countries. Notably, China continues to lag behind many Western countries in production of high technology innovative goods. Still, it’s notable that China has and continues to experience staggering economic growth. In terms of continued growth, the Chinese...
3 Pages(750 words)Essay

Economic Integration within the EU

...in the EU. The results-oriented approach is that it would also be more decentralized, requiring close co-operation with national authorities in monitoring and selecting sectors requiring intervention. In this manner, the market monitoring could contribute to explain the reform agenda for the years ahead in a way and it would instigate the internal market's full potential by allowing more effective policy instruments for more open, competitive and innovative markets. The economic impacts of the single market: To better be aware of where further achievement might be made in deepening the internal market. This pervades both microeconomic effects, such as on prices, trade...
8 Pages(2000 words)Essay

HR business expansion to china

...below, there are some major issues to consider in whether or not to send Expats or hire them. If it is decided to train them, it must be remembered that some o that training will need to be in the US and that cost will run between $8 and10 thousand per trip. In China, there is not the same expected loyalty to a company because of this expense which means that the company may spend it and do the training only to have the employee be offered a better salary because they are trained and to move jobs. The suggestion here that may help get around some of this cost is to have them sign a contract up front (Wang & XU, 2005). Attracting these people will also be somewhat difficult right now as there is plenty of...
3 Pages(750 words)Essay

Market Competitiveness for SOEs in China

... of the removal of the excessive state cover over the business enterprises which pave the way for a competitive environment in China. Chapter-1: Introduction 1.1 Background of Study Industries that provide better employment opportunities for the people and a reliable source of income for the poor have been established to reduce poverty and to achieve equitable and sustainable development. Therefore, it is imperative that the growth of labour-intensive industries be a central theme of development economics and policies. The proponents of liberalization and globalization claim that globalization has granted access to newer vistas of trade and business all around the globe. Interestingly, several theorists believe that the launching... )...
45 Pages(11250 words)Essay

Japan China trade

...with the presence of anti-Japan protests and isolated boycotts throughout China17. The commitment of china to the WTO agreement and other trading agreements is one of the major factors why this bilateral trading relationship has not been completely shattered. These agreements have acted as insulation against the recurrent political tensions and the economic relationship has remained intact. This commitment to a rule based global trading system allows the relationship to continue to grow despite irreconcilable political differences between these nations. These are the reasons why most researches expect the decline in...
10 Pages(2500 words)Research Paper

Trade and economic grwoth

...nations in short run and about 0.8% growth in the long run (Bitzer & Geishecker, 2006). The research conducted by Parikh & Stirbu (2004) had provided a useful insight about the relation between trade liberalization and economic growth of a nation. Their research had a broad sample of 42 developing countries and a time frame of three decades. The results obtained had indicated that there is a positive correlation between trade liberalization, economic growth and investment growth. Few exceptions were observed in the results, but on a general basis, it could be concluded that trade had positively contributed towards economic growth....
10 Pages(2500 words)Essay

Economic trade

...is the need to protect the infant domestic industries from unfair trade practices and ensure the newly developing industries grow in order to become competitive. The governments may impose quotas on imported products in certain industries and issue subsidies to the domestic industries in order to facilitate their growth and attain competitiveness in the international markets (Boudreaux, 2008, p 62). The nations also restrict international trade in order to safeguard the local jobs from ‘cheap labor abroad’ through supporting the establishment of domestic industries that will create jobs for the population. For instance, the US government has outlined...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic Competitiveness of the EU in the Light of Growing Trade Expansion from China for FREE!

Contact Us