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Article #361: International Trade: Effect of Liberalization

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There are about forty thousand technologies between China and other
multinational companies operating world countries, it has now become easy for
wide and almost 200,000 overseas joint companies to get access to new
ventures that run across the continents. technologies. With the changing
Many of these collaborations and joint liberalization policies in the whole
ventures have concerns, directly or world including China, a good number of
indirectly, with China business companies are garnering benefits from
enterprises. The access to China through international trade and investments. From
world-wide international trade expansion point of view many
investments is increasing day by day. multinational companies in China are
Moreover, due to globalization the extent increasing their level of work so that
to which China's international trade and they can gain maximum share of
investments bears an impact is very wide. international trade and investments.
It is due to globalization that the These corporations are also busy in
international market has a direct increasing the goodwill of their brand
approach to acquire modern technology and name and are continuously striving to
consequently reduce the problems of make their presence felt in international
distribution and stumpy internal trade. On account of increasing
coordination expenses. It has opened the competitiveness in international market,
doors for the specialization of network multinational corporations are paying
services and products with collective sufficient heed to provide quality work
support of companies. Business process at low price.
outsourcing for both internal activities As such they are investing on reasonable
and external activities is the result of price raw materials and labor. However
globalization of international trade and the main reason for all these activities
global investments. Business process is to get access to a wider market.
outsourcing is the common concept in the Although there are some drawbacks of
entire world and China is one of the expansion of international trade and
leading countries that provide such investments but if rules of international
services. For quality work and trade are followed then the problems can
performance the outsourcing companies be minimized and properly handled. The
often select China as their business big size of the Chinese market is a major
collaborators. attraction to many prospective new
With the increasing ratio of entrants in international trade and
communication and exchange of investments.






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