Free Essay on Globalization: Assessment of International Industry Cooperation

Published: 2017-12-05
Free Essay on Globalization: Assessment of International Industry Cooperation
Type of paper:  Essay
Categories:  Globalization
Pages: 3
Wordcount: 808 words
7 min read

The globalization of industrial markets has advanced profusely through the support of the governments and trade blocs to endorse appropriate and beneficial strategies favoring economic growth. However, underdeveloped and developed economies accrued imbalanced foreign benefits before the Chinese multinationals promoted and intensified the provision of cost-effective goods and services to the affected economies. Research on newspaper-based publications indicates that China’s evolution in trade and its involvement in the African region thrive with the signing of treaties between its leaders and those of the relevant nations (Van der Lugt, et al. 2011, p. 1). Through the copious launch of trading agreements, China’s new investments based on the exportation of finished products and infrastructure services has enhanced innovations and regional economic growth in the African continent. The potential and realistic results of China’s international trade involvements curb the challenges that African nations faced in the past. For instance, over 40 nations in the continent reported redundancy in the GDP growth; hence, on many occasions, the importation of critical products from the Western multinationals exposed the nations to currency inflations and increased poverty levels (Bräutigam and Zhang 2013, p. 1690). The study reviews the positive and negative impacts of China-African trade relations in the past, contemporary, and future environmental perspectives.

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Critical review

In Africa, nations’ involvement in international trading faces distinct problems if the major stakeholders fail to address foreign influences with caution. The conflicts expected from ill-addressed trade relations constitute to humanitarian crisis and upheaval to the socio-political, economic, and legal welfare in many cases. However, China’s comparative advantage in labor and capital factors has influenced its economic success in trading with the African economies. The financial crisis and the economic crunch that hit the globe in the years 2008-2012 resulted in increased global debts and currency inflations. The situation was worse in the underdeveloped and developing global economies; however, China’s involvement in the African trade remained feasible option to revive Africa. The nation seeks to investigate how emerging its Asian markets would prove financially sustainable for its international relations through the implementation of capitalism strategies in the different unions of the African market.

In many occasions, the agricultural, mining, and oil producing economies record increased GDP growth rate, unlike nations depending on importation of almost all these products for economic propulsion. Such economic advancement is evident in China, which has grown by 65% within a period of three decades. ASEAN comprises different economies and China succeeds as the only compatible nation to African requirements of trade. The Asian economy contributes to the global growth at a GDP growth rate of 4.5%. The average combination indicates that the economies may rarely suffer the threat of the global economic debt (Alden and Wu 2016, p. 72). The nations’ trade interrelations in cheap industrial, agricultural, and oil products serve to cater 60% of the domestic to foreign demands.

Since the Chinese involvement in the 1990’s, the ASEAN-African unity has been playing a significant role in ensuring a balanced approach to policies’ implementation in all economies across the continent. The organization ensures that the member nations accrue equated revenues depending on the amount of revenue accrued from exchanges in the global marketplace. Moreover, the organized economic relationship undertakes a legitimate approach to the issues concerning infrastructure and domestic production, and eventually serves to deliver mutual and beneficial outcomes to the society and the affiliated member nations. To that effect, China exports over 3 million containers to the African region every year. Similarly, the country imports over 2 million containers of raw materials from the region. Hence, China plays a significant role in abiding by the ASEAN production quotas as it has been able to control its policies to represent 10% of the available amount from a global perspective.

The industrial production and international trade in China-Africa’s case has enabled the nation to leap the development stages and reign amongst the G20 developed nations. Considering the rapid increment in the natural resource revenues, China has been able to deviate from the dependence on domestic consumerism to invest in the African industrial sector (Duclos and Younger 2006, p. 950). Therefore, China is currently known for its growth in resource-based industries (RBI) from a global point of view. China has been getting rid of its practice of exploiting international markets by applying cost-friendly pricing approaches. These ensure that the economy does not depend essentially on overpriced activities. With knowledge that the country possesses a 10% and 6% stakes in industrial production and labor factors respectively, the administration seeks to ensure a lengthy period of economic growth rather than overdependence on the two elements (Van der Lugt, et al. 2011, p. 1). Therefore, China has reestablished itself as a tourism destination, a business center, and an industrial hub in the period of the last decade. To an extent, the practice has attracted African entrepreneurs towards China.

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