can anybody tell me about emerging markets:India and china? plz give me some information about that?

Question

today's two larg counrties india and china are doing business with the US. bcoz of that , wat kind of benifites do the US, india and china get?

Answer 1

China:

Chief Allies: American Consumers, Iran
Archenemies: Japan/India
$50 billion per year of foreign investment, a labor force that survives on $70 a month, has enjoyed a 9% GDP growth for 25 years….all under state controlled pseudo-capitalism, has a spiking fuel addiction, and just inked a $70 billion three-decade natural gas deal with Iran

Economy: China has an economy so robust that to keep the value of its “Yuan” in check, the People’s Bank of China has been propping up our currency by accumulating American dollars, bonds, and treasuries—about $533 billion at last count. By keeping the currency undervalued, the Chinese are telling the world, “We can provide you with low-cost goods,” Communism may be nearly dead in all but the name in China, but it survives in the form of one last taboo: the fact that the right of an individual to own agricultural land is tenuous (weak) at best.

Problem: China needs to address the fact that its farmers have missed out on the double-digit growth that has transformed urban China and turned its richest cities into some of the most dynamic in Asia.

Problem: If China decided to drop/dump its dollar reserve on the world currency market, interest rates here could skyrocket, severely damaging our stock and housing markets. However, that probably won’t happen because China needs American prosperity to continue its growth, and Americans with extra dollars love Chinese imports. It keeps the Chinese economic juggernaut rolling.

China is currently the second-largest holder of U.S. Treasuries behind Japan, creating a need for China to create a stronger hedge against a weakening dollar

"Economic liberty and political liberty go hand in hand,” Access to American markets has played an important role in China's economic development," China needs to provide a level playing field for American businesses seeking access to China's market. The United States supported China's entry into the World Trade Organization because a China that abides by the same global rules as everyone else will contribute to a free and fair world trading system." In other words, enmeshing China in trading pacts such as the WTO will slowly boost Chinese living standards and concurrently make China a more responsible actor on the world stage. "The freer China is at home, the greater the welcome it will receive abroad,” But China's isolation during the 1960s and early 1970s produced the mayhem of the Cultural Revolution. And doing business with an isolated China would be much thornier than doing business with a WTO-minted China. "We look forward to resolving our trade differences in a spirit of mutual respect and adherence to global rules and standards,"

According to The Economist, “The [communist] party no longer really frets about the ideological purity of its leaders. And since the days of Mao each new generation of leaders in Beijing has been increasingly less able to command instant obedience across the country.”
Atomised (2006, June 3-9). The Economist, 37-38




India:
Chief Ally: U.S.
Archenemy: Pakistan, China
Economy: averages 5.6% growth per year since 1990-Idia is Asia’s third largest economy, they are riding the outsource wave and a lopsided $18 billion U.S. trade partnership that’s export heavy and import light.

“India has been a daunting place to do business, its entrepreneurs chained down by the world’s most bureaucratic bureaucracy, lousy infrastructure and lousier Fabian economic ideas.”
Can India Fly? (2006, June 3-9). The Economist, p.13

The pace of change is astonishing. For almost 50 years after independence, India shut itself off from the world, prickly, autarkic, moralistic, practising a deadly combination of Fabian economics and socialist non-alignment.

Answer 2

Trade happens when there is a comparative advantage. The US is a capital intensive country, so it has a comparative advantage in making goods such as chemicals or agricultural products. (They can make them more cheaply than China or India can).

China and India on the other hand, are labor-intensive countries. With their large population, they have a cheaper work force and can produce goods like textiles and clothes more cheaply compared to the US.

When China and India engage in trade with the US, the whole world in general benefits. Why? because for example, China will leave the chemcial-making to the US (who can make more chemicals at a cheaper price) and China will devote more of its resources to making clothes. Then China can trade the clothes for chemicals to meet their own chemical-needs. All in all, the world as a whole will be making goods more efficiently.

The only thing is, not everyone wins. yes, the whole world in general may have gained from lower prices an more goods to share, but for example, the chemical worker in China might be laid off, and the US clothes manufacturer wont be happy either. however, everyone in china will get cheaper chemicals than if trade did not happen and everyone in the US will have cheaper clothes than if trade did not occur.

Answer 3

Wow! You've asked a full research paper here!

China is emerging and they are competing for our resources from global suppliers - one of the reasons why oil is so costly. We're bigging for that oil against China. China also has a rule that a foriegn company that wants to sell in china has to be in a joint venture with a Chinese company. So it basically means that China, while a huge population, will benefit, but not American businesses.

China is also an emerging market due to the fact that 1) the manufacture products for the U.S. market as well as other countries. Also China is emerging because they are starting to educate their people by offering more alternatives for education within their own country, which means they can keep their brightest and best there instead of losing their smart minds to the U.S.

Can't comment on India...sorry

Answer 4

Every party of a trade always benefits from the trade. Thus, if China and the U.S. trade, they both benefit. Simple as that. If there was not a benefit for one or the other, the trade would not happen.

Answer 5

The US gets no benefits, except someone to finance their deficit budget.

China and India get money to bolster their economy, which sucks because they haven't figured out how to control their population yet.