The Chinese economy has grown rapidly over the past decade to become the world’s second-largest economy after the US. The rapid growth rate of the economy is good for the US. The following are the benefits of the Chinese economy’s growth to the US:
§ The investment of American companies in the China economy is beneficial to the US. The profits made by the US companies based in China amounted to over $8 billion in the year 2014(Shan).
§ China has provided a big market for the U.S exports. Many U.S manufacturing firms export their products to China.
§ The growth of the Chinese economy has helped in lowering the cost of living in the US. The value-for-money consumer goods imported by the US from China have helped to maintain a lower cost of living in the US.
The above reasoning is based on liberal assumptions. This theory stipulates thus
§ The nature of humanity is basically good and selfless. The citizenry can promote mutual support and collaboration through reasoning and education.
§ The ground laying concern of human beings for the other people’s welfare facilitates success.
§ Bad human behavior results from evil institutions which encourage selfishness and harm.
The role of China in the international political economy in the next ten years.
The Chinese economy is set to win big in the next ten years. Its ability and power to use state-owned corporations to enhance its foreign and domestic influence ensures the Chinese economy is on track to surpass the US economy in the next decade.
Increased consumption - The global use of China products will continue to rise in the next ten years, and the economy of China will grow more than twice that of the developed nations (Euromonitor).
Increased exports – China exports will keep rising in the next ten years as a result of its advancements in the global trade.
There will also be increased pressure on the Chinese Corporate sector. The Chinese corporate industry will be hugely indebted in the next ten years.
China will participate in the funding of the environmental initiatives that seek to promote environmental health. Recent events in the Chinese government have indicated that China may start funding environmental efforts in the developing world.
The role of Nigeria in the international political economy in the next ten years.
Promotion of peace – Nigeria will continue its effort towards the development of peace in West Africa in the years to come.
Conflicts and insecurity – Nigeria is projected to continue suffering from armed conflicts as a result of Islamic terrorists based in Nigeria and neighboring countries.
Moreover, the majority of Nigerian citizens will continue suffering from high poverty levels with about two-thirds of Nigerians living on a budget of less than $1.25 in a day.
Economic Interdependence
Economic interdependence arises from specialization. The participators in the economic system have to engage in a trade to acquire what they do not produce. Actions of one participant in this trade affect the demands and incomes of the other countries in the economic system. Economic interdependence has increased over the recent past as a result of continued specialization on productions leading to a high development of international trade.
America’s actions regarding tariffs
The US has been imposing tariffs on its trade partners under the leadership of President Donald Trump. On 31st May 2018, the US imposed taxes on steel and aluminum from Canada, Mexico, and the European Union with the aim of protecting American metal producers. Also, America has imposed tariffs on the Chinese products. America aims at protecting its traders through the imposition of duties on foreign goods and products in a policy that aims at putting America’s priorities first before the preferences of its trade partners.
Trade agreements between countries
Trade agreements refer to those arrangements between two or more countries on specific trade terms. Trade agreements help states to determine tariffs and duties of nations regarding imports and exports(AMADEO). The following are the benefits that allure countries to enter into trade agreements:
§ To enjoy free trade with no or minimum tariffs as well as the smooth flow of goods across borders.
§ There is increased productivity and innovations in free trade.
§ Need to promote regional and international cooperation.
§ To promote foreign investments in global markets.
Works Cited
Amadeo, Kimberly. Free Trade Agreements, Their Impact, Types, and Examples. 7 May 2018. 7 July 2018 .
Euromonitor. "China’s Impact on Global Economy and Consumers." Euromonitor Internaional (2017): 10-25.
Shan, Zhong. U.S.-China Trade Is a Win-Win Game. New York, 2009.
