In this age of globalization, the world has been transformed into a unified local zone where there is strong interdependence between nations. These international relationships traverse national boundaries, and accordingly, they have given rise to the concepts of global trade and global economy. The increasing interconnectedness of national economies has been of significant impacts in the modern day trade, especially with regards to international business in particular. In this paper, one of the current issues affecting international business and trade is the emerging ‘China threat’, which shall be discussed in detail below. With regards to international business, China’s massive participation has been considered a threat even to major economies of the world such as the US. China has never been on mutual terms with the US, something that is attributed to China’s negative impact on the US economy; China has always been accused of international business malpractices that have resulted to stagnation of the US economy (Newman).
According to the former US Republican presidential hopeful Mitt Romney, tougher measures should be taken against China in order to reduce its massive domineering influence in international business. In response to this assertion, the US president Obama launched a claim with the World Trade Organization accusing China of artificially keeping the prices of its autos and auto parts through illegal subsidies and weakening global prices henceforth. In this manner, China does not compete with other global markets on a fairground; such business malpractices undermine global competition. Unfortunately, many nations (the US included) do not have any strategy for dealing with the China threat, and sadly enough, China's mode of state-run capitalism is more successful than the noninterventionist system practiced in developed nations including US (Newman).
According to D’Aveni, a prominent business strategist and consultant, a series of pragmatic and dynamic strategies can be adopted to reduce China’s impact on the US economy; these strategies he believes will reinvigorate and revive the US economy.
Work CitedNewman, Rick. “The Case for Getting Much Tougher on China”. Usnews.com. 2012. Web. 23rd Dec, 2012.< http://www.usnews.com/news/blogs/rick-newman/2012/09/21/the-case-for-getting-much-tougher-on-china>
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