Internet Exercises


1			The effects of the economic slowdown in the U.S. continue to be felt not only among U.S. corporations, but also among foreign companies, except perhaps Chinese firms. China has posted double-digit growth rates in recent years, and is quickly establishing itself as a major player in world trade. In fact, experts expect that China could become the world's largest exporter in five years. Furthermore, the country has shifted from its earlier strategy of acting as a cheap assembly alternative for toys and clothing to becoming producers of a huge range of products including automobiles, consumer electronics, and semiconductors. China is also making it clear that it has a strong core of engineers and scientists who are ready to challenge the U.S. in technological innovation. Go to the U.S. Census Bureau http://www.census.gov/foreign-trade/balance/c5700.html National Bureau of Statistics of China http://www.stats.gov.cn/english/ and explore the shift in trade between the U.S. and China, and also China and the rest of the world. Then explain the shift in China's trading patterns. Which theory best explains China's emergence as a major player in world trade? Some experts have suggested that the build up of industrial capacity in China is, at least in part, necessary to serve the Chinese market. How would David Ricardo (theory of comparative advantage) view this notion? Source: "World Depends on U.S. Consumers," The Akron Beacon Journal, 1/21/03, p. D1.




2			Canada – U.S.A. – Japan - China. This multi-sided trade relationship, and the changes taking place, has a big effect. Some dynamics are Canadian exporters continuing to export competitively to the U.S. Canadian resource and food exporters continuing to export competitively to Japan Canadian importers importing lower priced goods from China, compared to Japan Canadian importers increasing the volume and variety of imports from China View these pages to see how the relationship is changing http://www.witiger.com/internationalbusiness/CanadasTradingSquare.htm Canadian government website: Japan; An Economic overview http://www.ic.gc.ca/epic/site/ibi-iai.nsf/en/bi18701e.html Canadian government website: China; An Economic overview http://www.ic.gc.ca/epic/site/ibi-iai.nsf/en/bi18683e.html Canadian government website: United States; Country Report http://www.ic.gc.ca/epic/site/ibi-iai.nsf/en/bi18736e.html

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